With the numerous lucrative opportunities in the crypto space, crypto trading has always been the one making rounds in the crypto space.
And when it come to crypto trading, everyone develops his/her profit method for trading in the crypto space.
Recall how we discussed some crypto trading strategy and how to earn with it on our last article, this brought us to this method called Scalping.
Scalping is a type of crypto trading and it has been seen to be profitable over the years with little trading risk.
Although some people scalp on the wrong platform and with the wrong strategy.
What is Scalping
![Scalping](https://cryptoforpidgin.com/wp-content/uploads/2022/04/Scalping-crypto.jpeg)
This is a crypto trading method that involves you making short term trades, with frequent and small profits as a form of profit accumulation.
This type of trading section is always short and fast. A scalper is the name given to a trader that scalps the market.
Why should we Scalp the market
When the crypto market is indecisive sometimes and shows no visible trend, you can scalp for few minutes and get good profit.
Also, some people scalp because of high volatility of a cryptocurrency. So instead of having a day or week trading on a high volatile currency, you can scalp and make mouth watery profits.
Scalping literally is for people who can’t hold trade positions for long, as some people are too anxious in trading so they prefer short term trading sections.
Best Crypto Scalping strategy
![](https://cryptoforpidgin.com/wp-content/uploads/2022/04/Scalping-strategy.jpeg)
Before we proceed, the following should be noted before scalping any given market.
- Always Scalp with big capital: Scalping is interesting when you are scalping with big funds. In the crypto space big capital will bring big profits.
- If possible choose a currency pair with less price: Scalping a cryptocurrency of low price with big capital will always bring huge profit, even with small price increments.
- Never scalp in futures: The scalping risk in futures is greater than that of spots trading. So its advisable you scalp in spots and not on futures trading interface. Although, some people are smart scalpers on futures but from good risk management policies, scalping on futures is highly risky.
However the best crypto scalping strategy involves the following;
- Look for a good volatile cryptocurrency
- Change time chart to 15-30 minutes time frame
- Analyze the chart and look for a good buying point(support)
- Quickly buy and exit trade when market gives you a good increment.
- Wait for market to retrace, and continue the previous step.
What to know about scalping
![Scalping knowledge](https://cryptoforpidgin.com/wp-content/uploads/2022/04/Scalping-Knowledge.jpeg)
Just like any other trade strategy, there are things to be considered before using the scalping strategy. The scalping strategy is a short term strategy, and the following are to be considered carefully before starting your scalping journey.
- Scalping requires full attention: Weekly and long term traders don’t always check their trades from time to time, as their trade setup has been done already. They are either waiting for good profits or loss. That’s not the case with scalping. Since scalping is a short term trading activity, it deserves full of your attention. Scalping requires concentration, as long as the trade has been placed. A setup can come into play and varnish within seconds, so if you are not present, you can miss the setup.
- Scalping its hard to combine with other activities: If you have other jobs at hand, scalping is not for you. Scalping will take your attention, except you are just scalping for fun. A scalper can’t combine two activities at a time. Real scalpers don’t trade only one market, they trade different markets at the same time. In this regards, you require concentration and cannot afford distraction.
- Scalping is a difficult method in the crypto space: Trading multiple currencies will be difficult, since the whole crypto market is dominated by crypto. The forex market is easier in scalping as only few currencies are a function of each other. With this the crypto market will be scalped on a particular coin and not different currencies. The scalper won’t really feel the scalping effect since he scalps only one market.
- Scalping needs discipline: The ability to control emotions and to be able to forgo a missed trade is needed in the crypto space. A clean setup can leave your side and you should be able to let go, and search for another market. Also, knowing when to leave the market is vital, as the attitude of revenge in the market should be dissolved. Meanwhile, stop losses should also be used no matter how sure the trade looks like. Sometimes, you might be carried away, entering a trade without stop loss. This should be checked severally with discipline.
Summary
Scalping is sometimes addicting especially when your emotions starts clouding your judgments. In this vein, it is better to minimise greediness when scalping the crypto market. Just as we have discussed above, there are so many trading strategies in the crypto/forex ecosystem. You have to know the one that works well with your time of person and emotions. Some people prefer short time in the market, while some prefer spending more time in the market. Just as we have short term traders, we also have long term traders who are making it big full time. The goal of scalping is to make better income with fast trades, so if you can manage your time, you can be a scalper and also another jobber.
Conclusion
Scalping can also be done with indicators like moving averages, parabolic sar, and stochastic oscillator. But the best way to scalp is either without indicators, or using indicators as a form of confluence with price action strategy. Over time, indicators have proven not to be used as a primary buying or selling signal. If you are using indicators, you have to combine it with other technical analysis strategies, and not to use them alone. From the name indicator, it’s just a sensor, and not a confirmation.
Disclaimer
The Crypto market is volatile and encompasses high risk levels. You are to trade at your own risk and do your research (DYOR).
This article is therefore for informational purposes and not a financial advice.