WHICH CRYPTO EXCHANGE IS GOOD FOR BOTS?
Updated: Jan 2
There are many important things to check when choosing the exchange to which you are going to trust your funds:
Amount of loyal customers?
In which jurisdiction is it licensed?
How big is the 24h trading volume?
How good and fast is it's customer support?
The information about the amount of visits per month is open and can be checked at the similarweb.com website. All other answers can be found on the exchange website.
Before the advent of the Internet, the telephone was every trader’s hottest tool. Because automatic trading did not yet exist, a phone call to your stock broker was necessary to place a trade on the market. However, with the development of new technologies, trading quickly moved into cyberspace, where API interfaces became the new paradigm.
In this article I want to say more about how APIs are used in crypto trading and how 3Commas can help you automate your trading strategies.
All your funds will remain on your exchange, 3Commas will be sending commands via API to your exchange account to place, cancel and close Buy or Sell orders. This communication is going to happen in real time in order to keep updated information regarding your current balance and status of your orders. This is why you need to select not only a secure exchange broker in terms of storing your assets, but also the one that has the most stable and fastest API connection.
API is the acronym for Application Programming Interface, which is a software intermediary that allows two applications to talk to each other. Each time you use an app like Facebook, send an instant message, or check the weather on your phone, you're using an API.
Unfortunately, sometimes exchanges are expecting delays in processing API requests. More often this happens on Futures exchange accounts during BTC pumps and dumps. It is very similar to any traffic jam on a highway when during a rush hour all vehicles are struggling to move in the same direction but the bottle neck is too small to make this happen. This is why poor or overloaded connection is not a good sign in API trading. I would recommend connecting at least 2 or more exchanges to test them in different market situations and then decide which one is the most effective for your trading style.
Good thing about API trading is that there is no need to keep your device turned on while your bots are enabled because the trades and bots run in real-time on a different server.
You can find a full list of Available Exchanges and Supported Features on this link from below:
I prefer to trade Long deals on my Binance exchange as it is the most popular exchange and I can be sure that my orders will be filled without any noticeable discrepancies. My Short deals I trade on FTX because for short deals I have to trade on a Futures exchange account and FTX provides the most reliable Futures API connection at the moment in my opinion.
I hope this information will be useful.
Thank you for reading.