I've read in multiple places and seen videos where people say don't keep your monery on an exchange, keep it offline in something like a Ledger instead. What if you want to use a bot to buy & sell? Does your crypto have to be on the exchange if using one?
If you are mentioned about centralized exchanges, you have to store your crypto in your account to buy or sell, manually or with support from bots.
- You have to because bitcoin or crypto transactions take time to be confirmed, fast or slow it depends.
- Exchanges require a minimum of confirmations to credit your deposit to your account balance. When you have it in your balance, you can trade.
If you are mentioned about Peer-to-peer trades, you can create your own scripts, bots to finish your trades.
- However, the problems with P2P marketplaces or true DEX are the liquidity is too low and in some platforms, details of your trade partners or yours are not attached to your account. This causes an issue that you have to wait for your trade partner to get those details, by chats or messenger. You on your side have to give such details to your partners (you can use bot of course).
- Combination of such means with P2P or DEX, it is difficult to use script or bot to open and complete your trade.