Bot Activity describes the automated actions performed by software programs on cryptocurrency platforms. These programs execute tasks without direct human intervention, often at high speeds. Their operations can include automated trading, arbitrage across exchanges, or participation in network governance and validation processes. Such activity leverages computational speed to react to market conditions or protocol events.
Context
Bot activity significantly influences market efficiency, liquidity, and sometimes fairness in digital asset markets. Discussions frequently revolve around distinguishing legitimate algorithmic trading from manipulative practices, such as front-running or market making that distorts prices. Monitoring and regulating these automated operations remain a key challenge for exchanges and regulatory bodies.
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