Unlike the traditional stock exchange the cryptocurrency market never closes. This makes physical trading very hard. This is why many traders refer to use bots to do their trading for them. Bots are computer programs that have been programmed to conduct trades. Bots can be programmed to automate part of or the whole trading process. It is legal to use bots to trade on all cryptocurrency exchanges as well as some stock exchanges.
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. The prebuilt bots are further divided into two categories: the fully built ones (these ones have a pre-programmed strategy) and the programmable bots that need you to implement a strategy using the automated trading platform.
How to select 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.
Do your due diligence when looking for a bot because the cryptocurrency space has some risks just like a regular stock exchange. When choosing a bot to try out choose one that offers you a long trial period so that you can test the various strategies before settling on one.
Tips on crypto bot trading
There are many bots and exchanges in the market and each has its own unique characteristics as well as requirements. You need to create API keys for your bot to function. Follow the specific instructions on the exchange about creation of APIs.
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. One of the only times that you can give a bot the right to withdraw funds is when conducting an arbitrage. If your bot does not have the permission to withdraw then in case someone hacks your bot then the worst thing that they can do is make bad trades.
In the event that you are hacked you need to alter your passwords, delete your keys and file a complaint with the bot company. The tips discussed above are bound to benefit both industry veterans as well as people that are joining the cryptocurrency bot trading industry.