Updated: Jul 20
Are you concerned about the volatility of the crypto stock markets? Are you unsure about the best way to systematically build up funds in cryptocurrencies? With the Cointract app, you can set rules for buying and selling that will help you make the most of these market fluctuations.
Does that sound good? We would like to introduce you to our buy and sell rules and how you can use them to define and automate your investment strategy.
Buy cryptocurrencies automated
A common investment strategy is: buy low, sell high. You can build on this rule with the Cointract app. Observe the price development of the individual coins in the trading menu and set a buy rule with the factor "Course drop" and define by how many percent the price should decrease. However, you don't want to invest if the price continues to plummet. The secret of this rule is that you can also define a course recovery. This means that if the market trend moves in the direction of a bull market again, you can enter at an ideal time.
Example with XRP (no recommendation for action)
You want to invest in Ripple. However, the price is currently too high for your liking. Set a rule that the price should drop by 4%. This is the trigger point at which the rule starts to observe the course. The currency can now fall arbitrarily, let's say to 7%. Only when the rate recovers by 2% will the purchase be triggered. This means that you have traded at least 2% lower. Usually, however, you still benefit from much better exchange rate conditions. In our example with a drop in the share price of 7%, you would have saved 5%.
How to proceed:
Click on "Trading" in the Cointract app.
Choose a Coin you like and click on the field
Define the amount you want to invest
Select " Course drop ".
Define by how many percent the price should drop
Also specify the percentage by which the price should recover
Confirm your transaction and you're done
Another interesting possibility is to buy when a price " picks up " within a very short period of time. It can happen that many investors want to enter the market due to news on the other side of the world. This has a positive influence on demand and thus on the price - within a very short time.
If, for example, the ETH rises exponentially within 2 hours, you might want to jump in. Unfortunately, you are asleep at the moment because it is 2am. For this, you can simply choose the buying rule "Course increase". Define the percentage and the time frame. The app triggers the purchase as soon as your set conditions are met.
Sell cryptocurrencies automated
It is much more important to be able to cash out profits and keep losses to a minimum than to buy at a good time. With Cointract's selling rules you can combine different factors to get the most out of your investment:
Specify a percentage or absolute value up to which the price should rise. The Cointract avatar waits until the defined price target is reached.
Example with ETH (no recommendation for action)
You have invested CHF 1,000 in ETH. If you set the " Course target" rule at 10%, the app automatically sells your coins when your ETH have a value of CHF 1,100. You would have made a profit of CHF 100.
Course target in combination with Course drop
Are you looking to profit from a high price before it plummets again? Then enter a percentage or absolute value for the course target AND for the setback. The good thing about this is that if the price shoots far above your target, it will not be sold yet, but only as soon as the defined setback occurs.
Example with LTC (no recommendation for action)
You invested CHF 5,000 in Litecoin. Your goal is to make a profit of at least 10%. Enter e.g. 12% for the course target and 2% for the setback. This means that if the price rises by 12% and then falls by 2%, the Cointract app automatically sells your Litecoins. You have thus realised and secured a profit of CHF 500. However, if the price rises by 20% and then falls by 2%, the app sells at +18% and you make a profit of CHF 900.
The maximum loss is your stop loss. Enter a value here to define your upper loss limit. For example, if you hold CHF 2,000 in BTC and enter a maximum loss of 5%, then you can lose a maximum of CHF 100. The Cointract algorithm automatically sells when the price drops by 5%.
If you have only set this rule, the price can rise indefinitely in the case of a positive development, your coin will not be sold. This rule only applies in the event of a negative price trend.
Course Target and Maximum Loss
By defining a course target and a stop loss, you can realise profits and keep losses in check, depending on which rule comes first.
Example with ADA (no recommendation for action)
You are holding CHF 1,000 in Cardano. Your rule is as follows: Course target 15%, maximum loss 5%. The Cointract bot sells when your Cardanos reach a value of CHF 1'150.- or have fallen to a value of CHF 950. You can make a profit of CHF 150 or a maximum loss of CHF 50.
Combination of all three
Set a rule for a course target (profit), a setback and a stop loss. This way you can keep your coins as long as the market reacts bullishly. However, as soon as a price setback occurs, the rule takes effect. If the price moves completely in the wrong direction, you are also protected with the "maximum loss" rule.
Easily trade with Cryptos
Give the Swiss crypto trading platform Cointract a try. With our demo account, you can test the app in detail. If you are convinced, we would be happy to welcome you as a valued customer.
If you have any questions, we'll be happy to introduce you to the app in a screensharing session. Simply book a callback.
This article is for informational / promotional purposes.