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Guest Author
Nov 26, 2021
by Guest Author

New To Crypto Trading? KuCoin Exchange’s Trading Bot Can Help You Gain Profits

KuCoin Exchange’s Trading Bot

Table of contents

  1. Automate Trading with KuCoin Exchange Trading Bot
  2. Classic Spot Grid Bot 
  3. Smart Rebalance Bot 
  4. DCA Bot 
  5. Futures Grid Bot 
  6. Conclusion 
KuCoin Exchange’s trading bots’ primary function is to place and sell orders on behalf of users and make profits off the fluctuation of the market. Trading bots were introduced to KuCoin crypto exchange with an aim to accommodate everyday crypto traders. For newcomers, trading bots could be a zero-cost high-return investment for implementing successful trading strategies. 

Trading bots on KuCoin are equipped to use market data to analyze and benefit from the price movement of an asset. They help traders make profits 24x7 eliminating the need to conduct market research for hours on end. 

Automate Trading with KuCoin Exchange Trading Bot

The KuCoin trading bot is designed to support your systematic investment plans, spot trading, smart rebalancing and futures trading. Time to get into understanding each of these bots in detail. 

Classic Spot Grid Bot 

Also known as the day-trading bot, the primary objective of this bot is to sell high and buy low. You can create multiple trading bots across crypto coins of your choice and profit from their price fluctuation using the classic grid bot. In any case, KuCoin cryptocurrency exchange is popular for listing a wide range of cryptocurrencies. You can either allocate USDT or a cryptocurrency of your choice using the classic grid trading bot. 

Spot Grid Bot

Choose your trading pair, for example, BTC/USDT and start by setting the AI Parameters. The AI parameters display the following:

  • The price of the cryptocurrency in terms of its dollar value represented by USDT. 

  • The trading range - for example, if BTC is trading at $52,500, the bot will set a trading range between 46k and 56k. If the crypto price goes below 46k the bot will stop buying, if it goes above 56k the bot will stop selling. What the bit does is it buys at the bottom of the range and sells at the top of the range. 

  • The number of orders it can place on your behalf. The bot executes a bunch of trades at different levels between the trading range and tries to buy low and sell high. 

    • The bot also allows you to customize your own parameters where you can do the following: 

    • Customize the trading range: The bot uses AI to target a wider price range that is fitting if you are aiming to use the bot for the long term. However, if you want to use the trading bot for a short period, setting up a tighter price range is ideal. 

    • Change the Number of Orders: You can tell your bot to place more or less orders at different levels. You can play around with the number and see which numbers give you more profits per grid. One thing to remember is the profit per grid reduces when you increase the number of orders because there are more orders to be placed so each order will have lesser increments. 

    • Putting a Stop Price and Taking Profit Price: You can use this option to set a limit for when you want the bot to stop trading when a trade moves against you. Conversely, you can also set a take profit price. Ideally the bot does all these for you so you don’t really have to customize these options. 

      • You may not want to use the bot to trade a cryptocurrency that is going through a one-way movement in terms of its price. Other than that, it is a super efficient tool to profit from highly volatile cryptocurrencies.

      Smart Rebalance Bot 

      It is not unknown in the crypto world to have one of your crypto coins shooting up in price and a bull market persisting for some time. What do you do at this time? Most likely you speculate on whether to sell, let’s say, a percentage of that coin and dedicate the earnings to other coins that are still low-priced. 

      All these can be done by the KuCoin exchange’s smart rebalance bot that allows you to designate a percentage of your portfolio to a selection of cryptos and buy high and sell low. The bot then automatically rebalances your portfolio so that it basically stays unchanged. Smart Rebalance Bot

      The rebalance bot is ideal for the type of crypto investor who has a limited number of crypto assets that they believe in and want to create a portfolio around them. Using artificial intelligence, Rebalance bot allocates a percentage for each coin in your portfolio. Any time a crypto coin goes beyond the set percentage, the bot redistributes the weight of your portfolio.

       

      DCA Bot 

      Dollar Cost Averaging technique is a long-term investment strategy for investing your assets in increments. The KuCoin DCA bot allows only USDT. This means you would have to have USDT on account in order to invest in cryptocurrencies using the DCA method. 

      You can use the DCA bot to set automate: 

      • The amount USDT you want to spend per investment. 

      • The volume of the trade each time the bot executes DCA. 

        • The KuCoin exchange DCA bot shows you the profit target by collating historical data through artificial intelligence. For example, it may tell you that your bitcoin investment will return you a profit of 10% after two months according to the

        parameters you have set. You can keep investing even after achieving the target or choose for KuCoin exchange to sell your position, bank your profits and start again. 

        Futures Grid Bot 

        The KuCoin Futures Grid Bot is the same as the classic spot grid bot, only here you are trading the derivatives of the cryptocurrencies. Three additional features of futures grid bot is: 

        • Leverage 

        • Shorting Crypto, i.e is profiting from a price decrease 

        • Adding Margin 

          • The Futures Grid Bot can allocate up to 5x leverage and lends more capital so that you can amplify your profits from a trade. You must remember, however, that this is very risky as you can lose all your investments if the trade goes against you. 

          The bot shows a liquidation price which demarcates the price at which your crypto asset will be liquidated. Also, you can set up the take profit and stop loss prices to manage your investments more efficiently. Bear in mind, this feature is ideal for expert traders and those who don’t mind losing a certain amount of assets. It is a great feature for crypto gamblers but if you are a regular trader, the classic spot grid is your safest bet. 

          Conclusion 

          Undoubtedly the cryptocurrency trading community is growing by the day, and even people who were not avid investors previously are looking to gain from this developing market. The KuCoin Exchange trading bots were introduced with the intention of simplifying crypto trading for newcomers.

          Today, not just newcomers, seasoned traders too have begun trusting the KuCoin crypto exchange’s bots to make efficient trading decisions and reduce downside market. They remove the chances of human errors, panic buying or missing out on market opportunities through automation and artificial intelligence. Practically, they help you earn profits even while you sleep. 

          Currently available through the KuCoin App, and the web, the trading bots allow users to experiment with the different trading strategies without much worry and hassle. 

          KuCoin Exchange recently partnered with Blockwiz, a global crypto marketing agency that provides integrated cryptocurrency marketing solutions across crypto influencers, PR, SEO, and social media; in an effort to strengthen online communities and meet their business objectives. So, don’t forget to check out their social media handles to stay updated with the latest developments!

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          KuCoin Exchange’s Trading Bot
          New To Crypto Trading? KuCoin Exchange’s Trading Bot Can Help You Gain Profits
          Guest Author
          As a keen observer of every latest development in the crypto world, Guest has formed a sound understanding of how the blockchain and cryptocurrency works. Guest likes to keep a tab on all the trends within the crypto industry and treats our readers with insightful content.

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