The crypto market is a 24 hour market that operates on each day of the week. This makes physical trading very demanding and nearly impossible to do successfully. 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 either perform part of the trade or do the whole trade. 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. 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 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.
Cryptocurrency exchanges are not devoid of risk thus you need to do your due diligence. 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.
Tips on crypto bot trading
Each bot and exchange has its own unique characteristics. You need to create API keys for your bot to function. 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 else manages to get your API keys then they can make alterations to 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 notice this then you need to delete your keys, alter your passwords and report the issue to the bot company. These tips will come in handy for anyone that is new to the cryptocurrency bot trading space.