Cryptocurrency trading bots are automation agents. What that means is that they act on your behalf and are ideally not designed to do anything you do not ask them to do. They magnify your abilities in order to take advantage of the huge potential in the cryptocurrency markets. However, trading bots are not novel to the market.
They have been in use in the traditional investment markets and these offer more or less the same features that the ones made for the traditional markets offer. So they are basically the same trading software only adapted to serve a new market. And this is not a bad thing because it means that they have been tried and tested, improved and optimized to provide the best results.
But not all bots in the market do what they are marketed as able to do and in a nascent industry such as the cryptocurrency world, you need to be wary of the software with which you engage. In this article we are looking at some of the factors to consider when choosing a crypto trading bot. it is easy to say that you want speed and accuracy while also reducing risks but these are sort of standard features for most all bots in the market and the aspect of reducing risk is not really something a bot offers you but rather a parameter that you tweak on the bot to ensure it delivers expected results. So here are the actual considerations to make when shopping around to perform a good robot trading:
Community
It is hard to underestimate the importance of market reviews and feedback on a given bot. if the bot is relatively new just launching, it may not have customer reviews yet so make sure that if that is the case try to err on the side of caution. You need to choose a bot whose development team is willing to help you out in case of anything. Try reaching out to them through their forums or social media channels and gauge how fast and effective their responses are. This will guide you on how committed the team behind the bot is to helping traders become successful.
Supported Exchanges
There is no use in purchasing a license to a trading bot that does not support a platform on which you want to trade. Some bots support a limited number of platforms but still manage to hit some of the most popular. Whatever your preference of the trading platform, you want to make sure that the bot you choose supports the exchange on which you want to trade.
Bot Features
This ties in with what functionality you are looking to automate using the bot. you could be looking for an arbitrage bot, or market-making or even portfolio rebalancing. Whatever the need that you want to achieve, this will advise on the best bot to get. Some bots in the industry offer several packages in one license under one roof.
Minimum Deposits
Closely tied to the features of a bot is the minimum deposit feature. This should not be a huge consideration and most strategies do not require you to start with a minimum amount but depending on what kind of trader you are and what bot you are considering, this may become a factor to maximizing your profits. Sometimes ignoring the minimum deposit for a given trading strategy could mean taking a loss. This is especially important for large-volume traders.
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