When it comes to using a cryptocurrency bot, one of the most important decisions comes in the form of choosing an exchange. Choose the right platform and you would be able to benefit from your trading mechanisms just like you intended. But select the wrong portal and you may see your hard earned money going down the drain.
That’s why it is crucial that you select a reliable and credible digital asset exchange that has also proven its efficacy with automated bot tools. Thanks to portals such as Bittrex, finding such an exchange is no longer a mean feat.
As one of the world’s largest crypto exchanges that supports over 200 digital assets on its portal, Bittrex is a very credible trading platform. With an easy to use mechanism and acceptance of various payment methods, the exchange is a great fit for traders of all scales and sizes. This also makes it an amazing choice for those who use bot solutions, whether they are located in the US or in any other supported countries.
So what do you have to do if you want to use a trading bot with Bittrex? Do you use a specific application? Do you have to install special software? What kind of preparations you need to make? The following information has all the answers you need to run your own Bittrex-powered automated bot with ease.
Are You allowed to Use Bots on Bittrex?
Since Bittrex is one of the most popular exchanges in the world, it offers a slew of services that many of its competitors do not. One of these services is the usage of bot tools.
Bittrex allows this utilization through its API, which lets developers make their own bots and algorithms. More often than not, these developers offer their solutions to interested traders in exchange for a service fee.
This creates a win-win situation for all parties. By supporting third-party trading mechanisms such as automated bots, Bittrex enhances the list of services that it has to offer to its users. The developers who create scripts earn compensation for their work. And the traders who are looking to make their life easier can trade on Bittrex without burdening themselves with manual processes.
With that being said, the exchange is strictly against pump and dump policies, and monitors its trading to identify such shady activities. Anyone taking that route can see their account getting suspended in very little time. This brings a level of credibility to the table, which is a very good sign for traders like you.
Do You Need to Download Special Software?
In order to launch a trading bot on Bittrex, you can select between a host of specialized third-party applications.
These applications can either be cloud-based, or need to be installed on your system in order to start performing their trading functions through the bots. Some of them can also be managed through your smartphone, which gives you an added level of accessibility.
Just make sure that the tool you are selecting offers full support for Bittrex, so you don’t have to run into any issues while running it against the exchange’s services.
Are Bittrex Trading Bots Safe?
Any bots that are compatible with Bittrex are just as safe as those applications that run with other exchanges.
Some might use industry-standard security functions, while others may be exposed to risks. A few might be extremely reliable from a security point of view, while others may leave a lot to be desired.
Simply put, being able to work for Bittrex doesn’t give a bot a license to ultimate security. That is why it is important that you do your due diligence and choose your automated tool after ample research.
In simpler terms, you should always double-check everything, especially the withdrawal option of the API. Any bots asking for direct withdrawal access from your exchange account poses a big red flag for safety. Whatever you do, stay away from such shady bots.
It is because any trading solution does not require withdrawal access to your account in order to operate properly. All they need is the permission to use your funds exclusively on the platform itself, and that too for trading purposes. Keeping this in mind, make it a point to only select these types of bots.
Best Bittrex Bots
Thank to the simple integration, Bittrex is available on the most trading bot platforms:
Are There Any Free Bittrex Bots?
When it comes to automated bots, free services are not always safe to use. Any tool that offers you the world in exchange for nothing is too good to be true.
Ultimately, such bots are simply after your money. On the false promise of saving you some funds, they may leave you strapped for cash by manipulating your account or stealing your security information.
That is why, it is important that you do not fall for the scam of free Bittrex bots. If there are any open-source solutions, then use them with extreme caution. Otherwise, turn towards trial plans to start for free and assess your selected bot’s services.
How Much Money Do I Need to Start?
By default, Bittrex will require you to make your trades with a minimal amount equivalent to 50,000 Satoshis (.00050000 BTC).
Bittrex also operates on a minimum trade quantity for each cryptocurrency market. You will need to be mindful of these trade limits in order to make sure you are operating in compliance with the digital asset exchange.
With that, you will also need to keep Bittrex trading fees in mind. The exchange charges its fees on a Maker-Taker model, where the fees start from 0.2% of the transaction, and keep decreasing based upon a user’s 30-day trading volume. For Bittrex Global, the fee changes to 0.25% of each transaction.
You will also need to cover for the varied blockchain fees that are associated with each cryptocurrency transaction.
This means that you will not only need to put aside your preferred trading amount, but you will also have to account for transaction and fees. If you are using a paid Bittrex bot solution, then you will also need to take care of its fees as well.
Make sure that you have these aspects covered before you delve into automated trading. Otherwise, you might need to stop your operations in the middle.
Are There Any Unique Pairs to Trade With the Bot on Bittrex?
If you select a bot that gives you complete access to all available markets or cryptocurrencies on Bittrex, then you can select from a large pool of digital assets.
One of the biggest advantages of trading with Bittrex is the exchange’s acceptance of USD deposits and withdrawals. By going through a simple verification process, you can enjoy USD deposits and withdrawals if you operate through one of the approved territories on the exchange’s list.
This also allows you to choose from four basic group of trading pairs, including BTC, ETH, USDT and USD. Each of these base currencies have several cryptocurrencies paired against them, which makes it easy for you to play with a lot of different pairs.
Since Bittrex is cautious about adding new altcoin markets, it is also known for being one of the most reliable exchanges for the altcoins. Most of the digital currencies on the exchange have a high trading volume, which makes it easy to use them with a bot.
Conclusion
Setting up a Bittrex trading bot is extremely simple and secure, but only if you choose a solution provider that has developed their bot while keeping ease of use and safety in mind.
That is why, make sure that you study the market thoroughly before selecting the best application to use with your Bittrex account. Feel free to check our reviews to get more information about the bot services available at the market.
As long as you are vigilant, you will be able to find a solution that fulfills your requirements to a T, regardless of whether you are an experienced trader or a novice cryptocurrency user.