Whether you want to focus on innovative strategies like running an AI crypto trading system or plan to take advantage of derivatives available to investors on the exchange, you will find the necessary tools without any hassles. The flexibility of the CEX and its strong focus on diversifying the product line makes it a very attractive option.
Why should you use an XT.COM crypto bot?
Contemporary investors are often seeking versatility in their exchanges since the crypto ecosystem has so many financial instruments. The ability to access this variety is incredibly valuable to retail traders who can build effective automated trading systems (ATS) and take advantage of strategies like triangular arbitrage, market making, and statistical arbitrage. This exchange offers a lot of interesting options to conservative and risky investors.
Let’s discuss some of the options available to the clients of this company:
- Passive income opportunities. You can stake, buy hash rate in Bitcoin blockchain, and open dual accounts to accrue interest on fiat and crypto holdings simultaneously. All these options are offered on top of useful OTC and collateralized lending services that are easily accessible to all registered users.
- Multiple markets for investors who would like to trade using their funds or receive leverage for enhanced profitability. The daily spot market volume is close to $780 million indicating a high level of interest from individual and institutionalized traders.
- Built-in copy trading functionality. Retail traders who do not have much prior experience in crypto trading may be inclined to simply follow the steps of veterans by using social trading instruments offered by the exchange. It is easy to set up and you can opt out at any moment.
- Derivatives are great instruments for hedging which is quite useful if you plan to have long positions or stake tokens. The exchange offers USD-M and Coin-M perpetual and fixed-delivery futures. If you want to launch an XT.COM futures grid bot, it is a good idea to get a good grasp of their specifics. Any crypto grid bot can be used to create a functional ATS targeting derivatives.
- A flexible API gateway. Many centralized exchanges have APIs that allow third-party platforms to directly connect to the backend instead of dealing with a clunky UI. Those who appreciate contemporary automation tools will be happy to learn that this CEX can be connected to any external service. The problem is that many platforms simply do not list it as one of the default options.
All these advantages make it easier for investors to effectively trade here and achieve consistent returns through the use of automation, smart technical analysis techniques, and complex risk management approaches. The ability to use derivatives to hedge against market risks is a great benefit if you know what to do.
How to automate trading on XT.COM?
You can use multiple approaches to automate your operations on this exchange. We will discuss several obvious options.
- Local software can be useful to experienced users with in-depth technical know-how who can easily connect to the API gateway. However, this way of setting up an ATS is dependent on a variety of factors including internet connection stability, the quality of hardware, and the performance of software you plan to use. It takes a lot of trial and error to achieve consistent results.
- Third-party vendors like WunderTrading or CryptoHopper can be used to create advanced ATS setups that utilize signals from sophisticated technical analysis strategies or specialized providers. It is one of the preferred options for many users since it allows you to get started without learning how to operate software, code, or do other complicated things associated with locally run robots.
- Native copy-trading features. The exchange has a social component allowing users to start following others in one click or choose from a diverse selection of trusted managers. While the toolkit in this module is quite limited, it is still a way to automate your operations here.
The problem with options number 1 and 3 is that you won’t have the necessary capacity to create sophisticated systems like statistical arbitrage or market making. Even making a relatively simple crypto DCA bot system can become a significant challenge given the limitations you will face while using local software or trying to get by with natively available features.
Choosing a good XT.COM trading bot
With the diversity present in the current landscape of the automation industry, picking a reliable provider is a challenging task even if you have some experience in the field. We suggest using several important criteria when selecting a platform:
- UX/UI is hugely important. Onboarding is a big challenge for many automation vendors since many newcomers are unfamiliar with the concept and may not understand even some basic functionality offered by these companies. It is important to work with platforms that have informative dashboards and intuitive interfaces.
- Excellent customer support. Many users feel overwhelmed by the wave of new information when trying to learn how to set up an ATS. When a company offers good customer care service, you will be able to sort out any technological or financial issue quickly leaving you with more time to focus on fine-tuning your strategy.
- Versatile product lineups. Some companies offer great products but may lack complimentary services. In many cases, a platform has a defined point of focus. For example, CryptoHopper is known for its advanced preset bots but may disappoint those who are seeking advanced social components. Gunbot is a great choice for DeFi users but has limited capabilities when connected to the CEX platform.
- Affordability. In the 1990s, only huge financial institutions could use advanced automation tools. Today, they are accessible to all individuals. The competition in the industry lowered prices across the board so you don’t have to overpay. Look for platforms offering flexible subscription plans and free plans.
Great automation vendors in 2024
If you are looking for a powerful crypto trading platform that has a versatile product lineup, it is a good idea to check out some of the companies below:
- 3Commas is a solid choice if you feel that native copy trading features are lacking. 3Commas has a large community that inhabits the forum, Reddit, and Discord. You can easily find something that many users approve of and run it with an added layer of safety and confidence. On top of advanced social components, the platform offers versatile bot-building toolkits that can be used to create any ATS. Learning how to use 3Commas is also a breeze since the interface is user-friendly.
- Gunbot is another interesting choice for people who would like to operate in the CeFi and DeFi sectors of the crypto industry. Initially, Gunbot had only DeFi automation capabilities but has been expanded to offer a wide range of interesting solutions aimed at centralized exchanges. Some users believe that this platform is limited in terms of functionality but technically savvy individuals may try to expand it since code is publicly available.
- WunderTrading has been around for many years. It offers a large catalog of products with staples like DCA and GRID bots alongside customizable signal robots, AI-assisted statistical arbitrage systems, portfolio tracking, and even useful social components. The marketplace for copy trading deserves a separate mention since it features hundreds of traders from all supported exchanges making it a prime destination for newcomers interested in an easy start.
All these platforms can be connected to XT.COM but may require some tinkering and talking to customer support teams. Nevertheless, if you want to optimize your portfolio on this CEX platform, it is a good idea to use automation to at least some degree and spend some time and effort on setting up a connection between your chosen bot provider and the exchange.
The main takeaway
The only issue with XT.COM is its security score since it has a low BBB (76%) score according to industry experts. All in all, it is a good destination for investors seeking diverse opportunities for capital allocation and who want to engage with digital assets like Bitcoin and Ethereum while having the option to hedge against market risks with derivatives.