Explanation of the four trading strategies for KuCoin bots

One of the features that distinguishes the KuCoin platform from other platforms is its support for many technologies that help the trader profit. Among them are trading bots. They are bots that can offer you a direct profit through a bot that trades money directly for you.

This means that you do not need to stay informed about the market or exhaust yourself thinking about the rise and fall of cryptocurrencies. KuCoin offers you four different strategies through its trading bots. Every strategy has goals, results, and method of action as well.

In the following lines, we will explain everything about these strategies and how they work. First of all... What are KuCoin trading bots and their advantages? In early 2021, KuCoin launched trading bots on its platform. Trading bots are simply robots that have been programmed to do a specific job (we will explain them later).

You choose the currency pair that you think is active or has a lot of profits, such as the dollar against Bitcoin. Or the dollar against Ethereum. In each bot, you will find the currencies it supports and the currencies it does not.

The bot then begins implementing its strategy, which aims to achieve optimal profits for you. One of the positives of the bot is that it saves you from the insomnia of tracking digital currencies and their news, and it also has a very high profit rate while using it. It allows you to start profiting directly and stop trading if there is any loss.

KuCoin has four trading strategies in its bots, which are as follows. First strategy: Classic Grid bot The idea in this bot is very simple: we will buy the currency when its price is low, and we will sell it when its price rises further. It is one of the oldest and simplest strategies that we recommend you use if you are just entering the field of cryptocurrency trading.

What this bot will do directly is that it will buy a digital currency after it decreases by a certain amount from its previous price (for example, it decreases by 30%, so he will buy it). Then he will resell it and stop trading after it rises by a certain percentage (for example, the price has increased since the purchase by 40%). Thus, you achieve easy profits without loss.

In this bot, you can choose the settings that suit you (the percentage at which the currency should be bought and the percentage at which it should be sold), but there is an AI Parameter option that makes the trading process an artificial intelligence-based mechanism that will configure the settings for you. The second strategy: DCA, which is an abbreviation for Dollar Cost Averaging. It is a strategy that is best implemented on cryptocurrencies that experience stagnation or weak changes, but are expected to rise significantly.

This strategy simply involves injecting an amount of money into a currency every period until you reach an amount that can generate good profits for you. For example, you tell this bot to buy $100 of Ethereum every month. After 5 months, you will find that you invested $500 in Ethereum, and it generates additional income for you.

The bot extracts profits to your account permanently while maintaining the investment price. The third strategy: The Futured Grid is very similar to the Classic Grid that we explained at the beginning, as it also buys at a low price and sells at a high price. The only difference is that this bot can specify the period during which the cryptocurrency can be traded.

If you believe that Bitcoin, for example, will be better next month than this month, you can make the bot wait until next month to create trades. This bot also supports leveraged trading, “and leverage is forbidden, and God knows best.” These are the most important differences between it and the first bot.

Fourth Strategy: Smart Rebalance If you hate trading and love investing through holding, this is the bot you need. Exactly what this bot does is that you choose a package of cryptocurrencies, and their price ratios (for example, you have $100 that you divide 30% into each of Bitcoin, Ethereum, and Cardano). What this bot will do is that it will balance the trading process in these currencies. If Bitcoin declines and Cardano rises, he will take the portion of the loss from Bitcoin and add it to Cardano in order to balance (Rebalance) the price you invested.

Thus, you maintain your original price while achieving profits over time.