Development of a trading bot for trading on the Kucoin crypto exchange

The Kucoin crypto exchange rightfully ranks third in the world ranking, and offers one of the most favorable conditions for crypto trading. But in order to use its capabilities to the maximum and consistently get high profits, you cannot do without automation tools.

Therefore, to trade on Kucoin, most professional traders use trading bots – special software scripts that are able to independently analyze the situation on the markets, as well as open and close orders without human intervention. Such a bot is based on a list of triggers, algorithms, templates and add-ons of the trader himself, which makes it a great assistant in trading digital assets.

It is customary to distinguish between two main types of trading bots that are used in cryptocurrency trading:

• Signal bot. This program is mainly used for market analysis and quotes. It performs round-the-clock monitoring and provides the trader with recommendations for opening or closing trading positions, which can be used or ignored.

• Automatic bot. Unlike the previous version, this bot works completely autonomously. When favorable conditions appear, he buys or sells crypto on his own, and the trader himself can only adjust and improve the algorithms.

When using crypto-bots, a trader receives significant benefits, so we suggest considering the main ones in more detail:

• Automation. The trader gets the opportunity to focus on improving their strategies, instead of performing routine market analysis tasks.
• Fast and accurate response. The bot reacts to market changes instantly, thanks to which the trader is guaranteed not to miss a profitable deal.
• No emotional risk. Many traders are subject to emotional stress, which often leads to mistakes and losses.

The bot, on the other hand, uses a cold calculation and is guided by algorithms, so it will never give in to panic due to an unexpected jump in quotes.

• Multitasking. If necessary, the bot is able to open and close hundreds of transactions in seconds, which will allow the trader to earn more on short distances.
• Working with risks. To manage risk, the bot uses various strategies such as stop loss, trailing stop loss, and stop signals. As a result, even under unfavorable market conditions, the trader’s losses will be minimal.

Now that it has become clear what a trading bot is and why it is worth using it, we suggest moving on to the technological side of the issue. Let’s discuss what technologies are used to develop such software.

In fact, there are many options here, but our team often uses the CCXT library in their work. It can integrate with most existing crypto exchanges, including Kucoin, and allows you to get instant access to up-to-date market data. In addition, the library supplies two types of API at once – public and private.

To work with CCXT, you can use several programming languages – Python, PHP and JavaScript (Node.js). Accordingly, this gives the team a fairly high flexibility and variability in development.

The frontend part of the bot can be built using static JavaScript/HTML/CSS technologies or reactive frameworks Vue.js and React.js. The second option is a higher priority, because it provides better performance and responsiveness of the interface.

To manage the bot, our team can also create a mobile application that will allow a trader to trade crypto without being tied to a workplace. For the technical implementation of such a product, we can use:

• Native technologies – Kotlin for the Android operating system and Swift for IOS.
• Cross-platform technologies – Flutter framework and Dart programming language.

The development of a trading bot on the Kucoin crypto exchange is carried out in several stages. Let’s consider them in more detail:

• Collection of information. The team studies the requirements of the client and the tasks that the trading bot should perform.
• Design. Based on the received data, a bot prototype is created – a carefully thought-out model containing a visual concept, a description of the functionality and formulas that will be used to calculate indicators.

As a result, the client already at this stage can understand exactly how the trading bot will look and work.

• GUI development. Creation of a convenient, attractive and intuitive user interface in which the trader will work.

• Frontend development. At this stage, the approved design mockups are transferred to a format understandable for the browser – layout, animations and other interface components are created. In simple words, at the stage of front-end development, the client part of the trading bot is created.
• Backend development. When the interface is ready, the developers start creating the server part of the bot, which is responsible for storing and processing data. At this stage, the functional code is written, databases are configured, the exchange API is connected, and the client-server architecture is built.

• Testing. After the development is completed, QA engineers conduct multi-level testing of the bot and ensure that all possible errors are corrected.
• Technical support and development. Even after the release, the technical work on the project does not stop. Developers need to constantly ensure the development of the functionality of the bot so that it always meets the requirements of the market and helps the trader in the implementation of his trading strategies. To do this, the bot connects to technical support.

The trading bot allows you to automate work on the Kucoin cryptocurrency exchange, minimizes risks and helps traders to significantly increase their income. At first glance, investments in the development of a cryptobot may seem quite high, but in practice, due to the high volatility of the market, they can pay off in the short term.

AVADA MEDIA specializes in introducing innovative solutions to the blockchain industry. For the development of such projects, we have already formed development teams. They will help you design and run a reliable trading bot for trading on Kucoin.