Difference Between Spot Grid and Spot Investment
BYDFi
2025-04-25 · Updated
BYDFi trading robots can execute your trading strategies to help you save time and increase your investment returns. Trading robots usually provide stable returns and reduce risk while automatically executing trades, taking the hassle out of watching the market for the user. Below is an explanation of the difference between a Grid trading Robot and an Spot Investment
What is a Grid trading Robot and an Spot Investment?
Grid trading Robot
The principle is to "buy low and sell high", i.e. to place orders to buy below the reference price of a cryptocurrency asset and to place orders to sell above the reference price. The spacing between these buy and sell orders is called a grid and can be set within a price range. Grid robots benefit from price fluctuations (sideways oscillations).
Spot Investment
Can be used to buy a fixed amount of a specific cryptocurrency at regular intervals, rather than buying a large amount at once. When using theAuto-Invest Robot, you have the flexibility to set the trading frequency and amount. This means that you can choose the appropriate frequency and amount of purchases based on your investment strategy and risk tolerance.
| Type | Grid trading Robot | Spot Investment Robot |
| Features | Hold the coin and profit from the price | Increase in coin pair position on long-term average price |
| Order Type | The first one is the market price, and the next one is the limit price. | Market Price |
| Advantages | Automatically buy low and sell high for you, 24 hours a day, without missing the market and strictly enforced. | Reduce the cost of holding coin pair and avoid buying at high prices. |
| Disadvantages | Requirement to set aside funds and lower capital utilization rate | The average position price is usually not the lowest |
