Hassan Maishera
OKX is one of the leading cryptocurrency exchanges in the world. According to the latest data obtained from Coinmarketcap, OKX processes over $3 billion daily in terms of the trading volume.
OKX also has more than 20 million users in more than 100 countries globally. Living in an area supported by OKX allows traders to trade over 300 spot cryptocurrencies, making it the exchange with one of the highest numbers of spot cryptos available to users.
With such an amount processed every day on the OKX exchange, there are numerous ways to make money on the platform. One of the most popular ways to make money on the OKX exchange is by using the platform’s bot trading.
OKX’s bot has seven different modes, exclusively designed to cater to a wide range of traders. Here are some of the bot modes and how you can use them to make money on OKX.
How to use the OKX crypto trading bot to automate crypto buys and sells
Traders often find it hard to enter and exit trades at the right time. After carrying out our analysis, we wait for the right time to enter and exit trades. However, since we are busy with other activities, it is easy to forget to enter or exit trades at the right time.
This is where the OKX trading bot comes in. The OKX trading bot has seven distinct modes: spot grid, futures grid, smart portfolio, recurring buy, arbitrage order, iceberg and TWAP (i.e., time-weighted average price). The modes are suitable for varying needs and purposes.
Let us look at the various modes and how to make money using the strategies.
Spot grid
The spot grid is an OKX trading bot designed for traders of any volume and experience level. You can use this mode if you are hoping to generate extra profit from an asset’s volatility.
The spot grid works by setting grid lines between an upper and lower price set by the user. It also automatically sells crypto if the traded asset’s price increases and reaches one of the lines. Conversely, the bot automatically buys crypto if the price decreases to one of the lines.
On OKX, traders can determine the spot grid’s parameters yourself or choose the AI strategy
Futures grid
The second mode is the futures grid. This operates similarly to the spot grid, but here, the bot buys and sells long or short futures contracts instead of buying and selling assets in the spot market.
OKX’s futures trading bot leverages a grid system to place orders above and below the current price. The bot proceeds to buy and sell different futures contracts to profit from price volatility. OKX’s futures trading bot uses three trading strategies: long, short (the first two are popular), and a unique neutral strategy.
With the futures trading bot, traders can trade with leverage on futures contracts. They can amplify their position size using leverage. Hence, making it a potentially capital-efficient strategy that could lead to higher gains.
Smart portfolio
OKX’s smart portfolio is one of the best in the industry. This is the trading bot’s automated portfolio balancing feature. With this strategy, traders are required to specify how much of their chosen crypto assets should make up their smart portfolio.
In the event where the price volatility causes an asset to represent more than its designed allocation, the OKX bot automatically sells the asset to purchase those that are underperforming.
There are two rebalancing triggers on the OKX smart portfolio: scheduled and proportional. These triggers are designed to ensure that investors get the best out of the market.
The smart portfolio is unique because the bot takes profit for traders and diversifies it into other assets that have not pumped yet.
Recurring buy
This is OKX’s automated dollar-cost averaging (DCA) tool. It can be used to purchase nearly 20 different crypto assets at regular intervals, ensuring that you average out a crypto investment’s cost basis.
This OKX bot uses your balance to purchase selected cryptocurrencies at chosen intervals. With DCA, you have one of the most straightforward investment strategies, as it doesn’t require any skill to execute.
Arbitrage order
Arbitrage order is the fifth bot, and the bot simplifies locking in profits from price discrepancies between different trading instruments supported on the OKX exchange.
This bot is designed to create delta neutral positions, a situation where if one position losses money, the other side of the trade will recover the losses by making the same amount. Hence, ensuring that no losses or gains are recorded. However, the profits are generated via the price differences between assets or funding rate payments executed by perpetual swap traders holding positions in profit.
OKX’s arbitrage trading bot has two modes: the funding rate arbitrage mode and the spread arbitrage mode.
Iceberg
On OKX, Iceberg orders are referred to as large buys or sell broken down into many smaller orders. This bot is very important for traders with huge capital who seek to make a large trade relative to the size of the market. Icebergs are designed to execute large orders and limit the impact of price slippage in the market.
TWAP
This OKX bot seeks to execute a large trade over a specified period. The TWAP works the same way as an iceberg order. The bot seeks to enter or exit a market with a large position without significantly moving the asset’s price.
Final Thoughts
OKX is one of the leading crypto exchanges in the world and has numerous products that traders can leverage to make money. One of these products is trading bots. The seven trading bot modes available on OKX are designed to help all levels of traders, making it easy to take advantage of the numerous opportunities in the crypto market.
