Scalping in crypto trading is a high-frequency strategy where traders aim to profit from small, rapid price movements. This involves executing numerous trades daily, holding positions for mere seconds or minutes to accumulate small gains into larger profits. It thrives in highly liquid and volatile markets like BTC/USDT and ETH/USDT, where tight bid-ask spreads are crucial for minimizing transaction costs.
Scalpers heavily rely on real-time technical analysis using indicators such as Exponential Moving Averages (EMA), Relative Strength Index (RSI), Bollinger Bands, and MACD to identify precise entry and exit points. Some even use automated trading bots to execute trades quickly and eliminate emotional bias.
While potentially highly profitable, scalping is also very challenging. It demands strict risk management (e.g., using stop-loss orders), significant time commitment, and strong emotional control. High trading fees and the risk of slippage are also major considerations. Due to its intensity and complexity, scalping is generally not recommended for beginners.
