What is a Kucoin trading bot?
Kucoin Trading bots help you automate your trading and earn passive revenue. While normally you would have to initiate trades one by one, then using trading bots on Kucoin you don't have to do that.
Instead, you choose the Kucoin bot or bots you want to use and the trades will be initiated automatically based on the rules you have set beforehand.
Which trading bots does Kucoin offer?
Kucoin offers four main types of trading bots.
These are:
- Spot Grid trading bot
- Kucoin Futures Trading bot (Futures Grid)
- Kucoin Smart Rebalance bot
- Kucoin Infinity Grid bot
Spot Grid
Kucoin Spot Grid trading bot is the simplest type of grid trading bot. This is quite newbie friendly and can earn you good passive income.
The idea behind is is simple.
The bot buys low and sells high.
When setting up the bot, you need to decide on the following details:
- Crypto pair to trade
- Price range
- Number of grids
- Your total investment
Spot Grid bot then sets different buy and sell orders within the price range above and below the current price.
Can you use your existing cryptos in Kucoin spot grid bot?
Yes. If you want to grid trade BTC/USDT (for example) and you already have BTC, you have the option to use that in your trading bot as well.
However, you should keep in mind that the profits from the trading bots will be settled in USDT, and as such, your overall BTC balance can and will decrease.
What's the minimum investment for Kucoin spot grid bots?
The minimum investment depends on the trading pair, amount of grids and also the popularity of the trading pair. But usually you need to invest at least $100-$400 in one Kucoin bot.
Kucoin Futures Trading bot
Futures trading bot is similar to spot grid bot. But in here you need to choose the futures trading pair.
Additionally you need to choose whether it's a long or short bot. Meaning, do you think the price will go up or down.
And you choose the leverage you want to use.
You can use up to 10x leverage.
Minimum investment depends on the leverage you choose - the higher the leverage, the smaller your investment needs to be.
Kucoin Smart Rebalance bot
Kucoin Smart rebalance bots are sort of the simplest bots ever with little downside.
What smart rebalance bots do, is that they just keep the amount of cryptos in the bots balanced.
Let's say you create a smart rebalance bot in Kucoin with two cryptos - Zilliqa (ZIL) and Algorand (ALGO) and you assign them both 50%.
Now, whenever the price of one crypto increases and the balance changes, a bit of that one crypto will be sold and the other will be bought. Just to maintain the 50/50 ratio.
You can choose the rebalancing method yourself - either time (rebalancing will be done after a specific each time period, be it 30 mins, 4 hour, 1 day, or anything else) or threshold (coin ratio). The latter means that rebalancing will be done whenever the coin ratio has changed by a set percentage.
Please note that in case of Kucoin smart rebalance bots you can not choose both - time and threshold.
Kucoin Infinity Grid bot
Infinity Grid bot is very similar to Spot Grid bot. But compared to spot grid there is only lower limit price and no higher limit price.
Kucoin DCA
Although Kucoin lists this under trading bots, this actually is not a trading bot as such. Instead, this "bot" allows you make automatic crypto buys at regular intervals.
How to use kucoin trading bot?
How to use Kucoin bots or how to get started with these trading bots?
If you haven't used crypto trading bots before, either in Kucoin or on some other exchange, this will be all new to you.
To make it easier, let us show you a short step by step guide for using Kucoin bots.
- If you don't have a Kucoin account yet, create it here
- Log in to Kucoin
- If you don't have money on your account yet, make a deposit
- From the top menu, choose Trade -> Trading Bot
- Choose the bot and get started
What about Kucoin trading bot profits? How much can you earn?
When it comes to Kucoin trading bot profits, then obviously, it depends a lot.
The main thing - it is possible to earn good profits from Kucoin bots. But as they say - devil is in the details.
In case of smart rebalance bots, our case study shows that long term they are definitely profitable. These bots increase the amount of cryptos you have in the bot.
Grid bots help you earn money by taking advantage of the volatility in the market.
But how much can you earn with Kucoin bots? That's something very difficult to say - you might be able to make 300% ROI a day, on a good day, if you're lucky. But depending on the market conditions, you migth also lose money. Especially with bots where leverage is being used.
What is the best Kucoin trading bot startegy?
So what is the best kucoin trading bot? Or which is the best Kucoin bot trading strategy?
If you are just a newbie, we recommend you start with only two trading bots - smart rebalance and Infinity Grid.
Smart Rebalance bots are generally safe, unless you choose one very bad crypto (think LUNA). They might also not offer you as much profit should one of the cryptos in the bot make a 100x jump.
Infinity Grid bots are good for continuous money-making. We prefer them to Spot Grid bots, because they do not have an upper limit.
Kucoin trading bot tips
Kucoin trading bots help you make money while you're sleeping. But keep in mind that nothing about crypto is without risks.
Whenever you use trading bots in Kucoin, follow these suggestions:
- Only trade with money you can afford to lose
- If you don't understand a bot, try first putting as little money into it as possible
- Be careful when using leverage, or you can lose all of your money very fast
- Always pay attention to market trends
I became interested in cryptocurrencies only a bit more than two years ago. Since then I have been in investing in cryptos using different exchanges. And I also launched Cryptolorium.com when I started trading, just to share my crypto journey and my results.