Unlike the traditional stock exchange the cryptocurrency market never closes. This makes physical trading very hard. 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. It is legal to use bots to trade on all cryptocurrency exchanges as well as some stock exchanges.
Which bot do you need?
Bots are divided into two major categories: prebuilt bots and self-built bots. Pre-built bots are a good choice for non-technical traders. When it comes to pre-built bots they can either be fully built bots or programmable bots that you need to code a trading strategy for.
How to select a bot
If you are a new trader the best thing to do is choose a programmable pre-built bot that is friendly to beginners and has a long trial period. Apart from just ease of programming you need a bot that can work on most exchanges and that has good customer care.
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. Before you set up your bot you need to remember that you have to create API keys to get 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.
In case you have issues with your API keys you can revisit the guidelines, use a different browser or just delete the current ones and create new API keys. Remember to keep your API keys safe and if possible keep the offline to decrease the chances of being hacked. If someone else manages to get your API keys then they can make alterations to your account.
Never give permission to your bot to withdraw funds. Giving a bot the right to withdraw funds is not necessary. The only time you can give your bot permission to withdraw is when you are doing something like arbitrage between exchanges. 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.
In the event that you are hacked you need to alter your passwords, delete your keys and file a complaint with the bot company. These tips will be of much help to anyone in the cryptocurrency space-be they a veteran or amateur