With Target price conversions, you will be able to scale up your strategies by automating specific transactions that will allow you to take advantage of price variations in the crypto world: set a Target price conversion and when the moment comes, your transaction will be executed as if you were waiting for the right moment in front of your screen. A Target price conversion can be executed even while you are asleep!

Here's an example of how to use this feature for selling: 

Suppose you hold 1 ether (ETH), and at the time it is worth approximately $1,500 Digital Dollars (USD). With high expectations for ETH to increase its price, you decide to program the following conversion:

• Sell 1 ETH once the price goes up 5%, meaning the target price to sell is at $1,575 USD. 

Considering your intuition was right, after a couple of days, the price of ETH indeed went up by 5%, and you automatically sold ether at your target price, making around $75 USD profit, without having to constantly check and make the conversion at the right moment. 

What if the price went lower instead?

If your target price is not met, the conversion will not be executed. If you think your target price will not be reached or you want to cancel your programmed Target price conversion for any other reason, you can do it at any time and set up a new one.

Here's another example, now using this strategy for buying:

Assuming you did sell your ETH and now have $1,575 USD, and that you now want to start accumulating more ETH, you may want to set a new programmed target price conversion. To do this, you can take your $1,575 USD  and use them to set a programmed Target price conversion to buy ETH whenever the price goes back down to $1,500 USD by programming the following conversion:

• Buy ETH using the 1,575 USD once it goes down to a target price of 1,500 USD, meaning you will receive 1.05 ETH.

Now you can sit back and wait until that target price is met in the market, without having to constantly monitor prices or graphs. When the price is met, the conversion will be automatically executed, and you will now have around 1.05 ETH (close to 5% more than you previously had in the beginning of the story) without having to deposit any extra money into your Bitso account. 

Other ways to use this strategy

You may also apply this strategy inversely, assuming you believe current prices are overvalued and you prefer to wait until prices drop to buy a specific asset. If you program to buy an asset at a lower price and your target price is met, then you could also immediately program your next automated sell for whenever the price goes back up.

Target price conversions in a nutshell

Target price programmed conversions help you buy low (spend less), and to sell high (make profits), without needing to monitor graphs yourself. Remember though that programming a Target price conversion does not guarantee that your expected transaction will take place. It may never happen, and you can always cancel your order and have your crypto back to place a new order or use it in any other way you wish at Bitso. 

Just note Bitso is not obliged to execute programmed target price conversions -you deal with other willing buyers/sellers within our platform.