KuCoin (№1 Altcoin Exchange) is currently one of the Top 5 centralized exchanges in the world with over 600+ digital assets listed and available to trade with over 1,100 trading pairs according to CoinMarketCap. Launched in 2017, KuCoin has grown over the years to be known as the “People’s Exchange” built for all classes of investors and also recently named the Best Crypto App of 2022 for enthusiasts by The Ascent. Currently, KuCoin offers P2P Fiat Trading, Spot Trading, Futures Trading, Crypto Lending, Margin Trading, KuCoin Earn, Trading Bot, and NFTs.
Spotlights of KuCoin Trading Bot
In January 2021, KuCoin launched its cryptocurrency trading bot on its platform to provide users with a smart trading tool to automate their trading strategies for various digital assets 24/7 on their behalf. It automatically tracks and arbitrages from market volatility without the user needing to keep an eye on the market all the time. By using the specific parameters provided by the user in addition to the information about the market that it gets through analytics and other advanced tools to analyze price and forecast market trends, then automatically place buy and sell orders which will get executed following the price movement. It helps investors to earn passive income easily by saving their time and energy. It supports many trading pairs with new pairs added by KuCoin frequently to meet up the demand.
Benefits of KuCoin Trading Bot
- Free & accessible to all users: Users do not have to pay any fees to use it, meaning that there are no subscriptions of any kind, access fees, and alike. The only requirement is having an account on the exchange and funding the account with some money that can be utilized for the bot to start trading.
- Different Trading Strategy Options: Users can choose from the various options of trading strategies available on KuCoin Trading Bot. Each strategy is designed and structured to meet users' demands based on their preferences.
- Ride out market downturns (Buying the dip during a bear season): Using the DCA strategy by investing periodic smaller amounts in declining market seasons assists in surviving the volatility of the market. The KuCoin Trading Bot using DCA can keep a healthy balance and leave the upside potential to increase portfolio value in the long term. Buying cryptocurrencies when prices are declining ensures that an investor earns higher returns. Using the DCA strategy ensures that you buy more crypto than if you had purchased when prices were high.
- Customizable: Freedom to set up your bot exactly how you want it, without any restrictions, you can choose how often you want to DCA, the type of crypto token pairs you want in your portfolio, set price ranges, input desired investment amount, and percentage allocation for each selected pair, you get to choose how your final trading strategy will look like.
- Flexibility: Using the bot to execute trades grants the user freedom from having to always monitor the market charts & observing market trends all day. The bot helps you in monitoring the market activities on your behalf and executing trades 24 hours non-stop.
- Better Risk Management: Automated recurring purchasing of crypto using the KuCoin Trading Bot aids in protecting users from the volatility in the crypto market especially during extreme unilaterally rising market conditions. Making use of the KuCoin Trading Bot helps you manage your risks better when investing in cryptocurrencies.
Types of Trading Bot Strategies Available On KuCoin
KuCoin trading bot makes use of a variety of trading strategies, which includes: Spot Grid, Futures Grid, Smart Rebalance, DCA, and Infinity Grid.
❖ Spot Grid: This strategy help users make a profit from taking advantage of market fluctuations by positioning buy and sell orders. Essentially, the bot will automatically buy coins when their price decreases, and sell them when it increases (Buy Low & Sell High) over the base currency at specified intervals and around the specified price. Therefore, making gains for the user based on the market trends. For example, if you have a feeling that Ethereum's price will probably fluctuate between $2k and $3k in the coming days, you can input the two prices as the price range of your Spot Grid during the initial setup. Then the bot will do its job by making arbitrage for you within the interval. Spot Grid is a relatively low-risk trading strategy suitable for everyone especially newbies in the space. (Spot Grid Bot users can enjoy a 20% discount on the Maker/Taker rate of LV0 fee level of the Spot Fee rate). Click to see more details: KuCoin Trading Bot Trading Fee Rules.
Step-by-step guide on how to set up the Spot Grid on KuCoin Trading Bot
❖ Futures Grid: This strategy functions like the Spot Grid Bot, as both of them can generate passive income for its users by buying low and selling high. But Futures Grid has two distinctive attributes that distinguish it from Spot Grid and can also help investors generate more profits. Just as the name implies, the Futures Grid Bot is a combination of grid trading and futures trading, it supports up to five times (5x) leverage, which can increase the returns of your successful trades by five times (5x) and can also bring grid profit for users when going long or short. The bot will split up your investment into different grids and continue buying low and selling high within the specified price range. Please always note that higher returns translate to higher risks because the Futures Grid Bot runs on the futures market and you’re still exposed to the risk of liquidation in the case of extreme market volatility.
Step-by-step guide on how to set up Futures Grid using KuCoin Trading Bot
❖ Smart Rebalance: This strategy is designed for crypto holders (long-term investors). Smart Rebalance has created a new way for investors to hold their desired crypto assets, potentially growing the gains on holding crypto assets by capitalizing on instant price movements. When the price of the coin rises to hit the targeted threshold, the Smart Rebalance bot will execute and split the additional value gained to other assets in the portfolio. Even if the price of the specific coin returns to the initial value before it has been rebalanced, the net profit has been attained, and naturally, the total amount of the assets increases automatically.
Smart Rebalance currently offers two types of rebalancing modes which are Threshold Rebalancing (by coin ratio) and Periodic Rebalancing(by time). To understand how the whole process of Smart Rebalance works, let’s take this example.
Assuming you set up a Smart Rebalance portfolio consisting of four crypto assets which are BTC, ETH, KCS, and BNB. Among the portfolio, the four coins are in percentages of 20%, 30%, 30%, and 20% value. If the total value of the portfolio is 1,000 USDT, thus the value for four coins is 200, 300, 300, 200 USDT.
Let’s take Periodic Rebalancing (by time) as an example. If the time interval was set to 24 hours, within the following 24 hours, BTC & ETH has gone up, whereas KCS & BNB went down. When the rebalance timing of 24 hours reaches, the smart rebalancing action will be executed which means the exceeding amount of BTC & ETH will be sold, and the depreciating amount of KCS & BNB will be bought to bring back the ratio of the portfolio to 20%, 30%, 30%, and 20% again for all the four coins.
In the case of Threshold Rebalancing (by coin ratio), assuming the preset threshold coin ratio is 5%, and the position in BTC has gone up from 20% to 25% which measures up to the targeted 5% deviation, thus rebalancing will be triggered and the ratio of the coins will be adjusted to the initial settings.
Step-by-step guide on how to set up Smart Rebalance using KuCoin Trading Bot
❖ Dollar-Cost Average (DCA): This strategy involves purchasing a desired crypto asset at a preset time interval with a predefined amount in a recurring cycle. This strategy seems quite useful after the strong downtrend of a bear market turns into an accumulative period. For example, you can set the bot to buy $100 worth of Bitcoin every day, week, or month, in the morning, noon, or night at any time you wish. As no one can easily predict the real dip of the market, DCA can help optimize your average entry price in most cases. With KuCoin Trading Bot, you can set an investment threshold, for example, let’s say 50% gain, before starting the bot. Once the threshold has been reached, you can set the bot to either notify you or stop profit automatically.
❖ Infinity Grid: This strategy is a derivative strategy of the spot grid, designed to avoid “missing out” from the market uptrends' (when crypto is pumping). It differentiates itself from the Spot Grid Bot by placing orders with a fixed number, Infinity Grid Bot places orders in percentages and there is no upper limit. As the Infinity Grid bot is running during a market uptrend, it ensures that the bot does not run out of the predefined range set by the user, it keeps performing its duty of “buying low and selling high” to carryout arbitrage while maintaining the exact value of your initial investment.
For example, using the BTC/USDT pair, during a market uptrend, the bot keeps selling the excess value of BTC but maintains the exact equivalent value of your initial USDT holdings. Assuming the initial entry price of BTC/USDT is 40,000USD, set the single grid profit to 5%.
When the price reaches the target of the first grid, the BTC held is worth 42,000USDT, so the bot will sell 2000 USDT worth of bitcoins. Therefore, the number of the remaining bitcoins will still be valued at 40,000 USDT. Similarly, BTC will be bought when it falls, keeping the total value of BTC in hand at 40,000 USDT.
Step-by-step guide on how to set up Infinity Grid using KuCoin Trading Bot
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To get a detailed guide on how to use KuCoin Trading Bot, kindly visit
● What is KuCoin Trading Bot and How does it work?
● KuCoin Trading Bot FAQ
● KuCoin Trading Bot Now Supports 4 Strategies! How To Find The Bot Fits You Most?