Unlike the traditional stock exchange the cryptocurrency market never closes. This makes physical trading very demanding and nearly impossible to do successfully. Due to this challenge many cryptocurrency traders have opted to use bots to trade for them. Crypto trading bots are basically computer software that have been programmed to conduct trades. You can customize the bot to handle the whole trade or certain parts of the trade. It is legal to use bots to trade on all cryptocurrency exchanges as well as some stock exchanges.
Which bot is right for you?
Bots are divided into two major categories: prebuilt bots and self-built bots. Pre-built bots are a good choice for non-technical traders. Not all pre-built bots come with a trading strategy, there are some that you need to program a trading strategy.
Things to consider when choosing 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 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
Each bot and exchange has its own unique characteristics. 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.
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 manages to get a hold of your API keys they can manipulate your account.
Never give permission to your bot to withdraw funds. It is not wise to give the bot rights to withdraw funds. 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. These tips will come in handy for anyone that is new to the cryptocurrency bot trading space.