The crypto market is a 24 hour market that operates on each day of the week. This makes physical trading very hard. This is why many traders refer to use bots to do their trading for them. 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 bot is right for you?
Bots can be categorized as either pre-built or self-built bots. If you are not a technical person or do not have the time to code a program then a prebuilt bot is a good option. 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 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 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.
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. 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. 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. The tips discussed above are bound to benefit both industry veterans as well as people that are joining the cryptocurrency bot trading industry.