Almost all credible cryptocurrency exchange platforms enable automated trading on their markets. FTX is no exception to this unspoken rule. The cryptocurrency exchange also allows third-party bot solutions through application programming interface (API) keys.
For this purpose, FTX offers its API documentation to developers, who then use this programming interface to connect their bots to the exchange. By following this mechanism, developers can make their automatic tools work with the exchange’s platform without breaching user privacy. This is how trading bots come to life and how they are able to work with FTX without any issues.
Using this mechanism, various platfroms have become completely compatible with FTX. This gives a variety of options to choose from according to your price range, your preferences for a graphical user interface (GUI), and your need for overall accessibility. As a result, you not only gain the ability to break away from manual trading, but also have the choice to pick from a variety of bots that fit your liking.
However, it’s important that when you select a bot in this capacity, it comes from a reliable vendor and a trustworthy source. This ensures that you are connecting a credible entity to your FTX exchange account and the platform’s marketplaces. Fortunately, you have several options to choose from in this regard.
Do You Need to Download Special Software?
Sometimes, you need to download special software to use trading bots with FTX. However, this is not always the case. Thanks to the advancements of web apps and cloud computing, some modern tools are available completely through their own websites.
These cloud-based bots operate completely on their web interface without requiring you to download or install their software. All you need to do is to log on to their given URL, sign-in using your account, and use your bot like any other website-based application. While you give away the control of hosting your automated application on your own computer, it saves your computing resources and doesn’t need you to keep the software active on your screen all the time.
But these cloud-based solutions are not the norm itself. Since bots need to be turned-on 24/7 in the background to continue operating, those tools that don’t use a cloud server or a web application require you to download and install their proprietary software. This allows them to use your computing resources as well as your internet connection to continue monitoring the market and make their trades. You can sometimes install these bots on special servers, but that requires advanced costs and set up mechanisms.
Keeping this in mind, you can easily choose a cloud-based solution to steer clear of the requirements of installing special software. With that being said, if you are an advanced computer user and want to create your own setup for your bot, you can still choose a provider that fulfills your requirements.
Are FTX Trading Bots Safe?
Since automated bots execute financial transactions, they are built with security in mind. That’s why, FTX and other exchanges never give these bots direct access to their exchange platforms, and only allow them to perform their trades through APIs.
Reliable bot providers make it a point to not only use APIs, but also ensure to utilize them properly. As such, these platforms never ask you to provide them with transfer or withdrawal access from your account. Instead, they only ask for a level of access that allows them to make trades on FTX using your exchange account and the funds that are available in it.
In case any program asks you for transfer or withdrawal access, it means that it wants the ability to transact funds out of your account to another cryptocurrency wallet. This is a massive red flag and indicates that you need to steer clear of this program as much as possible. No matter the situation, absolutely no tool should ask for this level of access at any point. This caution also holds true for trading bots that ask for your exchange account password or private key.
On the other hand, solutions that require you to provide them with simple trading access through API are generally trustworthy. Since they are not able to transfer your funds or withdraw them to another account, it ensures that you are not handing off your funds to the bot developers.
For further safety, you can also use additional mechanisms on your exchange account to make it more secure. This includes two-factor authentication (2FA) or multi-factor authentication, which prevents the chances of unauthorized access to your account.
Best Bots for FTX Exchange
Are There Any Free FTX Bots?
Developing bots takes time and requires intense efforts, which is why it’s a full time job for many programmers. Even those who code for a hobby need to dedicate a majority of their day to a trading bot in order to make it usable on a mass scale. This especially holds true for applications that come with their own GUI, which have software design work on top of the software programming responsibilities.
That’s why, the thought of finding a free FTX automated trading solution may not really return any credible results – if there are even any results to begin with. It is a sure bet that you will have to pay some sort of fee in order to start using a FTX bot against your exchange account. Even when you find a free solution, it may just be one with simple coding and without a GUI. If you aren’t familiar with command prompt, this would create a problem for you.
In other cases, these free bots come with extremely limited restrictions that provide no use to you as a serious trader. These features can run out before you can even start making serious profit through them.
With that being said, you may still find demo versions or free accounts of various bot services that allow you to see how a particular program functions against specific requirements. This ensures that you can spend your funds on a solution that fits your expectations.
How Much Money Do I Need to Start?
When starting to trade on FTX or any other exchange for that matter, you need to make sure that you have enough funds to fit the bill for trading fees, the bot costs, conversion fees, as well as any other expenses that come on top of these transactions.
Are There Any Unique Pairs to Trade With the Bot on FTX?
Each entity does have unique offerings and services in some way but how about their unique pairs? It is quite possible that the FTX entity does have unique pairs that one can trade with each day.
These pairs can vary from PAXG/USD to SOL/USD.
The firm may have more unique pairings that one can utilize if one were so inclined to do so over the course of their trading regimen.
The firm is an intriguing one as it seeks to stay compliant with regulatory authorities across the board. That is why individuals will notice one website for those in other countries while one separate one for those in the United States.
It is one entity that seems to be professional in various ways, from how they present themselves to making sure to be in compliance with regulations.
The brand new entity for the US markets and other areas seems to have strong foundations as they seek to empower and foster a great digital currency ecosystem.
Further, it is important to note that this company wants to grow further in places such as the United States over the next two years and seems like they will be taking the necessary actions to be responsible over the long-term.
You can take advantage of spot markets, its quality security, robust liquidity, and fiat.
Specifically, remember that these spot markets bring about the most prominent coins like bitcoin to USDT to the fore and include many features. It is essential to be aware of the security features present on a platform; that is why industry-standard security with cold and hot wallet situations are quite important to FTX.
Finally, in regard to security, hot wallet funds received strong backing, and they continue to establish relationships with their custodians.
Liquidity is essential in markets and FTX is one brand that ensures to provide top-notch liquidity into their order books. They have strong relationships with market makers to have proper liquidity in futures and present markets.
They also understand the importance of on-ramps and ensure to have the proper banking relationships while staying within good standing to withdraw and input funds as seamlessly as possible. From USD to stablecoins, everything is there for you to take advantage of with this service.
Deep liquidity and wonderful low cost trading is what makes many people work with this entity.
From leverage to security, and simplicity overall, this FTX entity is one to turn to for your exchange needs. That is why it makes sense to integrate your bot with this entity.