It’s no secret that you have to get into cryptocurrency trading if you haven’t already. This financial opportunity can open so many doors for you if you figure out how the market works and make a few smart moves.
Plus, it doesn’t take much to get started. This form of making money is fairly low-cost in comparison to other investments, and even the time commitment is low if you engage in cryptocurrency bot trading. Bot trading allows you to set up a program that takes care of your trades for you.
Your bot learns the market, makes trades on your behalf and earns while you’re focusing on other things. However, it can create losses for your cyber portfolio if you’re not careful.
Here are 10 cryptocurrency trading tips to help you – and your bot – succeed.
1. You Have to Spend Before You Earn
Just like with anything else, you need to put a little money into your investment before you can start seeing returns. The price of different bots ranges depending on the functions you’re looking for and the cyber market you want to operate in.
Make sure you do your research before you jump into anything, though. It is a good investment to buy one or two bots for your trading needs, but you shouldn’t choose them on a whim. The more you take the time to decide what bot to use, the better your chances of earning big with crypto trading.
2. You Can Try Cryptocurrency Bot Trading Demos
How can you make sure the bot you’re considering investing in is right for you? By trying a demo! Many bot providers offer one-month demos for little or no charge. This gives you plenty of time to learn how the system works and decide whether or not it’s the tool you want to use.
3. It Might Be Worth Making Your Own Bot
As great as it is to try a bot demo, you may end up holding yourself back if you’re using a new one each month. At some point, you have to make a decision and start thinking about which bot is going to provide the best results for your portfolio’s long-term growth.
Or, you can just make your own!
Note, this is not for the average individual. To build your own bot requires an extensive understanding of crypto trading as well as coding and cybersecurity. It’s a big challenge to take on, but it is worth considering.
4. Make Sure Your Bot Is Compatible with Your Preferred Exchange
Whether you make your own bot from scratch or buy a program you like, make sure it’s compatible with the exchange you’re using before you get to work. It would be a shame to spend so much time comparing your options only to have to start all over again.
Luckily, most bots are compatible with most exchanges. You just don’t want to end up in the off-chance that the bot and exchange you choose don’t go together.
5. Take Your Time Creating a Strategy
Although your trading bot will take on a lot of the work that goes into building a portfolio, you still have to be the one who implements a trading strategy. The strategy you create is critical to the success of your earnings. It’s not a step you can take lightly or just guess and check until you see the results you’re looking for.
This is arguably the most important part of the entire process. Take your time to get it right so you can start to generate earnings, not losses.
6. Run Back-tests
The best way to figure out a good strategy for your bot to use is to run back-tests. Even though you can’t predict how the cryptocurrency market will change, you can learn from the trends that have occurred in the past.
Make sure you test and counter-test the findings you come up with. This will give you the most in-depth information to go off when making your predictions about what might happen moving forward.
7. Avoid Giving Your Bot Withdraw Access
Part of creating your bot’s trading strategy is allowing it to make decisions for you like what to sell, purchase, and hold on to. You should try to leave its capacities to that.
Some people make the mistake of giving their bot withdraw access, which only leaves them vulnerable to losing money. Your bot may end up trading a lot of your money away, or worse, you could leave a door open for hackers to access not just your cryptocurrency but your actual bank account!
8. Set up Two-Factor Authentication
Another way to fend off hackers is to set up a two-factor authentication system. This is basically like giving your password a password. It helps you ensure that all your cryptocurrency and private information is well-secured while you navigate the various online exchanges and markets with your bot.
9. Keep All Your Information Secret
It’s smart to talk about your bot and share a bit of your strategy with trusted friends who are also trying to build a crypto portfolio. But, you should never, under any circumstances, share your API key.
It only takes one person to know your API for you to lose all of your earnings. You never know what kind of trade someone may try to make on your behalf, or if they’ll just run off with all of your cryptocurrency.
10. Watch Out for Scams
This should go without saying, but it’s a good reminder to keep in mind.
Whether you’re looking for a new bot or trying to figure out a strategy, always keep your wits about you. Unfortunately, there are a lot of scams out there waiting to take advantage of people who are just starting to get involved with cryptocurrency.
Don’t fall for anything that seems to be a guarantee or just too good to be true.
Cryptocurrency Trading Made Simple
Although there are a handful of scams in cryptocurrency trading and many other investment opportunities, there are also valuable tools waiting to help you succeed. The right bot, for example, is one of the best resources you can use when building your cryptocurrency earnings.
To learn more about cryptocurrency bot trading in a simple, easy to understand fashion, click here.