Cryptocurrency scalping: entertainment for beginners or a real way to make money??

The high volatility of cryptocurrencies makes it possible to make money even over short distances. Scalping is an intraday trading strategy where a trader makes a large number of low-profit trades that result in high profits.

What is your attitude to scalping? Can you consider intraday trading as a way to earn money or is it just a kind of trading that allows you to get acquainted with the general principles of market functioning?

Scalping can be your main way of earning, but it is a very stressful job. The value of cryptocurrencies is constantly changing, allowing you to profit from price differences. Scalping won’t teach you how to trade, but it can teach you how to use trading tools to go deeper into trading.

You don’t need a deep understanding of the cryptocurrency market to engage in scalping, just an understanding of the daily price fluctuations of crypto-assets, because that’s what you’ll be making money on. It’s a more active way of trading — you can buy bitcoin in the morning for 100% of its value, and sell at lunchtime for 110%. So in one trade you can get 10% to your deposit, which you can immediately take out to your account.

What methods of predicting are the most effective for scalping and why (trading by the news, technical analysis, scalping by the “cup” or propose your own method).

The surface technical analysis is the most convenient method for predicting the market when scalping. To make fast trades on the exchange you must see the behavior of prices, and that is what technical analysis is for. Moreover, if you strengthen the technical analysis with fundamental analysis and constantly monitor the news background, scalping can be a very efficient tool.

In order to engage in scalping, you need to be able to make quick decisions and extract information from cryptocurrency value charts. The simpler and clearer the method, the better. Experienced traders also use bots for the stop-loss function, so that they don’t have to check the exchange rate every two minutes themselves.

Is scalping appropriate for beginners or is it more for experienced traders?

Scalping is suitable for everyone — both experienced traders and beginners. It’s a question of how do you want to trade? In traditional trading you buy assets and wait for them to rise in value so you can sell. In scalping you do the same but you wait for hours and sometimes even a few minutes.

Scalping gives a chance to learn trading in a laboratory environment, so it might be easier for beginners to start with scalping. However, an experienced trader who is constantly sitting on cryptocurrency exchanges can also engage in scalping in order to have an additional source of income.