The cryptocurrency market never closes. 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 automate part of or the whole trading process. The cryptocurrency market allows traders to use bots to make trades.
Which bot do you need?
Bots are divided into two major categories: prebuilt bots and self-built bots. Pre-built bots are a good choice for non-technical traders. 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.
How to pick 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 just ease of programming you need a bot that can work on most exchanges and that has good customer care.
You need to be careful as you research on a bot to use because the cryptocurrency space is not risk free. 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
Each bot and exchange has its own unique characteristics. For your bot to function you first need to create API keys. 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. 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.
When programming your bot never enable it to withdraw funds from your account. 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. The tips discussed above are bound to benefit both industry veterans as well as people that are joining the cryptocurrency bot trading industry.