What is KuCoin?
With over +600 tradeable assets, Kucoin is the No. 1 Altcoin Exchange concerning the number of listed cryptocurrencies evaluated and trading fees.
Kucoin is also known for listing many crypto gems with a fantastic performance.
All in all, Kucoin is a top crypto trading platform for the most critical aspects like trading volume, low trading fees, spread, and trading features. Kucoin called itself the “People’s Exchange” since they have built it for any crypto investor or trader. The Ascent also notified this when they announced Kucoin, the Best Crypto App of 2022 for enthusiasts.
What is KuCoin Trading Bots?
In early 2021 KuCoin launched its crypto trading bot. The crypto trading bot is an intelligent trading tool to automate your trading strategies for more than +600 digital assets 24/7 on your behalf.
The free-to-use software automatically tracks and arbitrages market volatility without keeping an eye on the market all the time. In addition, the Kucoin trading bots help investors to earn passive income easily by using pre-programmed templates, configuring their bots, or simply copying top investors.
What Types of Trading Bot Strategies Does KuCoin Offer
Kucoin has 5 different pre-programmed crypto trading bot templates. They all come in 2 different modes, one with “AI Parameters”, and the other is “Customize Parameters”. The templates are
- Spot Grid
- Dollar-Cost Averaging (DCA)
- Futures Grid
- Smart Rebalance
- Infinity Grid
Spot Grid Kucoin Trading Bot
The Kucoin Spot Grid Trading Bot is the most beginner-friendly and popular trading strategy on Kucoin. This crypto trading bot is programmed to buy low and sell high in specific price ranges. Historically, this trading bot has shown the best results in volatile markets. Kucoin traders can use the recommended settings by Kucoin, adjusting the parameters themselves or copying the configuration from the top performers.
Kucoin Dollar-Cost Averaging (DCA) Bots
Traders who believe in the famous expression “time in the market beats timing the market” should use the DCA Kucoin trading bot. The DCA strategy generates gains by buying the wanted cryptocurrency at regular intervals and riding through volatility to average the buy price. Buying at regular intervals also reduces the risk of going all-in at the wrong time.
Futures Grid Kucoin Trading Bot
Futures Grid Kucoin Trading Bot is a spot-grid trading strategy applied to futures. However, here the trading bot can bring grid profit for users when going long or short and use up o 10x leverage.
Smart Rebalance Kucoin Trading Bot
The smart rebalance Kucoin trading bot does rebalance based on 2 options for the user
- By coin ratio
- By time
When the predefined threshold and interval have been triggered, the automatic rebalancing will take place.
The Portfolio can use “new funds” to rebalance the trading bot portfolio by opt-in for “Transfer in”.
The trading bot will use other tokens in the account, such as BTC and KCS, instead of selling the tokens from the portfolio.
Infinity Grid Kucoin Trading Bot
The infinity grid Kucoin trading bot is a crypto derivative trading strategy of the spot grid. The infinity grid is designed to avoid “missing out” from a pump in the crypto market.
If the market pumps, the infinity grid will not run out of the range and continue to perform “buy low and sell high” operations to help you carry out automated arbitrage trading. At the same time, the bot will hold a number of cryptos equal to the value of the initial investment.
Step-by-Step Guide To Creating a Spot Grid Trading Bot on KuCoin
How to create a spot grid trading bot
- Sign up with Kucoin and login
- Make your KYC
- Click on “Trade” and “Trading Bot” in the top menu
Find the Kucoin trading bot section by navigate to “Trade” and “Trading Bot”.
After this, you will see the Kucoin trading bot dashboard.
4. Click on “Spot Grid.” Make sure to have at least 1000 USDT if you are about to trade BTC/USDT. Most of the other USDT markets have a minimum deposit of 238 USDT.
Here, you can choose what trading bot you want to create, see how many trading bots of each type are running, the most profitable trading bot, and the leaderboard. You can also google between the tabs and see your running Kucoin trading bots and profits. In the upper right corner, you will find the Kucoin trading bot “Tutorial” button.
5. Now, you are ready for the final settings before approval. In the screenshot below, you let Kucoin use AI parameters, and the only thing you have to add is what amount you want to invest in your spot grid trading bot. You can also toggle to “Customize,” adding the price range and number of placed orders. As you can see in the screenshot, the minimum investment is $1000.
Screenshot from Kucoin Spot Grid trading bot settings. The main selection is between “AI Parameters” or “Customize” parameters. For AI parameters you only need to enter an investment amount. For customized parameters you can also adjust the price range and number of placed orders.
6. Now, you are ready for the final settings before approval. In the screenshot below, you let Kucoin use AI parameters, and the only thing you have to add is what amount you want to invest in your spot grid trading bot.
Pay Tax on Kucoin Trading Bot Profits
Yes, you will have to pay tax on the profits you make from the Kucoin trading bot in most jurisdictions.
It can be very time-consuming to analyze and report all trades accomplished by a bot since it can be thousands per day.
Luckily, there is automated crypto tax software programmed for this purpose.
Check out the best crypto tax software and get great discounts.