The exchange positions itself as a leader in the memecoins domain. This particular focus of the platform is beneficial to users interested in running innovative instruments like an AI crypto trading bot or large-scale statistical arbitrage systems. Many of these products perform extremely well in speculative markets with assets behaving erratically.
The exchange is quite popular in the SEA region but offers its services to the international clientele with investors from all across the globe eagerly using it for all sorts of investment activities including operations in the DeFi ecosystem.
Why should you think about using an AscendEX crypto bot?
The exchange has many advantages and offers a rich selection of investment opportunities and financial instruments to all its clients. Since it is one of the most popular destinations for an army of crypto enthusiasts, you have to think that the variety of products here is astonishing. Indeed, those exploring the platform for the first time will find it incredibly versatile and capable of providing the necessary depth of features to create the most sophisticated portfolio.
The products of the exchange
It is a good idea to spend some time learning the intricacies of this CEX company before becoming a customer. While some products may be right up your alley, others have specific nuances that can be a major issue for some investors. Let’s talk about the service and its offerings.
- The spot market offers access to over 460 different tokens paired against Tether’s USDT. The listings include a large number of digital assets, from mainstream currencies like Bitcoin and Ethereum to obscure tokens like $FOUR, DOGS, and KOE. Finding a good target for your bots will not be an issue.
- Margin accounts are offered to investors who are willing to take on higher risks to magnify potential gains. Remember that using borrowed assets to enter heavily leveraged positions is not a good idea if you lack the experience or do not have a large portfolio to fall back on in case of an emergency.
- Leveraged tokens can be a good addition to a portfolio if you are interested in balancing the risk profile and adding a position that slightly increases profitability in exchange for more exposure. You can use a 3X or 5X leverage on many tokens including the likes of BTC, ETH, QUICK, and many others.
- Futures are excellent tools for investors choosing safer investment strategies and trying to achieve a delta-neutral overall position. The exchange offers perpetual futures contracts to all its clients and allows for massive leverage if you are not afraid of taking on debt.
- Passive income programs. Trying to get a higher yield on your investments compared to tradfi offerings like 4.11% on US treasury bonds is one of the main priorities for crypto holders. This CEX platform gives you an opportunity to invest in ASD for up to 11.2% floating APY or ETH for 3.05% alongside other riskier yet more profitable options.
- A DEX service that focuses on the non-custodial service is another interesting product. It is a protocol capable of operating within the DeFi ecosystem but it is managed and owned by a centralized entity. Many crypto enthusiasts believe that such amalgamations should not exist. Nevertheless, it is a good complimentary service for people who would like to have the option to trade directly from their wallets while maintaining investments on a centralized platform.
These products come together to create an attractive proposition to a potential investor. However, the pairing with a centrally owned DeFi protocol may be an issue for some diehard crypto enthusiasts. Another important factor is the strong focus on margin accounts. While it can be an advantage for some, others may see it as an unnecessary addition to the exchange service.
AscendEX trading automation
The spot market with deep liquidity and hundreds of digital assets is a great target for an automated trading system designed to operate in such an environment. The CEX platform has a native social module that allows users to copy the actions of other traders. It is a good idea for many newcomers who may feel lost in the complex crypto ecosystem. Following the steps of a more successful and experienced investor is often a better decision than trying to jump headfirst into active investing.
The social component is quite limited and lacks flexibility. Even on its own, it is not as advanced as standard marketplaces on platforms like WunderTrading where social components come as a part of a much bigger package. Nevertheless, you can use this feature to build a fairly balanced portfolio but we would strongly suggest using a third-party provider to have more options when it comes to automation.
You can use several setups to automate trading on AscendEX:
- Use a desktop application. SuperAlgos and FreqTrade on GitHub alongside a variety of commercial desktop apps and specialized software can be used by individual users. You can set up a connection to the exchange using API docs provided to developers. It is a time-consuming process that requires technical know-how and, preferably, coding skills in Python and C#. In many cases, you will have to manually set everything up which is not a big advantage if you plan to run something like a relatively simple DCA bot crypto system that can be launched in a couple of clicks if you go to a specialized vendor.
- Focus on the native functionality. The copy trading module on this CEX platform is not bad at all considering that it was launched just a couple of months ago. Potential investors can check the catalog of 160+ verified traders and see their recent statistics such as win rates, overall profitability, followers, and more. It is a robust ecosystem that offers easy entry into the crypto market to a large number of newcomers who do not have the necessary experience to start on their own. The issue here is that specialized vendors offer the same functionality and variety while working with multiple CEXes.
- Get started with an automation provider. This sector of the crypto industry has been growing consistently throughout the last decade. Many companies offer complex products that allow users to build incredibly sophisticated strategies. For example, you can go to WunderTrading and launch its AI-assisted statistical arbitrage system that analyzes the historical data and price action to come up with the best way to adjust your portfolio. You can run it across multiple markets simultaneously to achieve optimal portfolio performance. If you are looking for a good BitMax trading bot, it is always better to simply pay for an excellent service from an established provider.
Types of strategies that you can use on this CEX
This platform has many advantages that enable all sorts of ATS setups. Deep liquidity and asset variety are good for high-frequency setups that focus on conducting as many operations as possible within a single trading session. Examples of such strategies are statistical arbitrage, market making, and more. By the way, this CEX offers AMM services to DeFi users through its DEX that works across four different chains, namely Ethereum, Arbitrum, Base, and Optimism. If you are interested in AMMs, this is an option as good as it gets.
Let’s discuss some of the approaches that investors may find effective when working on this exchange:
- Statistical arbitrage is one of the most lucrative techniques for investors with large portfolios. Just a decade ago, only financial institutions could run such setups by hiring retail traders to make trades on their behalf according to a carefully written set of instructions. The strategy is based on spreading funds across multiple correlated markets to disperse risks and achieve consistent performance. However, systematic adjustments are needed to keep the composition of assets optimal. You can achieve this by manually setting up several bots or simply running a preset like the AI-enhanced system on the WunderTrading platform.
- Market making is an approach that also works for people with sufficient funds to support a large-scale operation that extracts relatively small profits with an impressive level of consistency. The idea is to search for gaps between bid and ask to identify moments when you can facilitate a trade by closing the gap while receiving guaranteed profit. Since you need to make hundreds of trades per day to achieve the same return as in the case of a successful long or short position, it makes sense that you need large capital and an army of bots working in multiple markets simultaneously. The competition is also an important aspect to consider.
- Grid bots became incredibly popular due to their impressive consistency and profitability. Literally all providers offer preset DCA and GRID bots as core parts of the total package. GRID is a system based on the DCA principle of splitting a single purchase into a series of trades that create a single long position that has a lower average acquisition price. The grid is formed on the chart since the system also creates exit orders for each of the opened positions. It is a setup that provides consistent returns to users and allows them to focus on several digital assets instead of spreading their attention thin across a multitude of markets.
- Triangular arbitrage can be a good option too. It is a strategy that involves tracking at least three currency pairs sharing two assets. Price discrepancies between them can make three-way simultaneous trades sensible to secure profits in one asset or another by trading both against a common denominator. Since such conditions are relatively rare and other traders are looking for them all the time, it is a common practice to keep multiple bots dormant setting them up in a way that triggers them into action only under very specific market circumstances. This particular technique works well only on platforms that have hundreds of markets and support multiple asset pairings.
These strategies can be easily created using toolkits offered by many contemporary automation providers. We strongly suggest backtesting any setup before allowing it to utilize your portfolio in the real market.
AscendEX AI trading bot
One of the biggest advancements of the last decade is the proliferation of expert AI systems and the growing public awareness of this powerful technology. While we now know that artificial intelligence agents in their current iterations are way less impressive than what was promised of them, many companies decided to focus strongly on implementing machine learning and neural networks into their products. Some are doing it better than others.
AscendEX has all the necessary qualities to be an excellent destination for investors interested in using a variety of automated systems whether powered by AI or not. We want to discuss several interesting products that should be on your watchlist!
- Gunbot’s large language model. While many developers chose to implement machine learning to create the next generation of robots capable of effective predictive analysis, others decided to go another route. Gunbot is a versatile automation platform that has solutions for the DeFi and CeFi sectors. One of its propositions is the use of LLMs in building strategies. Their system takes requests from users and based on this input writes a script and comments how it works. It is an interesting solution that may have some applications in the crypto market. So far, we have not seen something groundbreaking but the idea is worth exploring.
- CryptoHopper’s main focus is on integrating AI agents across its whole product lineup. As of the time of writing, only the GRID system received an overhaul and offers real-time settings adjustments allowing bots to perform better than their standard counterparts. The degree to which AI-enhanced robots can outperform regular ATS designs is not yet known. However, this provider is known for its ability to spearhead change in the industry. The idea of using machine learning to improve the performance of already reliable strategies is a reasonable one. Future grid bot crypto setups with artificial intelligence can become a new norm if this product achieves success.
- 3Commas has its smart terminal and very carefully explores the concept of artificial intelligence relying heavily on the current product lineup. However, you can find some interesting solutions in the marketplace. For instance, KepingAI is offering a signal generator that uses various machine learning techniques to analyze the market history and price action dynamics to produce signals with an impressive win rate. However, many signals are still just reactions to the market movement and direct users toward short-term price retracements making it hard to build a long-term strategy using forecasts provided by the system.
- WunderTrading is a good example of a platform that innovates without losing track of its flagship products and development direction. The company wants to invest in AI enhancements for many of its tools but has been carefully experimenting with the next generation of robots. The AI-assisted statistical arbitrage system is quite impressive as it is capable of managing multiple markets simultaneously while making adjustments in real time to achieve optimal performance. This product is aimed at conservative investors who are interested in exploring innovative tools and do not mind technological risks. This approach of building new products using a novel technology may prove to be much more resultative than trying to brute force your way into a technological revolution.
When it comes to finding the right approach to BitMax automated trading, focusing on AI should not be among the top priorities. It is an intriguing idea to explore and you may want to include a couple of market positions managed by artificial intelligence agents but many investors will benefit from focusing on time-tested strategies like DCA, GRID, and arbitrage.
We should also mention the importance of backtesting all strategies multiple times until you reach a configuration that performs according to your expectations. Since many AI products are still in the early stages of development, you won’t acquire reliable results from testing them.
Choosing the best bot for AscendEX
The process of selecting a reliable automation provider can turn into a tough task if you don’t have much experience with robots and ATS building. In the current landscape of the industry, you will find hundreds of different products offered by a large number of companies. After analyzing dozens of available options, you will feel that finding a needle in a haystack is an easier challenge.
We want to give you several tips on how to make a good choice:
- Use platforms with an acceptable level of user experience. An unintuitive interface coupled with badly designed dashboards can be incredibly hard to navigate and use efficiently. If you have to spend hours learning basic functionality and navigation, it is not a good platform to use. It is important to feel comfortable while building investment strategies.
- Versatility is hugely important. AscendEX has a nice copy trading module that can be used to create a balanced composition of investments. However, it is very limited compared to similar offerings from WunderTrading and 3Commas. These platforms offer well-structured marketplaces featuring hundreds of managers from various CEXes while simultaneously providing functional toolkits for bot building.
- Pricing. Considering the maturation of the industry and price reductions across the board, it is unnecessary for investors to overpay for the service. Look for platforms that offer flexible subscription plans or different tiers depending on the quality and volume of service. If a platform has a free plan that includes some goodies, you should take advantage of it too. For example, WunderTrading’s basic subscription tier is free and offers access to portfolio trackers and other neat features.
- Reliability and track record. We strongly recommend you avoid relatively new players in the industry since their service may be subpar or have stability issues. Companies with long histories and robust partnerships usually deliver a much smoother experience and can guarantee excellent uptime and service availability.
- The learning curve. If you want to learn how to use AscendEX trading bots quickly, you should work with platforms that have detailed guides and instructions to ensure that users can get a grasp of their technology quickly. Newcomers should avoid companies that do not have preset solutions or ready-made bots with settings that you can change. Practicing is the only way to learn efficiently.
The main takeaway
Using this centralized exchange for your investment activities is a sound decision. However, you should remember that an automated trading bot running on this CEX may be of subpar quality considering the insufficient direct support of the exchange by the biggest players in the trading automation industry. You can still build a well-performing portfolio using the tools compatible with the CEX but the experience may be less satisfying compared to scenarios where you create strategies using polished instruments and more interconnected CEXes.