Crypto scalping is a popular trading strategy involving buying and selling cryptocurrencies quickly to make swift profits. Unlike traditional investing, crypto scalping requires a more active approach and a comprehensive understanding of the market’s behavior. This article will discuss 5 proven crypto scalping strategies.
How Does Crypto Scalping Profit You?
Crypto scalping can make for some significant profits, especially considering the volatile nature of the markets. Some of the many crypto scalping strategies include:
- Lower risks, especially compared to methods like day trading and swing trading
- You get to earn yields on the spot
- As mentioned before, crypto scalping can help you play the volatility in the crypto markets well
However, do make sure you’re disciplined with your crypto scalping strategies and don’t bow down to sentiments like FOMO or FUD to carry out crpto scalp trading successfully. Further, a sizable amount of capital might also be needed to see true success through crypto scalping strategies.
Five Crypto Scalping Strategies to Try Out Today
Here are five crypto scalping strategies you may want to consider for successful trades!
- Range Trading
As the name suggests, this strategy concerns a particular range- defined by the price for a crypto moving between two steady price levels within a certain time frame. Through range trading, you can both long and short at the same time. If you want to find the best trading range, the best way to do so is by entering as a buyer when prices are closer to the support (lower level of the range) and as a seller when the prices are closer to the resistance (higher level of the range).
- Price Movements
This is one of the simpler crypto scalping strategies: all you need to do is thoroughly study the price movements the asset is showing, and interpret it your way to decide where to open a position.
- Margin Trading
As mentioned before, having a large capital may enhance your potential for profits from crypto scalping by a significant percentage. Since that might not be possible to achieve for many traders, margin trading allows you to borrow funds from another trader to invest and opt for a larger position, for greater potential profits. It’s important to keep in mind that due to the borrowing aspect, margin trading for crypto scalping is a riskier strategy than the others on this list.
- Arbitrage:
A crypto scalping strategy best suited to experienced traders, arbitrage scalping works when a trader earns profits from the difference in the prices of the same crypto by opening buyer and seller positions in different markets. Both trades need to be executed simultaneously for this strategy to work best.
- Bid-Ask Spread
This consists of the difference between the asking price and the bid price; using the spread, traders can open a position at either of the bid or ask prices, and then close said position in rapid succession to earn a profit. The difference between both prices can be quite high at times, making it possible to earn potentially high profits for traders.
Conclusion
We hope this article has been informative and helped you learn about popular crypto scalp trading strategies! As a beginner trader, comprehending these strategies may be hard, however. To make profits as a newcomer to the crypto space, you need a user-friendly platform that can guide your trades and help you earn as you learn. Which is exactly why Millionero may be just the perfect platform for you!
Millionero brings many advantages for you, including:
- A simple user interface that only lists the essentials for you through easy-to-understand terminology and visuals
- A copy trading feature that lets you follow the top traders of your choice and copy their trades, so you can earn profits even while you learn from them
- A 55% fee sharing referral program that lets you invite your friends and earn a percentage of the trading fees they pay to the platform! Your direct referrals are put in tier 1 for you, and all subsequent referrals can continue to occupy up to tier 5 for you, without any limits to the number of referrals.
There’s an added perk to the referral program! If you have been invited by someone, you’d get a 10% discount on every trade you make with Millionero!
Sign up on Millionero and take part in crypto trading today! Follow us on Twitter, Instagram, Facebook, and LinkedIn and stay in touch!