The cryptocurrency market never closes. This makes physical trading very hard. 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. If you are not a technical person then pre-built bots are a good choice for you. 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 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 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. Choose a site that offers you the chance to try various strategies for a good period of time before making any payments.
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 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. When conducting an arbitrage you may give a bot the right to withdraw funds. 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. The tips discussed above are bound to benefit both industry veterans as well as people that are joining the cryptocurrency bot trading industry.