Scalping Signals – A route to comfort for Crypto Traders
Since the creation of Bitcoin in 2019 by Satoshi Nakamoto, the crypto market has opened up lots of exciting opportunities for investors and traders all over the world. The crypto market is, no doubt, one of the largest and most fast-paced financial markets in the world. In the last 5 years, the number of tokens created and listed on different crypto exchanges has skyrocketed; thus, the crypto market now hosts more than 1,500 tokens created for different purposes. And due to stuff like Scalping Signals, it has made things simpler.
Despite the huge number of tokens available to traders, to successfully trade the market, you need an in-depth knowledge of the crypto market, the ability to use technical tools, and the prowess to develop a trading strategy. You need an effective trading strategy to easily navigate the crypto market; otherwise, you will either lose your trading capital or continually move around a circle without achieving any tangible results.
Scalping is one of the most effective trading strategies as far as the crypto market is concerned. Scalping is not a new concept, it has been around since Bitcoin birthed and traders jumped onto the bandwagon to make money. Crypto traders that understand how scalping works have been making money off the crypto market like never before.
So, what is scalping and how does it work? Are there any benefits? What scalping strategies do professional traders use to create wealth? Read on to find out!
In this article, we will provide answers to these questions and also explore other important aspects of scalping on the crypto market. We will also take a look at the use of scalping signals to gain market momentum and stay on top of your crypto trading career.
What Is Scalping?
Scalping involves traders buying and selling different cryptocurrencies within a short period of time to make a small profit. Unlike long-term traders, scalpers open different trade positions at the start of the day and close all trades before the close of business. They do this so that they can make small profits from each of the trades, instead of investing for the long-term to make huge gains.
For scalpers, a fraction of seconds is a great opportunity to make small profits. Scalpers also look out for appreciable price movement for them to capitalize on. However, it comes with lots of drawbacks too.
Let’s quickly take a look at the benefits of scalping with a higher level, we will go deeper into the drawbacks later in the article.
Benefits Of Scalping
Scalping is one of the trading strategies that most experienced crypto traders use to maximize their stay on the crypto market. The following are the benefits of scalping the crypto market:
1. Less Risk
Scalping is less risky compared to other crypto trading strategies. The fact that scalpers close all open positions before the end of the trading day makes it less risky. Often, market events or comments by institutional investors like Elon Musk during night-time can make the market go south. Scalpers are usually not affected if the market goes south in the middle of the night.
If you are an experienced trader that usually suffers a loss, you might want to learn how scalping works so that you integrate it into your trading style. At its core, scalping makes stop-loss and is highly suitable for experienced traders who already understand the dynamics of the market and can determine price movement and market direction.
2. Non-directional
This trading strategy is highly non-directional, meaning you can trade both top and bottom of the market with less risk.
3. Easy To Automate
Wondering how to automate your trades so that you can have time to focus on your 9-5 job or other businesses? Then think of becoming a scalper. It is very easy to trade the crypto market on auto-pilot as a scalper; whereas, a long-term trader will find the market difficult to navigate due to market forces.
Additionally, there are what are known as “technical trading tools.” These tools serve as your virtual eyes on the market. They can tell you the precise time to place a buy order to make a profit. They can also predict the outcome of a market or advise you when to close a trade position so that you don’t lose money. All of these can be achieved as a scalper.
How Does Crypto Scalping Generate Profits?
As far as the crypto market is concerned, every scalper formulates their trading strategy in a bid to make money. The standard practice is for scalpers to open a trade position one time every 5 to 10 minutes. The most preferred time frame for scalping for the M5 timeframe. This is because M5 is easily amendable and conforms with other trading strategies.
The two known scalping techniques are automated and manual. For manual trading, a trade must study the market movement and price direction. The trader must also track the market diligently. Manual traders may also consider using technical tools and indicators to improve their trading experience.
On the other hand, automated trading involves the use of programs or bots to support your clearly defined trading strategies. The trading bots are designed to help you reduce risks and implement trades on your behalf while you are not anywhere near the market. Most times, scalpers only pick coin pairs without thinking about the transaction side. The bots will handle everything, from the transaction side, timeframes to the exit points.
Things To Know Before You Start Scalping The Crypto Market
1. Create a plan
You cannot just hit the crypto market and start scalping without putting some things into consideration. One of the first things to put into consideration as a beginner is to create a plan. Creating a trading plan will enable you to understand when to enter the market, when to quit the market and when to take profit. It also entails when to buy a particular coin pair that will give you the most profit and when to sell the same coin pair to avoid taking a loss.
You can also state clearly in your trading plan how much you intend to make within a specific period of time. For example, if you intend to make $25,000 within the space of two weeks, you can state it clearly in your plan and develop an approach on how to achieve your objectives.
2. Risk management
The crypto market is very volatile and risky. For instance, in 2021 the price of one Bitcoin (BTC) reached $60,000, and some weeks later, the same Bitcoin traded for $30,000+. If adequate risk management measures are not put in place, the market may “swallow” your trading capital and make you go broke. And that’s why it is very crucial that you have risk management measures in place before you think of scalping.
Unfortunately, even some experienced traders do not know this. The fact that they have been trading the market without losing money does not mean that without a measure to mitigate risk, they would not burn their fingers some day.
3. Using Technology
There is virtually nothing in today’s ever-busy business environment that technology doesn’t drive. Technology has helped a lot of people to either enhance their trading skills or automate their crypto trading career altogether. Technology also makes it easy for both newbie and experienced traders to analyze charting platforms and determine price movement in real-time.
Additionally, if not for technology, there won’t have been technical indicators that traders now use to stay on top of their game. Signal providers make use of technology to analyze the crypto market and suggest what coin to buy and when to buy to millions of their followers across the world, especially when scalping on the Binance Bybit exchange.
4. Always Learn Something New
Regardless of your scalping experience, there is always room for improvement. So, one way to improve on your trading experience and maximize the crypto market is to always learn new things every passing day. The moment you feel you have known everything about scalping and the cryptocurrency market in general, that is when you will start to suffer setbacks.
Learning new things open up doors of opportunity and it will help you stay on top of your game and also track market trends. Once you understand the crypto market trends, you can develop your own crypto trading strategies that suit your trading style and preferences.
5. Entry & Exit Rules
No matter the condition of the market, as a scalper, you should endeavor to always stick and play by the rules. Playing by the rules, we mean, you should always stick to the entry and exit rules that accompany your crypto trading strategy.
The benefit of sticking to the entry and exit rules is that if you constantly experiment with different strategies, you will further expose yourself to a higher level of risk. And you know the outcome of exposing yourself to a higher level of risk – capital loss or depreciation.
Types Of Crypto Scalping Strategies
The crypto market has 5 popular scalping strategies or techniques. These strategies are built with newbies in mind. If you are a new scalper or you intend to become a scalper in the future, you should pay attention to these strategies.
1. Crypto Range Trading
On the crypto market, range translates to a price movement between the high and low levels within a specific period of time. With this strategy, scalpers trade both long and short at different times, taking into consideration the coin price position within the range. The moment a trade spots a trading opportunity, he/she will attempt to open a trade position manually by buying and selling at support and resistance respectively.
Alternatively, traders can make use of limit orders to open a trade position at a lower price level within the range. However, this is only possible when the market reaches the support level. More so, the best time for scalpers to trade is when the market is flat.
2. Bid-Ask Spread
This is the difference between the bid and ask price. This strategy involves opening a trade position at the bid price and then exiting the market a few points lower to make a profit. However, this strategy happens in 2 scenarios:
i.) A Wide Bid and Ask Spread
In this scenario, the bid price is lower and the asking price is significantly higher. The essence of why this scenario occurs is because there are fewer sellers than buyers. In this case, coin prices will increase giving scalpers the opportunity to sell.
ii) A Narrow Bid and Ask Spread
In this scenario, there are more buyers than sellers. The bid price is higher while the asking price is significantly lower. Traders use this scenario to “catch-in” on the buy-in frequency in a bid to balance the selling pressure.
3. Arbitrage
Due to market volatility, crypto arbitrage is quite favorable. This strategy involves traders taking profits from the difference in the price of a single coin by trading the coin in different markets. Crypto arbitrage trading consists of two approaches – pairing and spatial arbitrage.
A spatial arbitrage trader has the opportunity to open short and long trade positions on different exchanges at once. On the other hand, a pairing arbitrage trader can only open a long and short position on a single exchange.
4. Price Action
Price action is the next strategy on this list. This strategy involves studying coin price movement. Using price action to the scalp is not different from other price action strategies.
5. Executing Trades Manually
This is the last scalping strategy in this article. You must have heard of the importance of inserting a stop-loss order in a trade as a measure to prevent market risk, there is an exception to this notion as far as scalping is concerned. Remember, placing a stop-loss order in every trade requires at least 5 seconds, during which a coin price can change significantly.
Placing a stop-loss order is perfect for trades whose timeframe runs into days or weeks, not scalping that the trader will exit the market at the end of the day’s trading. In this regard, many scalpers prefer manual trading, as it’s simpler and time-saving.
What Are Crypto Scalping Signals?
If you are a newbie without any scalping knowledge, you’re likely going to burn your fingers on the crypto market if you attempt to place a trade without proper guidance. Crypto scalping signals are like the proper guidance that you need to succeed as a scalper. At its core, they offer suggestions to either buy or sell a trade position to make quick profits. Crypto scalping signals use smaller time frames to function.
The benefits of using crypto scalping signals cannot be overemphasized. For instance, you can depend on the trading signals to automate your trade positions. You don’t need to sit in front of your laptop all day monitoring the direction of the market or price movement, with crypto scalping signals, all you need to do is to execute the trade suggestions you received from a signal provider.
With lots of crypto scalping signal providers on the market, it can be overwhelming to choose one that suits your trading preferences and style. Therefore, you have to do your own research before you subscribe to a signal provider.
Mistakes To Avoid While Using Scalping Signals
There is no hard and fast rule as far as the crypto market is concerned. A strategy that works for trader A may not work for trader B, and vice versa. As a scalper, there are some actions that you take that may spell doom to your trading career. For this reason, we have decided to curate some obvious mistakes that new scalpers like you usually make, as soon as they hit the crypto market, espeScalping Signals.
1 – Trading Only Lower Time Frames Only
The number one and most obvious mistake that most scalpers make as soon as they hit the crypto market is scalping small time frames. Even though the approach of every scalper is to trade short-term, to succeed on the crypto market, you should not ignore trading higher time frames.
Trading higher time frames do not necessarily mean that you will have to look at monthly or weekly charts to determine price direction or market movement, it means paying attention to the next higher time frame so that you can take advantage of any price differential that occurs or exists.
For example, if you set up your trading strategy and decide to trade a 15-minute chart, you also need to look at a 35-minutes chart for more inspiration. The benefit of paying attention to higher time frames is that it will notify you of key price levels that lower time frames cannot spot out.
The higher time-frames will also help you make informed trading decisions whether or not you scalp with the trend. A lot of scalpers get caught in the lower time frames web, which results in a huge trading mistake. So don’t make this mistake!
2 – Ignoring the news or comments made by Institutional Investors
Most newbie traders do not believe in paying attention to the news or comments made by a public figure like Elon Musk, simply because they are scalping. This is a big mistake. As a scalper, it beholds you to always listen to news whether you are scalping the crypto market or using specific trading strategies. Plus, you should know the type of news that would be released or distributed during the time you’d be trading.
Usually, during major news releases, the market is very volatile and can cause token prices to skyrocket or decline significantly. If the market increases or decreases significantly, it portends great danger for a new trader or scalper. You will be making a great mistake if you don’t know the type of news that will be released when you are scalping.
To learn more about what drives trading news releases, do well to constantly read crypto-related blogs and news. You may also join different crypto-related forums. Members of these forums are also crypto traders like you. So, in essence, cultivate the habit of knowing scheduled news releases. Plus, endeavor to pay attention to other financial markets like forex, stocks, bonds, and futures.
3 – Ignoring Key Resistance And Support Levels
This is another mistake that most scalpers usually make. Keep it at the back of your mind that token prices do come back to previous resistance and support levels. As such, if you do not pay attention to these resistance and support levels, you will lose your trading capital to market forces.
This brings us back to mistake number one that we highlighted earlier. If you take a closer look at higher time frames, you will see in real-time the support and resistance levels. In fact, the resistance and support levels will become so obvious at higher time frames for you to integrate into your trading strategies. Do not spend all day trading lower time frames alone because you won’t see support and resistance levels that will help your trading career.
In summary, if you can avoid these three trading mistakes as a new scalper, you would be one step away from becoming a pro scalper. As a matter of fact, you’ll reach your profit projections earlier than you have expected.
Why Use The Best Trading Signals?
Best Trading Signals is one of the leading scalping signal providers in the crypto trading space, especially for Binance and Bybit exchange. We provide automated trading signals that are powered by artificial intelligence. Established in 2008, Best Trading Signals offers Telegram signals, Bot, and Indicators for professional and newbie traders. It’s most suited for Scalping on the Binance Bybit exchange with the new channel Scalping Signals.
The signals generated by this provider are not only accurate but have the potential to help you reach your financial projections. Whether you want to trade the crypto market alongside your 9-5 job or you want to take up a full-time crypto trading career, Best Trading Signals has got you covered.
Here are some reasons why you should consider using us as your scalping signal provider of choice.
1. Accurate Scalping Signals
Best Trading Signals provides over 80% accurate scalping signals that will both boost your trading confidence and trading experience. Plus, our scalping signals are crafted for trader levels. The signals are easy to apply and come with adequate risk management measures.
2. Trading Indicators
Aside from scalping signals, Best Trading Signals also offers accurate and comprehensive trading indicators. Every professional scalper surely knows the essence of using a trading indicator; as such, you should choose an indication that will improve your trading experience and also help you take profits with ease.
With so many scalping indicators on the market, you should do your due diligence before picking one, otherwise, you may end up wasting your time and energy.
3. API Bot
A bot is designed by professional traders who understand the market and how to profit from small price differentials. The bot offered by us uses your account details to automatically trade different coin pairs of digital assets without any action from your end. Our bot can help you manage your portfolio in real-time and also monitor your deals on a 24/7 basis.
Final Thoughts On Scalping Signals
Okay, that’s it. You can now see that scalping is a great trading strategy that can fetch you great returns on your crypto investment. At its simplest form, scalping involves taking advantage of small price movements of a coin pair.
Scalpers are known to open and close a trade position within a short period of time with the aim of making a profit. Scalping comes with lots of benefits, including lesser exposure to trading risks and the ability to open and close as much trade as you want. Plus, it helps traders to control their greed level since the profit margin is usually very small.
One of the most effective scalping strategies is the use of an oscillator. However, it is not a standalone indicator, you have to combine it with other indicators for effective performance. If you feel the whole process of implementing any of the strategies we have discussed in this article is too cumbersome, you can simply rely on our scalping signals and still make your profits.
One of the signal providers you can turn to is Best Trading Signals. This provider understands how the market operates and offers trading signals tailored to meet your needs. The signals are accurate and have all been back-tested. You can proceed to our signal page to get more information about our services.
