A Better Way to Buy the Dip With a Crypto Trading Bot
It’s hard to fight with the emotion while we’re trading. Especially when the price is dumping or pumping. Here’e how I deal with it with a crypto trading bot (tool).
In March 2020, Bitcoin fell from 9000-ish to 3000-ish. Looking back to the price, what if we can buy more Bitcoin when the price at the 3000-ish level?
Here’s my strategy, which allowed me to have my average buying price for Bitcoin at 3596! The tool that helped me to do this is called Grid Trading Bot (GRID Bot). It’s a tool that our team built 503 days ago on the BitUniverse App, and now we have moved it to our partner exchange, called Pionex.
Pionex aggregates the liquidity from Binance and Huobi, which makes the liquidity better for traders. 9 different crypto trading bots are provided in Pionex.
When the price was tanking, I thought 4516 already was cheap enough to buy some Bitcoin. But I also feared that the price might fall all way down to 2000. So here’s what I did, I created this crypto trading bot at 4516 and set a range from 2000 to 20000, which is a HUGE range for Grid Trading. That way I can keep buying some cheap BTC If the price keeps tanking, but without having to risk all of my profit if it doesn’t.
What the bot did during the past two weeks was the following: it helped me to buy low and sell high any time the price made some fluctuations. After tons of buys and sells and many, many very small profits from that process, the average price of my Bitcoin holding has decreased!
Another reason for this setup is, that I’m planning to keep this bot running for months, so it can keep earning steady small profits for me. A huge range is needed for a long-term grid bot.
GRID Bot (Grid Trading Bot)
GRID Bot is the rising star between several crypto trading bots. It’s an old but powerful trading strategy which profits from the fluctuated market. All you need to do is to set a range for it, and it’ll help you to automatically “buy low and sell high” within the region.
Check out the Top 3 Crypto Trading Bot — 3Commas vs Pionex vs Cryptohopper
Myth of Trading
Some of you might think that what if I manually bought some Bitcoin to sell them later at a higher price? Then I’d have more profit than by using the Grid Trading Bot Tool. Yes, you can always make more profit if you’re able to buy at the bottom and sell at the top. But in practice, even the very best traders won’t figure out were the lowest and highest prices will be, so it’s unrealistic to think you can easily do that.
Using the Grid Trading Bot helps you to control your risk. It enables you to passively buy small portions when the price goes down and sell small portions when the price goes up. This will make many small, but low-risk profits, compared to the buy at the bottom and sell at top tactic which can totally backfire if you guessed wrong.
I’ll try to create another grid bot with a huge range when another dip comes. If you’re not very good at trading, or just don’t have the time to check prices all day, you should totally try to use trading tools to assist your trading strategies.
Especially, a Grid Trading Bot with a huge range is definitely worth trying and rarely a bad choice.
All you need is patience and you will slowly see your portfolio grow over time. Hope all of you enjoy our tools! Leave some comments and let me know what kind of tool you’re willing to try!
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