What causes the success of KuCoin?
The popularity of the exchange is easily explained by a lot of advantages:
- Variety of trading pairs. You can trade more than 700 various cryptocurrencies - both the most popular and the least known.
- Low trading fees. Only 0.1% of the transaction amount.
- Security. Exchange pays great attention to the security of its platform and uses a variety of security measures. One of them is two-factor authentication.
- Ease of use. Even if you are a beginner, you will not have any difficulties working on the exchange. Comprehensible navigation and user-friendly interface guarantees easy and pleasant use of the site.
- High speed. KuCoin has a fast and efficient trading system which easily handles a large volume of transactions.
- Mobile App. Thanks to it, you can make deals even from your smartphone.
- Multi-language. The website is available in multiple languages, including English, Chinese, Korean, and Spanish, making it accessible to a wide range of users.
KuCoin has its own coin of the same name with the ticker symbol KCS. The ICO took place on September 1, 2017. A total of 200 million tokens were issued.
The company's owners buy back and burn a part of the coins on a quarterly basis. As of December 2022, the total number of tokens was approximately 145 million, of which about 47% were in free float. The coin now ranks 51st on the list of digital assets by capitalization.
The token is used to reduce exchange fees and participate in a partial distribution of the company's daily profits.
What is KuCoin trading bot?
Trading robots have long been indispensable assistants for many cryptocurrency traders. Therefore, the question "How to make money with KuCoin trading bot?" is increasingly common in search.
KuCoin trading robot is a free software that will help you save time and effort while increasing your income from crypto trading.
Here are just the main benefits the trading robot can provide you with:
- Automation of multiple trading strategies. The more approaches you use in trading, the higher your chance of making a profit.
- Constant observation of the market. Thanks to this feature, you don't need to spend days and nights in front of the monitor, waiting for a good moment to enter the market.
- Time saving. While the robot trades the market for you, you can mind your own business.
- No emotions. The software does not feel fear, greed, and never gets into a rage. In other words, excessive emotions will not lead to mistakes as it happens with humans.
- Speed of work. Even the simplest trading robot can make dozens or even hundreds of transactions per second. No one, not even the most capable trader, can match it in performance.
KuCoin is one of the few exchanges that have developed their own trading robot. This robot was launched in 2021 and has since become a useful tool for automating trading operations. It offers users the opportunity to save time and effort, while increasing the effectiveness of trading algorithms. Read any KuCoin trading bot review to see for yourself.
KuCoin trading bot strategy
Trading robot uses different trading strategies depending on the needs and goals of a user. These strategies may include such popular methods as technical analysis, fundamental analysis and others. Strategies are chosen so as to provide the most efficient trading and the maximum profit for the trader.
Let us briefly consider each of them.
Classic Grid
Grid trading on KuCoin is a tool that allows you to make a profit by placing orders at certain intervals above and below the selected price. A trading grid is created as a result. Grid trading is usually used in a volatile market when there is a swing in the price of an asset at a certain interval.
For example, if you believe that the price of any cryptocurrency will fluctuate between $200 and $300 in the following days, you can set these two prices as the price range of your Classic Grid bot. It will then work for you within that interval.
The AI settings feature is very useful for those who are new to crypto-trading. It will prompt you to set the bot's settings based on the trading statistics of the coin you choose.
Dollar Cost Averaging (DCA)
Averaging is one of the most common methods in trading and investing. It involves gradually buying or selling an asset in small increments rather than the entire amount at once. Such strategy allows to reduce the risk of price volatility by making lots of small transactions, averaging the "entry point". It is widely used in the cryptocurrency market, which is characterized by frequent and significant trend changes.
Let's see how it works using the quite popular Ethereum coin as an example. Imagine that you are set on it in the long run and want to spend 2% of your monthly income on it.
The bot will automatically buy a certain amount of Ethereum at a specific time. For example, buy $50 worth of ETH every day at 8am to gradually increase your holdings. Since it is quite difficult to predict the actual market decline, in most cases DCA can help optimize the average entry price.
In the KuCoin trading software, you can set an investment goal before launching, such as a 10% return. Once the target is reached, you can ask the bot to either notify you or automatically stop taking profits.
Futures Grid
The Futures Grid bot works on the same principle as the Classic Grid. But Futures Grid has a couple of advantages, which you can use for more successful trading.
- You can use the opportunities of the bot when trading futures. For example, you think that the price of a certain coin is going to rise. All you have to do is implement grid trading through Futures Grid.
- This strategy uses leverage. It currently offers up to 5x leverage, which means that the income from each successful trade can be increased by a factor of five. However, keep in mind that the higher the profits, the higher the risk.
Smart Rebalance
A strategy used by holdings. Holdings have been proven to be a successful way to make profits, as very often holders' returns exceed those of crypto traders.
The essence of this strategy is to increase your total assets while keeping the percentage of your portfolio unchanged. Suppose the value of one of your coins in your portfolio began to fall and the other began to rise. In this case, the bot will buy the first and sell the second to keep the percentage of return on your portfolio unchanged.
You can set up a rebalancing interval - for example, to do it every hour or every week. The higher the volatility of coins in your portfolio, the shorter the rebalancing interval.
How to use KuCoin trading bot?
To use such a trading robot, you first need to create an account on the KuCoin site. After creating an account, you can access the functions of the trading robot by going to the "Trading Bot" section on the website or in the KuCoin app.
To use the trading software, you need to connect your KuCoin account to the robot and configure your trading settings, such as the assets you want to trade and your desired profit target. You can also set more advanced parameters, such as the percentage of your account balance you want to trade and the frequency of deals.
After configuring the trading parameters, you can run the bot and it will start to make trades according to your settings. You can monitor the work of the bot and, if necessary, make changes to the settings.
In addition to using the such trading bot on an exchange, you can also use it on various trading platforms. For example, the automated platform WunderTrading allows you to use the trading software on the KuCoin website in its user-friendly interface trading platform. All you need to do is to connect the trading robot to the platform using the API.
If you still have questions about how to use the trading robot KuCoin, please refer to the educational section of the exchange. There you will find a lot of materials about crypto-trading, trading robots and detailed instructions on how to configure a trading robot. Collected in the same section KuCoin trading bot tips will help facilitate your work with it.
The bottom line
KuCoin is one of the biggest crypto markets, where transactions with big volumes regularly occur. The website presented all major cryptocurrencies and tokens, as well as a handy trading terminal that is good for both beginners and experienced traders.
Using KuCoin's own trading robots will save you time on your daily trading routine and help you increase your profits. Now you know how to set up KuCoin trading bot and can start working with it.
With its high level of security and low fees, it will be a great option for your trading.