If you are interested in running a KCEX trading bot, the options will be incredibly limited. We will discuss several possible scenarios and provide you with alternatives because people interested in automation will need them. Running a crypto trading bot directly on this CEX is not possible as of the time of writing but the company has mentioned that it is interested in providing an APY gateway to partner with some third parties.
Why should you be interested in automated trading on KCEX?
This company is one of the most accessible in North America as it holds licenses from regulatory authorities in Canada and the US while looking for additional approvals in other relevant regions. Law-abiding citizens of the aforementioned countries do not have much choice when it comes to CEXes allowed to operate with a license. This advantage alone puts the CEX in question on a different level compared to unlicensed operators.
Users of the platform enjoy multiple features:
- Native data aggregation. If you don’t like using resources like CoinGecko or CoinmarketCap with their overcrowded interfaces and too much information, the market section on the official website of this exchange will fully satisfy you. Users can track assets from several chains including Ethereum, Base, Solana, Tron, and others. All tracked assets can be traded on the spot or on the futures market.
- Access to derivatives. Futures on various cryptocurrencies can be incredibly valuable hedging instruments for investors focusing on long or staking positions. Many conservative traders like building delta-neutral portfolios and concentrate on reducing risks instead of increasing rewards. You will find plenty of coins such as BTC, ETH, DOGE, and many others.
- A massive spot market featuring hundreds pairs is very cheap because traders are not subjected to maker and taker fees. The zero-fee approach makes it a great choice for many investors interested in directly exchanging digital assets. The absence of commissions is one of the reasons why the platform does not have native automation tools or partnerships with respectable third-party providers.
The low-cost environment could be incredible for high-frequency trading. However, the platform does not allow it. It means that many users will have to focus on manual swaps and building a balanced portfolio using the diverse selection of derivatives and trading pairs. It is a significant downside for many crypto enthusiasts used to instruments like a grid trading bot or arbitrage. Here, you won’t be able to run these popular ATS setups.
How to set up a trading bot on KCEX
The exchange is quite popular among users from the US and Canada where the rate of automation use is significantly higher compared to Europe, another important crypto market. With over 65% of all retail traders using robots for various purposes, it seems quite strange that some centralized exchanges do not provide the necessary features to make automation readily available to users.
You won’t have access to a public API which is the only way to directly connect to the spot or derivative market. Unfortunately, users interested in running a KCEX futures trading bot are out of luck for the time being. On the other hand, you can still use automation to some degree. Below are some approaches:
- Use TradingView to create unique analytical strategies. The popular smart terminal is incredibly useful to all retail traders. Having access to hundreds of technical indicators, graphical tools, patterns, and other instruments is crucial in the crypto market which is largely speculative and does not abide by the rules of fundamental analysis. Many strategies are fully automated and produce alerts. You can manually execute a strategy using automated signals from this terminal.
- Set reminders using notification systems like the one offered by WunderTrading. While having fully autonomous robots can be great, it is also possible to manually trade assets following signals from your bots. The WunderTrading platform allows users to optimize trading on KCEX with bots that simply produce notifications when you should open positions and when it is a good idea to close them according to the selected analytical strategy. It is a great way to control risks and set profitability goals.
These two options are the only ones available to customers of this exchange. While it offers generous incentives to active day traders, the lack of meaningful automation instruments is a significant downside considering the effectiveness of strategies like GRID or DCA.
The best trading bots for KCEX in 2024
Since you cannot directly deploy a robot to connect to the exchange via an API gateway, the selection of efficient ATS setups is very limited. Below are some interesting robots that you can use for signal generation:
- Distributed cost average is a time-tested investment approach revolving around buying assets in small quantities over time to reduce the total price of acquisition. Running a DCA robot is a good idea for those who want to slowly accumulate a large portfolio of assets that have a potential for price appreciation. For instance, many BTC enthusiasts are using this method to buy coins.
- Back-tested strategies can produce excellent signals. Many platforms, including TradingView with its Strategy Tester, offer back-testing capabilities. For example, WunderTrading has a great feature allowing you to test any analytical strategy against the historical data and produce an ATS that generates fewer false positives and optimizes profitability.
These robots are good for signal generation. Other methods like triangular arbitrage, swing, and market-making require a direct connection between software and a CEX. Unfortunately, it is an unreachable luxury for users of this particular platform.
Trading bot guide for KCEX and other CEXes
As promised at the beginning of the article, we will provide some alternatives to investors interested in using automation. As far as KCEX-related solutions go, customers have only two choices:
- They can sit and wait until the company adds API gateways to the architecture of the platform.
- They can simply choose a different CEX partnered with reliable automation providers.
The second choice is the best alternative because the crypto industry has many centralized platforms that offer an excellent user experience, low fees, and various passive income opportunities. Some popular CEXes also fund open-source solutions like Hummingbot or directly partner with third-party providers.
Below are some CEX companies that may catch your attention:
- Binance is the biggest centralized exchange in the world with a 17% market share and a massive $76 billion daily trading volume. You can find plenty of investment and trading opportunities on this global hub featuring 384 approved coins and 1258 pairs. Binance is supported by a variety of providers including CryptoHopper and WunderTrading.
- OKX is another big player with a respectable $3.2 billion daily trading volume, 301 available coins, and 625 pairs. Here, you can use native instruments like copy-trading modules and more. OKX is partnered with industry leaders in the automation industry such as 3Commas, TradeSanta, and WunderTrading.
- Kraken can be a good alternative for North American users as it is one of the most popular US-based companies that was founded back in 2011. The 24-hour volume is close to $1.3 billion with fees as low as 3%. You can access the spot market featuring 290 coins and 763 pairs. It is a respectable selection with deep liquidity allowing for strategies like market-making and statistical arbitrage.
All these alternatives to KCEX offer the necessary technological basis for advanced ATS designs like an AI trading bot or other sophisticated setups that require sufficient liquidity, expanded API functionality, and other perks to function properly.
Great crypto trading bots for KCEX and others
The crypto industry has a massive selection of excellent vendors that provide advanced robots to retail traders and even large financial institutions. We want to give you a couple of great examples!
- CryptoHopper is a widely recognized brand with over 7 years of history. The technologically advanced provider was one of the first to venture into the uncharted territory of artificial intelligence by adding autonomy to their GRID robots. The only downside of the platform is the lack of social elements which are appreciated by newcomers without any prior experience in financial markets.
- GunBot bridges the gap between CeFi and DeFi by producing solutions that can work in both worlds equally well. This project also implemented AI capabilities by rolling out an LLM that can understand natural language and build scripts based on what users want from their strategies. The feature is somewhat wonky and may produce outcomes that do not work as intended but it is still a time-saver for those who do not like spending time on building a solid foundation for scripts.
- WunderTrading is a Jack of all trades. The platform offers flexible customization options and a massive copy-trading marketplace featuring hundreds of approved managers from all partnered CEXes. WunderTrading has its own AI-powered robot that can run a sophisticated statistical arbitrage portfolio quite well. If you are interested in ready-made solutions like a DCA trading bot or GRID, you will find them here too!
Using these trusted providers is a good alternative to manual trading which is, for now, the only way to trade on the KCEX platform.