Maximizing Profits with Spot Grid Trading
Before going to talk about the effective strategy in spot grid let me explain little about what is Spot grid. Spot Grid trading is one of the working features in Binance which is the strategy for crypto trading. It involves placing buy and sell on grid levels and is done by bots.
There is nothing you do, spot grid will manage your trade based on the grid levels you have set. The only thing you have to do is the selection of coin for grid trading. You have to set the number of levels and the number of grids per trade.
After that you are done, Spot trading bot will start buying and selling at every grid giving you a continuous profit. This is the simple understanding about Spot grid trading.
One thing to keep in mind that strategies really matter in successful spot grid trading. In this post I will try those strategies which will help a successful trading.
Before selecting any crypto coin its better to select high volatile coin but fundamentally strong. This is because the more fluctuation will give you more profit. High volatile coins movement are fast and it will execute more number of grids which will give profit.
Its not prefer to select slow crypto coins because it will take more time to execute number of grids. In result your APR profit will decrease. That is why one of the affective strategy is to select high volatile and fundamentally strong coin. |
| Another thing is to set grid size which depends on your risk. The larger grid size is for the time when market volatility is higher where buying and selling will occur more. Smaller grid size is for the sideways market which will buy and sell more times giving you with benefits.
Spot Grid Trading Strategies
Another best strategy in grid trading is diversification. You can choose more than 1 coin for the grid trade for better income and to reduce risk of loss.
Let me explain how diversification will work. Suppose you have $1000 and you want to invest in spot grid. Better to divide your amount into 5 parts and select 5 different coins. Starting grid trading with 5 different coins will increase your APR profit.
This is because selecting 5 coins will have different price movements. One coin moves faster where more buying and selling will occur resulting in good profit. Similarly your risk of loss will also reduce because if one coin goes down the other will recover it back.
The last and effective strategy is patience. Never give up and get exhaust seeing market towards downside. Rather stick with the strategy you have started and that will give you huge benefit if you work with patience.
What do you people think about spot grid trading strategy ? Do you every tried? Do you think spot grid trading is the best for the traders who dont have time to manage themselves? Will be glad to see your answers in the comment section.
I hope you find this post useful and informative. If you do, please remember to reblog it so that it reaches as many people as possible and that they can benefit the most from it. Also, remember to upvote, which will help me financially and grow my account.
NOTE: IMAGE EDITED IN CANVA.
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