How to Automate Trading in the Crypto.com App

Key Takeaways:

• The Crypto.com App offers several ways to automate trades.

• Target Price Orders allow users to automatically buy or sell when a cryptocurrency reaches their desired price point.

• The Recurring Buy feature lets users automate Dollar Cost Averaging (DCA) in the App.

• Time-Weighted Average Price (TWAP) is a trading strategy that spreads out large orders over a specific period; the TWAP bot helps traders achieve an average execution price.

Introduction

The Crypto.com App offers innovative features that let users automate their cryptocurrency trading strategy directly within the App. These automated tools provide a more efficient way to trade, whether buying or selling based on a set target price, averaging purchases over time, or managing large trades with minimal market impact.

This article covers the various automated trading options in the Crypto.com App, including Target Price Orders, Recurring Buys, and Time-Weighted Average Price (TWAP) Trading Bots. 

Learn how to set up these tools and start trading more strategically without constant market monitoring. 

1. Target Price Orders

Target Price Orders give users the opportunity to buy and sell crypto at their desired price from within the Crypto.com App.

What Is a Target Price Order?

A Target Price Order is an order request that allows a user to specify their preferred price for executing a buy or sell order. The trade will only be executed if the market price reaches the target price.

Setting a target price allows traders to automatically buy at a lower price or sell at a higher price than the current market price if that price is reached. As Target Price Orders are automated, traders don’t have to watch the market around the clock in order to jump on an opportunity if it arises.

How Target Price Orders Work

When a Target Price Order is placed, the funds required for the purchase are locked for the corresponding Target Buy Order. In a similar fashion, when a Target Sell Order is placed, the required crypto assets are locked pending a Target Sell Order sale. In a nutshell, the funds or crypto assets subject to a Target Price Order cannot be used elsewhere in the App after placing the order.

A Target Price Order does not have an expiry date and will remain open until the market price reaches the target price or a trader manually cancels the order. Once the order is cancelled, the crypto assets are immediately unlocked. Note that cancellation is not available once an order has already been executed.

The Crypto.com App has integrated the Fiat Wallet with the Target Price Orders feature, and users can now place Target Buy or Sell Orders using fiat currency.

How to Set Up a Target Buy Order in the Crypto.com App

• Under Open Orders, tap ‘Buy’.

• Select a cryptocurrency to purchase and enter the target price in which to purchase. The target price entered should be a cryptocurrency amount that is available in the Crypto Wallet, lower than the market price at that time, and within the order limit.

• Tap ‘Confirm’ and enter the passcode to place the order.

How to Set Up a Target Sell Order in the Crypto.com App

• Under Open Orders, tap ‘Sell’.

• Select a cryptocurrency to sell and enter the target price at which to sell. The target price entered should be the cryptocurrency that is available in the Crypto Wallet, higher than the market price at that time, and within the order limit.

• Tap ‘Confirm’ and enter the passcode to place the order. 

For more information on Target Price Orders, check out our Help Centre article.

2. Recurring Buy

What Is Recurring Buy?

Users can now use the Dollar Cost Averaging (DCA) investment strategy for more tokens and automate purchases for as low as US$15. Recurring Buys in the App automatically accumulate a user’s favourite cryptocurrencies weekly, bi-weekly, or monthly using a fixed budget, regardless of the current price. 

Buying regularly using a fixed budget allows users to get more when prices are low and less when they are high, making their overall purchase cost averaged out over time. This strategy helps to minimise the impact of market fluctuations and gradually build a stable cryptocurrency portfolio.

Options include daily, weekly, bi-weekly, or monthly, with a minimum of $15 and maximum of five (5) per month. Payment methods include credit card, stablecoins, or a fiat wallet.

Over 44 tokens are now available for Recurring Buy, including 1INCH, ACA, BNT, LOKA, YGG, OP, IMX, and FLOW. 

For the full list of supported tokens and more details on Recurring Buy, check here.

3. TWAP: Time-Weighted Average Price

For retail traders and institutional investors alike, executing large orders without significantly affecting the market price can be a challenge. This is where Time-Weighted Average Price (TWAP) trading comes into play.

TWAP is a trading strategy that spreads out large orders over a specific period, aiming to achieve an average execution price and minimise market impact. It is a trading algorithm that divides a large order into smaller, equally sized trades executed at regular intervals over a predefined period. The goal is to achieve an execution price close to the average price of the asset over that time frame, thereby reducing the market impact of the order.

TWAP is calculated by taking the average price of an asset over a specified time period. For example, if a trader wants to execute an order over the course of an hour, the algorithm will divide the total order into smaller trades executed every few minutes. The price of each trade is then averaged to determine the TWAP.

The TWAP Trading Bot in the Crypto.com App

The TWAP Trading Bot executes trades based on an average-weighted price over a specified period of time, allowing users to perform large trades at better execution prices while minimising price slippage and market signalling.

Users can create a TWAP Trading Bot in just seconds and fine-tune their parameters, with options for limit or market orders. Additionally, the TWAP feature exclusively supports both buy and sell orders for 23 tokens. Users can trade them against crypto or six fiat currencies, including USD, GBP, and EUR.

There are no additional fees levied for using the TWAP Trading Bot, and there’s no limit to the number of TWAP Trading Bots users can create.

The TWAP Trading Bot currently supports the following spot pairs, with support for more pairs to be added in the future: 

Learn more about TWAP and currently available pairs here.

Conclusion

While the cryptocurrency market can experience extreme volatility, it is wise for users to consider (or already have) a strategy that caters to their risk tolerance. Implementing various trading bots can be a great strategy for those trying to save time by removing the need to monitor the market on a repeated and continued basis.

Get a better understanding of the market by learning what a bull and bear market looks like.

Due Diligence and Do Your Own Research

All examples listed in this article are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction. Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsement, invitation, or solicitation.

Although the term ‘stablecoin’ is commonly used, there is no guarantee that the asset will maintain a stable value in relation to the value of the reference asset when traded on secondary markets or that the reserve of assets, if there is one, will be adequate to satisfy all redemptions.

Past performance is not a guarantee or predictor of future performance. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.