KuCoin Trading Bot — Explained in Detail | Tutorial!
Kucoin Trading Bot monitors the market and executes trades on your behalf. This bot can help you to earn money even when you’re away from the screen.
You can choose from 1000+ different trading pairs and set up the bot with a few clicks.
If you don’t have a Kucoin account, you can create one using my referral link.
Video Tutorial
The above video is almost 4 months older but still, it’s good enough to understand about Kucoin Trading Bot. If you prefer a written article, continue reading…
How Does Kucoin Trading Bot Work?
As you all know, the Crypto market is very volatile and the price of the trading pair changes every second.
Now imagine how much profit you will be able to make if you can buy and sell crypto every 10 seconds or every 30 seconds.
Can you buy and sell crypto in seconds manually?
Absolutely, NOT!
This is the situation where Kucoin Trading Bot can be very useful for you. Kucoin Trading Bot can make 100s and 1000s of trade per day for you.
Kucoin Trading Bot
Currently, You can find 5 different bots: Spot Grid, Future Grid, Smart Rebalance, DCA, and Infinity Grid. Each bot works differently and you can use one or all bots as per your requirement.
1. Spot Grid
Let’s start with the Spot Grid Bot. Just like the spot trading, The Spot Grid bot tries to buy low and sell high to make a profit for you.
You get two options to create a Spot Grid Bot: Auto(AI Parameter was an old name) and Customize.
In the auto mode, you just need to enter the investment amount and the bot will do everything while in the customize mode, you can customize everything as per your requirement.
Let’s understand the customize mode and you will automatically understand auto mode.
To create a customize Spot Grid Bot → Go To Kucoin Trading Bot Section → Click Create under Spot Grid Bot → Select Customize mode → Select Trading Pair → Enter Price Range → Enter Number of Placed Orders → Enter Investment Amount → Click Create Button.
Price Range: The Spot Grid Bot will place buy and sell orders between this range.
For example, Suppose the current price of the trading pair selected by you is 15 USDT and you think the price can go down to 14 USDT and can go up to 18 USDT. So, you will enter 14 to 18 in the price range.
How Does Spot Grid Bot use Price Range?
Spot Grid bot will invest some amount at the current price and then the bot will place multiple buy orders at a lower price and multiple sell orders at a higher price. In short, the Spot Grid bot tries to DCA to make the average entry price lower.
You can see the below screenshot to understand how the Spot Grid bot will do DCA.
The Number of Placed Orders: This option decides how many buy and sell orders will be placed after creating a bot. For example, If you will enter 50, this means the bot will place total of 50 orders including buy and sell both orders.
But how many orders you can enter depends on the gap between the price range. A low gap means less number of orders and a high gap means more number of orders.
For Example, Suppose the current price of the trading pair selected by you is 15 USDT and you entered 14.5 to 15.5 in the price range. The gap between the price range is very small that’s why I can enter a max of 30 in this field (See above Screenshot).
If I will increase the gap, I will be able to place up to 100 orders, as you can see in the below image.
A big gap between the price range will allow the bot to place more orders but the number of buy and sell orders will still be different.
For Example, Suppose the current price of the trading pair selected by you is 21 USDT and you entered 18.5 to 21.5 in the price range. The gap between the current price and the low range is high so the bot placed more buy orders while the gap between the current price and the high range is low so the bot placed less sell orders (See Screenshot Below).
Similarly, if the gap between the current price and low range will be low and the gap between the current price and high range will be high, the bot will place less buy orders and more sell orders.
Investment Amount: This is the minimum amount, you need to invest to create/start a bot.
This minimum investment amount is different for all trading pairs. The minimum investment amount will be higher if the gap between the Price Range will be high.
Note: You need funds in your trading account to create a bot.
You can also use this advanced settings option to set stop price, take profit price, and entry price.
After that, you can click on the Create button to create the Spot Grid bot.
I tested this bot earlier and you can see the performance. After 11 hours, this bot has completed 30 arbitrages and currently, my profit is 1.37%.
Arbitrage: A combination of 1 buy order and 1 sell order is an arbitrage. This means the bot has completed 30 buy orders and 30 sell orders in 11 hours.
I cannot call it a great profit but also I cannot ignore the fact that I am gaining a small amount without monitoring the market.
Obviously, You can also lose money after using this bot but if you will customize the bot depending on the market condition, you will definitely earn a good amount.
Note: After stopping the bot, you will get your fund back into your trading account.
2. Future Grid
Future Grid and Spot Grid are almost the same so I am not going to explain Future Grid in detail.
Future Grid has two advantages:
A. The first advantage is Leverage. You can use up to 10X Leverage, which means, you can earn 10X more money or you can lose 10X more.
B. The second advantage is a Short Position. In Spot Grid, You can earn money only if the price of a coin will increase but in Future Grid, you can earn money in both directions.
3. DCA Bot
I think most of you already know about DCA. DCA means Dollar Cost Averaging.
DCA allows you to lower the average entry price of an investment.
Suppose, I am bullish on KCS and I want to hold at least 1000 coins but I cannot purchase 1K coins at once. So what I will do is I will start investing a fixed amount on KCS at a regular interval but without the DCA bot, I will have to do it manually.
But with the help of the Kucoin DCA bot, you can do it easily. This bot will automatically invest a fixed amount at a pre-set time interval.
Creating a DCA Bot is very easy.
Go To Kucoin Trading Bot Section → Click Create Button under DCA Bot → Select the coin you want to invest in → Customize the investment amount and time as per your requirement.
You can also select a profit target. The profit target isn’t a locked-in period, you can sell your holding whenever you want.
After that, you can click on the Create button and the Kucoin DCA bot will start within a few seconds.
DCA bot is the best for those who prefer long-term investment instead of trading.
Last year, I started investing $10 every month in BTC. Currently, the Bitcoin price is more than 30% down from its all-time high but my DCA investment is still in 150% profit. The below screenshot is older so my current return will be lower than 150% but just shared the screenshot with you to show the power of DCA investment.
The above screenshot is from the Indian exchange BitDroplet.
At that time, Kucoin Bot wasn’t available but now Kucoin bot is the better choice because BitDroplet supports only a few coins but here on Kucoin you can choose any coin of your choice.
4. Smart Rebalance
Smart Rebalance keeps the holding of your portfolio always the same in percentage.
Suppose, you want to keep 50% of your portfolio in ETH, 25% in BNB, and 25% in SOL.
You invested 1000 dollars, which means currently, you’re holding 500 dollars in ETH, 250 dollars in BNB, and 250 dollars in SOL.
After 24 hours, the Price of ETH has increased and the price of BNB and SOL has decreased.
Now, You have 600 dollars in ETH, 200 dollars in BNB, and 200 dollars in SOL.
In this case, Smart Rebalance will sell 100 dollars worth of ETH and will invest 50 dollars in BNB and SOL each.
You can select, Rebalance By Time or Rebalance by coin ratio at the time of creating a bot.
5. Infinity Grid
Now Let’s understand the Last Bot, Infinity Grid.
Infinity Grid ensures that your holding should be equivalent to the initial holding value.
Suppose, you create a bot for ETH coin. The current value of your ETH holding is 1000 USDT and after a few hours, the ETH price increased by 5% and now the value of your holding is 1050 USDT.
In this case, the Infinity Grid bot will sell 50 worth of ETH to keep your holding to 1000 USDT.
Infinity Grid works only if the price of a coin stays above your lowest limit price.
It won’t able to keep the same value if the price of a coin will continue to decrease.
Obviously, You can set a Stop Loss price to decrease the risk.
Now, This article has come to an end. I hope you found this article helpful. Please give your valuable feedback on this article so that I will be able to improve my writing skill.
I know this article hasn’t a detailed guide on Kucoin Trading Bot. So if you have any queries and questions, please ask in the comment section below.
