Battle of the Bots: KuCoin vs Pionex
Table of Contents
- Pionex Rebalancing Bot
- KuCoin Futures Bot
- Pionex DCA Bot
- KuCoin Infinity Grid Bot
- Pionex Trailing Bot
- To Conclude/Video Tutorials
The battle of the century is here!... Not quite, but it is time to take a look at bots from both KuCoin and Pionex to determine which route may suit you best.
By using crypto trading bots, cryptocurrency investors can automate the purchasing and selling of positions based on key technical indications. Bots can compete to achieve the highest "win rate," or proportion of profitable deals, by employing specific trading methods.
There are many different trading techniques that depend on various indicators. If you already base your trading decisions on indicators, trading bots have been known to make the process more efficient.
Today we are focusing on two popular crypto exchanges, KuCoin and Pionex. Both exchanges offer a variety of trading bots that you can implement to automate trading strategies. Some of these bots are indeed available on both exchanges. We carefully decided which platform we prefer for each bot.
*Please note this article is not an endorsement or critique of either platform or any product they offer. When making a financial decision, it is always recommended to consult a financial advisor when determining which trading strategy works best for your financial situation.
Pionex Rebalancing Bot - Best Suited for Bullish Markets. Better UI than KuCoin
Rebalancing bots are best used when traders are confident in the price trajectory of two or more assets. They work by allocating funds to buy a ratio of 1:1 for each asset. For example, if you have 500USDT, the rebalancing bot will allocate 250USDT towards each asset.
Every five minutes, the bot monitors the price fluctuation of each asset and adjusts the position to the exchange rate difference. The bot does this while ensuring the ratio between each asset is always set at 1:1. By using a rebalancing bot, you can acquire more preferred assets by potentially profiting off of the arbitrage opportunities that occur from the price fluctuations of each asset.
A fan favorite feature on the Pionex Rebalancing Bot is the community index, where traders share their customized crypto index list as well as the parameters they set for profits. You can choose a variety of different community indexes such as a GameFi and Metaverse index, or even a Top 10 market cap index.
KuCoin Futures Bot - Flexible Market. Higher Leverage than Pionex
*Before we get into the KuCoin Futures bot, we highly recommend consulting a financial advisor before utilizing any leverage trading options. Leverage trading is risky and inexperienced traders can quickly liquidate their positions without careful consideration.
The KuCoin Futures Grid Bot offers a combination of grid and futures trading. The bot will divide your assets into multiple grids, where the bot buys an asset low and sells high within your set parameters. With the KuCoin Futures Grid Bot, you can choose to Long or Short the market to profit from market volatility. Futures Bots are funded from funding fees, which can be explained here.
By utilizing a Futures Grid Bot, you can potentially earn a higher yield on a BTC Perpetual Future/USDT pairing than you would from simply taking out a BTC Long position. The reason for this is that the grid trading is automatically run in the background in conjunction with the long position. More information on perpetual futures can be found here.
Pionex DCA Bot - Flexible Market Conditions
Dollar Cost Averaging is one of the best strategies to accumulate an asset you’re bullish on, despite its volatile prices. This strategy involves purchasing an asset at the same price at regular intervals. For example: Buying 50 USDT worth of BTC every week. According to Pionex, 90% of traders receive better returns by utilizing a DCA strategy as opposed to manually investing their funds.
By utilizing the Pionex DCA bot, you can automate the DCA process and accumulate assets that you're bullish on without having to manually make new investments. We recommend utilizing a DCA bot instead of manually DCA’ing to avoid human error.
KuCoin Infinity Grid Bot - Bullish Market Conditions, More Assets than Pionex
Infinity Grids are similar to Spot Grid Trading (see more about spot grid trading here) with the presets designed to avoid “missing out” on a crypto pump. Unlike Grid Bots, Infinity Grid Bots place orders within percentages, and there is no upper limit for profits.
If you don’t want to take your liquidity out of an asset during a bull run but still want lower-bound protection, an Infinity Grid Bot protects you from price falls while allowing the collection of profit on the way up. All of this is done without removing the entry position as prices continue to rise.
Pionex Trailing Bot - Flexible Market Conditions, Not Available on KuCoin
Trailing Bots can help you avoid volatility and missing out on profits by helping traders “buy low” and “sell high”. You can create buy orders to automatically purchase an asset at a given price or within a percentage of its current price. The bot can also automatically take profit once it has received a 10%, 15%, or 20% increase from its entry point, or at a take profit price of your choosing.
Doing this allows you to pinpoint a price you want to buy or sell assets at and automate taking profits without having to manually time the markets. For example, lets say a user sets a buy order for ETH at $1,600 with a take profit set at 10%. If ETH happens to hit $1,920, then the user automatically collects profit.
Which bot won the battle? We will let you be the referee and make that decision on your own.
Between all the different choices of bots on KuCoin and Pionex, there are many ways to automate crypto trading. With that being the case, it is recommended to do your own research and consult with a financial advisor before making any investment decisions.
For more information on both KuCoin and Pionex, please pay attention to the videos below for detailed tutorials of each platform.
KuCoin Crypto Trading Bot Tutorial
Getting started with Pionex
What are crypto trading bots?
Crypto Trading Bots help traders automate crypto trading strategies to maximize profit.
Are crypto trading bots a scam?
Potentially, yes, but not often. Most of them are simply software that don't have the ability to withdraw funds from your exchange account.
How do crypto trading bots work, exactly?
They work by utilizing financial instruments offered by crypto exchanges.
Will crypto trading bots be around long-term?
Yes, they provide great value and utility when used properly.
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Cindicator is a world-wide team of individuals with expertise in math, data science, quant trading, and finances, working together with one collective mind. Founded in 2015, Cindicator builds predictive analytics by merging collective intelligence and machine learning models. Stoic AI is the company’s flagship product that offers automated trading strategies for cryptocurrency investors. Join us on Telegram or Twitter to stay in touch.
Information in the article does not, nor does it purport to, constitute any form of professional investment advice, recommendation, or independent analysis.