Trading bots are software programs that can follow predefined rules and strategies to execute trades for you, saving you time, stress, and potentially increasing your profits in the unpredictable crypto market. But not all automated bots are the same. Some are costly, complex, or unreliable.
Kucoin is a well-known and reputable cryptocurrency exchange that offers a free and easy-to-use trading bot service to its users. In this comprehensive Kucoin trading bot review, we will discuss its functionalities, strategies, fees, and security measures.
What is Kucoin Trading Bot?
Kucoin Trading Bot is a software that lets users trade cryptocurrencies automatically on the Kucoin exchange. It has different trading modes, such as spot grid, futures grid, dollar-cost averaging, smart rebalancing, and infinity grid.
The Bot is easy to use and supports a wide range of coins (over 700 coins and tokens). Users can choose the mode that fits their trading style and market conditions, and adjust the parameters such as the investment amount, price range, grid number, profit ratio, and stop-loss level. Users can also see the performance and statistics of their bots, and change or stop them at any time.
The Kucoin Bot is a free service but you need to pay a 0.1% exchange trading fee for each transaction. Users can also copy the bots of other traders who have achieved high returns or share their own bots with the community.
Pros
- No extra fees: The bot is free of charge, except for the 0.1% maker/taker trading fee that applies to every trade on the exchange.
- User-friendly: It is simple and convenient to use and you only need to select a trading pair, a strategy, and some settings, and let the bot handle the rest.
- Flexible: It allows you to modify the settings, such as the price range, order size, investment amount, leverage, and stop-loss.
- Multiple bots: The bot enables you to create multiple bots (up to 10) with different trading pairs and strategies and monitor them all from one place.
- Historical data: It provides you with real-time data and statistics, such as current price, profit and loss, annual percentage rate (APR), number of transactions, and grid distribution. You can also see the historical performance and results of the bot.
Cons
- Limited to Kucoin: It is only available on Kucoin and its mobile app and you cannot use the bot on other crypto exchanges. You also need to have a Kucoin account and verify your identity to use the bot.
- No profit guarantee: The bot is based on algorithms and market conditions, which are volatile and uncertain and can be very risky sometimes.
- Not available for US citizens: Kucoin is currently not licensed to operate in the United States. So, you can not use its trading bot.
Kucoin Trading Bot Strategy
Kucoin trading bot currently supports 6 types of strategies, such as spot grid, dollar-cost averaging, futures grid, martingale, smart rebalance, and infinity grid. Here is a brief explanation of each strategy:
- Spot Grid: This strategy is suitable for volatile markets, where the price moves up and down within a certain range. The bot will create buy and sell orders at different prices within the range, and fill them when the price reaches those prices. The bot will make profits from the difference between the buy and sell prices. The user can choose the highest and lowest price of the range, the number of orders, and the total amount to invest.
- Dollar-Cost Averaging (DCA): It is suitable for long-term investors, who trust in the value of the target asset and want to avoid the impact of market fluctuations. The bot will buy the target asset at fixed intervals, regardless of the price. The bot will average the buy price over time, and reduce the risk of buying at the wrong time.
- Futures Grid: This strategy is similar to the spot grid, but it uses futures contracts and leverage instead of spot assets.
- Smart Rebalance: The bot is suitable for portfolio management, where the user wants to keep a “certain ratio” of different assets. It will check the portfolio balance, and adjust it by buying or selling assets when the ratio deviates from the target. The bot will optimize the portfolio performance and reduce the risk of overexposure to a single asset.
- Infinity Grid: It is an advanced version of the spot grid, where the bot can change the price range dynamically according to the market trend. It will create buy and sell orders at different prices within the range, and fill them when the price reaches those prices. The bot will also move the price range up or down when the price breaks out of the range, and create new orders accordingly. This allows it to capture the profits from both the difference and the trend of the price.
- Martingale: The Martingale strategy is a way of lowering the average cost of your position by increasing your investment when the price drops. The idea is that when the price rises, you can sell your whole position and make a profit that covers your previous losses and gives you a profit equal to your initial investment. The Martingale strategy bot on KuCoin lets you set the parameters of your strategy, such as the target asset, the investment amount, the price change percentage, the number of position increases, and the profit rate. The bot will watch the market and execute your strategy automatically.
How to Use Kucoin Trading Bot?
Step 1: Sign in to KuCoin and visit trading bot page
You need to sign up on the Kucoin crypto exchange and complete the KYC verification before using the Kucoin trading bot. If you still don’t have an account, you can use our referral code “QBSHEKAU” and secure your exclusive Welcome Gift Pack valued at up to 700 USDT.
You can find the “trading bot” page by hovering on “Trade”.
You will see various kinds of trading bots available, such as Spot Grid, Futures Grid, DCA, Smart Rebalance, and Infinity Grid. You can pick the one that matches your trading strategy and risk preference.
Step 2: Select a trading pair and configure the parameters
After choosing a trading bot, you will need to select a trading pair from the list of supported coins. You can also look for a specific coin or pair in the search bar. Next, you will need to configure the parameters for your trading bot, such as price range (low and high), number of orders, investment amount, and grid profit.
You can also use the “auto mode” to let the system generate the best parameters for you, or you can use the “custom mode” to adjust them manually. You can also check the “profit backtesting” feature to see the historical performance of your trading bot based on the parameters you set. This can help you assess the potential profitability and risk of your trading bot.
Step 3: Track and manage the trading bot
Once the trading bot is created, it will start to execute the orders automatically according to the market fluctuations and the parameters you set. You can track the performance of your trading bot from the strategy history page, where you can see the total profit, grid profit, unrealized PNL, and current price of the trading pair.
How much do KuCoin trading bots cost?
Kucoin trading bot does not charge any extra fees. You need to pay the same standard fees on each trade.
For example, the spot strategy applies the KuCoin Spot fee rate rules to charge trading fees and gives a 20% discount (KCS HODLers only) on the Maker/Taker fee rate of the LV0 fee level of the chosen coins. The fee rate varies from 0.02% to 0.1% depending on the user level. The futures strategy charges a similar trading fee rate of 0.02% maker and 0.06% taker for all futures contracts.
Kucoin Trading Bot Best Settings
Here are some of the best settings for Kucoin trading bots (e.g., futures grid bot):
- Price Range (Low and High): You can try to create a narrow band of ±$15% around the entry price. It aims to capture potential market dips and spikes without straying too far from the entry point, ensuring targeted entry zones for optimal trading opportunities.
- Number of placed orders: You can set up to 5-7 orders. Limiting the number of orders reduces exposure and minimizes the potential risk of over-diversification.
- Leverage: You can use up to 5x leverage. Using low leverage allows for amplified gains without exposing the investment excessively to liquidation risks.
- Stop Loss Price: If you are a conservative trader, you can put a stop-loss order 3% to 5% below the entry price. A conservative stop loss protects against sudden price drops without triggering premature sell-offs due to minor fluctuations. If you are an aggressive trader and want more profits, you can put stop-loss around 8-10% below the entry price.
- Take Profit Price: You can follow the same strategy for the take-profit orders. Put it above 3-10% of the entry price.
Also, keep an eye on market conditions and volatility. If the market becomes highly volatile, a narrow price range might not be effective, and adjustments may be needed to widen the range.
Remember, these settings are not one-size-fits-all. They should be adjusted according to individual risk tolerance, market conditions, and specific asset behavior. Constant monitoring and adjustment are also crucial for successful bot trading.
Kucoin Bot Security
KuCoin assures that its trading bot has a strong security system. The platform uses the best encryption, cold storage, multisig technology, advanced private key management, 24/7 monitoring, rigorous auditing, penetration testing, and withdrawal address whitelisting to safeguard your assets.
Another benefit of the KuCoin trading bot is that it does not need any external API keys. The keys are often required by other trading bots to connect to your exchange account and perform trades. However, they also expose your account information to potential risks of being compromised or misused. KuCoin trading bot does not require API keys, as it is built within the KuCoin platform. This means that you can keep your account information private and secure.
Note: If you wish to utilize the KuCoin API for automated trading, you can connect platforms such as 3Commas and Cryptohopper.
Kucoin Trading Bot Review: Conclusion
To sum up the Kucoin trading bot review, it offers a simple yet powerful tool for anyone looking to automate cryptocurrency trading. With its user-friendly interface and various strategies, even those new to trading can find success.
One key takeaway is the bot’s ability to execute trades swiftly, taking advantage of market fluctuations in real-time. This can result in more profitable outcomes for users. Additionally, the risk management features help protect investments, preventing significant losses.
It’s important to note that, like any investment tool, risks are inherent. It is a tool that complements one’s strategy rather than replacing informed decision-making.
Kucoin Bot Review: FAQs
How does Kucoin trading bot work?
Kucoin trading bot uses complex algorithms and machine learning to scan crypto markets and execute trades based on the rules you set.
You can select from different strategies, such as spot grid, futures grid, DCA, smart rebalance, and martingale, and modify the parameters to suit your needs. The bot will trade for you, and you can track the performance and profits on the Kucoin app or website.
Should I use trading bots on KuCoin?
Yes, trading bots on KuCoin can assist you in trading more effectively and efficiently, especially if you are new to crypto trading or have limited time and resources. They can avoid human errors, control emotions, and exploit market opportunities 24/7. However, crypto bots are not infallible and may make errors or fail to execute your orders due to technical glitches, network lags, or exchange limitations.
What is the most profitable bot in KuCoin?
The Spot Grid Trading Bot is among the most profitable KuCoin Bot trading strategies, especially in volatile markets. It helps you buy at low prices and sell at high prices in certain ranges. However, different bots may perform better or worse in different market scenarios.
What is the best trading bot strategy on KuCoin?
The “spot grid” and “DCA” are some of the best trading bot strategies on Kucoin. Grid bots are best during sideways markets and can help you reduce volatility and earn passive income. Also, DCA can help you lower your average cost, reduce the impact of market fluctuations, and accumulate more assets over time.
Is Kucoin trading bot profitable?
Kucoin trading bot can be profitable if you use it smartly and appropriately. However, there is no guarantee that you will make profits with any bot strategy, as the crypto market is uncertain and dynamic. You should always do your own research and analysis, and be prepared for the risks and losses that may occur.
