To have heard of Bitcoin at this point just means that you are still alive and drawing in oxygen. Bitcoin is commonly discussed in the popular media and all over the Internet. People write endless posts about the original cryptocurrency, and traders all over the world obsess over it daily. It is understandable that you likely want to get in on all of this action as well. You can do that and start to earn passive income trading with all kinds of cryptocurrencies when you sign up for a KuCoin account.
How to Earn Passive and Reliable Income Using KuCoin
Signing Up for a Trading Account
Before trading with KuCoin, it is necessary to sign up for a trading account. You will want to have your account activated and funded as soon as possible. This way, you can start making money in this market. Trading fees can take away some of your hard-earned profits. Fight back against that and save 10% on all of your trading fees by signing up with this link before you begin.
Let's Talk About Spot Grid Trading Bots
Enter the bots! Unlike in so many sci-fi futuristic horror movies, the bots are actually here to help you in this case. So, what exactly is the spot grid trading bot of KuCoin anyway? Well, let's break it down:
- The bot is a programmatic trading tool that seeks to help you buy low and sell high in the KuCoin market.
- The bot obeys certain parameters and monitors market conditions.
- You can set the bot up to do what it is supposed to do and enjoy the profits that it reaps on your behalf.
A trading bot helps traders earn a passive income stream that they only need to monitor periodically. The bot is doing the heavy lifting in this case, but the trader is the one who gets rewarded.
Depositing Into Your Account
It is an absolute necessity that you have funds to trade before the KuCoin spot grid trading crypto bot can do anything for you. After all, you need to have money to make money. When you deposit into your account, you can choose to deposit either US Dollars (USD) or a variety of other cryptocurrencies that you may own (such as Bitcoin). Whatever you decide to do, make sure you fully fund your account. Make sure there is enough currency in there to allow the bot to make the trades that it needs to make. You can deposit funds directly from your US-based bank account or from crypto wallets such as Coinbase.
Select Your Bot
Once you have deposited an adequate amount of funds into your account, you will want to go over into the trading tab on your account and select the “bots” that you will deploy as part of your strategy. A variety of pre-programmed bots will show up on the list for you to choose from. As a new trader, you should select the Spot Grid bot. It is the one most recommended for those just starting out. You will click the “create bot” button next to this listing to begin.
The parameters for the bot will appear. It will ask you to enter some information about the parameters that you would like to set for the bot. It will look a little intimidating at first. But rest assured that this system has been created with new investors in mind. All you need to do is the following:
- Select the currency that you deposited (often US Dollars).
- Select the currency pair you would like to trade in.
- Set the parameters for the bot that you want to trade.
Keep a couple of things in mind at this point. You should try to select currency pairs that have some volatility to them (after all you want to make some money), but not too much. If you are always trading in the most volatile currencies, then there is a good chance that you will get burned by them at some point. That is obviously not ideal, and that is why you need to move gingerly when selecting your currency pairs. Beginners might want to start with something well-known, such as Bitcoin or Litecoin.
Avoid Distraction from Flashy Numbers
The first numbers that your eyes will likely be attracted to are those of the top-earning bots on the system. KuCoin promotes these outstanding performers because they want to show how bots can produce outstanding returns for those who use them.
It is perfectly acceptable for them to promote the fact that their systems have earned people outsized returns. But it is important not to simply do a copy/paste job of the top performers. It is easy to think that they have all of the answers because they have done so well before. However, the problem with this is that whichever currencies their bots profited so handsomely from have probably already produced their outsized returns for now.
Don't just try to copy what the top-performers have done. You may just find yourself trading in something that is at the end of its profitability cycle. Avoid this temptation!
Set All of Your Parameters and Choose How Much to Invest
Once you have set up all of your parameters and gotten everything just the way you want it, then you are ready to start trading. The bot will start placing the trades for you automatically. You just sit back and watch it do what it is going to do. You will see a screen pop-up that shows your various bots and how they are performing. Additionally, you want to see green across the board. This means that your bot is performing as you would have hoped.
How to View Profitability
Look over each bot that you have created and review the data that it is spitting out. Is it doing all that it is supposed to do? In other words, are you seeing the profits that you would have hoped for from your trading bot system?
You should view both the grid profits (what the system has already generated for you) as well as the APR of those profits. The APR gives you a signal of sorts about how much profit the system could make if it were used all throughout the year and held consistent at the rate that it has been producing so far. You should not necessarily consider this as the likely outcome at all times. But it is what the bot has produced for you to this point.
You can tweak your bots based on how your profits stand with those various bots at this time. If there are some bots that are underperforming or even showing negative returns, then you might want to tweak that bot or eliminate it entirely from your trading strategy.
Your profitability with these bots will fluctuate from day to day, just as it would if you were using only your own skills to trade. As such, you ought to let the bots run and do what they need to do rather than try to micro-manage things too much. Set your parameters well, and things should turn out just fine for you in the long run. Keep learning and adjusting the system as you go and enjoy the passive income!