Fluctuations, pumps & dumps, market shifts! Welcome to cryptocurrency trading. Unlike traditional stock platforms that have fixed operating hours, the cryptocurrencies market runs 24/7. This makes it impossible for traders to monitor their markets. It is a headache when you own several trading accounts with different exchanges.
The good news is that now you don’t need to be glued to your computer screen all day long, monitoring your trades. There is an easy way. This article is for you if you are either a developer getting started with crypto trading, or an investor interested in boosting your profit with powerful python bots. But first things first.
Crypto Trading Bot
A crypto trading bot is an automated computer program that buys and sells cryptocurrencies on your behalf. A bot will place an order for you when you’re sleeping, on holiday with your family, or doing other duties. Bots are faster and execute strategies systematically.
Why Python? You may ask.
- Versatile and Easy to Use
The language focuses on code readability making the program neat and well structured, hence fast development.
- Open Source
Python is free and easy to download. The language is backed by a vibrant community comprising the best minds in IT who contribute to developing the language and support forums.
- Rich Source of Libraries
Python contains libraries for almost anything you can imagine from web development, through machine learning, to game development.
You can either use open source bots or make one from scratch. Using an open-source bot is easiest and cheaper. You just need to download the code and integrate it with your exchange. The main drawback is that it’s almost impossible to customize open-source programs with your unique features, continue its development, and fix bugs.
Developing a Crypto Trading Bot from Scratch
An own-built crypto trading bot gives you control over your private keys. You can also add whatever functionality you desire into the bot.
Key Steps to Build a Crypto Trading Bot from Scratch
1. Set up Development Environment
Setting up the environment involves getting hold of Exchange’s APIs. The APIs give the bot access to your exchange(s). There are different ways to get this API, depending on your exchange. Shrimpy offers one of the easiest ways to generate APIs.
2. Set Up Python Environment
You need to install all libraries and dependencies before starting coding with Python. Libraries are collections of functions and methods that simplify your work by performing many actions without manually writing code. For example, Shrimpy-Python library can be installed using this command:
pip install shrimpy-python
3. Create accounts with the exchanges
This step is vital to help you get the API Keys of the exchanges you want to use. Different exchanges have different sign-up procedures. This can be time-consuming, especially if you plan to use multiple exchanges. However, a better way to do this.
Shrimpy offers a way to connect up to 20 exchanges at one time. The platform also provides a way to access all your exchanges’ API keys in one place. For these and many more details, see a collective guide on linking your exchange account to Shrimpy and making your first trades.
The architecture must clearly define the data to be interpreted by the system. It should align with the three main crypto trading strategies – trade following, arbitrage, and Market making.
5. Actual coding
This is where you put all the parts of the architecture into executable code. Implementation is naturally the most critical and time-consuming step in building a crypto trading bot. Coding, as well as project management skills, are vital in this stage.
With shrimpy, you can include several functionalities within your code: Simple and WebSocket price tickets; Simple and WebSocket Live Order Book; Linking exchange accounts; retrieving exchange accounts balances.
An Easier Way: Shrimpy Crypto Trading Bot Services
The above process may appear complicated and almost impossible, especially for beginners. Are you a person who gets goosebumps at the mention of coding? There is a better way for you. Many commercial bots exist today in the market to tap and enjoy the benefits of automated trading.
Shrimpy Developer APIs incorporate the best features to bring you an easier and profitable way of trading cryptocurrency. It provides a one-stop place where you can manage all your portfolios. The system also offers unique features such as rebalancing and retesting, making it ideal for beginners and seasoned traders.
The volatile nature of cryptocurrencies makes crypto trading a risky venture. A lot of monitoring is needed when trading cryptos, making it one of the most time-consuming investments. It becomes harder with the round the clock market, making it impossible for any human to keep up with the market trends and trades.
Thanks to advancements in technology, the whole trading process can now be automated. A crypto trading bot manages your portfolio and automatically executes trades on your behalf. If well implemented, the above steps will help you build a private crypto trading bot that you have control over and increase your profit margin.