Crypto trading is booming right now, and digital currencies like Bitcoin, Ethereum, Dogecoin, and Binance Coin contribute to the platform’s strong growth. The digital currency market is open 24 hours a day, seven days a week because the entire network operates in P2P, so there are always people to trade anywhere in the world. Each of the users of this platform uses different strategies for trading, and the tools they need are increasing day by day. One of the essential strategies in trading is Crypto Scalping strategy, which we will examine in the following.
What is Crypto Scalping Strategy?
Crypto Scalping ?is a short-term trading method that aims to profit from small asset changes. This strategy is one of the most crucial trading trends, and many traders use this method. Due to the nature of the digital currency market and sharp price fluctuations, this type of strategy requires decisive and quick decisions, statistical thinking, and speed of action to make the best profit from it. Of course, scalping can be implemented in any market. Still, the crypto market is a better option for this type of strategy in terms of profitability in a short period.
In the scalping strategy, traders do not want to make a big profit from just one trade but need to make a smaller profit from several separate trades. By using more trading volume, its profitability can be increased. Of course, in addition to the gain, you must also consider the amount of loss.
How to start Scalping strategy?
If you are trying to find a new trading strategy in the digital currency market with Crypto Scalping, consider the following:
You must first select the correct currency pair to trade. Thousands of digital currencies are traded in the market. The price, volume, and popularity of each are different. It would help if you chose the right currency pair to be more successful in determining your strategy. The amount of volatility and the liquidity of a currency is significant for its selection. Coins have less liquidity, are harder to sell, and you have to make more losses in trading them.
Choosing the right platform can be very good for a lucrative deal. The security, trust, and user base can be the main options for determining where you want to implement your scalping strategy. Of course, another critical point is the platform’s support for the currency pairs you wish to trade. If the platform does not support one of the cryptos, the case is terminated, and you have to choose another platform.
Because you do a lot of trading in the scalping method, the transaction cost and transaction cost will also increase. So you have to choose a platform that costs less than other methods.
Never use just one method of trading. You need to use different techniques and combine them to discover an effective method and find the best way to trade.
The use of trader bots is also recommended as it speeds up trading. In a scalping strategy, it all depends on how fast you are buying and selling. It gets a little more complicated if you work on shorter time frames and make one trade per minute. Using trader bots can solve the problem.
Now it’s time to start scalping. Of course, we will tell you where and how to do such a thing in the following.
Crypto Scalping Strategy vitality
Crypto scalping is one of the ten most important and profitable methods used by most users in the market. Low risk and smaller trading volume make the risk lower, and you can trade more safely. Due to the sharp fluctuations of the market on the currencies that are more popular, profitability can be high by determining the appropriate timeframes. In addition, scaling transactions can be entrusted to bots to speed up the process.
Of course, the scalping strategy requires a bit of experience and study and an analyst mindset that can make the best decision as quickly as possible. If you do not know, the market is a considerable risk, and you will lose soon. If you are new to the market, it is better to use strategies used in the longer term. Once you have the necessary coordination in the market and transactions, you can start Crypto Scalping.
How Does Crypto Scalping Generate Profits?
Scalping time intervals are short and within 1 minute to 1 hour. In this short time, you should check the statistical information of the market and the traded assets. You have to compete with a series of powerful bots at any given time and overtake them in faster decisions and higher profitable trades. That’s why manual trading is so much harder than when you provide it to a robot.
Using a trader bot can help analyze market statistics in shorter periods and make trading faster. If you want to build an effective Crypto Scalping strategy, you must first specify your timeframe with the most openness possible.
Crypto Scalping Strategies
Before you start trading with a one-minute timeframe, you must first acknowledge that digital currency trading is hazardous and should be done with a capital backup. So before you start your scalping strategy, first get a good understanding of the volatility of the crypto market.
There are different strategies for each scalping Crypto transaction. For example, pay attention to the following items.
Range Trading
Range Trading is one of the best scalping strategies. It is vital to observe cryptocurrency price movements in a minimum and maximum price within a specific time range in this method. The lowest price range is considered as a support, and the highest range is the resistance level. These limits regulate the trading time of traders. You have to buy when you reach the low level and sell when you get the resistance. This strategy works well even for 5-minute Scalping timeframes.
Margin Trading
In a margin trading strategy, traders use their third-party assets instead of their own. This method increases the volume of a transaction, and its profit and loss are relatively higher. Most exchanges offer margin trading to their customers, which can implement the Scalping strategy more profitably.
Price Action
Price action is a strategy to change price security over a while. Most traders who use this method in short periods can profit by analyzing the price trend and the direction of the asset.
Arbitrage Trading
Another strategy for scalping transactions is to use Arbitrage. In this method, traders buy an asset from one market and sell it directly in another market at a price change. The higher the delay in buying and selling this method, the lower the profitability. Determining when to open or close a position in this strategy requires a lot of experience in the market.
Some of these strategies are high-risk and do not apply to all traders. If you are new to Crypto Scalping, we suggest you first try the methods once with a Demo account to gain more experience.
Scalping strategy vital factors
Most traders with a lot of experience in the digital currency market have distanced themselves from the negative news and lie on social media. Most of these people turn to graph analysis and diagnostic pattern indicators to check instantaneous prices.
Indicators
Transaction indicators are simplified information that is displayed on a price chart. These indicators help traders become more profitable. Some well-known indicators can be used for scalping, but it is not possible to say precisely which indicator is suitable for scalping.
The Moving Average Indicator is a technical analysis tool that helps traders understand the following change in the price of an asset. This index can determine the trader’s time of entry and exit in a trade to achieve the highest profitability.
Support and resistance are indicators of technical analysis that show price changes on the chart and the type of market behavior. This indicator can identify resistance and support points so that it can be better used for scaling trading.
The relative Strength Index, abbreviated RSI, also help traders find entry and exit points. When this number is calculated at a rate between 0 and 100, if the RSI value is more than 70, you must sell your property, and if it is less than 30, you must buy.
Scalp Trading Crypto tools
The digital currency market has grown exponentially in recent years, and the tools produced for traders have evolved in the same way. Traders can start Scalp trade crypto using various tools, each of which gives you exceptional capabilities to earn more profit.
Trading Bots
Trader bots are also overgrowing, and most traders use these types of bots in different shapes and sizes. Due to their speed of operation and ease of implementing various strategies based on each bot, these bots can increase the profitability of the digital currency market. However, the bot platform is also crucial in terms of its effectiveness. Each bot’s intelligent algorithm can adapt it to any digital currency exchange. Although there are many bots on the market, which one is safer, faster, and more profitable requires more research, and you should see other people’s reviews along with their experiences.
Trading charts
Cryptocurrency trading charts are also one of the main tools for managing transactions. If you trade manually, you must use a particular digital currency chart to get vital information such as price, trading volume, price changes, and more like Moving averages. The details of the charts help traders build the best Scalping trading strategy, in addition to the fact that based on graph analysis, you can quickly minimize the loss.
API Tools
API tools are another thing that has made the job very easy for digital currency traders, and you should use them for crypto trading strategy. APIs simplify your communication with exchanges and securely conduct interactions and transactions. While the capability of each API depends on its platform, any suitable platform can provide the appropriate API.
Conclusion
Crypto Scalping strategy is one of the best ways to trade digital currencies. But is this kind of strategy the best way? There are a variety of methods on the market that can be used to trade. Suppose you want to trade with the help of automated tools. In that case, you can start trading through automated trading bots without personal intervention and even when you are asleep and get the most profit from trading without any hassle. Some bots work based on scalping strategies and are very effective.
If you do not consider the scalping strategy a proper trading method, it is better to use other methods and different profitable paths. However, the digital currency market fluctuates a lot, and it is simply impossible to leave the market without considering these fluctuations. In any case, we suggest that you use other methods in addition to the strategies proposed.