Using automated bots is one of the hottest trends in cryptocurrency trading. It’s for good reason too. Whether you are a seasoned trader or a freshman crypto user, these bots can help you buy and sell your digital assets for maximum profits – even when you are away from the computer screen. Now, who wouldn’t want to benefit from that?
But one of the prerequisites of using these tool is utilizing them against a reputable exchange. Not doing so exposes you to a number of risks, and keeps you from driving the kind of profits you deserve. That’s why, it is important that you choose a credible exchange to perform your automated trading. For the sake of convenience, most traders prefer using their primary cryptocurrency exchange, so they don’t have to vet another exchange just to use it with crypto bots.
With over 200 unique coins, their different trading pairs, and the ability of leverage trading, KuCoin is one of the most popular crypto exchanges in the market that’s trusted by over 5 million users. Given that statistic, it is pretty safe to say that you might have heard of this Hong Kong based company. There are high chances that you might actually be using it for your primary needs.
But can you use KuCoin with trading bots? To help you get an answer to this as well as more burning questions, here’s everything you need to know about using KuCoin with an automated platform.
✅ Is Bot Trading Allowed on KuCoin?
First things first: yes, you can use automated bots with KuCoin. Since the exchange prides itself on using innovative techniques and support for hundreds of cryptocurrency markets, this approach only seems logical for the platform.
Similar to its peers, KuCoin supports alternative ways of connecting to its engine by letting traders use its API. Of course, this API also allows software developers to create different bots that support automatically execute the orders.
That’s why, you can now find various bots that support KuCoin crypto trading with all the digital assets that are supported by the platform.
❓ Did you know that you can make more than 10% in profit per month with a grid bot on KuCoin? Check my reports to know how.
💻 Do You Need to Download Special Software?
Thanks to the advancements in development, you can now use the bots that are completely web- or cloud-based. All you need to do is to sign up at the official websites of these bots. From there, you can access the interface and run the tool without having to install any application at all.
But you should keep in mind that not all cryptocurrency bots are web- or cloud-based. In fact, most ones with an extensive set of functions still need to be installed on a computer before you can use them.
Choosing between a web-based or an installable solution is completely up to you. The best way to go about it is to compare the different features of various bots, and make a decision according to what suits your needs the best.
🛡️ Are KuCoin Trading Bots Safe?
No matter the kind of platform you choose, you need to understand that all of them use different security mechanisms. Some of the most reputable bots use top of the line security, while some not so trustworthy bots leave a lot to be desired.
While KuCoin itself is considered as a safe exchange, using a tool with the platform doesn’t guarantee that the bot will be secure too. That’s why, it’s important to do your due diligence to make sure that you are choosing a secure trading bot that doesn’t put your funds’ safety on the line.
Here, you need to keep a few factors in mind. For starters, make sure that the bot is hosted on a secure/HTTPS server. If you are installing it on your computer, make sure that someone else doesn’t have access to it. And most importantly, ensure that your chosen bot doesn’t ask you for withdrawal access through your API.
It is an established fact that bots never need to withdraw any funds from your account. Instead, they only require your permission to use your exchange account in order to make trades on your designated platform, which in this case is KuCoin. If your selected bot asks you for such a permission, it is a very good reason to bid farewell to it and choose a more reliable option to use with KuCoin.
🤖 Best KuCoin Trading Bots
👌 Are There Any Free KuCoin Bots?
Unfortunately, free bots are rare to find. It’s because developing an automated solution takes a lot of time, and any developers who invest that much effort are often looking into being compensated for it.
With that being said, you can still find a few open-source bots that work with KuCoin. But these ones often are very difficult to use and lack some advanced features.
If you want to utilize an easy to use bot with plenty of features, then you can browse around for some of the most popular trading tools that support KuCoin. If a free trial offer is available, you can use it to see how cryptocurrency trading works out for you. Otherwise, you can subscribe to a low tier plan from a credible crypto bot to test out its features in real time before making a decision.
Another way to go about it is to use paper trading or backtesting modes on bots that do not charge you for these features. This gives you an idea of the interface and lets you decide whether it’s the right fit for you or not.
💰 How Much Money Do I Need to Start?
Much like other reputable exchanges, KuCoin has some standard fees associated with it. This includes the exchange’s trading fee that’s charged on each trade you make, and the withdrawal fee that’s charged on each outward transaction you complete.
KuCoin charges its users on the maker/taker model, which means that it levies its fees on each trade you make whether you are the buyer or seller. The KuCoin fee structure starts from 0.1% for each trade. But it drops lower the more you trade on the exchange.
Apart from this, you also need to pay for withdrawal fee, which depends upon the cryptocurrency that you are withdrawing from the account. And if you are going to buy your crypto through credit card to use the digital assets for trading, then you would also have to pay the credit card processing fee.
Keeping this in mind, it gets pretty clear that you should keep a good amount of funds aside to cover these fees and charges in addition to how much you want to put on the line in terms of trading. Unless you have sufficient funds to cover for both aspects, you might end up paying more in fees than you make up in trading.
▶️ Internal KuCoin Bots
The KuCoin exchange is also offering several trading bots that you can use internally and free of charge. These bots might be a good starting point for newcomers to the crypto market, who want to automate their trades without spending additional funds on bot solutions.
The most popular trading strategies offered by KuCoin include the following:
- Spot Grid
- Smart Rebalance
- Futures Grid
As mentioned above, these strategies are good for testing purposes, but the functionality is too basic for serious and advanced traders. KuCoin is focused on developing different exchange features first, so don’t expect their bots to outperform other solutions that specialize in bot trading only.
I have tested KuCoin’s internal bots with real investments, so you can check my reports before launching your own automated strategies. Compared to specialized crypto trading bot tools, KuCoin’s built-in solutions lack several important features, such as trailing orders. This is something that makes its bot service incomplete.
📈 Are There Any Unique Pairs to Trade With the Bot on KuCoin?
KuCoin supports plenty of cryptocurrencies and also offers multiple trading pairs against most of these digital assets in the form of BTC/USD/ETH pairings.
KuCoin also allows you to pair these crypto against its own inhouse trading token that goes by the name of Kucoin Shares (KCS). The exchange also supports spot, margin, and also has derivative trading with 100x leverage.
This makes KuCoin a very powerful exchange to use for both experienced and new traders alike. But keep in mind that most of these features are only available through manual trading, and not all bots might support them. With that being said, they add a lot of value to what KuCoin brings to the table as a cryptocurrency exchange.
Overall, using Kucoin trading bots can be a very good option if you find an automated program that is safe, credible, and packed full of features. If you already use KuCoin, you can ask around the community to find what kind of platforms are being utilized by existing users of the exchange.
If you would rather do your own research, as you should, then you can go through different reputable bots that support KuCoin until you find the perfect fit for your needs.