Maybe you have heard about **LAYERING as an infamous stock trading strategy**. Stock traders use the layering approach in their attempt to control or influence the prices of stocks by making and canceling orders.
Don’t worry… We will never lead you to filthy and unethical ways.
**LAYERING as part of our BASE STRATEGY for CRYPTOCURRENCY TRADING** involves the control of your assets that are put into risk when you enter a specific market.
If it is your first time to test the Base Strategy and you only got 0.05 BTC in your wallet, are you willing to risk everything in buying a certain altcoin at the first attempt?
As a first-timer, do you think that it is a wise decision to pursue such an action?
**WE WANT YOU TO EARN FROM YOUR TRADES.**
That’s why we suggest that you layer the crypto coins that you put in the market.
Let’s say that you have already set your notifications to 3% below the base. Once you receive the alert, then start checking the bases and the markets.
If you think that the **panic sales** are really happening and the **base is strong enough**, then you could **place a buy order for such coin**.
But as the cliché goes, don’t put all your eggs in one basket. Or for this scenario, **don’t risk everything at once**. Wait for a better time before you add more eggs to your basket!
Check what happens to the market. If **panic intensifies** and goes further down the base, then **consider buying more coins**.
Why should you consider following the layering technique?
Basically, **layering lowers the average buy price**. You will expect that as the coin’s price goes lower, the market will also react in such a way that more buyers will want to purchase the coin.
As buying price decreases, you will see that the red candlesticks will go longer down the graph. If the price drops further for a longer time, traders will expect it to bounce back sooner since **crypto markets usually depict wave patterns**.
Coin prices rebound or go back up again because of the **basic concept of supply and demand**. Lower prices increase purchasing interests. As more buyers desire to get a hold of the coins, the price will then go back to its original state or go way higher than before. This is the time that you see green candlesticks and feel excitement for earning from your trades.
When you follow the layering technique by buying at small amounts, you protect yourself from sudden losses in case the price goes further down.
**Remember!** **Buy in small increments as price goes down further**. This will lower your breakeven price and will reduce risks for loss. This also gives you higher potentials for increased profits.
Layering your digital coins when trading could bring the following benefits:
1. Protect you from irreversible losses.
2. Offer better cryptocurrency asset management solutions.
3. Open greater possibilities for more profitable trade purchase.
The cryptocurrency world is an extremely fast-paced arena. One wrong move could cause a great deal of trouble.
To prevent grief over huge trade losses, **regulate your investments by doing incremental buys**.
Working towards better risk management and asset building,
_Disclaimer: This article describes how we use the Crypto Base Scanner. **This may not be considered trading advice.**_
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