When beginners set on the cryptocurrency trading journey, they are both excited and scared. Cryptocurrency is a sensitive and volatile market that requires one to have advanced skills, and a single investment could result in a substantial profit. This might be challenging for some as they would spend a lot of time learning how to evaluate the market and identify signals. There are possibilities of making several wrong investments before finally understanding how these trading platforms work.
Online trading bots make a huge difference as a beginner and an advanced trader has equal chances of making profits when they both choose to use bots. Out of the excitement,, one might rush to purchase a cryptocurrency trading bot and select the wrong one. There are several factors that beginners, in particular, must consider before settling for a specific trading bot. Some of these factors are discussed below.
Community
You are new to the industry, so you must be willing to take any help you will get in vetting all the online trading platforms. Never ignore or underestimate feedback and reviews of different trading bots. A new bot may not have substantial reviews or feedback, while a lot will have been saying about old cryptocurrency bots. Take your time and review all the available reviews and feedback; they often reveal how these bots work and the one with the best features and customer support services. Always go for a bot with more positive reviews but be careful of fake reviews and one with a developers’ community willing to offer support and guidance.
Features of the bot
Different automated bots have different features. This is because different traders have different objectives, and each type of bot is designed to meet the needs of each trader. Therefore, as a beginner, you must have specific goals to understand the type of bot you require.
Each of these cryptocurrency trading platforms has unique features. For instance, the Tesler automated bot is free of charge, and there are no commissions. At the same time, other sites such as Immediate Edge have bots that hold 1% of the total revenue generated in every trade. Some bots, such as Binance and Coinbase, have relatively high fees and minimum deposits.
Supported exchanges
Imagine purchasing a license for a bot only to later find out that it does not support a certain platform that you had planned to trade on. Some bots are designed to work with any platform, while others are customized for specific cryptocurrency trading platforms. As a beginner, you might not know the best trading platform. In such a case, always settle for a bot that can work on several trading platforms, if not all.
The minimum deposit
The minimum deposit is a common feature in all cryptocurrency trading bots. This refers to the minimum amount of money a trader must add to an account before they start trading. Any large volume trader should never ignore the minimum deposit of the trading platform. For beginners, it is advisable to always go for the cryptocurrency trading platform with the least minimum deposit.
Security of the bot
Nobody wants to invest their money in a company that does not offer reassurance. Different trading bots have different mechanisms put in place to foster security. The Tesler, for instance, has several layers of security protocols that reduce the risk of fraud and have insured all the funds that clients hold on this trading platform. Other companies use complex algorithms that are hard to hack into.
