The cryptocurrency market never closes. 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 kind of bot do you need?
Bots are divided into two major categories: prebuilt bots and 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. Not all pre-built bots come with a trading strategy, there are some that you need to program a trading strategy.
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.
You need to be careful as you research on a bot to use because the cryptocurrency space is not risk free. Choose a site that offers you the chance to try various strategies for a good period of time before making any payments.
Tips on crypto bot trading
There are many bots and exchanges in the market and each has its own unique characteristics as well as requirements. For your bot to function you first need to create API keys. 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 accesses your API keys they can make trades using your account.
When programming your bot never enable it to withdraw funds from your account. There is no need to give withdrawal rights to a bot. 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. These tips will be of much help to anyone in the cryptocurrency space-be they a veteran or amateur