Established in 2016, BitZ is a popular cryptocurrency exchange that allows cryptocurrency traders to buy and sell their digital assets. While the exchange is based out of the British Virgin Islands, it caters to traders in territories ranging from Japan to the United States.
Seeing that BitZ has such an extensive outreach, you might be considering the exchange as the launching pad of your digital asset endeavors. In either case, you may also be looking to determine if BitZ offers trading bot support and lets you benefit from automated trading mechanisms.
To help you find all the relevant answers about using trading bots with BitZ, here’s a lowdown on the exchange as well as its compatibility with automated trading.
Are You Allowed to Use Trading Bots on BitZ?
Similar to other popular cryptocurrency exchanges, BitZ also allows bot usage on its platform. This is possible through automated programming interface (API) keys, which let third-party developers connect their automated applications to the exchange.
The usage of API keys enables standalone software to use BitZ’s platform, but it doesn’t compromise the security of its users. It’s because API keys pave the way for different software applications to interact with one another while only disclosing the information that is needed for a certain action. This makes sure that neither of the interacting applications shares more than necessary information with the other party.
This API mechanism works with almost all modern applications. This ensures that an application’s users don’t have to share their login credentials with another platform to use the latter’s services. This is how it works between cryptocurrency exchanges and automated bots as well as other applications like portfolio managers.
When you connect a bot to an exchange using API keys, the exchange only lets the tool access its trading platform without sharing sensitive login information. After allowing the trading service to access your specific account, you can reap the rewards of this secure mechanism without any issues.
Due to this reason, BitZ allows its own platform to be used with API key-enabled third-party applications. When your trading bot connects to the exchange using proper permissions and restrictive access, you can buy and sell cryptocurrency through automated mechanisms and associated strategies.
You just need to make sure that you are using tools that follow this mechanism of API keys. If you run into any so-called application that asks you to share your exchange’s login details, you should steer clear of it at all costs.
Since cryptocurrency users want their funds to be safe at all times yet need to be able to make quick trades, BitZ and its API key usage brings them an ideal solution in this regard. As a result, you can use any reliable cryptocurrency bot that fulfills this purpose.
Do You Need to Download Special Software?
There are several bots for BitZ that may require you to download special software to your Windows, Mac, or Linux operating system.
Typically, these applications are developed to run while using your computer’s resources such as computing power and internet connection. This means that when you download these downloadable crypto bots, you need to run your computer 24/7. Otherwise, you are not able to connect to the exchange or complete your trades.
But with the emergence of modern mechanisms, some of these installable applications run through cloud-connectivity on the backend. This means that even though they require you to install the software on your computer, they run through an execution of cloud-based servers. This means that you don’t have to run them 24/7. But you still need to install and access them from a designated computer.
Then there are web-based BitZ cryptocurrency trading bots that don’t need you to install any type of software at all. Instead, you just have to log in to the platform using a modern web browser such as Google Chrome. Even when you are not logged in, the cloud-based server continues to work in the backend in order to buy and sell cryptocurrency according to your preset strategies.
You can then access your crypto bot using any computer with a web browser. This gives you maximum flexibility while also staying safe through cloud-connectivity. Some of these applications are also accessible through their mobile apps.
Due to modern mechanisms and computer usage habits, cloud-based or web-based bots have become the most popular iteration of these applications. Since cloud-based solutions are just as secure as machine-based cryptocurrency bots, the main difference between these tools is the overall ease of use.
With that being said, if you are pedantic about your tech use and want to go with a self-setup, then you can very well go with a program that needs to be installed and connected through your own computer. This gives you full control of your bot to the point of its server connectivity.
Are BitZ Trading Bots Safe?
BitZ bots are safe as long as they use the API key connectivity method. Since API keys don’t divulge your cryptocurrency exchange’s login credentials to third-party platforms or their parent organizations, this saves your exchange account from unauthorized access through login information. In turn, you are able to benefit from increased functionality without compromising your safety.
Other than this, all reliable BitZ trading bots also make sure that they only have access to read data such as account balances and execute trades such as selling cryptocurrency on the exchange’s markets. While API keys allow the option to withdraw funds, all reputable automated trading services, as well as cryptocurrency exchanges strictly, ask you not to go ahead with this type of permission.
When a bot service doesn’t have withdrawal access, it cannot extract your funds out of your account. Instead, it can only buy and sell your assets on the designated exchange’s market according to your permission.
This covers a huge barrier to security and puts your mind at ease about the safety of your funds while using these programs. This ensures that you can use reliable cryptocurrency trading tools without having to think twice about safekeeping your funds.
Some BitZ cryptocurrency bots also offer two-factor authentication (2FA) or multi-factor authentication (MFA). This feature is often delivered through external mobile apps such as Google Authenticator. This adds another layer of security and prevents unauthorized access to your account to a significant extent.
Best BitZ Bots
Are There Any Free BitZ Bots?
While BitZ is a popular exchange, it still runs short of enjoying the same fame as some noticeably bigger exchanges. This means that the chances of finding active BitZ trading bots that are available free of cost are slim to none.
With that being said, you can still find a few cryptocurrency bots that are available without any charges and which work with BitZ. But the catch with free bots is that they don’t have a graphical user interface (GUI). Instead, they work on a command-line interface (CLI), which requires knowledge of text-based commands or coding.
This makes free tools highly restrictive to use. If you are not familiar with coding or have only been utilizing GUI-based software like most people who use a computer, these bots may bring a lot of complications as well as a steep learning curve with them. If you think that the hours you need to invest into learning these features are worth the money that you will save, you can go ahead with a free BitZ bot.
This happens because third-party programmers who create bots for free or as a hobby don’t get compensated for their efforts. Even if they receive tips from their audience, it’s a very small section of users that often doesn’t cover the costs of development or active operation of the bot. This makes it highly difficult for them to create a tool with a GUI, since developing a point-and-click interface takes a significant amount of funds and time on its own.
The other catch with free crypto bots comes in terms of their reliability. Since these platforms are not used commercially, the amount of people that they serve is not as high as some more popular paid bots. Due to this reason, you cannot totally depend on the programs and functionalities that these services bring to the table. This also causes them to have a lack of important security updates, especially if their software is not open-source and doesn’t get contributions from a larger team of free developers.
Another problem that arises with free bots is their limited functionality. As opposed to subscription-based or license-based tools, these programs don’t have a slew of functionality to offer. This puts them behind the type of features that you can enjoy if you have a commercial cryptocurrency bot at your disposal.
How Much Money Do I Need to Start?
Whether you use BitZ or any other cryptocurrency exchange, you need to cover the costs of the exchange fee as well as the transfer fee that might incur when you move your funds from one account to another. Other charges such as conversion fees may also apply on a regular basis. This means that you need to account for additional expenses that may apply from time to time.
You should also understand that making a $10 or a $20 trade may not even cover the transaction fee at times, let alone a trade itself. If you are moving forward with an expensive currency such as Bitcoin, that cost wouldn’t amount to a noticeable fraction of the digital asset. Since the goal is to make a profit with your trades and not lose all your money on transaction fees, this calls for a higher amount than just a few bucks.
Another thing that you need to keep in mind is that while you should have a significant amount of money at hand to make consistent trades, it should come from funds that you can afford to lose. It’s because cryptocurrency trading doesn’t actually guarantee profits by itself. Instead, it simply ensures that you are trading without constant intervention, but at a faster speed as well as more technical precision than manual transactions.
To put it simply, you should have a sufficient amount of funds at your hand that could cover more than a few trades a day, even if you end up losing a bit of money at some of them. This ensures that your trading doesn’t stop in the middle of the day without your knowledge. It’s because when you are relying on a trading program to execute your trades in your absence, the worst feeling that you can experience – apart from losing money – is seeing that your trades didn’t go through at all while you were not looking at your screen.
With this in mind, put apart a significant portion of your funds. But ensure that it’s money that you can afford to part ways from if things go south during your trading adventures.
Are There Any Unique Pairs to Trade With the Bot on BitZ?
BitZ offers a variety of cryptocurrency pairs that are all often compatible with the bots that work with the exchange.
At the time of writing, the exchange offers a huge set of cryptocurrency pairs. Depending upon your requirements, you can easily find if one of those pairs is unique to your needs and caters to your specifications.
Conclusion
Using a cryptocurrency bot with BitZ is quite possible. But you need to keep an eye out for reliable and popular services that are also full of functionalities. As long as you select a bot that is dependable, easy to use, and feature-rich, you can make the most out of your automated trading activities.