Trading Bot 101: Social Trading Through the KuCoin Trading Bot

2021/05/10 10:35:24

Over the past six months — ever since Bitcoin has once again reached its former all-time high of $20,000 per coin, and then skyrocketed way past that price, the crypto industry has been rapidly attracting traders from all over the world. These include people from all walks of life, as well as people with varying degrees of familiarity with the crypto industry.

Some who experienced the world of crypto before, but ended up walking away disappointed, decided to come back. Others waited for the prices to start rising before they would engage with it, and now decided it was the right time to join. Even those who only just learned about the existence of cryptocurrencies rushed to be a part of the industry and take advantage of its opportunities.

However, one problem with all of these people is that they are inexperienced and lack the proper knowledge to earn a profit through trading. Of course, bull runs are periods during which almost anyone can be profitable by simply purchasing coins and watching them as their price grows.

But, even during the bull runs, the prices don’t go up all the time. There are corrections, price rejections, common bearish waves that briefly interrupt the price surge, negative news that may cause prices to drop, and more.

So, new traders who lack the knowledge and experience regarding trading have only two options that would not be disastrous in regards to their funds, and those are to use social trading, or to turn to trading bots. But, what if they could do both at once?

How Can Trading Bots Help?

Trading bots are not a new invention. In fact, they have been around for decades, while the concept of automated trading has been around for much, much longer. They existed in one form or another for about half a century now, evolving all the time, with each generation being better, faster, more precise, and closer to becoming the perfect trading software.

With that being said, trading bots are still not perfect. But, they are what you would expect them to be - tools for automated trading that can do most of the work themselves. All that traders are expected to do is create an account, provide funds, and enter some basic parameters that will guide the bot’s actions. Other than that, the bots can do everything else themselves. In fact, KuCoin, one of the popular crypto exchanges, has a brand new trading bot that offers quite advanced and unique features.

So for those who are new to trading bots, you need to enter certain parameters that will guide the bot’s actions. On this front, it is probably reasonable to assume that you won’t know how to set those up properly, either. This is where social trading comes in.

How Does Social Trading Help?

Simply put, social trading is using the power of the community to your advantage. Community is everything in the crypto industry - it is the foundation of the entire concept of decentralization. It is imagined as a body of countless individuals who would help one another, without relying on centralized authority, and that also comes into play when it comes to trading, and not just processing transactions and making other processes occur.

Social trading, for example, is a concept of finding the most profitable traders and copying their style. These top traders are people who have been around for long enough to learn the ins and outs of the crypto industry, and they know what to do, how to react to market changes, when to open and when to close positions, and more.

Many exchanges offer social trading, where you can see the traders’ latest stats, their earnings, the moves they made, and more. However, on KuCoin, you can also see the parameters that they entered into their trading bots.

Social Trading and Trading Bots Combined

With the KuCoin Trading Bot, you have a bot ready to serve, and thanks to social trading, you can see how to properly set the parameters of your bot by copying the most successful traders out there. All that remains is to copy their style and provide a b

it of money to get the bot started.

Of course, this is still not a perfect solution that will work 100% of the time, but it is probably the closest to perfect that you can come at this point. It will not always work, but it will work more often than not, and it will definitely bring a lot more gains than any newcomer could ever hope to make on their own.

The bots will follow the rules, eliminate emotional trading and human error, quickly analyze the market and make the right move, while the experience and knowledge of successful traders will tell you how to set or modify its parameters in order to give it the best possible instructions for the market in its current state at any given time. This is the combination of software’s speed and precision and human experience that cannot be beaten, and it is the best way for newcomers to the crypto industry to get their best chance at earning before they even learn how to tackle the industry on their own.

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