The high levels of volatility in the crypto market offer many ways to maximize your earnings. Using trading bots is one way to make the most of the crypto market volatility. The KuCoin Infinity Grid trading bot is a powerful tool that, when used correctly, can help you generate a steady stream of passive income, freeing up your hands for other pursuits.
But how does it work? And more importantly, how can you make it work for you? This guide will demystify the process, providing you with the knowledge and strategies you need to leverage the Infinity Grid KuCoin Trading Bot, a promising derivative strategy of the renowned spot grid trading strategy, to its fullest potential.
What Is Infinity Grid Trading?
Infinity Grid trading is an advanced form of grid trading that addresses the issue of missing opportunities due to price breakouts exceeding the grid's upper limit. The Infinity Grid bot lets you buy low and sell high consistently while maintaining a constant value of digital assets in a rising market.
This innovative trading strategy capitalizes on the volatility of the crypto market, serving as a flexible version of the spot grid trading strategy and enabling you to profit from trending markets. The bot executes transactions at optimal points within market volatility, maintaining the total value of your invested assets constant, even as the cryptocurrency price increases.
The Infinity Grid trading bot is particularly effective during bull market cycles, where the market consistently makes higher lows and higher highs.
Infinity Grid vs. Spot Grid Trading
Infinity Grid and Spot Grid Trading differ in their approach to price range. Spot grid trading restricts trades within a specific price range, while Infinity Grid removes the upper limit, allowing profits to rise with market trends. Infinity Grid trading will enable you to capitalize on momentum during a crypto bull market.
The key distinction lies in the trading range boundaries: Spot grid trading requires upper and lower limits, whereas Infinity Grid only needs a lower limit, offering unlimited upward potential for your trades.
How Does Infinity Grid Bot Work?
The Infinity Grid trading bot operates as follows: Using BTC/USDT as an example, assume an entry price of 50,000 USDT and a single grid profit of 1%.
Overview of KuCoin Infinity Grid Trading Bot
When BTC's price reaches the first grid, the held BTC is worth 50,500 USDT. The bot then sells 500 USDT worth of BTC, maintaining the remaining BTC value at 50,000 USDT and generating a 500 USDT profit.
Similarly, the bot purchases BTC when the price drops, keeping the total BTC value constant at 50,000 USDT.
The Infinity Grid strategy ensures your BTC value remains the same, regardless of price trends, while generating small profits with each price increase. This process can continue indefinitely if the price remains above your set lower limit. The Infinity Grid Bot places orders in percentages, having no upper limit.
What Is the KuCoin Infinity Grid Trading Bot?
The KuCoin Infinity Grid Trading Bot automates the abovementioned trading process, with over 433,000 bots currently operated by KuCoin users globally.
As a user, you can either use AI Parameters or customize your bot:
AI Parameters: With AI Parameters, KuCoin's AI suggests parameters based on historical market data analysis. You only need to input your total investment.
Customized Infinity Grid Trading Bot: You set all parameters for a customized bot. You can also replicate the parameters of high-performing bots on KuCoin.
The bot stops trading when it hits the lower limit and resumes once the price exceeds it. The profit per grid, or grid size, determines your profit size and transaction frequency. Smaller grids (<1%) result in more transactions with smaller profits, while larger grids (>1%) yield fewer transactions with larger profits.
Your total investment is the capital you allocate to the bot.
When Should You Use The KuCoin Infinity Grid Bot?
The Infinity Grid Bot shines in upward-trending markets, especially when you predict the long-term bullish prospects of a cryptocurrency. Unlike the Spot Grid Bot, which is more about maintaining within a certain range, the Infinity Grid Bot allows you to fully benefit from a continuous price increase without any upper limit.
As part of the KuCoin trading bots family, the Infinity Grid Bot is popular among optimistic investors. This bot has a unique appeal, allowing you to profit from a rising market trend without worrying about hitting a ceiling. Like the Spot Grid bot, the Infinity Grid Bot operates 24/7, executing buy and sell orders according to preset parameters and keeping your emotions in check.
Suppose you are an investor who is optimistic about a crypto asset's future and prefer letting your investments ride the bullish wave. In that case, the KuCoin Infinity Grid Bot is a perfect choice. This bot is particularly suitable when you see a cryptocurrency with solid fundamentals and positive sentiment around it or when the market seems to be at a perceived low and ready for a climb.
Overall, if you believe in a crypto asset's bullish trend and growth potential, want to leverage strong market fundamentals, or wish to enter when the market is at a perceived low, the KuCoin Infinity Grid bot is for you.
Create Your First Infinity Grid Bot On KuCoin
You can create an Infinity Grid bot on the KuCoin website and the official KuCoin mobile app (Android or IoS). Let's go through the detailed setup process on the KuCoin app, along with the entering and exit procedures.
Step 1: Select the Infinity Grid Bot
Visit the KuCoin mobile app or website and log in using your credentials. Then select the Trading Bot from the app's home screen. From there, select the Infinity Grid crypto trading bot.
Infinity Grid Bot Selection Process
Step 2: Explore the Infinity Grid Bot Interface
Upon accessing the Infinity Grid bot interface on KuCoin, you'll notice the existing number of Infinity Grid bots actively trading on the platform. Additionally, you can view the highest annual percentage return — APR that a bot has achieved within a day.
Review the brief tutorial video for an in-depth understanding of the bot's operations, including step-by-step guidance on how to launch your Infinity Grid bot.
Upon accessing the Infinity Grid bot interface on KuCoin, you'll see the number of active bots and the highest daily annual percentage return (APR) a bot achieves.
Further down, a leaderboard displays users with the highest daily APRs. You can choose to view either the Daily Ranking or the 7-Day Ranking. A unique KuCoin feature allows you to clone the configurations of the top-performing traders. With a single click, you can apply these proven settings to your own Infinity Grid bot, potentially boosting your trading success.
Exploring the Infinity Grid Bot Interface
To proceed further, click Next at the screen's bottom.
Step 3: Select the Infinity Grid Bot Mode
If you prefer not to replicate other traders' bot configurations and instead wish to establish your own Infinity Grid bot, KuCoin presents two distinct options:
Let's delve into each mode to comprehend its features better.
Selecting the Infinity Grid Bot Mode
Auto Infinity Grid Bot
The Auto mode of the Infinity Grid bot utilizes artificial intelligence to define the Minimum price, profit rate per grid, and so forth, using the historical price behaviors of the chosen asset.
Activating an Auto Infinity Grid bot involves the following steps:
Choose the cryptocurrency pair you wish the bot to trade.
Review the details established by the bot.
Input the amount of funds you desire your bot to trade with.
Click Create to initiate the bot.
Custom Infinity Grid Bot
If you seek more control over bot parameters, KuCoin offers a Custom mode. Here, you can set your preferences for the parameters.
To launch your Custom Infinity Grid trading bot, follow these steps:
Select your trading pair.
Set your Minimum Price — This is the lowest price at which the bot operates. If the asset's market price falls below this, the bot halts operations to prevent losses during steep price drops. When the price recovers and exceeds the minimum, the bot resumes trading. This ensures the bot trades only in preset price conditions, providing automated risk management.
Determine your Profit Rate Per Grid — The profit percentage you aim to achieve from each trade within the grid system. It's the return you expect for each transaction, excluding fees. Set by the user, it typically ranges from 0.2% to 10%, based on risk tolerance and market volatility. A higher Profit Rate Per Grid requires larger price movements for the bot to trade, potentially leading to fewer but more profitable trades.
Enter your desired trading amount and click Create to activate the bot.
To utilize the trading bot, you must shift your funds from your Main Account to the Trading Account. This can be done directly by clicking the swap button. As always, transfers between your accounts are entirely free.
Intra-Account Fund Transfer
Pro tip: You can set Stop-Loss and Take-Profit prices in the Advanced Settings of the Infinity Grid bot; the Stop-Loss price is the minimum price at which the bot will automatically sell the base currency to mitigate potential losses. On the other hand, the Take-Profit price is the price level at which the bot will close the position, securing your profits when the underlying asset's price rises to the specified level.
Step 4: Start Your Infinity Grid Trading Bot
To start your Infinity Grid Trading Bot, click on the Create button. A window for you to review and confirm your order will allow a final check of settings before the bot starts.
Once confirmed, the bot begins operation. You can monitor its performance, including executed trades and generated profits, by selecting the Running Bots tab at the bottom of your screen.
Running Bot: Overview
Order Parameter Explanation:
Investment Amount: The total funds invested in the bot
Floating Profit and Loss: (current price - average buying price) * quantity of tokens held by the bot
Grid Profit: The profit earned from the grid bot's arbitrage strategy of buying low and selling high
Total Profit: Grid profit + floating profit/loss
Grid Annualization: [(Grid profit / Investment amount) / (Operation time / 365)] * 100%
Total Annualization: [(Total profit / Investment amount) / (Operation time / 365)] * 100%
To adopt a top KuCoin trader's bot settings, go to the daily or 7-day profit rankings and select the trader you want to emulate. Clicking on the chosen trader opens the Order Details tab, where you can replicate the bot using the same parameters as the selected trader.
Copy Trading: Following Other Profitable Traders' Strategies
Adjust the Positions to the Running Infinity Grid Bot
Step 1: Visit the Running Bots Section
After creating the bot, you can visit the Running Bots section to adjust your positions based on market trends. If you wish to increase your investments, click Increase Investment and enter the amount of USDT you want to add.
Adding Investment to Your Infinity Grid Bot
Step 2: Check Your Parameters
You can also click on Details to check your open orders, order history, and previously-set parameters.
Reviewing the Parameters
Stop The Infinity Grid Bot
If you wish to close the bot, go to the Running Bots section and click the Switch icon on the top right. As shown in the below screenshot, you can see the available funds that will be transferred to your trading account.
You can choose from three different options:
Return the individual coins to your trading account (DOGE and USDT in this example).
Convert everything to USDT at the best market price and transfer it to your trading account.
Convert everything to DOGE (your chosen crypto) at the best market price and transfer it to your trading account.
Exiting the Infinity Grid Bot
Grid Trading Bot: Pro Version
For seasoned traders seeking a more comprehensive visual representation of their trading bot's performance, KuCoin offers an enhanced experience. With the KuCoin Trading Bot Pro version available on PC, you can observe all your trading grids via an integrated TradingView chart, providing an even deeper understanding of your trading activities.
Infinity Grid Trading Bot - Pro Version (Web)
In conclusion, the Infinity Grid is a powerful tool for earning passive income in the volatile world of cryptocurrency trading. Maintaining a constant value of your chosen cryptocurrency, regardless of market fluctuations, allows you to generate small but consistent profits.
The KuCoin Infinity Grid Trading Bot takes this strategy to the next level, automating the process and freeing you from constant market monitoring. With the Infinity Grid KuCoin Trading Bot, you're not just investing in cryptocurrency; you're investing in a smarter, more efficient way to grow your wealth.
So what are you waiting for? Download the KuCoin app, create an Infinity Grid bot, and be a part of over 433,000 KuCoin Infinity Grid trading bot users worldwide.
We hope you found this guide helpful and informative. If you need additional help, please visit the KuCoin help center or contact our support team using the live chat feature at the bottom of the home page.
Keep reading our guides to learn more about KuCoin products, trading & investing, or crypto & blockchain in general.
Frequently Asked Questions
1. Why Use Infinity Grid if You Are Planning to Invest for the Long Term?
Infinity Grid is ideal for long-term investments because it has no price range limit. This means you won't face issues such as needing to start a new trading bot if the price breaks the upper limit like you could with the Spot Grid trading bot strategy. It's a better choice if you're optimistic about investment for the long term or are unsure about future price trends but still want to invest.
2. How Can Infinity Grid Help Fundamental and Market Sentiment Investors?
The cryptocurrency market often changes direction quickly, following a stable trend only ~ 20% of the time. If your investment project matches current trends, has innovative applications, or is getting attention from investment institutions or celebrities, its price is expected to increase. If you keep an eye on market sentiment and fundamentals, using Infinity Grid at the right time could help you seize profit-making opportunities.
3. Should I Use Infinity Grid When the Market Is Low?
Infinity Grid is a good tool to use in markets that are rising. However, a great way to make a profit would be waiting for the market to drop and then activate the bot in expectation of a rebound. Infinity Grid will help you buy the dip most cost-effectively and conveniently.
4. What Is the Best Profit Range for Infinity Grid in Bull and Bear Markets?
Different market conditions require different profit ranges, and there's no one size fits all approach. You can start off with a profit range of 1% in a bear market and see how everything pans out. In a bull market with larger fluctuations, you can start with a profit range ratio of 2.5-3.5%.