Readers who follow the trading markets with any regularity know that speed is of the essence when trading. The faster you can react to market changes, the better your chances are of making a profit. If you’re reading this, you probably already know that using automated software is an essential part of staying competitive as a cryptocurrency trader.
There are several excellent tools and services available for crypto traders these days; one of the best examples being KuCoin trading bot. On this page, we will cover everything you need to know about the KuCoin trading bot and how it can improve your performance as a trader.
KuCoin is a Hong Kong-based cryptocurrency exchange that has been operating since September 2017. It’s been growing steadily ever since, and as of early 2019, it is the world’s 16th largest cryptocurrency exchange by daily trading volume.
KuCoin offers its own cryptocurrency, KuCoin Shares (KCS), as part of an affiliate reward program that pays a percentage of revenues back to the people who own KCS. As a centralized exchange, KuCoin operates somewhat differently from decentralized exchanges (DEXes) like IDEX, Forkdelta or IDEX. DEXes are newer and more exciting, but most of them also have very low trading volumes, so it may be hard to execute large trades on them.
Before you can use the KuCoin trading bot, you must first create an account at KuCoin.com. This is a straightforward process; just enter your email address and a strong password, confirm your email address and select your user settings.
Once you’ve created an account, you can add funds to your account by clicking on “Assets” and selecting from the available options. Then, go to “Assets” and click on “Deposit/Withdraw.” This will show you the wallet address where you can deposit funds. Now, let’s get to the fun part: configuring the trading bot and getting started with automated trading.
First, click on “Assets” and select “Exchange” from the drop-down menu. Then, select “Create” and enter the details of the type of trading bot you want to use. Next, you will be prompted to add funds to your account. Click “Deposit” and select the deposit method that works best for you. The last step is configuring the trading bot itself. To do this, you will have to go to “Assets” and click on “Exchange.” Then, select the trading bot you want to use and click “Open Bot”.
Before we jump into the beneficial aspects of using the KuCoin trading bot, let’s take a closer look at how automated trading software works.
Trading bots are computer programs designed to monitor crypto trading platforms 24/7. They are fully automated, have no emotions, and don’t sleep. They only care about profits and make decisions based on pre-set rules. While crypto exchanges have been growing rapidly, they are still not 100% reliable. In fact, crypto exchanges have been hacked several times in the last few years.
This is why it makes sense to employ a trading bot. Unlike human traders, bots don’t get tired and can’t become emotionally attached to their positions. Since they don’t have feelings to hurt, trading bots can make decisions about their positions in a completely rational manner. This is extremely helpful during times of high volatility when emotions get the best of us.
As we said earlier, the ability to act quickly is a major advantage of using automated trading software. Traders who use bots can react to market changes almost instantly, which can give them an edge over other traders who are slower to act. Trading bots can also be set to execute trades at a certain time so that you don’t have to worry about remembering to press “Buy” or “Sell.”
This is another major advantage of trading bots. Since they execute trades automatically, there’s no room for human error. You can set the bot to follow a certain strategy and know that it will execute trades consistently.
Traders who employ the use of a trading bot can also minimize their risks. They can set their bots to keep their account balanced and sell when the markets are moving too violently. This means that you won’t end up with lots of unbalanced positions that could create a big problem if the market reverses and heads toward your stop-loss.
Lack of flexibility and human emotion:
While trading bots are great for consistent and rule-based trading, they lack the flexibility and emotional intelligence that many human traders possess. This can be problematic when markets are moving too fast to respond to manually. Unless you have implemented manual overrides, your bot may make decisions that you don’t fully agree with.
Lack of intuition:
Trading bots don’t have intuition, so they can’t act based on gut feeling. This can be problematic in highly volatile situations when it’s important to get out of a position quickly. It’s better to use your trading bot in slow-moving situations when markets are moving slowly and you have plenty of time to react to changing circumstances.
The best thing about the KuCoin trading bot is that it’s very easy to use. Anyone can set it up and start using it immediately. There are many options when it comes to trading bots, so it makes sense to carefully consider which one best suits your needs. Once you decide on a bot, you can set up alerts that let you know when the bot is about to make a trade. The biggest advantage of using a trading bot is that it frees you up to do other things while trading. You can focus on your other responsibilities while the bot takes care of your trading.
GENERAL RISK WARNING
NOTE: This article is not investment advice for anyone because online trading could be a high risk for all who lack knowledge & experience. 86% of traders lose money in financial markets. we are not your financial advisors who guarantee your profit at all.
