There is a lot of hype on the Internet that scalping is the perfect way to trade and make huge profits quickly. But if you begin to understand this, you will come to a completely different conclusion. Beginners who try to scalp without proper preparation almost always lose money. This is one of the most difficult ways to trade cryptocurrencies, even for experienced traders.
What does scalping for binance mean?
Scalping on Binance is a common type of short-term asset trading. The strategy is to make money when the exchange rate fluctuates slightly. This trading technique is suitable for those who have basic cryptocurrency trading skills, are able to concentrate and make decisions quickly. Let’s take a closer look at what cryptocurrency scalping is on the Binance exchange.
Cryptocurrency scalping on Binance involves making a large number of short-term trades during the day, while traders do not leave open positions for the next trading day. For effective trading, use technical analysis, which helps to predict the dynamics of exchange rates in the short term. And as an asset, the scalper would choose a cryptocurrency with high volatility, the price of which can change several times during the day.
Scalpers make money on short-term swings in exchange rates, while experienced traders make money regardless of whether the trend is up or down. This strategy works in the spot and futures markets. For example, scalping on Binance using futures is considered one of the most profitable trades because it is a very volatile and liquid asset.
Is scalping on Binance right for you?
Scalping on Binance with the help of order books, indicators, chart patterns, trends is suitable for those who are ready to spend a lot of time on the exchange and follow the movement of the exchange rate. This is a stressful, energy-intensive short-term trading strategy that requires the trader to be able to act consistently, quickly respond to changes and make immediate decisions.
Binance is a good choice to use this strategy. The most popular exchanges are easy to use, have a reliable security system, transparent and understandable conditions. In addition, Binance users store their scalps on their phones, not just computers. The exchange’s mobile app allows you to easily and efficiently trade anytime, anywhere.
Beginners should try automatic scalping on Binance using a trading bot. The program allows you to open more short-term trades per day, increasing your potential profit. But before that, it is very important to get basic scalping training from our experts.