KuCoin is a leading Crypto Exchange with 503 tradable cryptocurrencies, including their own cryptocurrency KuCoin Token. They have over 8 million users. The platform offers spot trading, margin trading, contract (futures), Pool-X, lending, and trading bot services.
What is a KuCoin Trading Bot?
A KuCoin trading bot is a tool that offers to perform tasks in your place. Traders use trading bots to automate their cryptocurrency trading. KuCoin trading bot allows you to pre-set certain conditions, which the bot takes into account while executing trades on your behalf.
KuCoin trading bots bring an advanced way of making profits from trading without being bound to study the market.
What makes the 3commas KuCoin trade bot different from other trading bots is that it is a built-in feature in the KuCoin exchange app, and secondly, it is entirely free of charge.
KuCoin trading bot can assemble and copy repetitive tasks, which helps you systematically take trades. Due to its AI capabilities, your trades face controlled risks and the default benefit of low buys and high sells.
The constant volatility in the market, combined with the rapid pace at which a bot can place trades, leaves a higher potential for arbitrage, resulting in huge gains. There are also reduced losses due to a lack of emotional trading.
Furthermore, the 24/7 bot activity helps you take advantage of all the available good trades.
KuCoin Bot-Supported Strategies
KuCoin Trading Bot currently supports the following strategies:
- Spot Grid
Spot grid is the classic grid strategy that aims to generate profits from the frequent price fluctuations in the market. It helps in buying short and selling high in a set price range. Grid strategy proves to be successful in a volatile market.
It is a low-risk strategy and needs time to reveal its power. Using a spot grid strategy, traders need to remember that; the higher the volatility, the greater the returns.
- Dollar Cost Averaging (DCA)
Dollar Cost Averaging is one of the most innovative strategies offered by KuCoin Bot. In this strategy, funds are first divided, and then bots automatically purchase a certain amount of pre-selected tokens at a specific time set by the investor.
Most of us can hardly predict the natural dip of the market, and dollar cost averaging can help optimize our average entry price in most of the available cases. These efforts also mitigate the effects of market volatility in the long run.
Dollar Cost Averaging is easy to start, but traders often cannot decide when to stop profits. To overcome this obstacle, KuCoin trading offers traders a way to set an investment target before starting the bot.
Once that target has been achieved, the bot will notify the trader or stop profits.
- Futures Grid
The Futures Grid Strategy is an upgraded version of the Spot Grid Strategy. Both strategies essentially focus on passive income by buying low and selling high. However, the Futures Grid offers its users two additional features capable of landing its investors with high profits.
Firstly, it allows investors to be long or short on their token when starting their bot. If you believe the bitcoin price will go downward, you can implement grid trading via the futures grid or KuCoin trading bot.
Secondly, the Futures Grid supports leverage, and that too up to five times (5x). Leverages can increase the returns of your successful trades by five times. However, you must remember that higher returns imply higher risks.
Preferable conditions to go for the Futures Grid are either when the investor is interested in making profits in a downward trend market or wants to apply leverage in their trade.
However, extreme market volatility entails a high risk of liquidation, as the Futures Grid runs only on the futures market.
- Smart Rebalance
The Smart Rebalancing strategy mainly assists its holders in further increasing their returns. This strategy supports increasing the total amount of profits while maintaining the portfolio percentage.
E.g., a trader might hold 40% of BTC, 30% of ETH, and 30% of KCS. Now, if they are simply holding these tokens, their values might change over time. For instance, they might go from 40%-30%-30% to 45%-30%-25%. In this case, the bot will sell some BTC to reduce it from 45% to 40% and buy some KCS to restore it to 30%.
This strategy resembles grid trading. In grid trading, the bot buys low and sells high, whereas, in smart rebalancing, the same is done among the acquired tokens in a holder’s portfolio. Rebalancing can be triggered by a predetermined specific ratio or time while programming the bot, for e.g., every 6 hours or with a deviation of 3%.
- Infinity Grid
Infinity Grid is a derivative strategy of the spot grid strategy. The infinity bot ensures that it never goes out of range. This implies that the infinity bot continues to buy low and sell high at all times while maintaining several cryptos equivalent to the amount of the capital.
The price never goes beyond your preset conditions or boundaries when using the infinity bot.
Conclusion
KuCoin is a centralized crypto exchange with several unique features, including a built-in, free KuCoin trading bot. KuCoin trading bot is user-friendly and makes trading a whole lot easier with its advanced and innovative trading strategies.
Jorden Smith is a passionate writer and researcher with a knack for exploring news and website reviews. With a keen eye for detail and a love for uncovering hidden gems, Jorden’s work is always thorough and informative. When not busy writing, Jorden enjoys traveling and discovering new places. Stay tuned for more insightful articles from this up-and-coming writer.