Crypto bots get a bad reputation from the endless scam projects promising automated profits. But legitimate bot strategies exist and are worth understanding — especially flash loan bots which operate on a completely different model.
What Crypto Bots Actually Are
A crypto bot is simply a program that executes trades or transactions automatically based on predefined rules. The bot monitors conditions and acts faster than any human could.
Bots are not magic. They are only as good as the strategy they are programmed to execute.
Types of Legitimate Crypto Bots
Arbitrage bots
Monitor price differences between exchanges and execute trades to profit from the gaps. Flash loan arbitrage bots do this without requiring the bot operator to own large amounts of capital.
Liquidation bots
Monitor DeFi lending protocols for undercollateralized positions. When a position becomes liquidatable, the bot executes the liquidation to claim the bonus. Flash loans provide the capital needed.
Market making bots
Provide liquidity on both sides of a trading pair and profit from the spread. Requires capital and carries inventory risk.
Grid trading bots
Buy and sell at preset price intervals within a range. Works well in sideways markets, poorly in trending markets.
Flash Loan Bots: The Zero Capital Model
What makes flash loan bots unique is the capital model. Traditional arbitrage bots require significant capital to operate. Flash loan bots borrow what they need for each transaction and repay it immediately.
The barrier to flash loan bot operation is not capital — it is knowledge. Building or understanding a flash loan bot requires learning DeFi mechanics properly.
The Realistic Outlook
Profitable bot operation requires genuine technical understanding and constant maintenance. Markets change, opportunities close, and competition increases. Anyone selling a pre-built bot promising guaranteed returns is running a scam.
Building real knowledge about how these systems work is the foundation.
Free tutorials on DeFi mechanics and flash loans: https://t.me/flashloans_tut
