Scalping: What is Scalp-Trading in cryptocurrency ?
When trading on the financial markets, successful traders use a variety of strategies. Each strategy has its advantages, big or small depending on market conditions and trader’s mindset.
The cryptocurrency market is one of the most volatile and well-known markets. Prices fluctuate rapidly and are often high or low. Scalp trading is a great way to take advantage of these price movements that can last seconds or minutes.
This article will discuss scalp trading in crypto, and how to use Pocket Option to make profit trades.
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Scalp trading in crypto
Depending on the risk profile and goals of traders or investors, there are four main trading strategies: daytrading, swing-trading, long term trading, scalping.
Scalping in cryptocurrency is a trading strategy that allows you to make multiple trades quickly and in a short time frame in order to earn a consistent profit. Due to the volatility of cryptocurrency, it has become very popular in recent years.
What is scalp trading or scalping?
We will show you step-by-step, using real examples, how scalping in crypto works.
To make your scalp trading strategy work, first you need to follow these steps:
- Select the crypto currency you wish to trade
- You can use a shorter timeframe (between 15 seconds and 15 minutes).
- For Fx trading, it is a good idea to set up a stop-loss and profit before you start trading.
- Use trading tutorials to study the market.
- A free demo account lets you practice your scalp trading strategy.
A top-quality platform with immediate order execution is essential for profitable scalping.
Scalp trading in crypto
This is a exemple of scalping with crypto, the Bitcoin chart shows two short scalp trades with the RSI, the MACD indicator and a determined resistance.
This is a 1-minute Bitcoin Chart, which allows us to detect multiple signals throughout the day.
Above 30, the RSI was a little bit too high, the MACD line crosses above and below the signal line, so we just break the resistance at $1314.
This signal was bearish so we executed a short-sell on Ethereum at the $1312.90 level.
For the first trade, we shorted at $1312.90
It took us less than a minutes to see the Ethereum prices begin to fall.
The market was bounsed back to test us shortly after 15:08.
Amateur traders and beginners might think that the price is against them and exit quickly, but this would be a bad decision.
For scalping, You will be able to trust your strategy and follow your plan.
After just 1 minutes, it is clear that we have made an 40% profit on our first trade. It opened at $1312.90, and closed at $1312.30 .
Each trade lasted 1 minute. A price reversal at the level was historically possible in 15 minutes. We have a high chance of success.
Is scalping crypto profitable?
Scalping crypto trading can be very beneficial if done correctly.
This rule is simple: Wins from trades must outweigh losses from bad transactions.
You will be profitable long-term if the majority of your trades are winning.
Scalping can be stressful so it is important to have the right mindset. You can be a successful scalper if you have the right strategy and follow strict money management rules. Each trade is only 1%.
How can you become a successful crypto scalper?
These five tips will help you excel in scalp trading.
- To stay calm, train your mind
- Even if you lose a trade, follow a trading strategy
- Keep learning
- Always use a stop loss as well as a take-profit.
- Make use of a top platform
The best indicators to scalp crypto
High quality trading platforms provides the best tools and learning materials for your trading journey.
- Moving Average
- MACD
- Bollinger Bands
- RSI
To get the best signals, we recommend multiple indicators and tools. When you do scalping trading in crypto, it is important to determine solid support and resistance.
The best brokers offers all the tools and support you need to have a great experience in trading.
What time period is best for scalping crypto currency?
Scalpers like to trade in a short time frame because they want to make as much profit as possible within a limited time frame.
You might also make many trades in one day. This is possible when you use a Candlestick graphic, each candle representing four hours.
The recommended trade timeframe is between 1 and 15 minutes. However, you should test it by opening a demo account to find which one suits your strategy best.
Bottom line
Scalp trading crypto can be a great way to make quick money, but it is important to understand how to use this strategy.
The best brokers that allows for the trading of cryptos, will make it easier. It has all the tools that a successful scalper requires to succeed.
Scalp trading crypto is easy with low fees.
