With the increased growth in the cryptocurrency market, the trading bots have caught on to assist people in the trade, even while they sleep. The most important aspect of making a trading bot is maintaining control over the private keys. Further, there is a vast choice on the kind of functionality one wants to implement on the bot. And the best part is that one can trade 24*7 besides making gains by placing faster orders.
What is Bitcoin Trading Bot?
Bitcoin trading bot is software created to automatically realize and catch the crypto-market trends and execute trades in favor of the owner. The pre-programmed bot trades on behalf of the trader and operates 24*7. The bot is pre-programmed by the trader, configured by a set of rules that oversee the market trends and use their preferences to execute a trade. One can either get a free trading bot through an open-source platform, pay for a licensed one, or create one with the necessary technical know-how. Many of the open-source platforms today provide free trading bot software, including 3Commas, Huobi, GDAX, etc. The cryptocurrency market is highly volatile & a Bitcoin trading bot is basically a software that helps the user to buy and sell cryptocurrencies at a proper time & also allows to earn a profit. The Bitcoin Aussie System is a crypto trading software & it uses an algorithm that auto trades for users. It is also very easy to use, even a beginner can also use Bitcoin Aussie System & it claims that its software has high profitability. So if you are planning to invest in Bitcoin so you can learn & know about Bitcoin Aussie System.
How to make your own Bitcoin Trading Bot?
Before making a checklist plan on creating a bot, let’s take a look into APIs. APIs have become an integral part of the trading ecosystem for cryptocurrency. Application Programming Interface or API is the interface where the bot interacts to receive and send data to exchange. Many of the crypto-exchanges let users trade on their API interface. But one needs to know that the bot is configured with permission levels and protected with secret and unique keys. So, the users, after choosing the exchange they want to trade on, would have to create an API key. Then on the user would have to feed the trading bot with the key and secret to avail the API.
The API keys are essential, and one must not share it with anyone. One should be careful about which platform they use and plug the API keys. If the keys get hacked, they may be used to trade or withdraw cryptocurrency without the owner’s permission. There is an option to turn on or turn off the withdrawal option. It is best to keep it turned off. One can protect their account and yet still withdraw manually.
Which API links to use for leading currency exchanges?
The most secure links you can safely plug in your API Keys are Bitstamp, Bittrex, Kraken Poloniex, BitMEX, Gate.io, and Binance.
Steps to Create Bitcoin Trading Bot
It is possible to make a trading bot rather than purchasing or subscribing for a free one. Using the following steps as a guide list will help in creating a successful trading bot with little difficulty.
- First, it is essential to decide on the programming language one would be using. It is advisable to use the most common programming language to access the support required to build a bot.
- Bring the required APIs to crypto exchanges that the trading bot needs to interact through. For instance, if one is creating a Huobi trading bot, then one must access Huobi API.
- Choose a strategy, whether it be arbitrage, the market-making, or the market-following.
- Before deciding on the architecture, one needs to define the data type that the bot should interpret.
- Bot Creation is a time-consuming systematic process.
- Testing the bot is essential for any glitches in coding or parameters. It is the time to catch any faults and fine-tune the bot.
- The last step is Deployment. After straightening out all issues, one must be ready to deploy the bot.
Naming Some Best Bitcoin Trading Bots
3Commas, BTC Robot, Coinrule, Cryptohopper, CryptoTrader, Gunbot, Haasbot, Shrimpy, Zenbot, Zignaly
Can We Create Bitcoin Trading Bot in 10 Min?
Having your plan laid out, including the decision on the preferred language for coding, choosing a strategy, and architecture, one can build the Bitcoin Trading Bot in just 10 minutes.
While building the Bitcoin trading bot, it is essential to know where to secure open-source code and the considerations while making API exchanges. A blueprint plan is required to guide the steps in creating a successful trading bot. Further, if one wants to buy, one must know the best bots available in the market. If one wants to create a bot, is it possible to do so in ten minutes.