How KuCoin Trading Bots are Beneficial for Crypto Traders?

How KuCoin Trading Bots are Beneficial for Crypto Traders?

Investing in cryptocurrencies has become one of the hottest trends in the trading world which is quite beneficial too. However, the volatility of the crypto market makes it quite risky and difficult for traders to predict what is going to happen next? But, by making use of crypto trading bot and several trading strategies, it has become easier for the traders to make smart and intelligent buying/selling decisions.

This also decreases the risk exposure further while increasing their chances of profits.

Automating your trades is quite easier, but finding the right crypto trading bot and trading platform is a tough job. For the crypto exchange like KuCoin, you need a specific bot. KuCoin has become one of the most popular and safest exchanges that allow traders to make incredible profits.

KuCoin is one of the most popular and largest crypto exchanges in terms of the trading volume. The platform offers margin, futures, and spot trading on the exchange. The exchange offers a wide selection of digital coins for crypto trading like ETH, BTC, etc. The traders can use various algorithms and tools of the platform like OCO orders, crypto trading signals, trading bots, etc.

Is bot trading available on KuCoin?

Of Course, Yes! KuCoin supports automated trading which allows you to make use of trading bots. Let’s understand about trading bots and how these work: KuCoin Trading bot is one of the latest features which allow traders to generate massive profits without watching the system 24x7. It helps users to save time and energy while decreasing risks and increasing profits. These bots execute buy and sell orders when the predetermined/preset conditions are met.

Additionally, this trading bot provides free trading strategies which let you take returns without monitoring the market. Furthermore, you do not need to connect a third-party bot provider using API keys to KuCoin as you can begin using this bot by simply depositing funds, selecting the strategies, and enabling the bot. This trading bot offers six different strategies including DCA, classic grid, margin grid, Futures grid, infinite grid, and dynamic rebalancing. Furthermore, it also allows you to run around 10 bots at a time. This bot is quite user-friendly and easy. You can begin using it by simply depositing funds, selecting your strategy, and then enabling the bot.

How KuCoin Trading bot works?

There are multiple trading strategies available which traders can use as per their convenience. But, most commonly grid trading is used. This method allows traders to earn good profits even from the market price fluctuations by positioning any kind of buy or sell orders. In this kind of trading, the bot will buy if the price drops, and sell them as the price climbs over the base currency at the preset intervals, and around the set price.

While setting up this bot, there are two main options to choose from, i.e. maximum price and minimum price in which the trading bot will operate, and the number of orders to be placed. The min and max price here determines the lowest and highest price at which the bot will buy the crypto asset at. The bot will stop trading above or below this range.

Apart from this, this bot also supports DCA (Dollar-Cost Averaging) which is essentially a long-term investment strategy. For example, if a trader wanted to invest $50,000 into BTC, it is not recommended to invest all the money at once. Rather, the trader could give instructions to the bot to invest smaller amounts at the set intervals. This kind of strategy could be quite difficult to stick to whenever you trade manually.

Advantages of KuCoin trading bot Using KuCoin trading bot is quite beneficial for the traders, and some of its advantages are: 1. Reduce repetitive tasks- These bots can assemble and copy heavy tasks to help the traders execute trades. Like, if you are rebalancing your investment portfolio every two hours, making use of a smart rebalance bot is beneficial. You may also program it so that it automatically balances your investment portfolio.

2. Reduce trading risks- The KuCoin trading bot are great for reducing the trading risks due to market fluctuations. They carry out arbitrage with the flow of market. In an extreme rising market, smart rebalancing bot will help you out and will not miss any profits while in the falling market trends, they will reduce user losses and further reduce the investment risks.

3. Seize the trading opportunity- Timing is very crucial in crypto trading as the market changes within minutes or even seconds. Each of your trades has a huge impact on the potential profits of the traders. For example- if you want to execute a trade after a certain condition is met, it’s important for you to observe the K-line. So, it’s better to use crypto trading bot which will monitor the market trends and execute the trades accordingly.

How to earn passive incomes with KuCoin trading bot?

The trading bot’s parameters always determine the user’s trading strategy and are usually set by the trader. An ideal trading strategy depends on the trading pair which you want it to operate on. Here we are considering an example of BTC/USDT because of higher liquidity and allowing the bot to set the parameters automatically.

To ensure passive income, the BTC price range should be large enough so that the smaller price movements won’t force the bot to stop your trades. More orders placed doesn’t necessarily mean the better performance of the bot, instead, it’s ideal to find a balance based on the chosen trading pair, number of orders, and the price range.

Making use of KuCoin trading bot with smaller amounts is recommended until you find a winning trading strategy. Once you will find it, you can increase the amount as per the bot’s performance and can earn good profits.