What’s Crypto Trading Bot?
While trading has always been a dream for many, specially for stocks and shares of company, or forex (fiat currency pairs), the advent of Bitcoin and cryptocurrency has totally revolutionized and brought a new radical world for traders who wish to trade these cryptocurrencies.
But, unlike the traditional trading instruments, crypto is different in so many ways. It is far more volatile, far more prone to unpredictability, vulnerable to news and isn’t free from pump and dump schemes by whales.
Many though, make really good amount trading crypto. To trade crypto, one shouldn’t really have very good knowledge of the underlying crypto fundamentals or how they work. All they need is an account on major and popular crypto exchanges, like, Binance, Coinbase, Kraken (and so many others).
Now, there are various strategies for trading, and it’s very similar to that of fiat or stocks in these manner. Like arbitrage trading (buying in one exchange and selling at another making profit from price difference), or market-making in which one puts stop/loss and take-profit, at a triggered price and it’s executed when it hits that price.
Why Should You Need A Bot?
Unless you are a robot who doesn’t need sleep, and you want to make a fair amount of money (even while you sleep), you should definitely have a crypto trading bot.
A crypto trading bot will help you trade according to your preferred method 24/7 without you having to check every now and then to manually execute trades or be in fear of missing out on profits. It makes sense? I am sure it does!
How To Proceed?
You can proceed by making a choice;
- You can just get a trading bot for free by downloading it from an open-source platform. A simple Google search will redirect you to the most famous and the trusted ones.
- You can buy a crypto trading bot. Well, when you buy one instead of getting it for free, you are sure to have some really great additional features unlike the others. Hence, if you have some cash, just swipe the card and get yours to start on immediately.
- Or finally, you can create your own bot, obviously if you have really good command on the programming languages like Python and Java. The best way is this as you can configure it according to your needs, without having a fear of backdoors unlike when you are getting ready-made from somewhere else.
How To Build One?
I am assuming you already have signed up one the famous crypto exchanges you want to trade in.
Now, get your API from your crypto exchange. Always remember, this API is very confidential and you should never share it with anyone. This API represents your identity and with this anyone can access your account. You can find your API on most Exchanges in your account settings. Through this API you can give access to the bot to your account for trade.
Choose the language you will be making the bot in. Be it Python, or Java, you know there are complications. So make sure to pick the one you have most command on. Recommendation is always on Python, Java, C, since they are well known languages and you can get easy help and other perks.
You should also, have a team of developers and experts, since you are bound to have some bugs somewhere and many other problems to fix when you start from scratch to build the bot according to the structure you have planned to. It’s not computer, but humans who make mistakes, isn’t it?
A quick guide if you use Python
- Set up the environment : Download PyCharm (an IDE) in which you can develop software written in Python.
- Download & install the libraries.
- Collect the historical charts and graphs for proper analysis for future predictions.
- Develop unique strategies based on the graphs and analysis, to make the most out of it.
Predictable. You test your bot, run it, check for errors, fix them, then slowly you practice on smaller amounts in your real account, to test if it’s working according to your desire, or you need any modifications! Once it’s set, you are free to use your newly created bot to make money smoothly!
Any alternative way to make money with the bot?
Sure, if you have created an interesting, working bot, you might want to sell it to other traders 😉 in that way you are putting your efforts in no risk, and making a guaranteed amount of profit without having fear of loss!
Crypto as you know, is very new to the market, and has received scrutiny by big institutions and even from governments. It’s much more volatile, unpredictable, complicated, and risky as compared to its traditional counterparts. While having a good knowledge on crypto trading is good, it’s not sufficient. You should always have a mindset that, you can always lose money or even your entire portfolio if things go wrong. However, chances for that are slim as of now. Hence, it’s very important that you trade funds with caution, also with funds that you can afford to lose without real regrets. With that being said, you can now use your newly created super bot, and make some cold hard cash out there.