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. This is why many traders refer to use bots to do their trading for them. Bots are computer programs 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 do you need?
Bots are divided into two major categories: prebuilt bots and 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.
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.
Cryptocurrency exchanges are not devoid of risk thus you need to do your due diligence. Choose a site that offers you the chance to try various strategies for a good period of time before making any payments.
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. 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 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. 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.
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. These tips will be of much help to anyone in the cryptocurrency space-be they a veteran or amateur