The cryptocurrency market never closes. 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. You can customize the bot to handle the whole trade or certain parts of the trade. It is legal to use bots to trade on all cryptocurrency exchanges as well as some stock exchanges.
Which bot is right for you?
There are two kinds of bots: prebuilt and hosted bots and self-built and hosted 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 a new trader the best thing to do is choose a programmable pre-built bot that is friendly to beginners and has a long trial period. Apart from just ease of programming you need a bot that can work on most exchanges and that has good customer care.
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. For your bot to function you first need to create API keys. 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.
When programming your bot never enable it to withdraw funds from your account. It is not wise to give the bot rights to withdraw funds. One of the only times that you can give a bot the right to withdraw funds is when conducting an arbitrage. 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.