The crypto market is a 24 hour market that operates on each day of the week. 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. Crypto trading bots are basically computer software that have been programmed to conduct trades. Bots can be programmed to either perform part of the trade or do the whole trade. The cryptocurrency market allows traders to use bots to make trades.
Which kind of bot do you need?
Bots can be categorized as either pre-built or self-built 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 pick a bot
If you are just learning the ropes on crypto bot trading then choose a company that has an incomplete bot that you can program easily. 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 deciding on what bot you want choose one that has a long trial period that allows you to test the waters without any financial implications.
Effective cryptocurrency bot trading tips
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. It is not wise to give the bot rights to withdraw funds. 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 notice this then you need to delete your keys, alter your passwords and report the issue to the bot company. These tips will come in handy for anyone that is new to the cryptocurrency bot trading space.