Welcome to this post, where we are going to see how the DCA trading bot works in KuCoin, and how to get the most out of it.
KuCoin currently has 3 trading bots, the classic grid, the futures grid and the DCA. In this video, we are going to focus on the dca. If you want to know more about the other trading bots, I will leave a video from my channel in the description.
What is a DCA bot
DCA Trading bot is a somewhat different bot than the other two. Rather, it is an investment strategy, and not so much a trading bot. DCA refers to dollar cost averaging, an investment strategy followed by many. If you are not familiar with the concept, it is based on consistently investing the same amount in an asset, be it cryptocurrencies, stocks, bonds or an index. Instead of investing $1,000 all at once, this investment strategy takes this $1,000 and spreads it over the time frame you want, and invests a % every day. This strategy is used to avoid buying at a time, where the market or the asset is very expensive, or at a very high price. Using this strategy, you will be able to buy both when the price is high and when the price is low. It is a way to reduce risk when investing in assets.
As you can imagine, it can be very annoying to trade every day, so the DCA trading bot does it automatically for you. By configuring some aspects that we will now see, you will be able to let the bot invest an amount every day or every certain time you want. The only thing you will have to worry about is to have funds in KuCoin so that the bot can buy that cryptocurrency from time to time.
Also, keep in mind that currently the DCA trading bot is only available for a single cryptocurrency, you cannot indicate a portfolio of cryptocurrencies in a single bot. Although there is a very simple solution, create different bots, one bot for each cryptocurrency you want.
How to Create the DCA bot
Now let’s see how it works. The first thing to do is to log in to KuCoin with the mobile app. Since the trading bot, you can’t find it on your computer version.
If you do not have an account with KuCoin, just below you will find a link to create one.
Platform: KuCoin
Min. Deposit: $30
License: Cysec
Very low commissions
Exchange with a wide variety of cryptocurrencies
Once inside, the first thing we need is to have funds. If you have funds in your main account, you will have to move them into the trading account so that the bot can use them.
Now go to the home page, and click on trading bot. Here you will see the DCA, with the number of users and the % of profitability achieved by the top 1.
Here, the first thing we must do is to select the cryptocurrency that we are interested in investing in it, in my case I will go with chainlink. Here, as standard you will see the amount that you will be recommended to invest each time, the time and the time of the first investment. Here, you will be able to modify to your liking the amount to invest each time, when to invest, and when you want to make the first investment. Once you are satisfied with the settings, click next.
Here, you can see a target profit, and the time you can take to achieve it with respect to the cryptocurrency price data above. Honestly, this estimate is useful but not exact, as you cannot know how the cryptocurrency price will evolve.
The target profit can be used to indicate it, and once the cryptocurrency reaches that profit, it will be sold automatically. So you will not have to be aware or worry if one day the price of the cryptocurrency skyrockets in price and you want to sell it.
Click on confirm, you will see all the information of your dca trading bot, click on confirm and you will have it live.
Now, in running, you will be able to see the bot, and all the data about the bot, as well as make any changes when you want, or stop the bot. To stop it, click on the off button at the top right and confirm.
I hope this video has helped you to know a better way to invest thanks to the KuCoin DCA trading bot. Just below you can find a link to create your account with KuCOin.
Platform: KuCoin
Min. Deposit: $30
License: Cysec
Very low commissions
Exchange with a wide variety of cryptocurrencies
