We assume you are familiar with the automated crypto trading world. Here’s the next question: How can you select the perfect Crypto Trading Bot to automate your trades in 2022?
Every crypto trading bot isn’t a surefire way to make money. To trade profitably, traders must recognize that building a good bot requires defined goals, time, knowledge, and a certain level of trust, which is why one-size-fits-all bots from unknown sources should be avoided.
So here, the question isn’t whether or whether they work, but how well they work. And the performance of your bots is primarily determined by a variety of things, including the platform and bots you use, as well as your level of competence and experience.
Traders can get tremendous results using cryptocurrency trading bots, especially if they know how to set them up to meet their needs.
Before you buy/trial/invest in any bot, must consider these factors:
Tips to Choose a Perfect Crypto Trading Bot in 2022
1. Experience Level of the team, in Cryptocurrency
What is the level of professional experience of the firm’s company leadership? You could put yourself (and your money) at risk if you use a bot created by an unprofessional team with little or no internet presence.
It’s never a good sign until you know exactly what you’re doing if they just offer you a platform and send you on your way to sort things out on your own. Is their success aligned with your success? If you make money will they succeed too?
2. Profitability is your Concern
Profitability is the main factor you need to look for. Do a little research on the profitability of cryptocurrency trading bots you’re considering. It’s not worth using one if it’s unlikely to bring you a satisfactory return on your investments. You can also ask about people’s experiences on social media.
3. Consider your Expectations
Crypto trading bots are fully configurable, allowing you to personalize the algorithm to your long- or short-term investment goals.
You need to figure out, what kind of trading strategies they offer. What kind of crypto bot it is? There are different types of crypto bots available like Arbitrage bot, Portfolio Automation, Trend trading / Momentum Trading Bot and more. You can read a guide on (Types of the crypto bot).
4. Reliability is Peace of Mind
Reliable crypto trading bots are available 24 hours a day, seven days a week, and perform important jobs when you need them the most. This necessitates their reliability. You may miss out on a vital opportunity to secure again if you pick a bot that loses connectivity, even for a few minutes.
Look for reviews from previous users, as far back as possible. To get a range of perspectives from real consumers, try a number of reviews or community sites. The more happy customers you can track down, the more trustworthy a bot will be.
5. Features they Offered
Every bot offers different features and functionality to traders. Some bots provide you with free-market signals while others offer multiple trading strategies. Some bots require installation and manual configuration processes. So, do your research on what features it is offering to ease your trade.
6. Security is key
Any type of online software, especially crypto trading bots, requires strong security. It might be difficult to figure out how to protect crypto trading bots, but you can use internet groups and reviews to assist you to select the best, safest choice.
7. Dump Protection
Not every bot can save your assets in case of a market dump. A few bots like Bitsleader is have the built-in algorithmic feature that can prevent your account in case of market bearish.
8. Transparency Reduces Risk
Transparency is one of the core advantages of cryptocurrency trading: as networks are transparent, the risk of unethical activity and behavior is reduced significantly. The most secure, reliable, and acclaimed crypto trading bots follow a similar model.
Keep transparency in mind when browsing cryptocurrency trading bots, and favor reputable developers. An honest, open team will be more likely to offer ongoing support and advice.
9. User-friendly Interface
Because a bitcoin trading bot is intended to make the procedure as simple as possible, look for one with a user-friendly interface. An easy design and concise layout limit the possibility of being perplexed. This is especially important if you’re just starting off.
10. Support System
A good support system for any company is important to satisfy their customer for any type of query. So, you can check the support system by reviewing websites and or directly contacting them.
11. Check Reviews
Finally, you must check the experience of traders and investors with the bot you are going to use. The success level of the bot can make sure that you can select this bot. It’s crucial that you check reviews online for that bot.
You can check reviews from Trustpilot or any other trusted website. You can also ask people on social platforms about any specific bot. You can use platforms like Reddit, Quora, and Facebook platforms to check the reliability and security of the bot. To get a range of perspectives from real consumers, try a number of reviews or community sites.
Suggestions for Securely using a Bot
- NEVER reveal your account login and password, or 2FA authentication, since a bot does not require any to access your exchange account. A bot only requires API keys.
- For further protection, you may restrict access to just a list of permitted IP addresses, which means that even if someone gains access to your API key, they will be unable to bypass the whitelisting. (never say never though, hackers can possibly bypass this and the exchange security).