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. Bot trading involves using computer software to manage your 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. 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.
You need to be careful as you research on a bot to use because the cryptocurrency space is not risk free. When choosing a bot to try out choose one that offers you a long trial period so that you can test the various strategies before settling on one.
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. Each exchange has its own instructions on creating API keys which you need to follow to the letter to successfully create API keys.
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 accesses your API keys they can make trades using your account.
Never give permission to your bot to withdraw funds. It is not wise to give the bot rights to withdraw funds. When conducting an arbitrage you may give a bot the right to withdraw funds. 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. The tips discussed above are bound to benefit both industry veterans as well as people that are joining the cryptocurrency bot trading industry.