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 the fact that no trader can manage to keep their eyes on trades for 24 hours most people opt for using crypto trading bots. Bot trading involves using computer software to manage your trades. Bots can be programmed to automate part of or the whole trading process. It is legal to use bots to trade on all cryptocurrency exchanges as well as some stock exchanges.
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 entrant to the world of crypto bot trading then settle for a bot that you can easily program to include a trading strategy. The bot need to be able to work on various exchanges and the company needs to have good customer service to handle any issues you might have.
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
Each bot and exchange has its own unique characteristics. Before you set up your bot you need to remember that you have to create API keys to get 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 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. Giving a bot the right to withdraw funds is not necessary. 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 notice this then you need to delete your keys, alter your passwords and report the issue to the bot company. These tips will come in handy for anyone that is new to the cryptocurrency bot trading space.