The crypto market is a 24 hour market that operates on each day of the week. Due to the operating hours it can be hard to manage the position of trades physically. 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. The cryptocurrency market allows traders to use bots to make trades.
Which 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. 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 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.
Bot trading tips
There are many bots and exchanges in the market and each has its own unique characteristics as well as requirements. For your bot to function you first need to create API keys. Each exchange has its own instructions on creating API keys which you need to follow to the letter to successfully create API keys.
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. Keep your API keys safe and possible offline if you can. If someone manages to get a hold of your API keys they can manipulate your account.
Another safety measure to follow is to never grant your bot the right to withdraw funds. There is no need to give withdrawal rights to a bot. When conducting an arbitrage you may give a bot the right to withdraw funds. It is safer if your bot cannot withdraw funds since it reduces the harm that one can do when they hack the bot.
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. These tips will be of much help to anyone in the cryptocurrency space-be they a veteran or amateur