Boost Your Trading on Phemex with Advanced Automated Bots

Phemex bot trading is limited to the social component featured in the spot and futures market. However, running a sophisticated system like an AI crypto trading bot is hardly possible since many advanced providers do not support the platform. However, there are ways to automate investment activities on this website by using versatile tools like HummingBot and GunBot or even user-made scripts from GitHub.

Why should you choose Phemex?

This platform is one of the biggest exchanges in Singapore with an average daily volume close to $200 million. It has several millions of daily active users coming here for their investment needs in the crypto industry. Below are some advantages that allow the platform to grow its audience with an impressive level of consistency.

• The spot market has 336 digital assets and 344 pairs allowing users to create unique portfolios and focus on a variety of coins simultaneously. The massive $300 million reserve ensures that users feel confident when working with the spot and futures markets. It is a great destination for experienced investors seeking stability and reliability.
• You may not be able to find the best automated tools for Phemex trading but there is a plethora of passive income options. For instance, you can create a savings account to receive a respectable 10% APY on USDT holdings. USDC holdings come with an 8% APY. You can also stake Aptos, Solana, BTC, and ETH as well as some other lesser-known tokens.
• Web 3.0 integrations are quite diverse. The main protocol is the Phemex Plus social network. The ecosystem is expansive featuring a variety of investment tools and various ways to move assets in the DeFi sector. You can also become a lender or take out loans using the lending protocol with low prices and high utilization rates.
• The company maintains a versatile API gateway with VIP, private, and public endpoints. You can use a variety of applications to connect to the exchange directly. However, it may take some tinkering and coding to connect some of the most popular tools like HummingBot.

These advantages make the desire to run the best trading bots for Phemex quite intense for many retail traders working with this platform. Unfortunately, the vast majority of people will be limited to just a handful of options. The vast majority of industry-leading providers do not support the CEX. It means that investors interested in automating their activities in the market will have to work with open-source solutions which are always lacking in the user experience department.

Over 65% of all retail traders and almost all institutional investors are using ATS to at least some degree. It is a rare occasion to meet a trader who does not use a DCA bot crypto setup to acquire Bitcoin or Ethereum at a specific pace. The vast majority of modern investment strategies rely heavily on ATS systems.

How do trading bots work on Phemex?

The platform has some native automation capabilities that cater to the audience of newcomers. We are talking about the copy trading module that works on the futures market. You can choose from a massive leaderboard with some managers reaching an impressive monthly ROI of 5%. The social component is designed to invite active participation with the marketplace showcased on all pages of the website. If you are looking for a Phemex trading bot for beginners, it is a good choice.

There are also two ways to create a functional ATS on this CEX:

1. The exchange has a special module for automation. It offers several setups that can be used by experts and newbies. All autonomous strategies are deployed to the contract market. It is important to use them cautiously since taking on debt is always a bad idea in the world of investment. However, the presence of grid bot crypto setups alongside popular Martingale robots is a nice touch. Some of the offered setups achieve excellent ROI numbers trading a variety of memecoins like POPCAT and WIFU.
2. You can use the API gateway to connect a HummingBot client. It is an open-source project supported by multiple exchanges, such as Binance, Kraken, and Kucoin, recognizing the importance of publicly accessible automation tools in the crypto industry. HummingBot has a variety of unique strategies that can be deployed in the DeFi ecosystem. It also has a Strategies V2 module allowing users to build any strategy for CEXes.

Thanks to its focus on technology and the ability to innovate, the exchange offers all its customers the necessary flexibility and versatility to build advanced systems that do not require any human supervision.

Phemex bot trading guide for 2024

The variety of ready-made solutions on the exchange is what makes it one of the most popular platforms in Singapore. However, the rich selection of ATS designs can confuse some newcomers who do not understand the difference between different setups and why certain robots perform better than others.

Here are some tips for people who are interested in running Phemex automated trading strategies using native instruments:

• Do not focus on memecoins. While impressive ROI numbers may paint a bright picture of a future where you become an overnight millionaire, you should remember that profits are often calculated in target assets. Earning 4,000% on POPCAT is not as exciting as receiving a small 10% ROI on Ethereum.
• Use Martingale robots sparingly. Some of these trade TRX, XRP, and BTC, and manage to achieve incredibly high ROIs. However, the mathematical expectation from this strategy is still negative. You should be careful when investing in these ATS setups since they can be loss-leaders. Also, all numbers are all-time ROIs. After the DeFi boom in 2022, even bad investments still look promising.
• Make sure to dedicate only a small portion of your portfolio to automation. It is a good idea to have a couple of positions with each managing just 2% of your total assets. If you feel that these systems work well, you can increase their share in the portfolio. However, the vast majority of trading bots for Phemex futures are risky bets that should not be the main focus of any portfolio manager.

These tips will help you avoid some of the questionable strategies offered by the CEX to its clients. While the total ROI may seem positive, you should look at the recent performance of many ATSthat go deep into red or underperform compared to human traders.

AI cryptocurrency trading bot for Phemex

It is important to note that many advanced providers carrying AI-enhanced products do not support the platform. You won’t be able to use the latest systems that incorporate artificial intelligence well. However, it does not mean that you should not be aware of them or try them on different exchanges just to understand the potential of machine learning to completely change the way we understand finance and engage in predictive analysis.

There are several interesting products in this category that must be on your watch list:

1. CryptoHopper is one of the leaders in the world of automation. It has a massive list of ready-made solutions for newcomers and experienced users. Their latest innovation is the implementation of an autonomous AI agent in the standard grid system. The robot does not take over the system completely. Instead, it makes tiny adjustments in settings depending on the current situation in the market. It is a controllable setup that provides the necessary level of consistency to an already reliable type of ATS.
2. GunBot uses another form of an AI expert system. If you are interested in building an AI cryptocurrency trading bot for Phemex, GunBot offers an LLM that can write a script based on user requests. You don’t have to be a coder or an experienced user of automation. The system understands natural language and turns a description into a piece of functional code. It takes some time and effort to test all the suggestions from the LLM but it can produce unique strategies that suit your risk style and investment management routines.
3. WunderTrading is another excellent provider of automation that has a great product for people interested in artificial intelligence. Investors who want to build machine learning trading bots for Phemex should study the AI-enhanced statistical arbitrage system recently released by WunderTrading. It is a great product that manages hundreds of positions simultaneously, makes adjustments in real time, and can be used for other investment approaches. Since the company has been around for years, it offers a polished user experience.

These are all modern takes on the implementation of this amazing novel technology in ATS designs. If you are looking for AI bot strategies on Phemex, you won’t find them among Martingale and Futures grid systems. However, they are available to users of advanced automation providers who trade on widely supported exchanges like Binance, Kraken, KuCoin, Coinbase, and many others.

Should you use Phemex automation for altcoins?

The futures market showcases a diverse lineup of financial instruments including memecoins like POPCAT and SIFU alongside many layer-2 or altcoins like Solana, Algorand, and others. While many of these digital assets have a history of performing well or promise outrageous returns, we strongly recommend avoiding digital assets that have not proven themselves as reliable and long-lasting coins.

For instance, POPCAT is a memecoin of Solana. Since it has a massive supply and unlimited emission, prices inflate yet the drops in value are compensated by the increasing supply. Some decentralized platforms are offering APYs in the thousands of percentile points while CEX like Phemex have ATS setups that generate over 4,000% ROI on currency pairs that involve this coin. However, the inflationary trend is apparent. It is not a good long-term investment.

An automated trading bot can be used to work with a wide range of digital assets. However, altcoins are rarely solid targets from systems like Grid and DCA. You need a very specific strategy to work with untested digital assets efficiently and achieve respectable returns.

The main takeaway

Phemex is a sound choice for many investors who do not want to overcomplicate their portfolios. If simple futures grid robots and social components are sufficient for you, this exchange will work well. However, people who need additional flexibility and require outlets for creativity should switch to CEXes supported by versatile service providers like WunderTrading.