[Gate.io: For Beginners] What is Grid Trading?


As introduced in the article below, various trades are possible on Gate.io. That’s why you can enjoy various trades, one of which is grid trading. There are many users who are doing this trade, so if you are interested, you should try it.

What is grid trading?

Grid trading refers to automated trading that places buy and sell orders within the price range set by the trader. By setting upper and lower limits, traders can start trading within this set range. In this trade, even if you don’t bother to look at the chart, the order will start on its own. However, since it is an investment, there is no guarantee that you will win 100%.

How grid trading works

A trader first determines the upper and lower limits for a buy or sell order. In grid trading, predetermined orders move within the price range of the specified grid structure and try to make a profit. So, mechanically, this strategy works very well in a range-bound market. It is said that 80% of charts are ranged, not just virtual currencies, so grid trading is highly recommended for fighting in ranged markets. But there are caveats. When the upper limit is exceeded, the loss is cut when the lower limit is exceeded, and the profit is taken when the set profit price is reached.

automated trading

It is based on automated trading. The trader prepares the order in advance, and the order is placed according to this order, and the profit is taken or the loss is cut. Therefore, it will be a mechanism that profit can be raised without bothering to look at the chart. However, there is a condition that the strategy succeeds. The advantage of system trading is that it reduces the burden of checking charts, but it also has the weakness of not being able to respond to sudden market movements because it is not a human being.

trend market

Grid trading must be started where the upper and lower limits of the price range can be read to some extent. I can’t imagine how far it will go if there is a strong uptrend or a continuous downtrend. Not only will this strategy not work well in the trend market, but there is also the possibility of a total deficit, so the ability to read the market is required.

For trading beginners

Grid trading is also a strategy for beginners. This is because automated trading is based on a simple tactic of buying low and selling high to make the difference. All you need to do when using grid trading is set the price range. If you are a beginner in trading, it is better to start by learning the habits of price movements, so in a sense it may be good to learn from automatic trading.

grid copy trading

This is the main topic from here, but Gate.io allows grid copy trading. Grid copy trading means that followers copy the grid strategy parameters of a skilled trader to arbitrage. In other words, even beginners can imitate the trades of experts, making it a winning strategy. Much like copy trading. Please refer to the following articles. By following experienced traders, the entry timing will be the same and the settlement timing will be the same.

How to start grid trading

In order to do grid trading, opening an account is a prerequisite. If possible, please try to complete the identity verification process. I will introduce it in the article below, so I hope you can refer to it. It would be nice to finish up to the deposit.

Log in after registering. Select Strategy Bot from Copy Trade at the top of the Home page.

Source : Gate.io

A list of professional traders who specialize in grid trading will appear, so select the trader you want to copy. You can also see the ranking of popular traders on this page, so please refer to it. All of them are top-level discretionary traders, so their skills are good, but they can also lose money, so please consider that as well.

Source : Gate.io

Click on the trader icon to see the trader’s stats, so think holistically and choose which trader to copy.

Source : Gate.io

About Gate.io features and functions

Gate.io is one of the most popular cryptocurrency exchanges around the world. Many institutional investors participate and there is also a VIP program. The fees are also somewhat low and there are many traders. There is also a point system, which can be used like money within the exchange. Additionally, there is a chat room function where users can exchange opinions with each other. It is also very secure and has two-factor authentication.

Easy to buy and sell

Buying and selling virtual currency (bitcoin) is very easy. Withdrawals are in virtual currency, and deposits are in legal currency, remittance by scanning a virtual currency QR code, credit card, P2P, etc. API functions are also available. It can also be operated using a mobile app or web browser. There are portfolio and classic accounts, and you can also make transfers.

Wide variety of transaction formats

Gate.io allows a wide variety of transactions such as spot trading, futures trading (derivatives), grid bots, ETFs, margin trading, liquidity mining, etc. We handle major altcoins such as BTC, ETH, USDT, and DOGE. Earnings history is available for download. You can start trading cryptocurrencies in real time on the market.

Lots of events

Gate.io has a lot of bonuses and campaigns, and there are startup events, and you can get airdrops of newly listed coins by holding gatetoken tokens. The latest information can be checked on the official website. There is also a testnet where you can do demo trading.