Choosing a bot solution for your cryptocurrency buying and selling operation can be quite a lengthy task by itself. From selecting the right set of features that appeal to you to picking a platform that suits your needs, you need to account for a few factors before finally settling on an option that goes in line with what you are looking for.
But not all crucial options in this process are tied to the bot itself. In fact, one of the most pressing requirements is related to the exchange that the automated tool uses during its operations.
As an experienced trader, your preference is to choose a bot that works with your existing exchange. But if you haven’t started trading cryptocurrency at all, then you want to choose a combination of a crypto exchange and a bot that is optimal for you in every sense of the word.
Since Poloniex is one of the most popular U.S. based cryptocurrency exchanges, it is not unusual for you to wonder if using a trading automaton with the exchange is the right choice to make.
So does Poloniex tick all the boxes required for using a trading bot tool? Let’s find out.
Are You Allowed to Use Trading Bots on Poloniex?
Similar to all renowned crypto exchanges, Poloniex also allows its customers to use trading bot solutions with its markets.
In fact, to throw its full support behind automated bots and make trading easier for customers, Poloniex provides its own application programming interface (API) to developers. This way, programmers can make their automated bots connect with Poloniex’s market without any issues.
As a trader, this allows you to find several cryptocurrency automated trading systems that are fully compatible with Poloniex.
Do You Need to Download Special Software?
Traditional speculating bots require you to install their software at your computer or server. This allows these bots to utilize the resources of your hardware to support their operations. But modern advancements in connectivity and execution have ensured that it is not a necessity anymore.
Now, you can also use cloud-based speculating bots to effectively get the same breadth of functionality as installable speculating bots. These augmenting tools work completely over the internet, and can be accessed via a web browser. This makes it easier for you to access your bots from anywhere.
Since Poloniex is a popular exchange, it has a variety of trading bots in both installable and over-the-web iterations. This gives you plenty of options to choose from according to what kind of software you are comfortable with.
Is Poloniex Bot Trading Safe?
Reputable bots that connect to Poloniex put safety front and center in their operations. These bots only use your funds to trade on the exchange and in your preferable trading pairs. This way, they make sure that your funds never leave the exchange and are never transferred to a third party.
But not all bots are built this way.
In fact, some shady platforms may ask you to provide them with withdrawal access. This is a red flag, since it means that they can withdraw your funds out of your account and to another cryptocurrency wallet altogether. You should steer clear of such software and ensure that you never provide withdrawal access to any trading tool.
In a nutshell, Poloniex and most of the reputable bot providers remain quite safe to use together. But not all bots that connect to the exchange through its API are the epitome of safety. You should do your own research and only use bots that follow secure practices in using your funds for buying and selling cryptocurrency.
Best Poloniex Bots
You can always pick a reputable trading bot for Poloniex, as a lot of them could be connected to this exchange:
Are There Any Free Poloniex Bots?
There are some open-source bots that work with Poloniex. But they are hard to find and often difficult to use. It’s because not all developers have the resources to create an intuitive graphical user interface (GUI) with their bots and still offer their services for free.
That’s why, you are more likely to find paid bot services more than free ones.
But these paid bots often offer features such as paper trading or backtesting as well as free trials that don’t cost you a penny yet allow you to see the trading software in action. This way, you no longer have to take a shot in the dark. Instead, you can make an informed decision about choosing and paying for a bot.
How Much Money Do I Need to Start?
In order to start using a bot with Poloniex or any other exchange for that matter, it is essential that you have some additional amount on top of the funds that you are setting aside for trading.
It’s because the additional amount will help you cover the bot’s fee alright. But it will also cover the trading fees, withdrawal fees, and other charges that the exchange has in place for its customers.
At the time of writing, Poloniex charges its customers on a maker-taker model, where the fees start with 0.90%. The fees get lower if you have a high trading volume at the exchange. But the withdrawal and other relevant charges come in addition to these fees.
As a result, it is essential that you account for these charges on top of your trading funds, so that you are not taken by surprise or end up wasting away the little funds you have on fees and charges.
Are There Any Unique Pairs to Trade With the Bot on Poloniex?
Poloniex has quite a few cryptocurrencies and trading pairs that it offers to its customers.
The exchange offers over 40 different crypto assets to trade with. These cryptocurrencies are mostly paired with BTC, USD, and USDC. But some also offer ETH trading pairs.
This makes Poloniex a good choice for those crypto traders who need some variety in their trading pairs as well as choice of cryptocurrency.
With its security, reputation, and ease of use, Poloniex can be a very good exchange to utilize with your trading bot. But the exchange does sport higher fees than most other exchanges, which is something that you need to consider before choosing it as your primary exchange for automated trading. As long as you are aware of these factors, you should be able to enjoy trading with Poloniex bots.