Whether you are interested in running a Hotcoin bot for swing trading or feel that social trading is the best approach to investing, this CEX has everything you will ever need. At the same time, limited integration options mean that many highly specialized automation vendors do not support the platform directly. Forward-thinking investors, who would like to launch an AI crypto trading bot from WunderTrading or other unique products in the sector, will have to work with other CEXes or wait until Hotcoin partners with an automation provider.
Why is it a good idea to use automated trading on Hotcoin Global?
Many crypto investors want to work with flexible platforms that allow them to build balanced, diversified portfolios. Bonus points are awarded to companies that have complimentary services and different capital allocation opportunities. This CEX is a perfect example of a multidimensional establishment that offers several excellent products:
- The spot market features 443 coins and 517 pairs. The daily trading volume is quite impressive. It usually exceeds $1.5 billion. During peak days, the 24-hour volume can go up to $3 billion without any issues for retail traders indicating deep liquidity and sufficient operational capacity to provide an excellent user experience.
- Marginal trading and derivatives. The platform grants its users access to the massive catalog of financial instruments including perpetual and delivery futures. At the same time, you can simply work with leverage to create short positions or increase potential returns from long positions by using borrowed funds.
- Copy trading is a great method of running a Hotcoin bot for beginners who do not have any prior experience in the crypto market. Over 60% of all new retail traders in the crypto ecosystem do not understand the market well enough to trade without any assistance from professionals. Copying the actions of seasoned veterans could be a good solution for newcomers.
- The public API gateway allows users to automate many processes including data acquisition, trading, and even withdrawing funds. With some tinkering and sufficient technical know-how, an experienced retail trader can easily set up an automated trading bot on this CEX and run a complex strategy that does not require constant supervision.
There are two noteworthy issues with this particular platform:
- The trust score on CEX trackers is quite low. Coingecko rates it as 5 out of 10. Some reviews contain complaints about poor customer support and lengthy withdrawals.
- The CEX is not supported by leading automation providers such as CryptoHopper or WunderTrading making it hard for many enthusiasts to run advanced ATS setups.
Nevertheless, native automation options can be sufficient in some cases. If you do not need anything complicated, social components will be more than enough to create a functional portfolio.
How to automate trading on Hotcoin
Up to 65% of all individuals and over 99% of institutions reportedly employ automation. The number of retail traders using it is expected to increase over the next decade. The idea of robots doing all the buying and selling seems normal to many investors in the hi-tech crypto industry. This particular exchange has some innate automation options, but they are quite limited.
Below are three methods to run various Hocoin bot trading strategies:
- Desktop applications can be connected directly to the CEX via the public API gateway. You can also manually connect GunBot or HummingBot products. GitHub repositories containing apps that can automatically conduct operations on the spot market are also useful and can be customized according to your preferences. Note that you will need a stable internet connection and reliable hardware.
- The native social component is all about choosing the right manager to copy. With over a hundred featured traders, you can always find someone to follow. Some of them have over 800 followers and deliver consistent performances across multiple markets. The leading manager has a 100% 30-day win rate with over 8,000 transactions during the last year.
- Third-party providers usually have the best products for people who are interested in robots. For example, all vendors in the sector offer grid systems. A grid trading bot for Hotcoin will deliver consistent results and usually perform well in the long term. Other options like DCA or arbitrage robots are also readily available.
It is important to remember that automation is not a panacea and may underperform in certain market conditions. However, the competitive nature of the speculative crypto industry makes robots necessary in many portfolios to generate profits reliably. If you have some experience in coding and know your way around technical analysis, launching a Hotcoin API trading bot can be an option. However, the vast majority of retail traders will be better off using third-party platforms.
This exchange has deep liquidity and offers access to a wide range of financial instruments making complex strategies like market-making or statistical arbitrage doable and reasonable. Unfortunately, the vast majority of desktop apps are either too hard to customize for such large-scale strategies or do not have the necessary functionality to create them.
How to set up a trading bot on Hotcoin
Using public API gateways is not difficult thanks to detailed documentation outlining all the necessary steps to connect an external application to the platform. You will find comprehensive instructions in the API section of the CEX.
Whether you are interested in running the HummingBot app, which is an open-source project supported by multiple large centralized exchanges, or GunBot, finding step-by-step instructions won’t be an issue. Both products have dedicated sections of their websites explaining how to connect to a typical CEX.
In many senses, HummingBot is the best free Hotcoin trading bot. It has flexible functionality, many customization options, and community support. The UX/UI is still an afterthought. The onboarding process can be painful if you do not have any prior experience with complex applications, coding, and trading. However, if you are determined to trade on this CEX, it can be the only choice that provides you with sufficient flexibility to build advanced ATS.
Picking the best automation vendor in 2024
One of the best performers in the crypto industry is the grid bot crypto system that delivers consistent results across many markets. It is one of the best strategies for crypto investors who want to see positive outcomes without exposing themselves to excess risks. While it is possible to set up a grid system without using specialized platforms, the process can be painful as it involves automating a technical analysis strategy, manually adjusting position sizes, and double-checking delayed orders (stop loss and take profit).
In the vast majority of cases, setting up a day trading bot for Hotcoin Global is a difficult task. Switching to CEXes supported by third-party vendors can be a better solution. Below are some of the most popular automation providers in the crypto industry.
- CryptoHopper is a great pick for newcomers interested in ATS strategies. The variety of presets, templates, and customization options make it a good choice for professionals. In many senses, it is one of the best automation vendors out there. However, the lack of a strong social component may deter some beginners as they need some guidance to get started. Often, following experts and learning from their in-market activities is a good way to improve your own game.
- GunBot is another interesting solution. This particular platform is focused on delivering an all-around great application capable of bridging the gap between decentralized finance and CEXes to ensure that investors have access to all sorts of financial instruments. It is relatively easy to use despite the fact that users must manually connect it to exchanges. If you are interested in running an AI-based trading bot for Hotcoin, GunBot has its proprietary LLM that writes scripts based on descriptions from users written in natural language.
- 3Commas is a Web 2.0 platform that strongly focuses on user-generated content. While its core functionality still revolves around various types of robots, the key attraction here is the marketplace where companies and individuals can sell their add-ons, signals, strategies, and ATS designs. The copy-trading marketplace is also huge showcasing hundreds of lead traders that you can follow in just one click. The platform has an easy onboarding process and tries to streamline the user experience as much as possible.
- WunderTrading invites you to a smooth sailing through the world of crypto. The platform has one of the most versatile customization systems with dozens of settings that you can adjust to create a unique strategy. The back-testing feature allows you to see how your particular robot would have worked previously. It is a good way of measuring the potential of any given ATS design. Staples like a DCA bot crypto setup or arbitrage robots are readily available alongside advanced offerings like the AI-assisted statistical arbitrage system capable of managing a huge portfolio without direct supervision.
These third-party providers are excellent at delivering a great customer experience. Even newcomers will quickly learn how to automate their trades and achieve consistency. Unfortunately, only GunBot can be used to create something like a Hotcoin arbitrage trading bot without dealing with customer support and asking vendors to add this particular exchange to the list of supported CEXes.