Grid trading and Bitcoin

If you trade using the grid method, the choice of the exact instrument is very important. You need a trading instrument with good volatility and at the same time the corrections to be big amplitudes compared with the trends.

grid trading crypto

Is grid trading suitable for crypto currencies?

Some of the good possibilities for using grid trading are cryptocurrencies. It is true that there are strong trends, but at the same time the corrections also are very strong and a 10% or even 20% move of the market price isn’t something unnormal for them. 

One of the best candidates among cryptocurrencies is Bitcoin. Bitcoin is the biggest cryptocurrency with the biggest liquidity. This means that even with a bigger portfolio, you easily could enter and exit in and from your position. Also, the maturity of Bitcoin is the reason the possible trends will not be so strong as at some of the smaller currencies. For example, Bitcoin harder could double its price in contrast to some emerging cryptocurrencies, which could easily multiply its price by ten.

Another reason to be Bitcoin a good candidate for grid trade is that there is contrast news for it on a daily basis. This causes often opposite trends of the market price of this asset and you can easily exit from the position and realize your profit from the cycle.

Downsides of grid trading crypto

One of the downsides of trading cryptocurrencies is that it is hard to trade them on two sides. If you want to enter in short sell (sell first and buy it later at a lower price), it is hard because you need to borrow the asset (cryptocurrency) before you sell it. Short sell on Bitcoin is much easier than the other cryptocurrencies as Bitcoin is very liquid. You can easily borrow Bitcoins by doing short sell using futures on Bitcoin.

If you do grid trading, it is good to do it at several instruments simultaneously. And it is good these instruments which you trade to be as much different as possible. This gives you the possibility to gain money from one instrument when the others are in drawdown. If you trade generally equity and forex, cryptocurrencies and especially Bitcoin give you the needed diversification between assets.


We hope that this article will help you to improve your trading and be more successful. Let us know (contact us at the email) if you want to share your experience with grid trading or have an idea of what you need to be even more successful.

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