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. Bots are computer programs that have been programmed to conduct 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. Not all pre-built bots come with a trading strategy, there are some that you need to program a trading strategy.
How to select 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.
Do your due diligence when looking for a bot because the cryptocurrency space has some risks just like a regular stock exchange. 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.
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. Follow the specific instructions on the exchange about creation of APIs.
If your API keys do not function you need to: counter check the instructions, use another browser or just try to create another key set. 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. There is no need to give withdrawal rights to a bot. 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. The tips discussed above are bound to benefit both industry veterans as well as people that are joining the cryptocurrency bot trading industry.