What Are Grid Bots?
One of the problems with modern trading (especially, when it comes to crypto) is that the market is highly volatile. While many price movements can be predicted with a relatively high rate of success, the volatility may confuse some newcomers. A powerful grid trading bot can negate many issues that investors face in the very dynamic crypto market.
Automation can be extremely useful in some cases and be an unnecessary addition to a trading strategy in others. You should determine whether you need such tools only after careful consideration.
How these bots operate
A grid bot is following a list of instructions created by a trader. The basic functionality can be explained thusly:
- The script specifies price ranges (when to sell and when to buy).
- The script specifies periods between orders.
- The bot follows the instructions to buy at low and sell at high.
Many strategies involving quick thinking and making decisions without much consideration bring good profits as you can have a strict set of rules that you follow and exclude emotionality from the equation. The problem is that humans cannot fully eradicate the possibility of an error.
A spot grid trading bot will work tirelessly without any pauses. Bots do not have to eat, do laundry, or otherwise fulfill tasks that may take away resources from the only purpose: making money. On the other hand, mistakes in choosing the strategy and messing up with the script can be devastating. You need to experiment with bots to utilize them to their fullest potential.
How to set up a crypto grid trading bot
Some exchanges provide automation tools. For example, you can go to Bybit and use their specialized grid bot system. However, you will be limiting yourself to a single exchange which is not the best idea in the world where crypto is traded simultaneously on dozens of platforms.
Using specialized automation services like WunderTrading is generally a better method of implementing automation in your trading routines. WunderTrading offers a plethora of tools that can be used to make investing effortless.
From their platform, you can set up robots that will work with any exchange that has an API. For example, a grid trading bot for Binance is one of the most popular products. Binance is a huge exchange with an impressive 14% market share and over three hundred different assets including NFTs and exotic tokens.
Registering at WunderTrading does not take a lot of time:
- Go to their main page and click “Sign Up”.
- Create a new account using your e-mail (you will need to verify it).
- Top up the balance using your preferred payment method or start their trial.
- Create a new bot using templates.
You will be offered to connect an existing account on Binance, ByBit, or any other exchange with an API. WunderTrading’s crypto grid trading strategy systems perform excellently. Note that you will have to pay fees when placing orders on the exchange. For example, Binance users pay in BNB while other exchanges may charge in BTC or ETH. Since grid trading aims at catching minute differences in prices, considering fees is quite important.
Alexia is the author at Research Snipers covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More.
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