Don't have time or energy to spend on trading all day? Leave it to trading bots! KuCoin offers a number of strategies and tools that you can use to generate profits easily. Read more!
Over the past months, we have covered quite a few strategies to actively participate in the market, but what if you are strapped for time? More and more platforms and exchanges are starting to offer automated trading strategies. Today we will discuss the KuCoin trading bot, and how to use it in your trading.
What Is the KuCoin Trading Bot?
As the name suggests, the KuCoin trading bot is a trading tool on KuCoin that takes trading tasks out of your hands. The tools allow you to pre-set certain conditions where the bot will execute trades, allowing you to trade while you sleep. It also takes away the factor of emotions from trading.
KuCoin says the tool can “assemble and copy repetitive tasks” which would help you to take trades in a systematic manner. Additionally, it will allow you to take trades you would have missed otherwise. Nobody sits at their desk 24/7, except the bots.
Let’s see what it can do!
What Strategies Does the KuCoin Trading Bot Offer?
You may also check out our guide on Trading Futures on Binance!
What Is Smart Rebalance on KuCoin?
You can set the bot to auto-rebalance in cycles of time (for instance, every day), or whenever the ratios deviate by more than a set percentage (such as 1%). In an ideal world, the rebalancing results in a larger number of coins across the board, as it theoretically buys low, and sells high.
How to Use DCA Bot on KuCoin?
How to Use These Strategies?
These trading bots can be great tools to take some basic activities out of your hands. However, it is not possible to drop all the work in the lap of bots just yet. Especially the grid strategies require analysis in order to place the grid effectively. Also, when markets move, you will need to replace the grid.
Letting bots perform the easy tasks while you focus on refining your craft, trading more complicated systems, building something, or working a day job seems like a good move though. I think these strategies and bot-trading, in general, are very well suited to “cover” for you when you are on holiday or break from active market participation. Set some basic guidelines for the bot to execute trades and walk away comfortably, then come back and hit the ground running!
In the end, trading bots are another tool in your toolbox, not the holy grail that will make you rich overnight. Setting the tool with the right parameters to trade profitably still requires knowledge and skill. They are not a guaranteed win; it is still trading after all.
As usual, please remember this article is based on my limited experience in crypto trading and should not be considered as advice. I do not use trading bots myself. Do your reading on trading bots, and make some money!