If you are a crypto trader, you must have thought at least once about how to scalp crypto!
In a progressive modern society, technology has enabled us to generate different sources of income for all people. People are now moving from conventional methods of generating money to things that interest them, and a perfect example of this is trading crypto!
If you are a beginner and want this thought to come to fruition, you are at the perfect place! A crypto trader always has keen eyes and a futuristic approach to everything they do.
It would help if you were prepared to accept whatever comes your way and take risks when necessary. With this ” How to scalp crypto ?” guide, you will learn that!
Scalping is one such technique that requires you to strategically plan out the inside-outs of what you do and when you do it. But, you absolutely need not worry, as this article will elaborate on tips and tactics to scalp crypto for beginners.
If you are looking to invest in crypto and don’t know where to start, visit BitcoinxApp and become a crypto trader right away! Now, let us understand what scalping means to understand the strategies better.
What Does One Mean by Scalping in the World of Crypto?
If you are here reading this, you might probably have a slight idea of what it means when one says ‘scalp crypto’. If you don’t, no worries! Scalping, in simple words, trading the small time frame like a minute or five-minute chart for gains such as day-trading.
While it is pretty challenging to be a scalper, you should know that it earns you enormous rewards! The daily in the universe of crypto is so high that it can make you rich. if you know how to do the right thing! Anyways, now that you understand what scalping means.
Let’s get to how to scalp crypto with two easy-to-follow strategies given below!
How to Scalp Crypto With These Easy-to-Follow Strategies
You can make use of any of the two strategies given below! The steps have been explained in such a way that an amateur crypto trader will have no difficulty understanding them:
EMA is short for Exponential Moving Average, and we need to use three different EMAs here- the three, the six, and the nine-period EMA together. Since we are scalping, this is a very short-term chart that we are going to make use of.
You can either use the three-minute or five-minute chart, but again you can modify these based on your preferences.
Now, you need to look for a crossover of three-period EMA through six and nine periods. Without delving too deep into exponential moving averages, the shorter time period (three-period) will track the price more closely.
Then the more extended time period (six and nine periods) that you are using will smoothen out the price movements. Basically, what you will be doing here is searching for an indicator to show us what the ultra-short-term price is doing compared to the more extended price.
And if it goes right, we will be able to anticipate a move before that happens and then get in and set our trades. So, what you get to know from this is that this strategy shows you a change in the direction of trend or price.
You also understand that an order is being worked in the market that changes the price. If you execute these steps, you will find that the really short EMA tells us what the short-term trade is going to do potentially.
If scalping has started to interest you and you are a beginner, this is a great way to grasp how the market moves short term compared to the longer term. Also, the three-period EMA tells you what orders are coming into the market. So that you can trade off the back of it and enter those trades. And this is How to scalp crypto.
This is a bit difficult compared to the earlier strategy but don’t worry, as the steps as straightforward! Without going in too deep, this technique is basically a range indicator. And it can help us understand the momentum in the trade. This method takes the majority of the guesswork out of it.
Here, we will be using the stochastic oscillator as an entry trigger while working on a five-minute chart. It would help if you went long when SO is at the bottom of the range and a bullish crossover occurs.
This takes a lot of our guesswork out of our trading by just using this indicator. So, when do we trade out? We trade out when SO is at the top of the range and bearish crossover occurs.
This tells us that the first step is when it’s an excellent time to get in, that is when it is at the bottom of its range. And when it is at the top of its range, the move may be coming to an end, so you might want to get out.
There is no 100% guarantee that this works all the time. But it can serve as a simple indicator that we can use. We can also use 50 and 200 period MAs (moving averages) as extra confirmation and some extra information that we might need.
For instance, if the price is above the 50-period, it tells us that the short-term trend is bullish, and hence it might be good for us to go long and ride the trend. And this is how to scalp crypto!
With these two simple and effective strategies, how to scalp crypto might become an easy thing for you. It will be better for you to read both strategies. As it will provide a choice to you that you can make depending on which one you find easier.
The first one is based on using a short EMA as a hint for you. So that you can foresee your next move. The second one removes most of the guesswork out of trading, enabling you to decide better. Although you should note that it does not work every time. Hoping this helped, happy trading!