Automated cryptocurrency trading is becoming increasingly popular. This is not surprising, as it allows traders to save time, eliminate emotions from the process, and use complex algorithms to analyze the market. However, in order for a bot to be truly helpful, it is important to choose the right one.
What are trading bots?
Trading bots are programs that automatically execute trades on crypto exchanges according to a predefined algorithm and selected strategy. They use technical indicators, signals, trends, and even artificial intelligence to analyze charts and open trades.
How to start using trading bots
Launching a cryptocurrency trading bot today is much easier than it may seem to a beginner.
The entire process can be completed in a matter of minutes, even without technical knowledge. The main thing is to understand what you are doing and why.
First, you need to choose a platform that offers convenient and secure access to trading bots. It is better to give preference to cloud solutions, such as Veles Finance, where no additional software installation is required. All management is carried out through a web interface, and even advanced strategies are available in a couple of clicks.
After registering, you will need to connect to the exchange. To do this, API keys are created — a special way to give the bot limited access to your account. They can be generated directly in your personal account on the exchange. It is important to disable the ability to withdraw funds, leaving only read and trade permissions — this is necessary to ensure the security of your capital.
Once the connection to the exchange is established, the next step is to choose a trading strategy.
Ready-made templates are available for beginners and others. Some are focused on trading within a side channel, others on trend movements or even arbitrage between exchanges.
The platform provides a detailed description for each bot: where it is effective, what the expected level of risk is, and how it adapts to changing market conditions. You can leave the settings at their default values or adjust them manually by regulating the trading pair, transaction volume, acceptable drawdown, and other parameters.
The trading bot is launched with the click of a button. After launch, it begins to analyze the market and execute trades according to the built-in algorithm. It works autonomously, around the clock, without the involvement of a trader. At any time, you can open the monitoring panel and view the current profit, number of trades, behavior in certain market phases, and order history. The bot continues to work even when the computer is turned off because it operates in the cloud.
After a few days/at the end of the week, it is worth returning to the results and analyzing their effectiveness. Sometimes the bot can bring stable profits, and in other cases, it may not meet your expectations. In such situations, there is no need to panic; you just need to disable the strategy, make changes, or try another one.
At the initial stage, it is especially important not to rush and not to invest all your capital in trading at once.
It is better to start with a small amount, understand the mechanics, learn to control the result, and only then scale the strategy. If difficulties arise, the platform provides channels of communication with technical support, as well as chats with the community, where you can ask questions and get help from more experienced users.
How to choose a trading bot
When choosing a crypto bot, pay attention to parameters that are important for trading: algorithm transparency, availability of technical support, backtest results, degree of automation, and data storage security. Platforms with an active community and detailed analytics will be an additional plus.
6 best trading bots for beginners
The Veles Finance platform offers several ready-made solutions that are especially suitable for beginners. All bots run in the cloud and do not require constant monitoring.
- Trend Catcher Bot — identifies trends and connects to the movement. Great for calm trading with minimal intervention.
- Grid Spot Bot — trades on a grid in a sideways market. Easy to understand and effective with stable price fluctuations.
- Arbitrage Scanner — uses arbitrage between pairs and exchanges. Minimizes risks and does not require market forecasting.
- Scalp Bot — makes short trades throughout the day using machine learning and indicators.
More suitable for those who are looking for dynamics and want to increase their trading deposit. - Neutral Strategy Bot — works regardless of the market direction. Good for unstable market situations and hedging.
- Smart Long-Term Bot — a bot for long-term investing and averaging (DCA). Suitable for a “buy and hold” strategy.
All of these bots are already available on the Veles Finance platform and can be launched in a couple of clicks, as they require no trading experience or programming knowledge.
FAQ
1. Can I use the bot without any trading experience?
Yes. Veles offers a marketplace of ready-made strategies and easy-to-understand settings, so even a beginner can run the bot.
2. How safe is it to connect the bot to the exchange?
If you disable withdrawals in API keys and enable two-factor authentication, the risk is minimal.
3. How much money do I need to get started?
You can start with $50–100. The main thing is to choose a conservative strategy and not risk all your capital.
4. How can I monitor the bot’s performance?
Keep track of profits, number of trades, position holding time, and results in different market phases.
5. Do I need to constantly monitor the bot?
No. Most modern bots operate in the cloud and do not require constant monitoring. However, it is worth checking them at least once a day.
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