Cryptocurrencies are very volatile assets. Therefore, traders are unable to react quickly enough to take positions at ideal times. However, the KuCoin exchange offers a number of tools that can help them with this. One of them is the KuCoin Trading Bot and that is what we will focus on in this article. We’ll explain what this tool is, how it works, what features it offers, why you should use it, and more. But first, let’s start with the basics, i.e. what is KuCoin exchange.
What is KuCoin?
KuCoin is the fifth largest digital asset trading platform in the world according to CoinMarketCap and Coingecko. He describes himself as a “people exchange”. Why? Because its simple interface makes it suitable for novice traders, and a large number of features and products allow more experienced people to trade effectively.
In addition to the traditional spot trading functions on KuCoin, you can also trade with leverage, transact futures, borrow and lend, invest cryptocurrencies, trade on P2P markets and more.
KuCoin is also known for its huge number of so-called “crypto gems”. The exchange lists many smaller altcoins with huge potential, and as a result, has gained recognition from over 18 million users in over 207 countries and regions worldwide. Just last month, KuCoin added support for projects such as:
Now that you know what KuCoin is, it’s time to get into the specifics. In the next part, we will explain what it is KuCoin Trading Bot.
What is KuCoin trading bot?
As we mentioned in the introduction of this article, cryptocurrencies are such a volatile asset that it is very difficult to sense the moment to take a position. Even if a trader has a good sense of timing, after all, he cannot watch charts 24/7/365. Moreover, to be effective, it would have to monitor all the exchanges operating in the market 24 hours a day.
That’s why KuCoin created its own automated tool called KuCoin Trading Bot. It allows you to enter positions automatically. All you need to do is select the cryptocurrency you want to trade and configure a few parameters, such as entry/exit threshold and trading frequency. Of course, these parameters must be adapted to your strategy.
Why should you use KuCoin Trading Bot?
Undoubtedly, there are many advantages of using a trading bot from KuCoin. Here are some of them:
- Taking advantage of opportunities – In the cryptocurrency market, opportunities open up almost every day. However, it is impossible to use them, because human nature is such that it needs to sleep. However, the trading robot from KuCoin continuously monitors the markets 24/7.
- Reduction of risks and losses – KuCoin bot allows you to get the most out of fluctuations. This is because it arbitrages following the flow of the market. For example, during uptrends, the Trading Bot will generate and accumulate profits for you using many different strategies. In crises, it will help you limit your losses and risks.
- Reduce repetitive activities – Trading Bot allows you to automate activities that you normally do on a repetitive basis. With the Smart Rebalance Bot, for example, you can automatically rebalance your portfolio at specific intervals.
Types of trading bots on KuCoin
KuCoin currently offers 5 different types trading bots that use the strategies of other users. So far, over 10 million users have shared their ideas. These 5 types of bots are:
Now let’s talk about each individual type separately.
Spot Grid uses the most classic and popular trading strategy. This type of bot sells at highs and buys at lows. This allows you to make a profit within a pre-defined price range. This strategy is very suitable for use in volatile markets.
Spot Grid is a fairly safe strategy. However, profits are usually attractive only after a long period of time.
Spot Grid works in two modes. The first uses artificial intelligence, which enters positions based on the coin’s historical data. The second allows you to copy the settings of other users.
Dollar Cost Averaging (DCA)
DCA is also a good strategy. It involves the periodic purchase of cryptocurrencies at certain intervals. In this way, we reduce the average purchase price and cancel the impact of volatility.
Until now, if you wanted to buy cryptocurrencies for, say, $100 a month, you had to make a transfer every month, make trades, etc., all manually. With the DCA bot, you can automate this process
DCA is a great strategy. However, regular buying works best in the early stages of a bull market. DCA on KuCoin has another interesting feature that stands out. For example, you can set a take profit when your positions reach 20% profit.
How to configure DCA bot on KuCoin? – a step-by-step guide
To set up a DCA bot on KuCoin, you first need an account. You can create it by clicking on this link. After registration, all you need to do is follow the few steps below:
- Log in to your KuCoin account.
- At the top, hover over “Trading” and click “Trading Bot”.
- Find DCA Bot and click “Create Bot”.
- Enter the required details such as frequency of purchase, date of first investment, amount of individual investment, maximum investment.
- In the advanced settings, you can also select “Profit target”, which is the percentage of profit that, if successful, the bot will realize your positions.
- Once you’ve chosen your parameters, click “Create” and voila. You have just created your first bot on KuCoin using the dollar cost averaging strategy.
Grid Futures the strategy bears a strong resemblance to the Spot Grid strategy. It similarly consists of selling at highs and buying at lows. However, it has some unique features.
First, since we trade futures contracts, we can use the Futures Grid to trade both up and down (long and short positions).
Second, we have the ability to use leverage, which increases the potential profit (or loss).
Smart Rebalance is a bot that allows you to make profits without trading. This means you can make money from your property simply by HODLing.
The premise of this strategy is to increase the total value of your assets by adjusting the percentage allocation of your portfolio.
In general, this function can be compared to the services of an asset manager in the world of traditional finance. KuCoin itself calls it “A new way to manage your portfolio.”
Infinity Grid is a strategy that will not allow you to miss sudden jumps in the market, or so-called pumping. It is similar to Sport Grid Bot. The difference is that the Infinity Grid Bot places orders in percentages instead of predetermined numbers and has no limits.
Let’s use the BTC/USDT pair as an example. During rapid increases, the bot will sell BTC. However, it will also ensure that you always have coins equal to your initial USDT investment.
KuCoin really offers plenty of trading options and more. There’s a reason it’s already trusted by more than 18 million users and ranked as the fifth largest stock exchange in the world. So don’t wait. Create your KuCoin account today by clicking here relationship and enjoy the amazing opportunities that this exchange offers you.