The cryptocurrency market never closes. This makes physical trading very hard. 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 either perform part of the trade or do the whole trade. The cryptocurrency market allows traders to use bots to make trades.
Which bot is right for you?
There are two kinds of bots: prebuilt and hosted bots and self-built and hosted 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. When it comes to pre-built bots they can either be fully built bots or programmable bots that you need to code a trading strategy for.
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.
Cryptocurrency exchanges are not devoid of risk thus you need to do your due diligence. 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. Before you set up your bot you need to remember that you have to create API keys to get your bot to function. Each exchange has its own instructions on creating API keys which you need to follow to the letter to successfully create API keys.
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 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.