The KuCoin trading bot has a couple of drawbacks that make it unsuitable for a wide range of users. First, it can only be used on one device. Second, it doesn’t work on other cryptocurrency exchanges. Although the bot is free to download, it is restricted to KuCoin. Users can also benefit from the KuCoin platform’s frequent promotional campaigns. Those who engage in trading can earn special discounts and free rebate coupons. It is therefore important to check the website regularly for such offers.
Third, KuCoin’s platform is not fully legal. It does not have a license in the U.S., so you might be exposed to tax evasion charges. In addition, if you are caught using this cryptocurrency, you won’t have any way to get help from official institutions in the United States. This means that the KuCoin trading bot may not be suitable for your needs.
KuCoin Trading Bot also supports a number of investing strategies. It can perform Classic Grid trading as well as Dollar-Cost Averaging, which is an investment strategy that requires a long time horizon. Alternatively, you can instruct the bot to invest $10K in BTC in multiple small increments. While this approach requires discipline, it’s effective in the long run.
Once you have chosen the trading strategy, the bot will place buy or sell orders. It will continuously monitor the price, and stop buying if it drops below the minimum value. If you’d rather sell, you can set a maximum price for selling. This way, the bot will not lose money when the price drops.
Besides being beginner-friendly, KuCoin Trading Bot also comes with AI-assisted strategy recommendations. Its advanced algorithms allow users to make profitable trades while removing the need for human emotion and risk. With this, it’s easy to diversify your portfolio and earn passive income. However, keep in mind that this method of trading is not completely risk-free. There are still risks involved and the price fluctuation can affect your profits.
After setting up the trading strategy, you need to deposit cryptocurrency in your trading wallet. You can use either your main wallet or a separate wallet for this purpose. If you choose the latter, you can transfer your funds from your main wallet to the trading wallet and select the amount of cryptocurrency you want to swap.
KuCoin supports a variety of cryptocurrencies, including Bitcoin and Ethereum. It has a large number of trading pairs, including USD/BTC/ETH and KCS (KuCoin Shares). You can leverage up to 100 times with KuCoin’s spot and margin trading capabilities. Some bots don’t support these features, so it’s important to make sure you understand how these options work before you decide to download one.
KuCoin also offers a Dollar-Cost Averaging bot, or DCA bot. This bot divides your total investment into numerous small purchases, so it will minimize volatility. This strategy is best used for long-term investments.