KuCoin trading bot is an excellent robot for automated cryptocurrency trading. It has plenty of advanced options and features, and since it was offered by the reputable crypto exchange, KuCoin, there is little doubt about its legitimacy. On top of that, it comes completely free of charge.
However, even the best crypto trading bot requires users to know what they are doing in order to use them accurately, and not waste their money. You see, the bot is not completely independent, meaning that it requires instructions from you, its user, regarding which trading strategies to employ, under what circumstances to buy and sell, how much money it should use per trade, and more.
In other words, it all comes back to you, the trader, and the instructions that you provide. Naturally, those instructions will depend on what trading strategy you wish to use. Here are three that we can recommend, but in the end, you can choose any of them, or none, and go your own way.
This article will show three interesting strategies you can use when trading via the KuCoin bot, namely:
- Classic Grid
- Leverage trading
- Shorting
Classic Grid
The first strategy we would recommend is known as Classic Grid. This is essentially just spot trading, where your goal is to use price fluctuations of the coins you prefer in order to secure profits for yourself. Grid trading is one of the most successful ones, as it is not affected by human factors, at all. It is all about the programming.
There are no decisions that the bot cannot make on its own, since it has every bit of information it needs. It is backed by a powerful algorithm, access to real-time data from the market, and your instructions. With these three combined, KuCoin’s trading bot can make decisions in a fraction of the time that any human trader would need.
Classic Grid also uses AI parameters by default, where the trading bot will set parameters on behalf of the user. In other words, if you choose to trust the AI, you don’t have to do anything other than creating an account and depositing money.
This is a good strategy for investors who don’t have the time, skill, or knowledge to trade on their own and secure profits successfully. If this is your issue, the robot can easily make this possible on its own.
Trading with leverage
Next up, we have trading with leverage. Trading with leverage has been very popular in the crypto industry, as it allows traders to earn much higher amounts of money than what their account worth would regularly allow. Basically, leveraged trading revolves around using only a part of your own funds to make an investment, and borrowing the rest from the exchange you trade on.
Plenty of users use the trading bot in this scenario, as well, although user’s own participation is necessary to a greater degree here.
Trading with leverage differs from regular spot trading in a way where users get to earn a lot larger rewards as opposed to their personal investment by borrowing money from the platform. However, the risks increase as well, since your room for making a mistake shrinks considerably, as well, which is where the robot’s precision can come in handy, but in the end, it is you who has to make the truly big and important decisions.
Shorting
Lastly, robots like the KuCoin trading bot are also good for shorting. These days, a lot of investors choose to go long when it comes to crypto futures, given that sentiment is still rather bullish. However, corrections are still quite common, and market crashes are bound to come at some point in the future. So, if users wish to use crypto futures to go short, using the robot will reduce the risks and offer a more profitable solution.
Futures Grid Bot can earn quite a lot of grid profit for investors, as well as some extra funding fees paid by the long side, which already makes it better than a simple spot trading strategy.
Conclusion
In the end, every investor has their own style and preference with trading, and if you don’t, that only means that you didn’t spend enough of your time doing research. For a lot of investors, there are only a few strategies that are right for them and fit their style. Perhaps only one of the mentioned strategies will work with you, and perhaps none will. Maybe, on the other hand, you are ready and open to trying them all.
Regardless of the strategy, pretty much all of them will be easier, better, and more precise with a trading robot at your side.
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