How to Set Up a Trading Bot for LBank Exchange

Interestingly enough, the exchange has a powerful copy trading section although it is not enough to attract creative investors who are interested in exploring automation. Luckily, if you want to run an AI crypto bot on this CEX, you can do it. The digital infrastructure of the company includes a functional API that allows many third-party developers to connect to the service effortlessly.

A technically savvy individual can set up a scalping bot for Lbank without any issues. GitHub has a plethora of different applications that can be edited just a little to be fully compatible with the API functionality of the exchange. We do understand that the vast majority of crypto investors are not coders and will struggle to run even something like HummingBot which is an open-source project supported by multiple CEXes. It is controlled via the command line which is a fine user interface if you are used to sending commands by pressing “return” instead of clicking a button.

We are going to talk about several ways of creating an automated trading bot for Lbank, discuss the advantages of the platform, and talk about some providers that have excellent automation products in store. Hopefully, after reading this article, you will be able to set up an ATS that works well with this particular CEX.

Why do you need an LBank crypto bot?

This CEX is known for its many risky investment tools that coexist with passive income opportunities that allow users to hold certain assets and earn interest. If you are interested in making additional profits by simply holding assets while actively trading, this exchange is a great choice. Let’s talk about some of its undeniable advantages.

• The spot market is great. It has over 1,300 different pairs and supports trading in 50+ fiat currencies. The variety is incredible. Some clever retail traders are making money on foreign exchange fluctuations while making trades in the crypto market. The opportunities here are endless. Liquidity is also quite deep allowing for various strategies like market-making to perform exceptionally well in certain markets.
• You can trade derivatives. Perpetuals based on multiple popular coins including Bitcoin, Ethereum, Ripple, Cardano, and many others can be a good hedging instrument in case you are interested in staking or long-term holding. The catalog of futures includes exotic pairs, meme coins, and many other riskier investment instruments that may interest some traders.
• Launch a copy trading bot that works according to expectations. The company does not focus on providing excellent automation options to its clientele. However, you can use the copy trading section with hundreds of vetted traders who are focusing on different currencies, assets, and approaches. Newcomers will be happy to avoid setting up complicated Lbank bot trading strategies and simply start following experienced veterans.
• A variety of earning programs. The exchange is interested in keeping its reserves high to ensure sufficient liquidity and solvency. One of the best ways to encourage users to deposit funds is by offering meaningful rewards. Here, you can simply hold USDT on balance and receive a steady 6% APY which is higher than what the US treasury bond interest is in 2024 (4%). The list of coins that participate in the program is quite long and is revised frequently.

These advantages make this CEX an extremely lucrative target for many retail traders who are interested in building a solid portfolio. The only problem is the lack of automation providers that support the platform. According to some estimates, 72% of all individual investors use ATS setups to at least some degree in an effort to optimize profitability and achieve consistency. This means that an exchange that does not allow users to automate operations easily will inevitably fall behind the fierce competition.

How to set up a trading bot on Lbank

You have several options when trying to use automation on this platform. We will discuss all of them and offer some solutions to users interested in exploring various third-party products that may be quite useful in the long run. Below are these three methods:

1. Use open-source software and locally run applications. HummingBot is the best example of a project that is completely free and supported by a team of dedicated professionals who are financially backed by Binance, Coinbase, and other CEXes. You will have to connect to many platforms manually using detailed instructions. It is tedious and difficult but results can be quite rewarding.
2. Search for an automation service provider that supports this CEX. If you are interested in running a grid trading bot for Lbank or any other fully autonomous strategy, it is often important to work with a provider that has such presets in the product lineup. The problem is that many industry-leading companies simply do not support direct integration with this particular exchange.
3. Use the native functionality. This centralized exchange has a strong social component that allows investors to automatically copy the actions of vetted professionals offering their services for a small fee. If you are a newcomer with limited experience in trading, it is a good idea to start from social features instead of trying to figure out how to run complex ATS strategies.

The third option is apparent and can be used even by complete newbies. We strongly believe that only newcomers will limit themselves to just copy trading. It is unreliable (past results do not guarantee future returns) and can be quite difficult to use for people on a low budget. Also, fees can add up quickly. The second option is often off the table. We will discuss some of the best providers briefly at the end of the article.

We are left with option #1 which is the most challenging for people without any technical know-how. We strongly recommend using HummingBot as it is the best open-source solution out there. It can run a variety of strategies including automatic market-making, different types of HFT strategies, and more. However, setting it up and using it can be quite difficult for people without any technical savviness.

Lbank trading bot setup guide

Using HummingBot is not as convenient as many other tools mostly due to its difficult onboarding, command line controls, and the need to install strategies separately. You won’t be able to just Plug'n'Play it effortlessly. On the other hand, you don’t have to be intimidated. Getting started is quite easy. You just have to follow several distinct steps:

1. Visit the project’s official website at hummingbot.org.
2. Start the installation process using the button on the front page.
3. Choose your OS. It can be MacOS, Linux, or Windows.
4. When the setup file is downloaded, launch it.
5. You need to activate conda for the client to function.
6. In the command line, type in “conda activate hummingbot”.
7. Initiate that first launch by using commands “./compile” and “./start”.
8. If you are using a machine that has public or family access, you may create a local password.
9. Type “connect” followed by the name of the exchange without spaces.
10. Provide your API keys and other necessary credentials.

After that, you need to download strategies. By default, only several ATS designs are available to all users. The automatic market-maker is a great instrument for investors interested in trading assets in the DeFi sector of the crypto ecosystem. However, it is certainly not something that the vast majority of retail traders are after. The library of strategies is quite large. You can easily find something that will work for your particular portfolio.

Note that using an automated DCA trading bot for Lbank may be very difficult with Hummingbot as it does not have a preset like this that is readily available. You will have to spend quite some time tinkering with settings to create something that will work like a fully autonomous DCA or grid system on a platform like 3Commas or WunderTrading.

Excellent providers if you need an automated trading bot for Lbank

While the platform is not directly supported by industry-leading vendors of powerful ATS designs, you can either talk to customer support representatives about creating a personal connection to your favorite CEX or hope that it will be supported in the future. It is also a sound plan to just switch to a CEX that has multiple integrations within the crypto ecosystem. For instance, Binance and Coinbase are partnered with many automation providers including open-source projects like HummingBot.

Below are some of the companies that may be quite good for your portfolio:

• Cryptohopper is one of the most popular providers that has a massive collection of presets and a great AI assistant capable of managing grid bots specifically. Cryptohopper has been around since 2018 and has a good reputation among experienced retail investors. The platform is not afraid to bring out the big guns and experiment with promising concepts even if they seem to be overly ambitious. The recent rollout of their AI-driven grid robot is a good example.
• TradeSanta offers over a thousand different ready-made strategies that can be launched with a couple of clicks. While the vast majority of investors do not need such variety as it will take years to test and use them, it is still something that can seem attractive to retail traders who are interested in some guidance from professionals. TradeSanta also has a wide range of other useful features like preset solutions, customizable ATS setups, and more.
• Cornix is a good choice for users who are seeking versatility and efficiency. It is a platform that has many ways to automate your investment activities in the crypto market while enjoying full control over your finances. If you are hungry for success and want to build a unique portfolio that can perform well under all sorts of market conditions, Cornix may be a good choice. It is a balanced service that delivers a great user experience without trying to be superior in every aspect.
• 3Commas is an interesting vendor that has an obvious focus on social features. You can go to the marketplace where third-party suppliers and developers offer their compatible tools for 3Commas users. You can purchase signals, strategy designs, analytical instruments, and more. It is a great destination for experienced veterans and even complete newbs who do not have any knowledge about cryptocurrencies and various investment tools.
• WunderTrading is one of the most decorated and technologically advanced providers in the sector. It has a solid product lineup that features staples like DCA and grid trading robots alongside novel offerings like the recently launched AI-assisted statistical arbitrage system that can be customized according to your liking. The marketplace features hundreds of vetted professionals from 14 supported exchanges. If you want an AI trading bot for Lbank or simply copy the actions of experienced veterans, this is a great platform to work with!

The main takeaway

This exchange has a great product that can be used by all types of investors. The lack of useful automation instruments can be an issue for many retail traders. On the other hand, you can rely on the Lbank auto-invest crypto bot, otherwise known as the passive earning system, where you can buy and hold digital coins to accrue interest.

The exchange also has a functional API port allowing technically savvy users to connect directly to the platform and use tools like HummingBot and GunBot. Industry-leading providers may soon start supporting this international CEX.