Unlike the traditional stock exchange the cryptocurrency market never closes. This makes physical trading very demanding and nearly impossible to do successfully. Due to the fact that no trader can manage to keep their eyes on trades for 24 hours most people opt for using crypto trading bots. Bot trading involves using computer software to manage your trades. Bots can be programmed to automate part of or the whole trading process. The cryptocurrency market allows traders to use bots to make trades.
Which kind of bot do you need?
There are two kinds of bots: prebuilt and hosted bots and self-built and hosted bots. Pre-built bots are a good choice for non-technical traders. Not all pre-built bots come with a trading strategy, there are some that you need to program a trading strategy.
Things to consider when choosing a bot
If you are a new entrant to the world of crypto bot trading then settle for a bot that you can easily program to include a trading strategy. Apart from assessing whether the bot is beginner friendly make sure the bot can be used on various exchanges and there company has great customer service.
Cryptocurrency exchanges are not devoid of risk thus you need to do your due diligence. Choose a site that offers you the chance to try various strategies for a good period of time before making any payments.
Bot trading tips
Each bot and exchange has its own unique characteristics. You need to create API keys for your bot to function. Different exchanges have different guidelines on how to create API keys which must be followed so as to successfully operate the bot on the exchange.
If your API keys are not functioning then you can assess the creation procedure by keenly following the manual, use another browser or simply just create new API keys. Remember to keep your API secret and offline if you can. If someone else manages to get your API keys then they can make alterations to your account.
Another safety measure to follow is to never grant your bot the right to withdraw funds. Giving a bot the right to withdraw funds is not necessary. When conducting an arbitrage you may give a bot the right to withdraw funds. In the event that you are hacked but the bot cannot withdraw funds then the worst that can happen is that the person will perform some bad trades.
If you realize that you have been hacked you need to move swiftly and delete your keys, reset your passwords and raise a complaint with the bot company. These tips will come in handy for anyone that is new to the cryptocurrency bot trading space.