Best crypto pairs for grid trading 2023

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grid trading

In the digital realm, grid trading two distinct cryptocurrencies is referred to as “trading pairs.” ETH/BTC, for instance, is a trading pair. In other words, you may trade one cryptocurrency for another in addition to exchanging cash for cryptocurrency. Additionally, certain digital currencies may only be bought or sold for other digital currencies, so if you want to acquire them, you must understand which trading pairings are the most productive.

When you are trading with a grid strategy, it is very important to choose the right pairs, especially if you are using a grid trading bot – the better the trading pair is selected, the more lucrative the result will be. 

Basic concepts

First of all let’s recall what grid robots and grid tactics are. Afterwards, we will discuss the best coin pairings for this method.

A trading strategy known as grid trading involves placing buy and sell orders at regular intervals around a fixed price. This technique’s name comes from how it appears to the eye — a grid. Grid trading is perfect for choppy markets, like the one for digital currencies.

Trading robots are not two-legged androids made of metal and plastic, but software usually works in tandem with the interface of a cryptocurrency exchange. Their work is A built-in algorithm, which is frequently a particular trading strategy, is the foundation of their work. The bot establishes a connection to the exchange and carries out the tasks ordered by the triggers. For instance, Binance grid trading bot can use an API connection to grid trade on the most popular cryptocurrency exchange.

What is a grid trading bot? It is a software that automatically places orders according to grid strategy, and as soon as the price crosses one of the grid lines, the robot makes a trade. 

How to choose the best pairs? 

A trader should first research the most well-known cryptocurrency pairs. The coins with the greatest demand will always be the most well-known coins on the exchange. These include Bitcoin, Ethereum, Litecoin, and Tether as of right now. They appear to be in the lead for the foreseeable future.

Tether (USDT) is just outside the top 10 most well-known cryptocurrencies. The first and most significant stablecoin is the “United States Dollar Tether,” or USDT. The fundamental characteristic that sets stablecoins apart from other cryptocurrencies is the inclusion of actual money. Therefore, you will always receive $1 for every $1 USDT.

Based on this, the best digital currency pairs can be considered: 

  • BTC/ETH 
  • BTC/USDT
  • ETH/USDT
  • ETH/LTC
  • BTC/LTC

Let’s explain once again the reason for our selection. Bitcoin is considered to be the most significant coin for a reason. If you see the price of BTC rising, you can safely trade on the rise of BTC relative to LTC and ETH. The rise of these three coins often correlates with each other. Choosing a trading pair in the form of USDT is a great option for traders since USDT is a stable asset. You can bet on BTC falling in value relative to the dollar and be sure that nothing will happen to the paired coin.

These rules apply to grid trading as well. The robot will use a strategy based on the trading pairs you choose, place orders within your chosen price range and start working. 

The best grid trading crypto bot

Grid trading is possible on practically every cryptocurrency exchange.  However, most traders have long favoured automated platforms for trade. 

This is a special software, often browser-based, which contains a wide range of tools that automate work on cryptocurrency exchanges. For example, you can connect accounts of your multiple exchanges to one trading platform, and trade from one place without being distracted by changing browser tabs. 

Wunder Trading is one of the best trading platforms that has been facilitating trading for many cryptocurrency traders for years. Including, it has the best grid trading bot. For example, setting up a futures grid trading bot on this platform is not difficult.  

In addition, Wunder Trading has many other useful functions – copy trading, trading terminal, as well as many bots implementing other strategies.

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