Scalping with Cryptocurrencies: what it is and how it is done

Scalping with cryptocurrencies is a form of trading with digital assets that is based on making many operations in a short space of time to take advantage of the volatility of the assets. Seek to obtain many small returns in a short time. 

What is the Scalping strategy with cryptocurrencies?

The word scalping refers to an investment technique that is used in different environments, and that can also be applied to cryptocurrencies.

It is a short-term investment and operating model that seeks, through multiple operations, to obtain small profits throughout a day, which accumulate over time.

In short, instead of long-term positions looking for profitability over time, it is sought to operate many times in a short space of time to add the set of small returns.

In general, it is considered that the appropriate markets are those in which the price variation is relatively constant and wide, and also occurs at great speed compared to the price evolution of other types of assets.

The cryptocurrency scalping strategy can be carried out on any cryptocurrency exchange such as, Bybit, OKX, Bitmex, Bitfinex, Phemex, dYdX or through a professional Crypto scalping software.

We advise you to use CScalp, which offers you the capability to switch between exchanges without changing platforms, as well as support for managing multiple accounts on a single cryptocurrency exchange and swapping between them with just a few clicks. 

How is scalping done with cryptocurrencies?

The basis on which cryptocurrency scalping is done is easy to understand, but not so easy to put into practice.

These are operations that take place throughout a session or day. These operations can be performed for minutes, or even seconds.

What they are looking for is to take advantage of the best time to buy a cryptocurrency and the best time to sell it, in a short period of time. As soon as the asset evolves and allows a small but consistent profit to be obtained.

The theory is simple, but practice requires significant experience both when choosing the environment in which it operates and the cryptocurrencies with which it will be put into practice.

On the other hand, it requires an important emotional strategy to know how to close a trade, even in losses, and withdraw in the winning phase. It is not a simple method, and it is not available to everyone since it presents a lot of risk, in return, it can also offer a good benefit.

What are the best cryptocurrencies for scalping?

The cryptocurrency market is changeable enough to make it difficult to identify more suitable assets than others when it comes to strategies as aggressive as scalping.

In general, it will be considered that practically any cryptocurrency can be traded, preferably those that are best known by the user, and that show higher-than-average volatility trends.

It is usual for this type of operation to use trading signals, chart reading and indicators that can help in reviewing short-term movements.