How to Earn Crypto Using Grid Trading

crypto trading


As a trader, especially in crypto, you find yourself in an industry that grows at a rate that you sometimes can’t keep up with. Serious money is being made, that’s no doubt, by well-timed, and we’ll-researched investors.

If you’re only half-baked in terms of your knowledge, then, like in any other industry, your chances of making a profit will be very slim. Sure, you can make one or two bucks here and there as you go. But, when getting into auto trading as a crypto investor, you need to know that there isn’t so much room for experiments. You have to dedicate your time to learn the proper way of doing things and master it through constant practice.

You can start by investing a small amount of money until you get more confident with larger amounts as you start knowing how things work.

This article will discuss how you can earn crypto using grid trading. If you’ve been trying to learn about this, here are a few tips that’ll help you become a more confident and profitable trader.

Tips For Earning Crypto Using Grid Trading

Here are four practical cryptocurrency trading tips to help you earn crypto via grid trading…

1. Choose A Proper Grid Trading Bot

The world of grid trading is a fast one. There are a lot of price ranges and quick trades that need to be dealt with to the extent that the only way to do it well is to use grid trading software. You can’t manually monitor all the prices and make trade decisions at the speed you require manually.

The good thing is it’s typically not going to cost you an arm and a leg to get a good trading bot. You just have to make sure you’re getting the right one

Ask yourself the following questions before picking a bot:

    • Is it generally user-friendly in terms of its features?
    • Will it be able to support primary and any other trending exchanges should the need arise?
    • How many trading options does it offer?
    • Is the software build stable and has a generally good performance track record?
    • Have you checked if it provides any helpful statistics and advanced settings to help you make more informed trades?
    • How many grids with cryptos will you be able to launch?

If you find yourself stuck between two grid trading software that, at first glance, seem to offer the same features, then it’s time to focus on their performance track records even more. This will be a real differentiator, and there’s almost always a pack leader. When you find the one that’ll offer you more support and general day-to-day ease of use, then pick that option. 

2. Use Grid Strategy On The Sideways Markets

Trading on a sideway market is a great idea because of its general low-risk nature. This kind of market refers to a condition on the crypto market wherein a specific asset is trading in a range that doesn’t break its all-time high and its all-time low, yet continues to trade in a given range.

For a first-timer, it might seem difficult to spot sideway markets in crypto. But, with a little bit of experience, they aren’t that hard to find.

You have to note how market conditions are prevailing about your primary exchange. Look at the ranges and margins of profit you’re enjoying with all your cryptos to be able to tell where the market is at. Additionally, you could research indications for a sideway market in crypto forums across the Internet.

Once you’ve identified a sideways market you want to invest in, it’s time to execute your grid strategy on it. This low-risk form of investment will cushion you from sudden drops in the market and offer you the most chance of profit over time and repeated action.

3. Make Sure You’re Getting Proper Profit Per Grid

Not all profits are worth making. Yes, there’s such a thing as too little profit. You should be monitoring your bots for signs that some of your grids are making too little profit for them to be worth it. The more you settle for these low-income grids, the higher the chance that you’ll be losing higher income opportunities in the process.

If you’ve been making too little profit for long, then this could be an indication of potential. But, you need to harness that potential and turn it into crypto earnings. Tweak your trading software’s settings continually until you get to a stage where you’re satisfied.

If you aren’t sure which profit counts as good profit and which doesn’t, then your best bet will be to look at what other traders are doing and their experiences in their respective grids. Is there a proven and recorded room to earn much more than you’re currently earning?  If the margin between your profit and those of other fellow traders is too wide, then, maybe, your strategy does need a little adjusting.

If your profit in each grid isn’t ranging 0.4% and above, then these might be too unprofitable to survive even the smallest things, such as trading fees. 

4. Use A Wide Price Range

In your settings, you can set your preferences as to what you want your upper and lower price ranges to be. These will set a limit to how high or low your grid is allowed to trade. This is a protection measure you’ll be taking for your grid. But, it also means that you’ll automatically inhibit your account from trading in some good high-income opportunities as long as they don’t fall in your range.

So, as much as possible, avoid checking every now and then, and tweaking the settings too much unless you have a good reason. However, before you can sit easily like this, make sure that the strategy you’re using has gone through enough back testing for it to be trusted. This is when you check how similar strategies have been performing in the recent and not-so-recent past. Once you do that, it’s time to widen your lower and upper thresholds to allow your trading software to make as many trades as it needs to.

The Takeaway

Grid trading is all about how well you learn the ropes. The first days are likely to be hectic as you try to adjust and learn everything about how to make profit using crypto bots. But, your best friend in all this is going to be testing. Test everything and test often, and research as widely and deeply as you can. Then, practice until you build a bulletproof grid trading strategy that earns you the best in crypto.

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