Scalping is a high-frequency trading strategy in the cryptocurrency market that aims to make small profits from minimal price movements, often within minutes or even seconds.
Traders, known as "scalpers," open and close numerous positions throughout the day. The main objective is to capitalize on short-term volatility and bid-ask spreads.
This strategy requires careful technical analysis, often using indicators such as moving averages and Bollinger Bands, and ultra-fast execution. Scalpers must be disciplined, have steady nerves, and solid risk management, as even small losses can add up quickly given the high frequency of trades.
It also requires fast platforms and low fees like our Binance!
DYOR