Regardless of your experience in cryptocurrency trading, buying and selling crypto assets via automated bots can bring a lot of questions to your mind. Since these programs are designed to let you trade cryptocurrency even when you are away from your computer or unable to check your account for a while, it is natural to be curious to learn just how they work.
But it all makes sense once you understand the functionalities and core operations of automated bots. Once you learn just how credible these tools are, you find it easier to trust these programs with your funds. With that being said, you then have to face the question of using these solutions with the right exchange.
Given that Bitstamp is one of the most popular global cryptocurrency exchanges that also provides its services in the U.S., it will not be out of the ordinary for you to be already using its services for your primary trading operations. In fact, if you have never used crypto trading before, it will not be shocking for you to choose Bitstamp as your first ever digital asset exchange.
But that’s where the questions come bouncing back. Is Bitstamp a good exchange to use with trading bots? What kind of options do you get to choose from? And most importantly, does it even allow such bots to operate against its markets?
To answer all those inquiries and more, here’s all you need to know about using Bitstamp with bots.
✅ Are You Allowed to Use Trading Bots on Bitstamp?
First and foremost, it is important to know if Bitstamp even allows you to use bot solutions. The answer? Yes, it very well does.
The reason behind this is simple. Being a large scale exchange that operates out of Luxembourg, the U.K., and the U.S., Bitstamp provides its services to various countries all over the world. This includes the countries in the European Union as well as those belonging to different continents such as Asia and Australia.
In order to cater to this large audience, Bitstamp has to keep up with modern trading practices. That’s why it allows its customers to access its markets using custom software such as cryptocurrency bots with ease.
The application programming interface (API) provided by Bitstamp allows developers to create bots that can work seamlessly with the exchange. This gives you the option to choose between a variety of third-party bot tools that work with Bitstamp.
🚀 Check out my results with a trading bot on the paid plan. This bot can also be connected to the Bitstamp exchange.
💻 Do You Need to Download Special Software?
Various crypto bots only work as installable software, which needs to be downloaded and installed in your computer or a special virtual private server (VPS) before it can be used. But that is not always the case.
Some bots also come as web- or cloud-based software. This means that you do not have to install any program to start using their automated operations. All you need to do is to connect your Bitstamp account with the web-based bot, and you are able to move forward with using all the functions that it has to offer.
🛡️ Are Bitstamp Bots Safe?
While Bitstamp ensures that it offers optimal connectivity to its markets for any solution, the bots in question are only as safe as their developers want them to be.
As you shop around for Bitstamp automated bots, you will need to make sure that you are doing your due diligence regarding the safety of their operations.
Any bot that asks for withdrawal access from your account will be a big no, since that will allow the bot to withdraw funds from your exchange and transfer it wherever it wants.
Instead, you should select tools that only ask for API access to perform trades on the exchange through your account. This ensures that your funds aren’t going out of the exchange at any point without your manual intervention.
🤖 Best Bitstamp Bots
Due to high popularity of Bitstamp a lot of trading bots could be connected to that exchange:
👌 Are There Any Free Bitstamp Bots?
Since creating cryptocurrency bots is not an easy task, not many developers provide their bot programs free of cost.
With that being said, you can still find open-source bots that come without any charges. But here’s the deal: they are often difficult to use and come without an intuitive graphical user interface (GUI).
On the other hand, easy to use bots often come with a steep price tag. Here, the best way to go about it is to use free trial, backtesting or paper trading modes that are usually available without any cost. This way, you can determine if the cryptocurrency bot is fit for your needs before you purchase it.
💰 How Much Money Do I Need to Start?
Bitstamp has multiple trading fee tiers that start from 0.50% per trade against a monthly trading volume of under $10,000. The higher your volume on the exchange, the lower this trading fee gets.
Along with this, you also need to pay for withdrawal charges. You will also need to account for deposit charges if you are using international wire. With it, any cryptocurrency purchases through credit and debit cards will also come at additional charges. The complete fee schedule is available on the official website.
What’s the point of all of this, you ask? It’s to help you understand that whenever you are starting with a crypto bot with Bitstamp, you will need to not only pay for the software, but also for these service fees by the exchange.
As a result, you should have a decent amount set out before you start trading, so that you don’t run into any issues with these fees while still enjoying the chance to earn viable profit from your efforts.
📈 Are There Any Unique Pairs to Trade With the Bot on Bitstamp?
Bitstamp allows cryptocurrency traders to buy and sell the following digital assets.
- Bitcoin
- Ethereum
- Litecoin
- Bitcoin Cash
- XRP
With that, Bitstamp also allows traders to utilize USD and EUR as the base fiat currencies to buy and sell each of these cryptocurrencies with ease.
Apart from USD/EUR pairs, all altcoins are also offered in pairing with Bitcoin, such as ETH/BTC or LTC/BTC.
📢 Conclusion
Overall, Bitstamp is a credible exchange to use with trading bots. While it does not offer a wide breadth of different cryptocurrencies or pairs, its trustworthy operations and state of the art security make it a viable candidate to pair with your automated bots.
Just make sure that you are comfortable in trading with a limited amount of cryptocurrencies, and you will be happy in using Bitstamp with your bots.