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Friday, 02 December 2022
I Use this Bitcoin Easy Strategy to Make 1000USD Per Day
I Use this Bitcoin Easy Strategy to Make 1000USD Per Day

I Use this Bitcoin Easy Strategy to Make 1000USD Per Day

Watch the testing video here:

What is Scalping in Crypto Trading?

Scalping or scalp trading is a short-term trading strategy that enables a trader to make small profits from daily, small movements in the price of an asset. By adding up these small profits from each trade, the trader can generate a significant amount over time. Due to the cryptocurrency market's volatility, scalping is a common strategy as scalpers usually use leverage to place more trades and tight stop losses to manage their risks.

In scalping, the main factors that determine success are speed and consistency. Crypto traders use this strategy through quick responses to market movements. Instead of holding a position for days, weeks, or even hours, scalpers tend to make their decision within minutes or seconds. To use the scalping strategy, the currency pair needs to be highly volatile because, through short bursts of volatility, there are significant movements in price, and scalpers use these price changes to generate profits.

How to Make Money with a Crypto Scalping Strategy

Each trader forms their trading system to make money from crypto scalping to receive the highest possible profit. However, some traders share their trading principles. The scalping strategy only works when there is real-time technical analysis.

Averagely, scalpers open positions every 5 or 10 minutes. Still, the M5 timeframe is the most preferable because it works with other strategies and is open to analysis, increasing its predictability chance. Scalpers open dozens or hundreds of trades daily.

There are two approaches to crypto scalp trading, manual and automated, further discussed in this article.

Timeframes in Crypto Scalping

Through the scalping timeframe, a trader can achieve trading velocity or the number of trades made. Typically, the most preferred timeframe for scalping ranges between 5 to 30-minute charts. The greater the number of possible trade setups, the smaller the timeframe, but this wholly depends on the strategy you choose for scalping.

In crypto scalping, you can collect various profitable trades within the day, with significant culminated profits.

Pros and Cons

There are many advantages of scalping, and there are a few disadvantages of scalping; they are

Pros

If executed precisely with a strict strategy, scalping can be very profitable. As a trader, you have to implement a strict strategy to stay profitable.

In scalping, there are numerous opportunities to leverage small changes in the price of a crypto asset. Sometimes, these small changes may not reflect the overall trend of the assets price for the day.

Since scalpers don't play a significant role in dealing with a short timeframe, they don't have to follow the fundamentals. This ensures that traders don't need to know much about crypto before trading in it.

In scalping, minimal market risk is involved.

Another advantage of scalping is that it is designed to reduce the losses from one crypto by making tight stop loss points and leverage.

Because scalping is non-directional, markets only need to move up and down and not move in a particular direction.

Also, various scalping strategies can be easily automated because they are based on technical criteria.

Cons 

Compared to other strategies, scalping requires opening a maximum number of trades.

Also, because you have to pay a commission on each trade, opening many trades increases transaction costs.

In scalping, you can only make significant profits if you open a high amount of trades. This is a challenge for some traders because the risk of earning small profits is not worth it.

Scalping involves traders making dozens or hundreds of trades per day. This tends to be very time consuming and requires a high level of concentration.

 

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