One of the most common crypto trading automation tools are grid bots, or grid trading bots (robots). They are very popular, because they save plenty of time and effort.
Well, what is a grid bot? As its name suggests, it is a software solution that enables users to automate the Grid strategy in crypto trading.
This strategy is relatively simple: it includes placing a sequence of orders at pre-set intervals within a certain price range. Buy and sell orders are placed above and below the pre-defined price, so that a grid of orders at different prices is created.
You buy at the pre-specified price and sell the position when the price rises above that level. If the price decreases after you place your first buy order, you place more buy orders and wait for the price to grow. Immediately after execution of the sell order, the next purchase order is placed. For each buy order there is a sell order.
In other words, it’s all about buying low and selling high. It enables you to make the most of price fluctuations.
Here are some of the best-known resources that provide grid bot trading programs:
- 3Commas
- Bitsgap
- Coinrule
- Huobi Global
- KuCoin
- Pionex
- TradeSanta
- WunderTrading
How does a grid bot work? It depends on the functions available. Nowadays, there are robots built using such a sophisticated technology as AI. Artificial intelligence makes users’ life even easier: everything you need is to choose the asset (i.e., crypto coin) and decide on the sum to start with.
The software will do everything else: first, it will evaluate volatility of the selected coin over a certain period of time to form a channel for trading with the upper and lower price extremes.
Then, the program will place a grid of purchase and sell orders within the selected channel. When the growing coin price reaches one of the higher grid lines, the asset will be sold automatically, and you’ll get profit. Alternatively, as soon as the price goes down and crosses the lower line, one more purchase order will be placed.
Some programs of this kind allow trading manually and creating trading scripts of your own, particularly, with the help of a variety of indicators (signals).
If you are a professional, this variant suits you well. However, if you don’t know all ins and outs of this complex and volatile market, you may want reduce the risk by copying experts’ transactions. Called copy trading, this practice is pretty popular with beginners, although experienced users don’t ignore it as well.
WunderTrading, for example, specializes mostly on copy trading and use of different automated tools. The signalers – the high-performing traders – offer you to subscribe to their signals. After you purchase such a subscription, you can start mirroring the activities of the signaler.
Needless to say, the best way to do it is to set a robot. That’s just the case when software does the job better than a human being. Firstly, it is always focused on what it is doing. It never sleeps, gets tired or distracted. Second, software, even based on AI, won’t hesitate. It only does what it is intended for. And third, software works extremely quickly – faster that any human trader. All in all, with a grid bot, crypto trading becomes easier. Relieve yourself from tedious labor, save your time and get profit!
