The crypto market is a 24 hour market that operates on each day of the week. Due to the operating hours it can be hard to manage the position of trades physically. 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 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 then pre-built bots are a good choice for you. 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 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. The bot need to be able to work on various exchanges and the company needs to have good customer service to handle any issues you might have.
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.
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. 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 do not function you need to: counter check the instructions, use another browser or just try to create another key set. Remember to keep your API secret and offline if you can. If someone manages to get a hold of your API keys they can manipulate 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. 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.
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. The tips discussed above are bound to benefit both industry veterans as well as people that are joining the cryptocurrency bot trading industry.