🚀 Scalping is a high-frequency trading strategy that involves making numerous small trades throughout the day to exploit minor price movements in a cryptocurrency (or any other asset). Here's a breakdown of what scalping entails:
🔍 Key Characteristics of Scalping:
1. Short Holding Periods:
Trades are typically held for seconds to a few minutes.
Positions are rarely left open overnight.
2. High Trade Volume:
Scalpers make dozens to hundreds of trades per day.
The goal is to accumulate many small profits that add up over time.
3. Small Profit Targets:
Each trade aims for tiny gains, often 0.1%–1% per trade.
Stop-loss orders are tight to minimize potential losses.
4. Market Conditions:
Works best in liquid markets with tight spreads (like BTC/USDT or ETH/USDT).
Scalpers rely on volatility and speed.
5. Tools Used:
AI-powered bots are ideal for scalping since they can react faster than humans.
These bots use technical indicators, machine learning models, and real-time data feeds.
6. Trading Platforms:
Requires platforms with low latency, low fees, and advanced API access (e.g., Binance )
✅ Pros:
Fast results — profits (or losses) realized quickly.
Reduced exposure to market risks since trades are very short-term.