Crypto Grid Trading Bot

What is a Grid Trading Bot?

Crypto Grid Trading Bot is an automated program designed specially to automate trades in Grid Trading. The AI-based Grid bot automatically places buy or sell orders around a set price, at predetermined intervals, that work well in the sideways market. In order to use this bot strategy, investors must first set up the upper and lower limits in the grid for trade execution. Whenever the price reaches a lower limit, a buy order will be executed automatically, and vice versa.

Apart from Grid Trading Bots, Exchanges also feature various other trading bots, including DCA Bot, Scalping, Combo, Flat bots, and Copy Trading.

What is Grid Trading Strategy?

Grid Trading strategy involves profiting from the fluctuating crypto market by placing auto orders at different set levels, low to high. The more frequent the fluctuations, the more profitable the strategy will be.

How Does Crypto Grid Trading Bot Work

Grid trading works on the automation strategy that executes predetermined orders, within limits, to maximize profits for each trade. Crypto Grid Trading Bots create a grid of buying and selling orders at different prices. Once the price hits the target, the system will automatically execute an initial buy order and place a sell order above the buy price on the following grid. If the price rises and reaches that next grid, the sell order will be executed, resulting in a profit.

Most Centralized Exchanges such as Binance and ByBit feature Grid trading of not only BTC but also altcoins like Ethereum, ChainLink, Polkadot, and more. However, each Exchange might have set different limits. Some have buy orders limited at intervals of $500 below the current market price, and sell orders at $500 above the current price.

This strategy involves placing multiple orders on both sides of the market, and automatically adjusting price moves within the grid. This approach can help traders to make profitable trades without relying on technical signals.

Is Crypto Grid Trading Bot Suitable For Beginners?

Yes, trading with Bot is suitable for beginners because it doesn’t require any technical market charting knowledge to make a successful trade. In traditional crypto trading (Spot or Future) as a beginner you must understand price action and how the market moves within a specific range. However, due to the rapid price swings in the cryptocurrency market, it can be difficult for beginners to react quickly enough to take advantage of profit opportunities, which is why trading bots can be beneficial.

Benefits of Crypto Grid Trading Bot

The following are the significant benefits you can have by using Crypto Grid Trading Bot:

• Automation: With the help of Trading Bots, you don’t need to constantly monitor price fluctuations, because Bots will automatically execute trades at set levels.
• Protect from unwanted losses: By setting up stop loss via the Grid Trading bot, users can minimize the risk of loss from an uncertain dump in the market.

• Protect from emotional sentiment: Cryptocurrencies are highly volatile, causing traders to panic or become overconfident, leading to poor decisions over time. However, with this method, as trades will automatically be executed without an emotional attachment, investors can protect themselves from emotional sentiment.
• Risk management: Grid trading bots can help traders improve their risk management skills by allowing them to adjust settings for risk-reward levels and profitability.

Risks of Crypto Grid Trading Bot

When using a Grid Bot, it is essential to be aware of the risks associated with such type of trading which are as follows:

• Uncertain events — price goes low and doesn’t comes back soon: In the previous year, we saw a lot of bad events happening in the crypto market. When Terra Luna collapsed, more than 100 billion dollars were wiped out from the market, and Bitcoin drastically dropped from the 30k range to be traded at as low as around 17K. With such types of uncertainty, if proper risk management is not followed, you’re at risk of losing a huge chunk of your investment.

• Monitoring:  Although cryptocurrency trading bots can automate buying and selling to gain profit, traders must monitor and understand crypto trading to set effective rules and ensure the bot works correctly.

Crypto Exchanges Supporting Grid Trading Bot

ByBit Trading Bot

ByBit Trading Bot is a free Bot provided by the Exchange that allows users to implement effective trading strategies while saving time and improving investment returns. According to current data provided by the Exchange, over 26,354 Grid Trading Bots are active, which helped users earn returns with up to 600,000% APR (Annual Percentage Rate). As of now, there are two types of Grid Trading Bots available, Spot and Future.

To learn how to use ByBit click here

To sign up for ByBit, use the special Coin Labs Referral Code listed below!

Bitget Strategic Trading

In early 2022, Bitget launched its own Automated Trading Bot system for its users which was praised by its customers. The Strategic Bot features two types of trading: AI Strategy and Manual Creation. Both are pretty much the same but with Manual creation, users can set up additional rules, which they can’t with AI strategy.

To learn how to use Bitget click here

To sign up for Bitget, use the special Coin Labs link below!

Binance Strategy Trading

Binance features Bot Grid Trading for both Futures and Spot trading. Unlike other Exchanges, Binance allows investors to trade with bots in Grid Trading for all supported cryptocurrencies. However, for that, users must have minimum trading funds and KYC approved account.

To learn how to trade on Binance click here

To sign up for Binance use the special Coin Labs link below!

Gate.io Strategy Bot

Gate.io exchange has recently added a bot trading option. It offers a convenient advantage, allowing users to perform trades directly on its platform without connecting with a third-party API. Furthermore, the Exchange upgraded its services on April 6, 2023, by integrating AI Optimization and Neutral Strategies to further enhance its user experience with Trading Bots.

To learn how to use Gate.io click here

To sign up for Gate.io use the special Coin Labs referral code below!

OKX Trading Bots

OKX crypto exchange offers several different modes of trading bots to choose from. These modes include a spot grid, futures grid, smart portfolio, and recurring buy strategies, making it suitable for users of all experience levels.

To learn how to use OKX click here

To sign up for OKX use the special Coin Labs referral code below!

How to use Grid Trading Bot on ByBit

Before using a ByBit Grid Bot, the initial step is to create your trading grid bot from the Homepage. The platform provides three facilities of AI trading: spot grid trading, DCA bot, and future grid bot.

Below, we cover a detailed guide to make your trading grid:

Create a Trading Bot via Trading Bot Page

First, open ByBit Application or visit the official website of the Exchange. Now, navigating through the menu, go to Trading Bots main page. From here, select your desired trading mode like Future, Spot, or DCA Trading.

Setup Your Strategy

Once you click on “Create Now,” you will be redirected to Main Page where you can set up different trading details. There, the user will have two options “AI Strategy” and Manual. If you are a beginner, we would recommend you go with AI Strategy, as it is easier to understand and doesn’t require manual inputs.

Select Pair

After sorting out with strategy, select the trading pair you are willing to trade with, such as BTC/USDT, BIT/USDT, ETH/USDT, and more.

Select Range

If you are trading with “Manual,” then you have to select a price range manually, whereas, in AI Strategy, it will automatically be determined.

No. Grid

Just like Range, investors also have to select No. Grid for Manual Strategy. However, in AI Strategy, it is automatically set to 99.

Total Investment

Once you are done with all the above-mentioned steps, then it’s time to input the total investment you are willing to invest for Crypto Grid Trading. In the beginning, we would highly recommend starting with a small amount to assess how everything works.

Some Advanced Settings (Optional)

The options presented above are essential, while the others below are not mandatory. Advanced Settings offer three parameters to choose from.

• Entry Price
• Take Profit
• Stop Loss

After entering all the necessary information, click on the “Create Now” button. You will then be prompted to confirm your choices. Take a moment to review the parameters, then click on Confirm to start trading

FAQs