Is Scalping even viable in Cryptocurrencies?

[Sliplop12x13]

Hello Everyone. I currently trade on Foreign Exchange Market and my preferred style is always "Scalping" which involves fast execution, and gaining advantage from short price changes.Thus, I highly rely on technical analysis rather than fundamental. I just want to know if scalping is practical in the crypto world.

[NeuroticFish]

You should read some reviews about crypto trading bots. From what I know, they do use scalping. But crypto market fluctuates on wider range than Forex, so you'll need different adjustments/settings.
I do not trade, however, so you'll have to research more than just my words.

What strategies do cryptocurrency robots use?

They often utilize a strategy called scalping.

[Rruchi man]

If you are a scalp trader, it means you have to be monitoring the market at all times, because your profit depends solely on it. Scalping can be viable in trading if the amount you use in trading is really very large such that even your 1% profit is a good sum. If you however trade with small small amount of money, scalping might not be a very viable method to make good profit.

[ethereumhunter]

Hello Everyone. I currently trade on Foreign Exchange Market and my preferred style is always "Scalping" which involves fast execution, and gaining advantage from short price changes.Thus, I highly rely on technical analysis rather than fundamental. I just want to know if scalping is practical in the crypto world.

Scalping is one of the ways that the trader uses to make a fast profit. But you need to have more skills to use scalping trade because that will not be easy to analyze the market movement in a short time. If the price moves fast, you can use scalping trade and take profit when the price increase. You do not need to take a bigger profit because that will need more time to execute the trade. If the price can move 0.5%-1%, that will be enough for you to trade fast and as long as that can cover the fee of trading and you can still make a profit, that will be okay for scalping trade.

[AicecreaME]

Scalping has the smallest profits a trader could get compare to swing trades and day trades, so using the term "practical" is not suited for it, "safest" I think suits it the most. Even with the small profits in scalping, losses on it is only minimal compare to the two other trading ways that I've mentioned, in short, we can call scalping the "safe zone" in Trading, in my opinion.

No matter how small it is, if you add all of your profits, it could still be bigger, not that big but better than having no profits at all.

[Sliplop12x13]

Scalping has the smallest profits a trader could get compare to swing trades and day trades, so using the term "practical" is not suited for it, "safest" I think suits it the most. Even with the small profits in scalping, losses on it is only minimal compare to the two other trading ways that I've mentioned, in short, we can call scalping the "safe zone" in Trading, in my opinion.

No matter how small it is, if you add all of your profits, it could still be bigger, not that big but better than having no profits at all.

I beg to differ. Scalping is opposite to what you have mentioned "Safe zone", it is considered as one of the most risky type of trading in any assets. Since you have small profits per trade, a single lost trade could make a substantial loss to your capital. Even using a 1:1.5 Risk/Reward ratio is not suitable for this type of trading since you are aiming for a small profit in a short price change, for this reason, a 3:1 RR ratio is effective.

[mrkfdr]

Hello Everyone. I currently trade on Foreign Exchange Market and my preferred style is always "Scalping" which involves fast execution, and gaining advantage from short price changes.Thus, I highly rely on technical analysis rather than fundamental. I just want to know if scalping is practical in the crypto world.

scalping is practical in the crypto world, you will need some tuning compared to forex.

[mrkfdr]

Scalping has the smallest profits a trader could get compare to swing trades and day trades, so using the term "practical" is not suited for it, "safest" I think suits it the most. Even with the small profits in scalping, losses on it is only minimal compare to the two other trading ways that I've mentioned, in short, we can call scalping the "safe zone" in Trading, in my opinion.

No matter how small it is, if you add all of your profits, it could still be bigger, not that big but better than having no profits at all.

I beg to differ. Scalping is opposite to what you have mentioned "Safe zone", it is considered as one of the most risky type of trading in any assets. Since you have small profits per trade, a single lost trade could make a substantial loss to your capital. Even using a 1:1.5 Risk/Reward ratio is not suitable for this type of trading since you are aiming for a small profit in a short price change, for this reason, a 3:1 RR ratio is effective.

you can decide how much you are willing to loose, in case of drop, based on how long it takes to ear it back. ?

[beerlover]

I currently trade on Foreign Exchange Market and my preferred style is always "Scalping" which involves fast execution, and gaining advantage from short price changes.Thus, I highly rely on technical analysis rather than fundamental. I just want to know if scalping is practical in the crypto world.

As I have experience on trading both crypto and forex, I would say cryptocurrency market is not different from any other markets hence you can go for scalping when you're good in technical analysis. But, there is one big advantage in cryptocurrency market because most coins are having limited supply hence just holding is highly profitable than any other method of trading.

Obviously holding requires lots of patience and time and when you're not ready to wait then you can go for any short-term based strategy but personally I'm recommending to go for holding so that you may continue focusing on forex trading as well.

[xianbits]

Hello Everyone. I currently trade on Foreign Exchange Market and my preferred style is always "Scalping" which involves fast execution, and gaining advantage from short price changes.Thus, I highly rely on technical analysis rather than fundamental. I just want to know if scalping is practical in the crypto world.

I do believe that "what works to you may not work to other people" or vice versa. So maybe you can apply your skills learned from forex and see if for yourself if it works to you. But with the volatility of the market, scalping can also be a great loss. That's why I'm not doing it.

[watergold]

scalping in crypto trading can be applied, but with the movement and setting the option time of 1 minute. even then with a large enough risk. you could easily profit. but you need to examine again that every price movement such as in forex and in the crypto market will be very difficult to match. it is proportional to the risk you will accept. Most of us don't really like scalping trading. to be honest it's not easy. we are more comfortable to trade with much longer intervals.

[Insanerman]

Hello Everyone. I currently trade on Foreign Exchange Market and my preferred style is always "Scalping" which involves fast execution, and gaining advantage from short price changes.Thus, I highly rely on technical analysis rather than fundamental. I just want to know if scalping is practical in the crypto world.

Yes! Scalping is indeed effective and worth it especially if you already mastered the art of entering on right position and exiting on the perfect price. You can use futures/leverage trading for a greater profit but still in crypto you must always consider applying stop-losses as compared to Forex, crypto can easily liquidate your profit regardless of how perfect your analysis is. You can see other crypto coins that had long sell candle wicks or long buy candle wicks in just a minute. So better be careful and cautious at the same time.

[justdimin]

Scalping is indeed effective and worth it especially if you already mastered the art of entering on right position and exiting on the perfect price.

When you are master in predicting market direction then you can go for short-term trading rather than just scalping. I don't think entering at right time and at right price level is not that much easier task as it is all about profitable trading

You can use futures/leverage trading for a greater profit

What is capable of yielding greater profits, is also capable of getting us huge losses.

You can see other crypto coins that had long sell candle wicks or long buy candle wicks in just a minute.

But, these are usual happening on forex market as well. Still I agree crypto is different because of halving and limited supply.

So a wise thing in crypto trading is, how you are going to make use of unique characteristics (halving/limited supply/controlled supply) of cryptocurrencies.

[Theb]

Scalping (for me) is just another term for day trading and its just that the only difference is scalping for traders is a much more shorter time frame as compared to day trading but for me honestly they are just the same. Asking if you can day trade/scalp in a market is also similar to asking if the market is volatile or not since volatility is key when it comes to taking profit on a shorter time frame. Almost everyone of us know that the crypto market is one of the most volatile markets out there so in short it is a perfect fit for short term traders like day traders and scalpers as they can literally make a profit for just waiting 1 minute or so.

[adzino]

Hello Everyone. I currently trade on Foreign Exchange Market and my preferred style is always "Scalping" which involves fast execution, and gaining advantage from short price changes.Thus, I highly rely on technical analysis rather than fundamental. I just want to know if scalping is practical in the crypto world.

You should keep in mind that the Foreign Exchange Market and the crypto market isn't the same at all. The foreign exchange market is more stable that the of crypto market. Hence your method works better over there. The crypto market is very volatile. Not just very, extremely. You make think you bought at the lowest price, but within seconds you may see other sell orders with even lower price. There are bots that automatically grabs the lowest sell order. You may try those if you are willing to take risk. Good profit, but also comes with very high risk.

[cute nmp]

Scalping is also variable in crytocurrency trading but it is more risky than forex because crytocurrency market is too volatile you can easily lose alot of money cos of the high leverage involved in scalping.The best thing is to practice day trading in the cryto market and use you scalping skill in forex.

[blockman]

Yes, it is. I've known people in groups that have been doing this strategy. They're likely living on their daily through scalping but I don't do this strategy on my own.
@OP with your experience in forex, I think you can do it but you still have to practice it.

[jostorres]

I've known people in groups that have been doing this strategy. They're likely living on their daily through scalping but I don't do this strategy on my own.

Probably those people might be doing only in spot market with the secondary option of converting their positions from scalping to long term holding when something unexpected happening. Because, scalping on margin trading and shorting will be too risky especially in crypto markets; you cannot escape all the times as market fluctuations will trap you one or another.

So the only possibilities will be, you may go for scalping in crypto markets and if you get profits then fine if market goes against you then you need to be ready to hold without exiting at stoploss; these are all possible only with BTCUSD pair and on spot trading alone.

[blockman]

I've known people in groups that have been doing this strategy. They're likely living on their daily through scalping but I don't do this strategy on my own.

Probably those people might be doing only in spot market with the secondary option of converting their positions from scalping to long term holding when something unexpected happening. Because, scalping on margin trading and shorting will be too risky especially in crypto markets; you cannot escape all the times as market fluctuations will trap you one or another.

So the only possibilities will be, you may go for scalping in crypto markets and if you get profits then fine if market goes against you then you need to be ready to hold without exiting at stoploss; these are all possible only with BTCUSD pair and on spot trading alone.

Well, if they're a real life trader, they can shift from spot to futures and scalp wherever they're comfortable with. It is risky really but if they have much experience and they do it from time to time.
The risk that they're taking is nothing compared to the new ones that are trying to do it.  But in the position of OP, he has to practice first because he might be surprised with cryptos volatility.

[Oilacris]

Hello Everyone. I currently trade on Foreign Exchange Market and my preferred style is always "Scalping" which involves fast execution, and gaining advantage from short price changes.Thus, I highly rely on technical analysis rather than fundamental. I just want to know if scalping is practical in the crypto world.

I cant say its practical but it is really worth to try.When it comes to movement of prices then no doubt that you can really scalp out significant possible gains compared into forex or stocks which
volatility isnt really that much.

The thing here is that scalping with too much volatility will really be equaled in between risk and reward ratio.In the answer towards your question then it would be good if you do try for yourself.

You cant say something if you dont actually able to experience on making out some scalping trades.Its risky but once you do able to get it then its really rewarding.