EVERYTHING YOU NEED TO KNOW ABOUT KUCOIN TRADING BOT
Ever heard someone say they missed out on a trade because they were too busy to make analyses and execute their trade? Or perhaps you woke up in the morning to realize some big moves happened in the market while you were enjoying the supreme comfort of your warm bed and fluffy pillows. No harm in profits missed right? The market is here to stay so you can try again tomorrow. It would only be harmful if you took a loss.
But what if you could take that trade and make all of the profits you can? Well that would mean dedicating more time or losing some sleep for extra profits. Is it worth it? Well it depends on the profit size.
Now what if i told you that you could activate a trading bot capable of executing and closing trades on its own? Ever heard of kucoin trading bots?
What is a Kucoin trading bot?
● A smart trading tool to automate your trading strategies for more than 250 digital assets 24/7 on your behalf.
● It automatically tracks and arbitrages from market volatility without keeping an eye on the market all the time.
● It helps investors to earn passive income easily even when asleep or during volatile market conditions.
Running a bot might sound complex at first, how can I program the bot to run trades or to take profits or make a near perfect trade entry? What if I want to go short when the market is going south? These may be few of the thoughts on your mind, but not to worry, I’ll go into detail and explain all you need to know in the simplest of terms.
What are the advantages of KuCoin trading bot?
a. Reduce repetitive work.
Trading Bots can “assemble and copy” repetitive tasks to help you easily execute trades. For instance, if you rebalance your investment portfolio every four hours, you can use a Smart Rebalance Bot and program it so that the Bot will automatically balance your investment portfolio.
b. Seize the trading opportunity.
Timing is important when it comes to trading, and each of your trades will have a huge impact on the potential profit. For example, if you want to execute a trade after reaching a certain threshold, you need to sit in front of your screen and observe the changing market chart — likely for hours, so that you won’t miss the best timing. While using a trading bot can monitor market holdings on your behalf and execute trades 24 hours non-stop.
c. Reduce trading risks.
In most cases, the market is fluctuating. Trading Bots are great for tracking and making the most out of market fluctuations, as they will continue to carry out arbitrage with the flow of the market. For instance, in the extreme unilaterally rising market, the trading bots will not miss profit; in the unilaterally falling market, they can help reduce user losses and further reduce investment risks.
There are 5 trading bots available on kucoin designed for different strategies and trading patterns
● Spot Grid: Make passive income by buying and selling high
● DCA: Lower your average entry price via continuous investment
● Futures Grid: Bring Spot Grid to the Futures market
● Smart Rebalance: Grow your portfolio even if you just HODL
● Infinity Grid: A derivative strategy of Spot grid
SPOT GRID STRATEGY BOT: Grid trading is a type of quantitative trading strategy whereby the trading bot automates buying and selling on spot trading. It is designed to place orders in the market at preset intervals within a configured price range. Grid trading is when orders are placed above and below a set price, creating a grid of orders at incrementally increasing and decreasing prices. In this way, it constructs a trading grid.
KuCoin spot grid bot performs the best in volatile markets when prices fluctuate within a specific range. Essentially, grid trading attempts to make profits on small price changes. Through quantitative trading, it helps you trade rationally and avoid FOMO(fear of missing out) where possible.
DCA STRATEGY BOT: DCA rests on the notion that you spread the buying of your investment over different times.
Here’s how that works:
Let’s say that you want to spend $40,000 on Ethereum over 12 months. You can either buy it all at once, make partial purchases at times when the price looks better, or you can simply spend $3333.33 at the same time every month, no matter what the price is. This last choice is dollar-cost averaging or DCA. Ethereum could be selling at $2000 one month and $3500 the next, but you would still spend the same dollar amount every month. Naturally, your DCA trading purchases can be made on a daily, weekly, or monthly basis. It’s up to you.
Now that we have a clear understanding of what DCA is all about, how does a DCA bot work?
The DCA bot will purchase your crypto at the frequency you specify. As I mentioned before, this could be hourly, daily, weekly, or monthly, it’s up to you what you go with. It will do this without getting bored too, so that you don’t have to. You can just get on with your day and leave the bot to do its thing.
FUTURES GRID STRATEGY BOT: Generally, futures trading requires experience and skills. However, the Futures Grid Bot greatly lowers the threshold for entering into the futures market, offering investors AI parameters to help them start trading without commanding in-depth knowledge of futures trading.
Just as its name implies, the Futures Grid Bot is a combination of grid trading and futures trading, which can bring grid profit for users when going long or short.
The bot will divide your investment into several grids and keep buying low and selling high within the price range. The futures grid is like a fishing net — by tracking the price of the contract, the bot continuously reaps profit from grids.
Statistics show that most investors choose to go long in the futures market. Regardless of the market dynamics, if one wants to go short, the Futures Grid Bot will be a less risky and more profitable choice. Compared with spot trading, the Futures Grid Bot can earn investors not only grid profit, but also extra funding fees paid by the long side.
SMART REBALANCE BOT: Smart Rebalance strategy helps HODLers to increase their returns further by reshuffling their portfolio of cryptocurrencies. Smart Rebalance strategy is based on the idea of increasing the total amount of assets but at the same time keeping the portfolio percentage unchanged.
During downward price movement, the rebalance bots adjusts its position to keep the ratio of assets in your portfolio the same. So if one asset is decreasing in price, the ratio of the other token(s) in the portfolio is recalculated and rotated to fill the losing asset.
Assuming that you want to allocate 40% of your fund to BTC, 30% to ETH and 30% to KCS, if you are simply holding, the value of these tokens may change over time and the portfolio percentage will soon no longer be 40% — 30% — 30%. For more clarity, Let’s say your portfolio percentage has changed from 40% — 30% — 30% to 45% — 30% — 25%, here the smart rebalance bot will then sell some Bitcoin to reduce its percentage from 45% to 40%, and then buy some KCS to make it back to 30%. With this,you now have more kCS than previously and if its price should appreciate so that it deviates from the 30% ratio, it would be sold and funds would be used to buy more of the token whose percentage has fallen below the initial ratio.
INFINITY GRID STRATEGY BOT: The infinity grid is a derivative strategy of the spot grid, designed to avoid MISSING OUT on a price pump. This strategy is most successful when all fundamentals are pointing to an upward movement.
Infinite bot only has a lower limit, no upper limit. It keeps the investment into the asset at a constant price, e.g. suppose the entry price of BTC/USDT is 50,000, and the single grid profit is set to 1%.
When price rises to the first grid which is 1%, the BTC held would now be worth 50,500 USDT, so the bot will sell 500 USDT worth of bitcoins. Therefore, the remaining bitcoins still value 50,000 USDT. Similarly, more BTC will be bought when the price falls below 1%, thereby keeping the total value of BTC in hand at 50,000 USDT.
KuCoin is the world’s number 1 exchange for altcoin, offering a vast variety of assets to pick from; over 600+ top performance assets. Popularly referred to as the peoples exchange, Kucoin ranks in the top 5 best global crypto exchange, offering services to all classes of investors, Kucoin currently holds the title for best Exchange for crypto enthusiasts. If you’re an enthusiast, this is one train you’ll want to hop on. With easy, secure and straightforward ways to purchase crypto including but not limited to; sepa, credit/debit card, paypal, local bank transfer, visa/mastercard and over 26+ more options. But that’s not all, KuCOIN offers its users multiple means of making passive income on their idle assets through staking and lending. Boosting one of the best trading bot services available on an Exchange, users can earn more passive income running a trading bot on kucoin at no extra cost.
SETTING UP A STRATEGY BOT ON KUCOIN:
You can sign up for a KuCoin account to get started on running a profitable trading bot
From the landing page on kucoin, select TRADE>>TRADING BOT
OR
Choosing the right bot to compliment your trading plan and maximize your profits is vital to success.
See more trading bot tutorial on YouTube
UP NEXT
FINDING THE RIGHT BOT THAT SUITS YOU
Nb; All trading strategies are good if managed properly, you should only invest what you can afford to lose and always DYOR to help you make informed decisions. Remember, a trading strategy is only as good as the trader behind the screen.
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