Market volatility often leaves investors uncertain about when to buy or sell, leading to missed opportunities or impulsive decisions. However, with the right strategies, investors can navigate price fluctuations and secure steady gains. CoinEx’s Strategic Trading tools—Auto-Invest Plan and Spot Grid—offer automated, data-driven approaches to help users accumulate assets and capitalize on market movements effortlessly. Whether you prefer a long-term investment strategy like Auto-Invest or a short-term profit-making strategy like Spot Grid, CoinEx equips you with the tools to trade confidently in any market condition. Let’s see how these two strategies work and how you can leverage them to maximize profits amid volatility.
How CoinEx’s Auto-Invest Plan Helps Investors Accumulate Assets
Market volatility often deters investors from making timely cryptocurrency purchases. However, CoinEx’s Auto-Invest Plan offers a systematic and stress-free approach to accumulating BTC, especially during downturns. By investing a fixed amount daily, users can reduce risk, lower their average cost, and position themselves for future gains.
Accumulating BTC in Bear Market
To demonstrate the effectiveness of CoinEx’s Auto-Invest Plan, let’s analyze a 30-day BTC investment strategy using historical prices from June 1–30, 2024.
Bitcoin experienced a downtrend during June 2024.
During June 2024, BTC prices fluctuated between $60,330.11 and $71,072.97, with a downward trend. Instead of trying to time the market, the investor made daily BTC purchases regardless of price movements.
Auto-Invest Plan Setup
- Pair: USDT → BTC
- Recurring Cycle: Daily
- Investment per cycle: 10 USDT
- Total investment budget: 300 USDT
- Duration: June 1 – June 30, 2024
BTC Purchases & Accumulation (June 2024)
Date | BTC Price (USDT) | BTC Purchased | Total BTC Holdings | Total USDT Spent |
June 1 | 67,760.80 | 0.0001476 | 0.0001476 | 10 |
June 5 | 71,083.70 | 0.00014067 | 0.0007229 | 50 |
June 10 | 69,538.20 | 0.00014379 | 0.00144 | 100 |
June 15 | 66,223.00 | 0.00015104 | 0.00218726 | 150 |
June 20 | 64,854.30 | 0.00015413 | 0.00294915 | 200 |
June 25 | 61,809.40 | 0.00016175 | 0.00374658 | 250 |
June 30 | 62,754.30 | 0.00015935 | 0.00456184 | 300 |
Price’s source: Investing.com
Results & Key Takeaways
- Total BTC Accumulated: 0.0045619 BTC
- Total USDT Spent: 300 USDT
- Average Purchase Price: 65,764.40 USDT per BTC
Even though BTC’s price was $67,760.80 on June 1, the investor could lower their average cost to $65,764.40 by purchasing BTC at different price points.
Unlike traditional Dollar-Cost Averaging (DCA) strategies that operate on a daily cycle, CoinEx’s Auto-Invest Plan offers more flexible recurring intervals, including 1 hour, 4 hours, 8 hours, and 12 hours. This feature allows users to automate investments more frequently, taking advantage of short-term price fluctuations and achieving a smoother cost basis. By increasing the investment frequency, traders can reduce the risk of buying at unfavorable price levels and enhance long-term returns. Whether in volatile or ranging markets, this flexibility ensures steady accumulation while optimizing entry points, making it a valuable tool for both short-term and long-term investors.
Maximize Profits with Spot Grid
In the highly volatile crypto market, price swings create both risks and opportunities for traders. CoinEx’s Spot Grid is a powerful automated strategy designed to capitalize on these fluctuations by systematically buying low and selling high within a predefined price range. By setting up a grid of buy and sell orders, users can profit from small price movements without constantly monitoring the market. With 24/7 execution and customizable settings, Spot Grid enables traders to optimize their strategy based on market conditions, making it an ideal tool for both beginners and experienced investors seeking consistent returns in uncertain markets.
Once the strategy is set, trading will automatically be executed following the instructions.
Let’s demonstrate an example. Suppose BTC is now priced at $90,000. A trader sets a grid between $88,000 and $92,000 with 5 grid levels and invests 10,000 USDT in the BTC/USDT trading pair. As the market moves within this range, the system automatically executes buy orders at lower levels and sells at higher levels, ensuring steady profits regardless of market direction.
Set the Trading Parameters
Parameter | Value |
Trading Pair | BTC/USDT |
Investment Amount | $10,000 |
Grid Range | $88,000 – $92,000 |
Grid Numbers | 5 |
Grid Spacing | $800 |
The bot will place 5 buy orders and 5 sell orders at equal intervals. Each grid level is $800 apart within the range.
Grid Levels & Order Placement
Grid Level | Buy Order Price | Sell Order Price |
1 | $88,000 | $88,800 |
2 | $88,800 | $89,600 |
3 | $89,600 | $90,400 |
4 | $90,400 | $91,200 |
5 | $91,200 | $92,000 |
As BTC’s price fluctuates within the grid range, the bot executes automated trades to generate profit. Suppose BTC drops to $89,200, triggering the bot to buy 0.1 BTC at $89,600 (grid level 3). As the price rebounds to $90,400, the bot sells BTC at this level, securing a profit. Later, BTC falls again to $88,800, prompting the bot to buy another 0.1 BTC at $88,800 (grid level 2). When BTC rises back to $89,600, the bot sells at this price, locking in another gain.
Profit & Performance Review
Trade No. | Buy Price | Sell Price | Profit per BTC | Profit for 0.1 BTC |
1 | $89,600 | $90,400 | $800 | $80 |
2 | $88,800 | $89,600 | $800 | $80 |
Total Profit (excluding fees) | $160 |
For the first trade, the bot buys 0.1 BTC at $89,600 and sells at $90,400, resulting in a profit of $80 for 0.1 BTC. In the second trade, the bot purchases 0.1 BTC at $88,800 and sells at $89,600, again earning $80 for 0.1 BTC. The total profit from these two trades amounts to $160. If BTC continues to fluctuate within this range, the bot will keep buying low and selling high, generating profits automatically.
Of course, the example is just a demonstration. The actual orders per purchase might be subject to change. Also, fees are excluded in the example. Yet, Spot Grid on CoinEx remains an efficient choice to profit from market swings, making it an ideal tool for traders looking to capitalize on volatility.
Comparing the Two Strategies: Which One to Choose?
Key Differences Between Auto-Invest and Spot Grid
Auto-Invest and Spot Grid are both strategic tools, but they serve different purposes. The Auto-Invest Plan follows a Dollar-Cost Averaging (DCA) approach, making fixed-amount purchases at regular intervals regardless of price movements. This method is designed for long-term accumulation, helping investors steadily build their crypto holdings without worrying about short-term volatility.
On the other hand, Spot Grid is a quantitative trading strategy that places buy and sell orders at predefined price levels. Instead of passively accumulating assets, it actively buys low and sells high within a set price range. This strategy works best in volatile or sidways markets, allowing traders to profit from price fluctuations without constant market monitoring.
Another key difference is in execution. Auto-Invest is fully passive, requiring no adjustments after setup. Once a recurring purchase schedule is set, the system handles everything automatically. In contrast, Spot Grid is semi-automated, requiring users to define price limits and grid settings before the strategy executes trades within those boundaries.
Risks and Limitations of Auto-Invest and Spot Grid
While both Auto-Invest and Spot Grid offer structured approaches to crypto investment, they come with inherent risks and limitations that investors must consider.
Auto-Invest enables long-term accumulation but requires a consistent funding source to maintain purchases. Additionally, investors might miss optimal buying moments when prices move sharply. Despite these, it remains a strong choice for passive investors seeking steady crypto accumulation without market timing stress.
On the other hand, Spot Grid thrives in sideways markets but struggles when prices trend strongly in one direction. If an asset breaks out of the predefined grid, performance may decline significantly. The bot operates within a fixed budget, meaning all funds could be used up in a deep downtrend, preventing further buy orders. Compared to simple holding, it may also yield lower profits when the market moves in one direction. Additionally, frequent trades lead to higher fees, which can eat into overall returns. Despite being automated, manual monitoring is necessary to adjust grid settings as market conditions shift.
Combining Both for Optimized Results
Using Auto-Invest and Spot Grid together can enhance a trader’s overall strategy. Auto-Invest ensures consistent accumulation, building a crypto portfolio for long-term gains, while Spot Grid captures short-term profits by taking advantage of market volatility. This combination provides a balance between steady investment growth and active trading profits.
Additionally, integrating both strategies helps with risk diversification. Auto-Invest mitigates the risks of long-term market uncertainty, allowing traders to benefit from lower average costs. At the same time, Spot Grid ensures steady returns in volatile conditions by capitalizing on price fluctuations. By leveraging these two strategies in tandem, traders can maximize their returns regardless of market direction.
Finally, investors should note that CoinEx applies trading fees based on executed transactions at the spot rate.
Disclaimer: Please note that the information provided on this website is for informational purposes only. While examples may reference historical data, they are subject to change in real trading due to various factors.
About CoinEx
Established in 2017, CoinEx is a global cryptocurrency exchange committed to making crypto trading easier. The platform provides a range of services, including spot and margin trading, futures, swaps, automated market maker (AMM), and financial management services for over 10 million users across 200+ countries and regions.
CoinEx Research remains committed to providing in-depth analyses and insights into the evolving cryptocurrency market, helping investors navigate through the complexities and opportunities that lie ahead.
To learn more about CoinEx, visit: Website | Twitter | App | Telegram | LinkedIn | Facebook | Instagram | YouTube
Disclaimer: This is a paid post and should not be treated as news/advice. LiveBitcoinNews is not responsible for any loss or damage resulting from the content, products, or services referenced in this press release.