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. Crypto trading bots are basically computer software that have been programmed to conduct 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 is right for you?
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 just learning the ropes on crypto bot trading then choose a company that has an incomplete bot that you can program easily. 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.
Tips on crypto bot trading
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. 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.
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. 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.
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