Unlike the traditional stock exchange the cryptocurrency market never closes. 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. Bots are computer programs that have been programmed to conduct 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 kind of 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. 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.
How to select 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. 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. Choose a site that offers you the chance to try various strategies for a good period of time before making any payments.
Bot trading tips
Each bot and exchange has its own unique characteristics. 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. Keep your API keys safe and possible offline if you can. If someone accesses your API keys they can make trades using your account.
Another safety measure to follow is to never grant your bot the right to withdraw funds. It is not wise to give the bot rights to withdraw funds. One of the only times that you can give a bot the right to withdraw funds is when conducting an arbitrage. 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 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