The crypto market is a 24 hour market that operates on each day of the week. This makes physical trading very hard. 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. Bots can be programmed to automate part of or the whole trading process. In the crypto space it is perfectly legal to use a bot to conduct your trade.
Which kind of bot do you need?
Bots can be categorized as either pre-built or self-built bots. Pre-built bots are a good choice for non-technical traders. 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.
Things to consider when choosing a bot
If you are just learning the ropes on crypto bot trading then choose a company that has an incomplete bot that you can program easily. 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. 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. Before you set up your bot you need to remember that you have to create API keys to get your bot to function. Follow the specific instructions on the exchange about creation of APIs.
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 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. It is safer if your bot cannot withdraw funds since it reduces the harm that one can do when they hack the bot.
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.