What is scalping cryptocurrencies , what strategies do scalpers use
Scalping cryptocurrencies or aggressive intraday trading allows you to significantly increase capital. But at the same time, it can lead to a loss of capital, it all depends on the experience of the trader and the strategy he has chosen. This is a profitable, but complex and risky method of trading on the stock exchange, which needs to be learned. Beginners who decide to use this style often lose their deposit literally on the first transactions. To prevent this from happening to you, learn a complex trading style and take your time to enter the market without knowledge and skills.
What is scalping on a cryptocurrency exchange?
scalping in trading Cryptocurrencies are a set of trading strategies, they consist in opening a large number of short-term positions for low profits, which allow you to reach a tangible income throughout the day. All scalper strategies are based on the quick opening and closing of transactions, positions are held from several seconds to several minutes.
Cryptocurrency scalping is considered one of the most difficult trading styles even among professional traders. In order to successfully use this method and make money, a trader has to spend hours at the monitor, practically without being distracted from it, carefully monitoring any rate fluctuations. The best choice for scalpers is a market with high volatility.
Scalping : Cryptocurrency Trading Strategies
To start trading on the exchange, it is not enough to know what scalping is cryptocurrencies . It is necessary to study the popular trading strategies used by scalpers . One of the most common and classic strategies is trading in a glass. To conclude transactions, a trader uses data from the order book (a list of orders for the sale and purchase of coins), monitors the proportions. Having caught even a minimal fluctuation of indicators, an experienced scalper can successfully predict what will happen to the price of an asset in the short term.
Another option for scalpers is momentum trading. Traders who choose this strategy rely on the assertion that the markets are interconnected. As indicators, they use foreign indices, exchange rates, asset dynamics in commodity markets.
There is a hybrid scalping . This method combines several strategies that are aimed at identifying the relationships of various analysis tools with data on the number of orders in the order book.
These are just a few strategies, there are more. For example, there are strategies that allow you to successfully earn both in the formed market trend and in the process of its formation. You can understand the features of each strategy only by learning scalping cryptocurrencies from the basics, seeing how they are applied in practice.
What do you need for successful crypto scalping?
Are scalping strategies suitable? cryptocurrencies for beginners ? This trading option is definitely not suitable for those who do not have even minimal trading experience . If you are just diving into the industry, you can start with long-term investments. Those who have already tried to independently conduct transactions for the purchase and sale of cryptocurrencies, and did it successfully, can master scalping .
Follow simple rules:
- When choosing trading pairs, pay attention to the liquidity and volatility of the asset. The higher both indicators, the better.
- Register on a reliable trading platform. An important knowledge when choosing an exchange is its reputation. In addition, you should choose a platform with wide functionality, favorable service rates and a convenient interface, because you will have to work on it for hours.
- Try trading with a bot. The basis of scalping is speed. Those who trade using specialized bots are usually more efficient and close transactions faster.
- Test different strategies to find the best one for you. While looking for a suitable option and learning, open trades for small amounts to reduce risks.
Understand better what scalping is in trading cryptocurrencies and master this style of trading, help in SmartMaker . We have created a training course for novice traders and investors, we help beginners earn on cryptocurrency with small deposits, and successfully grow in the crypto industry.
