Grid Bot on Binance: Arithmetic vs. Geometric – Which One to Choose?
When setting up a Grid Bot on Binance, you can choose between arithmetic or geometric modes. Understand how each works and which is safer.
🧮 Arithmetic Mode
Creates price grids at equal intervals.
Example: If the range is $3,000 to $4,000, with 10 grids, each range will be $100.
✅ Advantage: Simple and predictable.
⚠️ Disadvantage: May be less effective in volatile markets.
🔹 Best for:
Stable markets and those looking for a more holding strategy.
📈 Geometric Mode
Creates grids with proportional (percentage) intervals.
Example: With a 2% spread, the next level will always be 2% higher than the previous one.
✅ Advantage: Better in volatile markets.
⚠️ Disadvantage: More complex and risky.
🔹 Best for:
Highly volatile markets and those looking to catch bigger moves.
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🔎 Which mode is safer?
Arithmetic: Safer, with equal and predictable intervals.
Geometric: Higher profit potential, but also more risk.
⚠️ Advice to reduce risks:
1. Set the price range correctly.
2. Don't invest everything in a single strategy.
3. Monitor the bot regularly because the market is volatile.
Conclusion:
For beginners, Arithmetic mode is safer.
For those who already have experience, Geometric mode can generate bigger profits in volatile markets.$BTC $ETH $BNB
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