Why should you choose KuCoin?
This company is one of the strongest brands in the crypto industry. The exchange offers a wide range of financial products including an active spot market, margin accounts, derivatives trading, staking, and more.
The exchange was launched in 2017. It managed to raise funding from multiple venture capital firms. The main goal of the company was explosive growth and expansion into multiple regions. Today, KuCoin has offices in many countries and offers its services to users from Singapore, China, Hong Kong, Europe, and Sub-Saharan Africa.
One of the biggest advantages of the platform is its strong technology allowing seamless integration with a multitude of external services via a powerful API. If you want to pick a good KuCoin trading bot strategy, you simply need to find a good automation vendor that works well with this exchange. Since the company encourages users to use all available tools, the selection of integrated services is quite diverse.
Is KuCoin safe?
Some problems with data security stained the otherwise excellent track record of the company in relation to its users. All affected clients were compensated, but the bitter taste will last forever. On the other hand, the company had issues with US and Canadian regulators. Some European regulatory bodies also had questions about the exchange.
The company is considered reliable and trustworthy in the SEA region. The recent expansion into Hong Kong indicated that practices embraced by this exchange are considered sufficiently professional and acceptable by the standards of one of the strictest financial markets in Asia.
Since several incidents with data leaks, the company improved security and invited auditors to test their cyber defences. In general, the platform is safe enough for retail traders who want to work with a quick exchange and can afford to split their overall portfolio.
Is KuCoin a good exchange for novices?
The platform positions itself as a user-friendly platform that has an intuitive interface and easy-to-use features. We tested the website and application to confirm these claims. The interface is indeed convenient and intuitive. You can easily find the necessary functionality without any hassles.
Here are some other considerations:
- The product lineup is diverse and rich. Newcomers can focus on staking or other safe investment opportunities if they are afraid to dive into retail trading right away.
- Newcomers are encouraged to learn more with educational materials offered by the exchange for free. It is a good place to start if you don’t have any experience with the industry.
- Fees are comparatively low. It is one of the cheapest mainstream exchanges with commissions starting at 0.115% which is less than the market average.
- Novices will be able to test a variety of features and effortlessly deploy bots without any technical know-how. KuCoin has detailed instructions for everything.
If you do not have any past exposure to the crypto industry, starting your journey with KuCoin is not a bad choice. US citizens and some Europeans may not be able to use the platform due to restrictions from local governments.
Is KuCoin good for automation?
The API allows automation vendors to directly connect to the exchange functionality without ever interacting with the UI. It is a great way to streamline any functionality related to trading automation.
At the same time, the process of connecting an external service to your account is safe. All API keys are generated separately and must be protected by a passcode created by users. It is a good way to ensure that third-party companies will never gain access to your portfolio if you are afraid that such a thing can happen.
You can use bots on all sections of the exchange including the spot market and the market for derivatives. Since some retail traders are interested in automating all their market activities, it is a great platform that allows its users to automate margin accounts and buy and sell digital assets directly on the spot market.
What is the best way to use KuCoin bots?
This exchange has high liquidity and millions of users. It means that an investor interested in running any automated trading systems will be able to utilize the full spectrum of tools available in this industry. The best KuCoin trading bot strategy is to achieve balance in the portion of your portfolio dedicated to automation.
The exchange has sufficient trading volumes, market activity, and liquidity to allow all its users to run different types of automated trading systems efficiently. We recommend retail traders deploy as many bots as possible.
Here are some of the options that you may consider for your investment endeavours targeting KuCoin:
- DCA buying. This exchange supports all mainstream tokens. It means that you can slowly build a bulky portfolio with the famous distributed cost average approach. Preset solutions from WunderTrading are focused on generating profits in the short term, but you can turn off “stop loss” orders to simply let bots buy assets during advantageous periods.
- GRID bots work like empowered DCA. The bot places multiple orders in quick succession with each market position accompanied by strategically placed “take profit” and “stop loss” orders. The name comes from the shape formed by multiple market positions on the price chart. They create a net or a grid of levels indicating entry, take profit, and stop-loss points.
- Arbitrage bots. These scripts are designed to monitor multiple cryptocurrency pairs that share two common assets. When a price discrepancy occurs, bots place two market orders simultaneously. This method needs the exchange to instantly execute all orders to ensure that users make a profit from simultaneously buying and selling assets.
- Custom bots. You may also use a variety of highly specialized bots that follow instructions and signals generated by unique technical analysis strategies deployed on TradingView. Scalping, swing trading, and many other risky approaches can be deployed with risks hedged by safer bot products like DCA, arbitrage, and GRID.
- Copy trading. If you use versatile automation platforms like WunderTrading, you will have access to the copy trading marketplace where you can pick experienced retail traders whose actions you will immediately copy. This method works well for newcomers who do not have any prior exposure to the crypto market.
All these automated systems can be extremely efficient when used on a technologically advanced crypto exchange like KuCoin. Using all these bots is also a good way to diversify your portfolio with some instruments providing a good chance of making a fortune and some instruments offsetting risks associated with running more aggressive bot products.
What is the most profitable trading bot on KuCoin?
It is impossible to predict the profitability of any given bot since its productivity and efficiency depend on decisions made by users during the setup process. Users are responsible for multiple aspects of KuCoin trading bot strategies:
- Picking the right technical analysis indicators. These tools are deployed on TradingView. A complex of multiple indicators is called a strategy or a system. It will generate signals that will be processed by bots. If conditions are right for the activation of the bot, it will immediately act according to its programming. Users must pick reliable strategies capable of producing correct signals with a high rate of success.
- Using optimized KuCoin trading bot parameters. While it is possible to make money even without tinkering with settings. The ideal scenario is when a user understands how to reduce risks with smartly adjusted “take profit” and “stop loss” scenarios. You need to customize these parameters according to your preferences and risk tolerance.
- Picking the right digital asset to work with. Some cryptocurrencies have high trading volumes and liquidity, but may not have the same explosive potential as some obscure new tokens that can gain value overnight. You need to carefully select the right set of coins to trade. You won’t be able to pick the absolute best KuCoin trading bot pair (such a concept does not exist), but you should avoid pairs that do not work with chosen strategies.
Making appropriate decisions will improve the performance of any bot deployed on KuCoin. The profitability will be determined by a variety of other factors as well. User inputs are highly valuable and have a decisive impact on the overall performance of a bot, but market volatility, sudden changes in the industry, and other events can dramatically affect profitability.
Remember that bots are not created to make crazy amounts of money. They are instruments designed to help users optimize profits, reduce risks, and maximize efficiency. You should not consider them magical money-making machines.
How to launch trading bots for KuCoin
Users do not need any technical expertise or advanced coding skills to deploy bots on KuCoin using the WunderTrading platform. The process is very simple. You will need to follow a simple step-by-step guide:
- Go to WunderTrading and register if you don’t have an account.
- When prompted by the system, connect your KuCoin account.
- You will need to get an API key. Log in to your KuCoin account.
- In the upper menu find “API management” and click “Create API”.
- Input the API key name and a passcode that will be used to access the API functionality.
- Confirm the creation via a link sent to your e-mail and click “Activate API”.
- You will be able to copy the API key and insert it in the WunderTrading form.
- Go to “My Bots” and click “New Bot” to create a new ATS (automated trading system).
- Adjust parameters and launch the bot. It will start working without any additional inputs.
Note that you will also need an account at TradingView if you plan to use sophisticated trading strategies that involve multiple indicators. The WunderTrading website contains a plethora of educational materials and guides to help you connect the TradingView alert system with the WunderTrading platform.
Why do you need to run trading bots on KuCoin?
The general rule of thumb is to use as many automation products as possible. The problem with the contemporary financial market is that all retail traders are using advanced instruments creating a highly competitive environment. Investors, who avoid using progressive tools like bots, are outcompeted by people who use fast market-making bots, deploy arbitrage systems, and otherwise take advantage of retail traders who do not use bots.
If you want to be competitive and make money by trading instead of focusing on building a portfolio that has a chance to appreciate in the future, you will need bots. Automation is something that many people have to use to stay relevant and keep up with the rest of the community.
Another important thing is that some bot systems are extremely safe and can be used to hedge risks associated with engaging in risker forms of investments. Arbitrage bots, in theory, never have negative cash flow and make profits in 100% of cases when perfect conditions occur in the market. GRID bots can be quite safe and consistent.
You need these instruments for diversification purposes. Building a balanced portfolio without automation is possible, but you can be more efficient and safer with some products designed for retail traders working in the crypto market.
The main takeaway
The very best KuCoin bot trading strategy that you should use in 2023 is to use as many different automation products as possible to diversify your investments and trading activities!