Only if you want to run something sophisticated like an advanced AI crypto bot that works autonomously, this particular provider may not live up to expectations. In all other cases, an average retail investor will be more than happy with the range of features on display. A typical Pionex automated trading bot works well during bullish markets and can generate profits consistently in the futures market.
How to set up a crypto bot on Pionex
The process of creating a new robot on this platform is quite straightforward. The company was launched in 2019 with a clearly defined intention to create a user-friendly product that would not require a difficult onboarding process. While it can be a detriment to many newcomers who need to learn how to operate various forms of staple software like ATS robots, the convenience of using the product is an important point of attraction.
Here are the steps you need to take in order to start using Pionex trading bot strategies:
● Go to the official website of the provider and sign up.
● Top up the balance and purchase coins you want to trade.
● Switch to the Futures tab on the uppermost horizontal menu.
● Click “Futures Bot” and go to the market you are interested in.
● In the right menu, select the type of strategy you want to automate.
● Click “Create” and adjust settings according to personal preferences.
It takes just a couple of minutes to set everything up. Note that you cannot use robots on other exchanges and have to adhere to the Pionex CEX which is not the best in terms of trading volumes and accessible digital assets. Currently, the monthly trading volume reaches $60 billion and daily trades rarely exceed $11 million.
Is there a Pionex API trading bot?
Users who do not like the set of features offered by the native automation platform may connect to the CEX using the API gateway. Only a handful of established providers like WunderTrading or Cryptohopper support the exchange directly. Advanced users who enjoy the complexity of tools like GunBot or HummingBot may be interested in establishing an individual connection to the CEX and using their favorite strategies instead of what is available to clients of this platform.
Complex ATS designs like the AI-driven statistical arbitrage robot at WunderTrading or an autonomous self-adjusting grid trading bot at CryptoHopper are popular among investors but cannot be used here.
Can you set up an AI trading bot for Pionex?
Only industry-leading vendors have AI-driven products in their lineups as investing in machine learning is expensive and the market is still in its infant phase when end users do not see the value of fully automating the analytical and operational components of an investment strategy.
Expert AI systems elevate commonly employed methods of investing in the crypto market to the next level by providing expertise, direct assistance, and data processing. WunderTrading, CryptoHopper, and 3Commas are all investing in AI products. Unfortunately, this particular platform does not have one.
How to pick a Pionex bot for beginners?
Since this Singaporean company delivers a multi-dimensional product aimed at the audience of novices, newcomers flock to the platform when they need a simple and convenient way to automate some portions of their portfolios. It is relatively easy to simply top up your balance and get busy buying, selling, and automating.
However, some strategies are better than others. Beginners should not engage in high-risk/high-reward systems right away. Below are some solutions that work well for novice investors:
● The futures grid is a simple setup that uses the DCA (dollar cost average) approach to select entry points and creates exit points for each of the opened positions. It is an effective system that has been working for thousands of successful investors.
● Bitcoin Moon Bot is an interesting choice for investors on a low budget. It is a high-frequency arbitrage system that produces small profits consistently and does not drill a hole in your pocket by amassing fees. The commission here is 0.
● The rebalancing bot is an excellent choice for people who want to learn more about the market as it allows investors to create indexes and maintain a certain ratio of assets at all times. It is used by over 27 thousand people and forces newcomers out of their comfort zones to explore the world of DeFi.
● Copy trading robots are often picked for their simplicity and easily available history of operations allowing investors to assess the efficiency of any given lead trader. The selection of good managers is impressively diverse.
Beginners may find the variety of options with fancy names and complex descriptions full of buzzwords appealing. A typical grid trading bot for Pionex works just like any other similar system available in the market. However, the company positions them as “advanced” and offers a plethora of robot designs with minimal differences.
Note that newcomers should stay away from leveraged positions and learn more about the market before engaging in high-risk strategies that are often advertised as the most profitable and safe. Margin accounts should be used only by seasoned veterans with a deep understanding of digital assets and the larger crypto ecosystem.
Finding the best trading bots for Pionex
When selecting the most perfect solutions for any portfolio, one must focus on analyzing potential risks and thinking about diversifying investments across multiple assets and systems. This CEX offers a rich selection of interesting solutions with a diverse spot market that features hundreds of different tokens and a massive derivatives section that has a variety of perpetuals, such as BTC, DOGE, ETH, and others, with up to 100x leverage.
In the automation section, you will find a multitude of intriguing options that are designed to simplify the process for many investors interested in exploring ATS robots in the crypto market for the first time. We decided to put together a list of solutions that will likely satisfy a typical capital holder.
Using a scalping bot for Pionex
The catalog of robots features multiple “Moon” systems that engage in scalping using the high-frequency approach and searching for the tiniest gaps between the bid and ask prices to create a myriad of arbitrage opportunities and capitalize on the inadequacies caused by the erratic behavior of retail traders.
If your pockets are deep enough to launch a variety of such robots and operate on larger scales, you will see respectable returns. In other cases, sticking to strategies that allow for higher returns per trade is a wise choice.
Using arbitrage opportunities to get rich
Various forms of the Pionex arbitrage trading bot are focused on exploiting price gaps in several tracked pairs engaging in triangular arbitrage. It is a relatively safe approach to interacting with digital assets in a highly competitive environment where traders compete against each other. However, the risk of price convergence often nullifies any efforts made by human operators.
In theory, a fully automated system must find more opportunities and act upon them as quickly as possible. The real world is often disappointing as the rate of successful trades is not nearly high enough to produce meaningful returns. Nonetheless, it is a safe option if you are afraid of poking holes in your pockets.
A DCA trading bot for Pionex
Distributed cost average is one of the most popular investment systems in the world. It is especially useful when trying to reduce the average cost of investment and increase returns in buy-and-hold systems. For instance, many Bitcoin enjoyers always talk positively about DCA-buying BTC by splitting a position into a series of manageable purchases.
The DCA approach in automated systems refers to a method of splitting a large position into multiple ones, preferably on a descending trend, to reduce the acquisition cost and liquidate them at once for a solid profit. It can work well when the market is bullish and robots can purchase assets during price corrections.
It works well for portfolios that are focused on amassing long positions and holding them until they reach certain price thresholds. Here, it is available for the spot market.
Tips and tricks for crypto enthusiasts
The community did not reach a consensus on the topic of the effectiveness of a Pionex futures trading bot. Many investors have rightful doubts about the performance of an ATS offered by a CEX incentivized to increase trading volumes. However, the long history of the platform and the positive experience of users indicate that it is a relatively safe place for investments.
If you are interested in running an ATS on this centralized crypto exchange, we strongly recommend following several important rules:
● Do not pick highly volatile markets. Memecoins, recently launched tokens, and even some layer 1 coins like Solana can be profitable and allow low-budget investors to easily enter the market. However, they are also very volatile and do not have strong enough markets to keep high valuations for prolonged periods.
● Stick to time-tested systems. The vast majority of users prefer grid and DCA strategies for a reason. For instance, this particular platform has over 250 thousand users who run one or more grid robots. These are consistent ATS designs that produce profits more often than many other approaches that have a higher ceiling but also a much lower “bottom”.
● Have enough to “feel” the returns. Many automated strategies are designed to be safe and consistent which means no risk premium and timid returns. While you can try to increase potential gains by widening the gap between delayed orders (stop-loss and take-profit), it will expose your portfolio to excess risks. Having a larger capital is a safer option.
● Diversify positions by selecting multiple markets. Bitcoin is the biggest coin but it has competitors like Ethereum, Solana, Cardano, Tron, Litecoin, Monero, and many others. You can create a system that integrates many markets into your portfolio and makes it more robust. However, remember the first rule and avoid overly volatile options.
● Focus on safer distribution of capital. It is a good idea to dedicate a larger portion of your funds to previously mentioned consistent ATS designs like DCA trading and grid robots. Using the 70/30 ratio is a sound approach as it allows you to experiment with riskier strategies while maintaining a healthy level of profitability overall.
These tips will help novice investors find the right balance between risk and reward by avoiding dangerous instruments and shifting their attention to tools that can produce returns reliably. Note that this is not a piece of financial advice. We strongly recommend all our users do their diligence and research ATS designs and how they work. Invest only after learning everything there is to learn about certain investment instruments.
Should you use an automated crypto trading bot for Pionex
This centralized exchange is a great destination for people who do not want to deal with the difficulty of steal learning curves and challenging onboarding. Here, you can top up your balance using one of many available banking methods and set up your first robot without any issues by simply selecting what works for you and adjusting the system according to your preferences and requirements.
With over $10 million in daily trading volume and close to 5 million registered users, this platform can become a reliable partner for any crypto enthusiast interested in building a solid portfolio focused on automation tools. However, the absence of novel AI systems, fully customizable scripts, and integrations with other providers can be an issue for more experienced investors seeking flexibility.
In a sector that has such great companies as Cryptohopper, TradeSanta, and WunderTrading, selecting something so limited as this CEX with some automation options is not the best course of action. Nonetheless, if you are already committed to the CEX and want to maximize profitability without compromising the safety of your portfolio, you should stick to the ideas roughly outlined in this article.
The main takeaway
Setting up your first robot on this platform is an easy process that requires just a couple of steps and several minutes from the moment you sign up to conducting the first trade. The true difficulty is choosing the right ATS and adjusting the settings to make it fit your portfolio and risk style.
While newcomers will find the convenience quite appealing, we strongly believe that using highly specialized third-party providers like WunderTrading to benefit from tools like AI-driven statistical arbitrage and customizable ATS is a great idea for experienced retail traders.