While trading bots may pique the interest of new crypto investors, they are a must-have for seasoned traders. Trading bots have gone a long way since their inception, and now include a wide range of features and functionalities to assist traders with properly executing their trading plans.
You are mistaken if you believe that effective crypto traders are always online, checking markets and trading. It goes without saying that the international character and intricacy of cryptocurrency transactions, which span all time zones around the globe, cannot be reconciled with a manually implemented trading strategy. Manual processes are both time-consuming and complex.
So what is Trading Bot?
Trading bots are pieces of software that allow you to trade bitcoin and other cryptocurrencies automatically and are based on developer-created algorithms and strategies.
Traders may update their portfolios and trade without having to be online at all hours of the day or night thanks to the trading bot. Trading bots, on the other hand, can automate trading techniques for single trading pairs. Trading bot technology, which is coded for high precision order placement, may even intelligently route transactions between different assets and actions, such as trading on exchanges via real-time arbitrage to take advantage of very small price fluctuations.
Why should you use a trading bot?
Just as you don't have time to stop on a mountain all day to monitor the weather and instead, choose to use a weather app on your mobile phone, so you should get a trading bot.
Setting up your own crypto trading bot allows you to automate many of the slow-moving chores connected with crypto trading, similar to outsourcing dull and repetitive tasks such as rebalancing your portfolio at regular intervals that you specify through automation via a bot.
Trading bots are incredibly exact and accurate. Bots, unlike traders, can choose and execute strategies on the fly, whereas manual involvement cannot match this level of precision or automation. A crypto trading bot calculates the best time to process and execute a trade in real time, even for the most complex trading methods, 24 hours a day, 365 days a year.
And finally, a few key points about security
A quick word about your trading bot's settings: Your API public and private keys can only be accessed with your specific authorization. You must allow trading bots to collect "Balance" and "Trade" data from your currency account in addition to providing "Trade" access to your keys, but a trusted trading bot does not need to access "Withdraw" funds. Do not use this bot if a trading bot wants to access this function. You also have the right to revoke access to your data and information at any time.
Coinrule, for example, keeps API keys in its AES with individual, dedicated, and encrypted data storage for each user, whereas HaasOnline Server aids in the recovery of trading bots and API keys in 256biz own keys to ensure that no parties are missed.
WARNING: The material in this article is for educational purposes only and does not constitute investment advice. Please keep in mind that trading cryptocurrencies has a high level of risk and is not recommended for inexperienced investors. Please read our terms and conditions to learn more about the dangers connected with cryptocurrency.