A trading bot is a program that makes crypto trades for you automatically, based on rules you set up.
How to Get Started?
- Choose a Bot: There are lots out there. Look for one that’s easy to use and has good reviews.
- Connect It to Your Exchange: This usually involves something called an API key.
- Tell It Your Rules: Do you want to buy low and sell high? Follow a specific indicator? The bot needs to know how to trade.
- Practice First!: Most bots let you back test (try your strategy with old data) or paper trade (fake trading) before using real money.
Why Would I Use a Bot?
Trade 24/7: Bots never sleep, so they can catch opportunities you might miss.
Unemotional Trading: Bots follow your rules exactly, which can help avoid panic sells or greedy buys
Important: Bots Aren’t Magic
- You Still Need a Strategy: A bot can only execute a strategy; it can’t come up with a good one for you.
- Bots Can Mess Up: A bad rule, or a glitch in the bot, can lose you money fast.
- Markets Can Change: A strategy that worked in the past might not work in the future.
The Big Idea: A bot can be a helpful tool for experienced traders. But if you’re new to crypto, focus on learning the basics of trading first.
