Cryptocurrency trading seems to many as a very opportunistic endeavor that could net a ton of profits. After all, in just a few months, the prices for most coins have skyrocketed as the total market capitalization surpassed $1 trillion for the first time in history. And while all this might be true on the surface, in reality, it’s particularly challenging because the prices are very volatile.
For example, just about a week ago, Bitcoin lost $12,000 of its dollar-value in less than two days and regained most of it in a day. This led to a total of $3 billion worth of liquidated long and short positions.
This is what makes cryptocurrency trading so challenging. However, there are certain solutions that may take away the hurdle by automating the process and allowing you to potentially enjoy passive income. This is what KuCoin – one of the leading cryptocurrency exchanges, tries to achieve with the launch of its KuCoin Trading Bot.
KuCoin Introduces Trading Bot
KuCoin’s trading bot will be available for free via the latest version of the KuCoin application, and it’s designed to help you make passive income. It currently supports two types of trading strategies – Classic Grid and Dollar-Cost Averaging.
The Classic Grid is aimed at helping users arbitrage in the volatile market that is the cryptocurrency one and makes a stable income. The DCA Bot, on the other hand, is based on the Dollar Cost Averaging strategy. This allows you to create an automatic investment plan, which is a great way to control risks and earn long-term returns.
You will be able to set specific targets using the Profit Target functionality, and once you reach them, the bot will remind you to either continue or to sell your positions.
Speaking on the matter was the CEO of KuCoin Global, Johnny Lyu, who said:
“At Present, most existing investment tools in crypto are not friendly enough to newcomers and not advanced enough to professional traders. KuCoin Trading Bot not only provides the simplest AI parameter settings for newcomers but also provides custom parameters for others. With KuCoin Trading Bot, users can make passive income in a more stable and easy way.”
Further Functionalities and Rewards
To further strengthen its attempts to simplify cryptocurrency trading, KuCoin will be adding more functionalities to the trading bot in the future. The KuCoin App already shows that the Classic Grid and DCA models are live, while there are other functions that are currently in development.
To name a few, these include Extreme Volatility Killer, Dynamic Position Sizing, Margin Grid, and so forth – these are yet to be delivered. With their launch, the trading bot will be a lot more useful and bring additional investment tools for users.
The trading bot currently supports over 40 coins, including BTC, ETH, LTC, BCH, and more. And according to the team, KuCoin will continue to add more coins and pairs.
Moreover, after the bot is launched officially, there will be a series of campaigns, and those who participate in the KuCoin Trading Bot’s Grid Competition will be able to share a prize pool of $18,000.
In any case, the reputation of KuCoin is what backs the reliability of the trading bot. After all, KuCoin is one of the most popular cryptocurrency exchanges. Established back in 2017, it offers P2P fiat trading, Futures Trading, staking, lending, margin trading, spot trading, and so forth.
Author: George Georgiev