When it comes to working on KuCoin, it is necessary to remember that this platform is excellent for spread trading and scalping due to low fees and the speed of order execution. You should use a good KuCoin trading bot strategy to achieve consistency and make money with various techniques available to users of the WunderTrading platform.
This exchange has a long history of success. Over multiple rounds of fundraising, the founders managed to collect over $200 million in initial funding. They spent the money on improving the product, developing a strong technological base, and expanding into new markets. With their hard work and intense development cycles, they created a product beloved by millions of people from all across the globe.
The current evaluation of the company is north of $10 billion. It is a centralized crypto exchange that controls a significant market share and delivers its services to a large audience concentrated in South-East Asia, Oceania, Europe, and Sub-Saharan Africa.
One of the issues with the platform is its strong opinion on financial freedom. The company believes that people should be able to use their money despite any governmental regulations and sanctions. Their privacy policies made it hard for the company to expand in the Americas, but it has offices in Europe and Central America.
KuCoin has a powerful API that allows it to seamlessly integrate with a multitude of external providers like TradingView and WunderTrading. The exchange is excellent for people who want to run a variety of automated trading systems including staples like DCA, GRID, and arbitrage as well as custom scripts, copy trading, and more.
Types of bots you can run on KuCoin
Contemporary retail traders have access to a rich selection of automation products that can be effortlessly deployed on any centralized exchange. WunderTrading offers its clients an opportunity to automate their trading routines on Binance, Coinbase, Kraken, and KuCoin. You can work with all sorts of digital assets and novel financial instruments like perpetual futures.
If you are interested in diversifying your investments and using the whole spectrum of advanced automation services, you need to test all of them and decide which instruments will be the most efficient. Use the free plan at WunderTrading to check how these bots work without paying a single dime!
Here are some of the products that you may be interested in:
- DCA bots. These bots use the “Distributed Cost Average” method of acquiring assets in a series of purchases instead of buying in bulk. When performed during a downtrend in the market, this method significantly reduces the cost of investment. DCA buying is also one of the most popular strategies employed by Bitcoin enthusiasts. They use it to amass BTCs to hold until coins appreciate even more.
- GRID bots. These are DCA bots that are new and improved versions of themselves. GRID is a system where bots open a series of market positions followed by systematically placed “take profit” and “stop loss” orders. The price chart looks like a grid, hence the name of the bot. It is a safe strategy that can be used to offset risks that occur when you engage in other investment endeavors.
- Arbitrage bots. This method uses price discrepancies between different exchanges and markets. However, you can also use it within a single platform. This system is called Triangular Arbitrage. You need three bots that continuously monitor cryptocurrency pairs and immediately put buy and sell orders when a discrepancy is identified.
- Custom bots. If you have a good technical analysis strategy that delivers consistent results, you can make the best trading bot for KuCoin. The process of automating a trading system can be quite challenging for newcomers, but it usually brings good results. Instead of doing everything manually, you can ensure that orders are placed and executed instantly without any errors.
- Copy trading. While many people believe that they need to trade personally, it is often a better idea to allow experienced managers to take over. Trust management is scary for some people, but copy trading is very similar. Instead of giving access to your portfolio to an unknown manager, you simply follow top performers and copy their actions.
All these methods can be quite good if you are interested in building a diverse portfolio with different instruments. Any KuCoin trading bot can be profitable if you know what you are doing. However, you need to understand how to pick the best trade bot for KuCoin!
What is the best trading bot?
The idea of “the best” is an incomplete concept since every individual retail trader has specific conditions and rules for determining the best investment. The obvious parameter is profitability, but the issue here is that how profitable a bot is depends on the inputs provided by users. In this regard, a bot is as efficient and profitable as its user.
If you want to talk about technology and performance, any company that has a good track record in the automation industry delivers a stellar performance and can be up 99.9999% of the time. It is simply impossible to name a good bot by brand, performance, or any other metric.
Instead, you should focus on creating something unique and optimized according to your preferences, requirements, and investment style. Don’t forget that risk tolerance is also hugely important and impacts the way you diversify, hedge, and fine-tune bots.
How to make the best crypto trading bot for KuCoin?
There are several components to any bot that you can deploy on a crypto exchange:
- The signal generator. Any KuCoin TradingView bot receives alerts from the analytical platform which generates them based on parameters specified in the Pine Script which is a unique scripting language developed for the TradingView platform. Alerts are created when indicators reach specific values. You need to set up a good strategy for any bot to work well.
- The automation platform. You need to pick a reliable vendor. WunderTrading offers a diverse lineup of products that includes preset solutions such as DCA, GRID, arbitrage bots, copy trading products, and many other complimentary services. Here, you can create a custom bot that will receive signals and act according to its instructions.
- The exchange. We talk about KuCoin. This exchange will receive commands from the bot and instantly execute orders. With its strong API, reliable backend, and excellent product architecture, KuCoin showcases quick response time, seamless integration with the TradingView platform, and instantaneous processing of commands received from WunderTrading.
If you find the right balance between these three things, you will have your perfect bots. It must work with reliable signals from TradingView, act according to detailed instructions, and send signals to an exchange that will not mess up the whole procedure.
The best way to use KuCoin trading bots is to create a balanced portfolio of automated trading systems with some bots using aggressive strategies and some generating profits consistently to offset risker investments. In our case, we could copy the actions of retail traders that managed to achieve impressive returns previously while protecting this risky endeavor by also running multiple GRID bots and a whole army of arbitrage bots.
This type of diversification will require you to use an upgraded WunderTrading account to set up a multitude of bots, but the final result will offset these expenses.
Setting up your bot army on the KuCoin platform
Let’s talk about how a Kucoin bot works in detail. You will need to follow a straightforward step-by-step guide:
- Go to WunderTrading and connect your KuCoin account.
- To do so, you will need a new API key designated to WunderTrading.
- Find “API management” in the header of the main page of the official KuCoin website.
- Click “Create API” and name the new API key. You need to protect it with a strong password.
- The confirmation letter will be immediately sent to your e-mail. Use the link to confirm the creation of an API key.
- In the new browser tab, click “Activate API” and copy the key.
- Insert the key in the WunderTrading form and go to “My Bots”.
- Create a new bot and launch it. The new automated trading system will start working without any additional inputs.
Now, you will be able to manage bots in the “My Bots” section of the dashboard. To use the copy trading product, go to “Marketplace” and select the retail traders that you want to follow. You can filter out irrelevant entries in the catalog by choosing “KuCoin” among exchanges represented by managers.
Which bot should you focus on?
Without any automation instruments, retail traders will face difficulties trying to compete against their colleagues in 2023. Bots became a staple for the vast majority of active retail traders. Some of them use various automation features offered by exchanges without even realizing that they use bots.
You need to concentrate your efforts on fine-tuning some bots over others. Since setting up and maintaining bots is a skill, you won’t be able to perfect every aspect of your portfolio dedicated to automation.
We strongly recommend all retail traders start with improving consistent performers:
- Focus on making sure that DCA and GRID bots work as intended and generate profits reliably. You need to analyze their performance and identify which parameters could be adjusted to increase profits. Maybe, your “stop losses” are too conservative? Maybe, the signal generation requires some tweaking.
- Read more about triangular arbitrage. You can set up hundreds of bots that will track prices across multiple cryptocurrency pairs. This method can be quite expensive, but it also generates small profits reliably. It is important to find the right balance.
- Try cutting back on copy trading, automated scalping, and other risky endeavors if you see that these automation products underperform. Often, you need to take a couple of steps back to find the issues and fix them!
The main takeaway
KuCoin is an excellent centralized crypto exchange that allows users to deploy a variety of automated trading systems if they want to. You should use multiple bots to create a balanced portfolio and make money by using advanced automation solutions from WunderTrading.
We suggest running DCA, GRID, and arbitrage bots alongside custom aggressive ATS and copy trading. With enough effort and dedication, every single aspect of trading can be automated!