Bitcoin and Cryptocurrency Trading for Beginners: Novice To Expert 3 Books In 1 by Zuckerman Mark & Zuckerman Mark

Author:Zuckerman, Mark & Zuckerman, Mark [Zuckerman, Mark]
Language: eng
Format: epub
Published: 2021-01-09T00:00:00+00:00

Chapter 6 Best Crypto Trading Bot Platforms

When it comes to day trading crypto there are such an amazing opportunities out there. But there is one major problem. Crypto markets never sleep and most people need to catch sleep from time to time. That leads to many traders going to bed and waking up only to discover they missed out on a huge market move and an amazing trading opportunity. This isn't a problem for some traders. Why is that? Well, it's because some use crypto trading BOTS. In the following chapters I'll explain what crypto trading bots are. I will also go over the pros and cons of using them and compare the top trading BOTS side-by-side. So what are crypto trading bots? Well, they are computer programs that trade on your behalf with a given set of instructions or rule criteria to act on. So that might be something like buy X amount of Bitcoin if a certain price target is hit. Once that rule criteria is met, then the bots will automatically execute the trade you wanted. What this means is that in order to use a crypto trading bot, you will need to connect it to a crypto exchange account using something known as an API or application program interface. Basically that API gives your trading BOTS the ability to place trades programmatically at the exchange. The result is that you can execute trades in your sleep. You're essentially handing over access to your exchange account to a computer program. What happens if there is compromised code in the bot or the company that made the crypto BOTS turn out to be scammers? These are all very real concerns that you must be aware of. Are the machines going to take over your Binance account? Well not exactly. The good news is that you can set permissions for exchange API's. You can determine what particular API keys have the ability to do in your account. So for the crypto trading BOT, you can set the ability to only write orders buy or sell but not to initiate a withdrawal. Most likely a good idea. You can also limit IP addresses too. What that means is that any instructions must come from your own IP address which is a neat way to protect yourself against a scammy crypto trading bot. So now that you know what a trading bot is I want to go over the pros and cons of using them and give you some cold hard truths. One major Pro is that these BOTS enable you to trade 24/7 and execute trades in your sleep. That means you'll never miss out on the another trading opportunity ever again. Also trading BOTS help take the emotion out of trading. You are simply setting the rule criteria or instructions in the bot and leaving those trades to execute if your criteria are met. That means you should be less susceptible to FOMO or panic selling. Another benefit of using bots is that they allow you to back test your trading strategy.

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