What is Scalping Trading?
Are you new to the cryptocurrency world and want to be a billion-dollar trader someday and seek information on the right platforms to trade? Are you a beginner or intermediate trader that needs effective trading platforms? Trust me; you might want to consider the merits of a cryptocurrency bot, and you will find this article useful.
Scalping is largely considered the short-term trading method that players employ to profit from the volume of trades rather than aggregating most gains from individual trades. It is the trading method with the shortest trading cycle.
It is considerably shorter than all other known trading styles, including the ones most day-traders use because of their penchant for quick wins. The name “scalping” came from the styles of those that typically adopt the strategy; they call them “scalpers” because they walk in and out of the market quickly to scrape little profits from as many trades as they can throughout the day.
How does scalp trading generate profit?
Scalping is all about quick profits, and most traders that adopt this method understand the assignment. You won’t see “Scalpers” thinking about what will change in the coming days; it is all about the moment; they take their chances and walk.
Scalpers analyze technically and critically, all within a very short period, typically less than three minutes. The magic for Scalpers is in the small movements in prices in the market; they pounce and capture the profits they consider enough. Most of the time, Scalpers factor in the amount of money they trade, and once they reach a level above their break-even point, they close the cycle.
A Scalper’s profit is in the little margins from as many trades as possible. A Scalper will open many tabs of trades and close each tab as soon as there is little profit; the end goal is to have lots of profits from many individual trades.
What are the best crypto scalping bots?
There are quite a few crypto scalping bots that offer great value, and we’ll look at them in no particular order.
- Bitsgap Bot
Bitsgap is a highly rated trading platform that effectively merges your cryptocurrency exchange accounts and trades them on a single trading interface.
Bitsgap Bot has integrated more than two dozen major crypto exchanges, including top market leaders like Binance, Kraken, Coinbase Pro, and Bitfinex; they run the same services for the same exchanges (trading, automated bots, portfolio, arbitrage, and signals)
What are the key benefits of Bitsgap Bot?
– It is a comfortable platform
– It is built-in trade bots
– It has a wide range of pricing plans for traders
– It has a 14-day trial demo to help starters understand how it works
– Availability of a quick start feature
– Local currency conversion option as well as a cryptocurrency exchange
– Availability of over 10,000 trading pairs
How do you register on Bitsgap Bot?
You can practice with the 14-day trial period that follows your registration. It is basic, and you won’t have to pay for the extended functionality of the platform until the expiration of your trial period. You will not have access to most features if you stay on the free plan.
There are three plans under the paid version of Bitsgap bot – the basic, advanced, and pro plans and they cost £21, £59, and £127, respectively.
- Cryptohopper Scalping Bots
Cryptohopper is one of the most effective and reliable platforms in this scalping business. You will be able to use automated training bots that allow trades to be made on your behalf, leveraging the underlying conditions that the bot has been programmed to implement.
Cryptohopper platform has facilitated trades for well over one hundred and forty thousand people since 2017, when the company came into existence.
The Cryptohopper bot currently serves eight leading cryptocurrency exchange platforms on full compatibility levels like Coinbase Pro, Binance, Bittrex, and Kucoin; this guarantees you sufficient liquidity levels while achieving programmed instructions, and it works round the clock.
Cryptohopper Scalping Bot comes with three paid plan options, the Explorer Hopper at $19/month, Adventure Hopper at 49/month, and the premium option, Hero Hopper at $99/month.
Why you should consider Cryptohopper
– Crypothopper is suitable for all experience levels
– Cryptohopper utilizes the drop and drag framework, which knocks off the need for previous coding or programming knowledge
– All three paid plans on Cryptohopper offer outstanding value for money
- 3Commas Scalping Bot
3Commas primarily seeks to help traders build automated trading bots for seamless operations. 3Commas has over 33,000 users and entertains more than $10m in trading volumes daily. The platform is easy for beginners and gives you a spot trading interface that offers risk management tools to those who trade manually.
3Commas is relatively affordable, it comes with three payment plans, and the highest of them is the Pro plan which costs $49.50, while the other two cost $14.50 (starter) and $24.50 (advanced), respectively.
Why you should consider 3Commas Scalping Bot
– It comes with cheap pricing options
– It has a smart trade feature which helps with useful risk management tools
– It is compatible with about 22 crypto exchanges
– It comes with two fundamentally different styles of trading bots to offer you options
– 3Commas includes portfolio analysis and copy trading
Coinrule trading bot
It is a challenge for many traders to constantly stay awake to monitor their trading online. Coinrule is why an automated trading bot is a popular choice, and if you’re looking for one that doesn’t need any coding or programming experience, you might want to consider Coinrule.
Coinrule helps traders stick to a particular cryptocurrency strategy without constantly monitoring their trading.
Coinrule thrives under the management of blockchain and crypto enthusiasts. Since 2017, they have helped traders to integrate safely with strong exchanges.
Coinrule offers user-friendly automated trading with a bot that monitors the market and makes strategic decisions, giving you extra time to focus on something else. Coinrule has templates that suit all comers; whether you’re starting fresh or experienced traders, you’ll have a built-in trading strategy to choose from the one hundred and fifty trading rules available on the platform.
Coinrule has historical market data that helps you test your knowledge before investing; it is called the backtest strategy. You can select your preferred coin, the time frame you want to trade for, and the trading rule you want to employ; the bot will generate your potential net profit, profitability percentage, maximum drawdown, and profit factor.
How much does Coinrule cost?
Coinrule has four plans, and three of those are paid. The starter plan is free, but you won’t have access to features that would help you thrive.
Hobbyist costs $39.99, and it is mostly for beginners as it comes with only 40 trading template strategies and 7 demo rules.
The trader plan costs $79.99, and it comes with unlimited trading template strategies and fifteen demo rules. The premium plan is Pro, and it gives you all access for $499.99.
Coinrule is safe to use as it will never ask for your withdrawal rights; this guarantees a good level of safety; Coinrule operates on a high website security standard with two-factor authentication, payment protection, and your information is safe through military-grade encryption.
- Pionex Scalping Bot
Pionex trading bot is a great platform for beginners as it offers built-in trading bots with detailed tutorials that explain how to use each bot.
For a new entrant into the crypto world, you will need a responsive customer care assistant, either over the phone or via emails; Pionex offers you this seamlessly. Pionex offers you automated trading with eighteen free bots, Pionex has android and IoS mobile apps, and it supports over 120 different cryptocurrencies.
Pionex is the most cost-effective trading platform, all the eighteen trading bots are free to access, and you’re charged as low as 0.05% on every trade.
If you’re new to the game and trying to choose your preferred trading bot with a friendly user interface, cheap trading charges, access to free trading bots, and want an automated trading platform, then the Pionex scalping bot is your best bet.
Types of crypto scalping strategies
- Crypto Range Trading: This is the difference between the high and low prices at a particular time. It is defined by prices staying in a predictable range over a period, characterized by a support price and a resistance price under which the prices fluctuate.
- Bid-Ask Spread: The difference between the asking price and the bid price for an asset in the trading market. The discrepancies between the buyer’s highest price and the lowest price the seller is standing on. The Spread is also known as the transaction cost.
- Arbitrage: When the purchase and sale of the same asset happen in different markets. It uses the variations in prices of similar financial elements in different markets.
- Price Action: A technical trading practice analyzing trading tools and recent pricing history. It gives traders the liberty to make their own decisions at given times, leveraging available tools.
- Margin Trading: This is a trading method where players trade with funds from third parties. Margin trading offers traders a larger amount of trading capital. It also amplifies trading results to allow traders to make bigger profits.
When is the best time to start scalping?
There are different types of scalpers, which means no one size fits all-time in this regard, but I will try to rationalize the different options for those seeking the time that suits them.
7:00–8:00 AM is quite volatile, but it works for early risers. Early morning is when major European markets open, and many traders like to jump on little margins as early as possible. Those who fancy choppy conditions can learn a few tips during this time, but it is not considered the best overall time for scalping.
8:00–10:00 AM is the most liquid and the most volatile period of the trading trade, and players who operate at this time must be mentally aware of the fluctuating situations of the market at this time.
At this time, the London, Frankfurt, and New York markets are all fully open; rapid and sharp directional variations are not unusual, and traders must employ reliable technical tools to make the best decisions.
3:00–7:00 PM is generally considered the most suitable trading period for scalping for traders that enjoy market volatility that brings higher returns. At this time, major banks in top European markets and other developed worlds are closed, and the terrains become choppy; leveraging small and rapid trades brings consistent gains.
Since scalping is all about small and rapid gains, the period of 3:00 PM to 5:00 PM is the most suitable for this purpose. Fast and furious traders will enjoy this period while the calmer traders enjoy the 5:00 PM to 7:00 PM.
Does scalping have any disadvantages?
Scalping is all about the little margins; hence, there will always be a downside, especially for traders seeking higher returns on their investments. The little gains that come on quick close-outs might not be sufficient for some traders who have set high financial goals.
The biggest risk of scalping is unexpected losses. Considering the size of the loss in question, you may have made small gains on a series of scalpings, but all that can be eroded by just one loss.
While the volatility of the currency market can swing the gains in your favor, it can also swing the loss wildly in your direction if you don’t pay attention. To avoid this unwanted scenario, you should employ an automated trading bot.
What are the best cryptocurrency scalping indicators?
Scalping indicators are what traders use to predict the swings of the crypto market. Indicators are mathematical tools that assist traders in making accurate decisions, there are quite a few of them, but I will name my top five.
- Moving Average Convergence/Divergence (MACD): This is one of the most popular trading indicators for the cryptocurrency market. The MACD is the most preferred by top players because of its accuracy in predictions. The MACD is easy to use, and it offers one of the most precise signals. The MACD indicator follows trends to determine whether the short-term price momentum is in sync with the long-term price momentum. The MACD indicator uses four strategic elements – The MACD line, the signal line, the zero line, and the histogram.
- The MYC Trading Indicator: This is a sensitive indicator that uses momentum oscillators and trend analysis to determine where the wild waves of a cryptocurrency market will swing. The trendline feature on the MYC indicator reveals whether a long signal will be produced or not when the price rises or falls.
- Moving Averages: A moving average indicator is a lagging indicator that takes the account price movements of old events into cognizance. You can choose between the “simple” and “exponential” options on the Moving Averages Indicator, and your choice is largely dependent on your trading style.
- Relative Strength Index (RSI): This indicator helps traders determine when the offer price is too high from its original value; this yields profits for active traders before the market regulates back to the normal price. The RSI uses mathematical tools to determine whether a coin is overbought or undervalued; it is most valuable for volatile trading hours.
- Bollinger Bands: This oscillator that measures market volatility is one of the oldest trading indicators as it has been in existence since 1980. The traders that rely on Bollinger operate in the volatile hours, and this indicator helps them determine the market’s high and low extremes.
Is crypto scalp trading for everyone?
Crypto trading bots are automated computer programs designed to run specific tasks with minimal or no human interference. In crypto trading, crypto trading bots automatically run the work of trading either one or multiple cryptocurrencies on one or more platforms on behalf of the user.
Crypto bots are used to automate trading strategies and amplify trading profits. Getting the right bot for your trading is the most important factor, as it can easily decide your success or failure in the market.
Scalping requires advanced knowledge of market mechanics and technicalities, which means it cannot be suitable for everyone, especially those who want big gains on one trading.
Scalpers make quick decisions, and sometimes they do under duress; this means anyone who wants to scalp must be attentive while trading, but automated scalping bots will take care of some of these fears.
The best crypto trading bots do more than just trade crypto; they combine different intelligence to gather crypto market information in real-time using APIs. They process this information using existing trading strategies to derive actionable conclusions called trading signals.
The best cryptocurrency trading bots draw information from many social outlets, news sites, cryptocurrency market deciders, etc. And this is why Crypto bots employ Artificial Intelligence and machine learning to decipher what event is making a social impact and which will most likely influence market prices. You can buy bots separately as a single software or integrated into several crypto exchanges.
Do crypto trading bots work?
Yes, they do, but you must choose the right ones to avoid frustrations. The best trading bots generate profits that have more value than the coins many other traders hold on to.
Are cryptocurrency trading bots profitable?
Trading bots will always be profitable if you configure them properly to suit your needs.
Are crypto trading bots legal?
Yes, crypto trading bots are fully legal.
Recommended crypto bots
- Bitsgap Bot
- Cryptohopper Scalping Bots
- 3Commas Scalping Bot
- Pionex Scalping Bot
What is the best crypto for scalping?
Your trading styles and risk profile will determine the best crypto for scalping for you, but fresh starters typically choose bitcoin because it is less volatile and more stable than other altcoins. You’re advised to consider various indicators for scalping to automate your trades.
Does Robinhood allow crypto scalping?
The answer is YES! Robinhood allows trading within the platform.
In summary, scalping is ideal for traders that combine small drops of gains to form a big ocean of gains, and they consider the fact that risks are reduced, and they can have as many deals as possible at the same time.
Understanding the available bots, the technical tools, and trading indicators will help a trader determine what works at a given period.
Also, trading styles matter, i.e., you must understand the level of volatility that works for your trading style.