We know that there is a wide variety of cryptocurrency automated tool available on the market. But the problem is that choosing the one that’s the right fit for you can be a bit difficult. While you can keep a few factors in mind to tell the good apart from the bad, you sometimes end up yearning for a better fit.

This is especially true if you are pedantic about your software solutions, especially those that deal in financial matters such as cryptocurrency trading.

What do you do then? Simple, you make your own trading bot.

At first, the idea may sound a bit unconventional. But the solution is very effective if you are well-versed with computers and can develop your own application with ease.

If you truly are interested in going down this path and creating your own automated solution, it is possible, you must be dedicated and focused to set it up correctly.

This brief guide will show you how to do so and how it can make the most sense for you to streamline your activities. Here’s how you can take your trading activities into the future and create your amazing automated tool.

What to Start With?

The first thing to do when designing your own crypto trading solution is to plan the project properly.

For this, you can divide the whole process into multiple levels. From an efficiency perspective, here’s how you can label these levels of the project.

  1. Development
  2. Connection
  3. Strategy
  4. Testing

This helps you streamline the whole process, and makes it easier to move forward with developing your bot without any issues.

When looking for particular added efficiency, remember to set deadlines to different aspects to increase the likelihood that you are not taking the whole year to develop a straightforward automated trading option. Remember, the more time you take with developing your bot, the lesser opportunities you will have to benefit from the digital asset market.

Crypto Bot Development

Once you have divided your cryptocurrency bot creation process into several levels, the next step is to embark on active development of your software.

Here, you need to choose a programming language for your software. One can see that some particular popular programming languages that are often used in automated solutions are Python, Javascript, Perl, and C.

Whichever language you end up choosing, you must keep in mind that you will need to have an optimal level of proficiency in it. Just knowing a basic few coding shortcuts won’t do. You will need to be a master of the coding language which you select to develop your software.

It is because your bot will be a highly complex application that has to perform its functions with optimal speed and accuracy. If you do not yet have the capability to develop something of that level of sophistication in a programming language, then you can practice some more and hone your skills first. This will ensure that the bot you are developing is up to the task and able to deliver the results you need from it.

Where you are quite certain about these factors and have made a proper decision, you may go ahead with writing the code for your automated trading tool and establishing its functions. Since this is a critical point and an important aspect of developing your streamlined trading product, this aspect will take a considerable amount of time. Take as much time as you need, really. Just make sure that your programming skills are upto par and that your code output is free of any errors and your application is executing as you intended.

Connect Your Trading Bot to the Cryptocurrency Exchange

Now that your automated solution is now off the ground and ready to go, you must progress to the next part of the journey. Integrate the API. You need to integrate your preferred exchange’s API and instruct your bot to send and receive commands to the exchange.

This will allow your bot to actually function in accordance with an active market and be able to perform its trading activities. It is important that you choose a reliable cryptocurrency exchange, so you do not run into unnecessary outages and issues with your bot.

Once your software has connected to an exchange successfully, you can go ahead with the next step safely.

Implement an Effective Trading Strategy

The digital asset trading plan is the critical and very important part of your cryptocurrency bot. It is mainly because the strategy is what determines how your tool performs on the crypto markets.

Thankfully, setting up a viable trading strategy is not very difficult if you know what you are doing. There are many strategies that most of the services are already using, so you can implement an existing strategy or deploy your own quite simply as a matter of fact.

Make sure that the strategy you are choosing makes sense when looking at it in a logical perspective and has the ability to drive you some profit. This is something that you can ascertain by proper testing in a possible demo mode, which guides us to our next step in the process.

Test Your Bot

One will not really want to risk funds without proper testing. Therefore, you must comb through your end product and see if it is ready to really go and make a profit.

But how to do so? The answer to that is quite simple.

You can do this by running extensive tests on your automated tool under different settings. Having the bot perform several mock transactions, checking its ability to execute strategies, and assessing its performance by simulating various market conditions is all a part of this testing phase.

You can also integrate additional testing features into the mix such as the tried and true methods of activities such as backtesting and paper trading, so you can keep running these tests from time to time to make sure that your automaton is performing in line with expectations.

Sounds too Complicated?

But many find that these step are too much. They may see that the bot creation process complicated. Have no fear, you don’t have to make your own.

There are many brands that offer you their services in the digital asset domain. Crypto bot platforms offer different ways to approach the market and mechanics for you to streamline and add value to your trading activities in an automated fashion. While the process to choose from various bots can be a bit daunting, having some key factors in mind can help you find the right fit.

If you need any help during the process, then you can use our suggestions to finding the perfect trading bot. The tired and tested strategies will help you find a solution that is reliable and easy to use, while also being highly effective.