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The exchange that managed to earn quite a reputation in the crypto market on the basis of its technological advancements, MEXC Global, has now come up with a new feature. Well-known for its incredibly high performance and mega transaction matching technology, the MEXC Global exchange has announced the Spot Grid Trading feature.
As revealed in an official announcement, the Spot Grid Trading feature was launched on MEXC Quantitative on July 7 at18:00 (UTC+8). If you are not aware of what MEXC Quantitative is, it is a platform where, as a user, you would be able to operate quantitative trading strategies with the help of trading bots.
What brings more to the value of the MEXC Quantitative feature is the fact that it comes without any additional fees and is available 24*7 for multiple trading strategies and purposes. With localized language support and presence across continents, the MEXC Global exchange has catered to over 6 million users in more than 70 nations.
What does the Spot Trading Feature Exactly Do?
Spot Grid Trading has marked itself the first live feature on MEXC Quantitative, and its benefits are certainly significant. This latest feature on MEXC Quantitative allows users to automate the purchase and sell orders, along with enabling them to adjust the investment amount.
The feature will assist the users in automatically purchasing low and selling high within a given price range. This way, users will be able to generate profit amid market fluctuations. As per the conclusions drawn from the statements of the CEO of MEXC Global, John Chen, the Spot Grid Trading feature is aimed at helping users keep winning on the bull run.
Grid Trading basically refers to a strategy that carries out a simple trade execution, “buy low, sell high.” What’s better than a strategy aimed at automatically purchasing the asset at the lowest price and selling it at the highest price as the market fluctuates?
Want to get started with it? Choose an asset, set a price range, set intervals, and place the purchase order at intervals below the specified base price to make profits. That’s a piece of cake, isn’t it?
Basic Advantages of Grid Trading:
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Automatically-executed strategy. You won’t need to keep track of the orders.
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Safeguard against human emotions and nature, such as greed and fear, along with avoiding missing opportunities.
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Highly effective when the market is fluctuating. The more the price fluctuations, the more the profits.
There is certainly no denying the fact that Grid Trading is an effective trading strategy, specifically when the market is down and highly volatile.
How Grid Trading Works: A Guide to Understanding its Operations
Principles to Focus on While Selecting an Asset for Grid Trading
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Choose cryptocurrencies that are supported on the MEXC Exchange. The platform currently extends support to around 60 cryptocurrencies.
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It’s always better with these strategies to choose a rising market that shows volatility repeatedly.
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Another important thing to ponder upon is the fact that you must choose a currency that trades with more fluctuations. The reason you must emphasize this factor is the fact that the more the volatility in the market, the increased the chances of the execution of purchase and sell orders.
Creation of Core Holdings for Grid Trading
It is important when we are talking about grid trading to create your core holdings. The valuation of your project will be determined by the size of your core holdings. Increase your core holdings if you find that the valuation of the project is low; on the other hand, if you find that the valuation is high, you can choose to liquidate the core holdings.
Setting the Size of your Grid
Talking about setting the size of the grid is extremely easy. Think of it as choosing a price below the current price and another price above the current price on which your chosen asset is trading.
Taking BTC as an example, suppose the current price is 30,000 USDT, set the lowest price to 20K USDT, and the highest to 40K USDT. Let the number of grids be 5 in this trade. The price interval would be the division of the difference between the highest and the lowest price with the number of grids. In this case, the result would be 40,000-20,000/5 = 4,000.
Hence, the orders would be in accordance with the following intervals: 40K, 36K, 32K, 28K, and 20K.
Conclusion
MEXC Global, founded back in the year 2018, offers a range of services such as spot, margin, leveraged ETFs, and derivatives trading and staking services to its users. The inclusion of
The Spot Grid Trading Feature is surely helpful for users in maximizing their profits in a volatile bear market.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.