What is cryptocurrency scalping?
Scalping gained its popularity even before the advent of cryptocurrency, but it occupies a special, honorable place on crypto exchanges.
Scalping is an intraday trading strategy that involves making money on intraday fluctuations in the currency exchange rate.
The principle of scalping
To understand the principles of scalping, let’s look at the situation using two examples.
- The trader makes transactions on short positions, and each brings him a small profit, but after a few hours of work, he gets an excellent, tangible amount in his wallet. At the same time, an experienced trader predicts, calculates a good moment and gets a good profit.
- A scalper trader does not use forecasts, or does it very superficially. He opens a position when the asset rate fluctuates, and with each successful transaction has from $ 0.5 to $1. As a result, he receives the same amount as the first trader, but for a shorter period of time. Why? Because while the first trader was calculating forecasts, the second one was making deals.
— Trading on technical analysis. This method helps to make transactions while the exchange rate is moving during the day. You can find out all the details of the technical analysis here.
— Trading on the news. To do this, you need to have a proven information source and follow the news and events that may affect the desired asset.
— Scalping by the glass. The essence of this method is that some exchanges provide information about the requests of buyers and sellers for the purchase of cryptocurrency, and this data is in the so-called exchange glass. This information can help determine how the asset will behave further.
Scalping is a great way to make money quickly, but it should be borne in mind that for this you need to be able to analyze all external and internal factors related to cryptocurrency well.