A trading bot is an automated program that executes trades on financial markets (such as cryptocurrency or stock exchanges) without human intervention. It uses algorithms to analyze data, find opportunities, and execute trades.

The bot connects to the exchange via API and executes pre-set algorithms:
Analyzes market data (prices, volumes, trends).
Makes decisions about buying or selling assets.
Controls risks using tools (stop loss, take profit).
Works around the clock, without interruptions.

Trading bots can use a variety of strategies, including:
Scalping: Making lots of small trades to make a quick profit.
Arbitrage: Taking advantage of price differences between different exchanges.
Trend trading: Entering a market when there is an uptrend or downtrend.
Market making: Creating liquidity and profiting from the difference between buying and selling.

Yes, but success depends on:
The quality of the chosen strategy.
Market conditions (volatility).
Regular optimization and monitoring of the bot.

Works 24/7 without breaks.
Removes emotional errors.
Reacts quickly to market changes.
Automates routine processes.