The cryptocurrency market never closes. This makes physical trading very demanding and nearly impossible to do successfully. Due to this challenge many cryptocurrency traders have opted to use bots to trade 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 bot is right for you?
Bots are divided into two major categories: prebuilt bots and 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 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 assessing whether the bot is beginner friendly make sure the bot can be used on various exchanges and there company has great customer service.
You need to be careful as you research on a bot to use because the cryptocurrency space is not risk free. 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.
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. 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 accesses your API keys they can make trades using your account.
When programming your bot never enable it to withdraw funds from your account. 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. It is safer if your bot cannot withdraw funds since it reduces the harm that one can do when they hack the bot.
In the event that you are hacked you need to alter your passwords, delete your keys and file 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