Unlike the traditional stock exchange the cryptocurrency market never closes. This makes physical trading very hard. Due to this challenge many cryptocurrency traders have opted to use bots to trade 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. In the crypto space it is perfectly legal to use a bot to conduct your trade.
Which bot is right for you?
There are two kinds of bots: prebuilt and hosted bots and self-built and hosted bots. If you are not a technical person or do not have the time to code a program then a prebuilt bot is a good option. Not all pre-built bots come with a trading strategy, there are some that you need to program a trading strategy.
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 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
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.
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.
When programming your bot never enable it to withdraw funds from your account. It is not wise to give the bot rights to withdraw funds. 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 notice this then you need to delete your keys, alter your passwords and report the issue to 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.