Trading can be one of the most exciting activities one can do. However before you commit your capital you would have to prepare , create a strategy and be disciplined enough to follow .
Michael Covel once said, never argue with your trading system once you build it up .
Scalp trading , range trading , swing trading and investing are all styles or strategies one can adopt.
In this article we will be discussing scalping , bots and Platforms to execute your trade.
Scalping in crypto trading is the method of arbitrage of small price gaps created by the bid-ask spread.
By buying the bid price and selling at the ask price you will make a net gain.
This strategy is a short term trading strategy where the trader prefers to take alot small profits over and over again.
The reason being small price movements are easy to predict as compared to big ones.
What is Scalping Trading?
Scalping is considered as a high frequency trading and requires the trader to be always behind the screens.
How Does Scalp Trading Generate Profit?
Scalping is said to be one exhausting form of trading hence traders are always looking for ways to automate the process .
Cryptocurrency industry has evolved to meet the demands of traders and now there is the birth of trading bots to meet the needs of traders who love scalping .
Crypto trading bots exist that help you to capitalize on the bid-ask spread of crypto assets. You don’t need to be actively involved, all that’s needed is to set it up and you are good to go .
Let’s discuss a few scalping bots one can use.
First of all is my Favorite and one I will use any Day .
Pionex Scalping Bot
Pionex is the first cryptocurrency exchange with about 13+ free in-built trading bots. – Yes, free crypto trading bots .
Licensed in the USA and Singapore, pionex provides the best of security for its users.
Pionex provide users with several scalping bots like Grid Trading bot and its derivatives ( margin and leverage grid bot . )
The Grid trading bot helps you set buy and sell limit orders within a trading range with your capital allocation and once this setup is done the trading bot scalp and much as it can to generate profits on your behalf .
Using Pionex Grid Trading bot is Free .The only fee paid is transaction fee of 0.05%.
Binance Scalping Bot
Binance Exchange provides its users with a grid trading bot to be able to scalp and make many transnational trades .
Grid trading uses the same principle of benefiting from the bid-ask spread of an asset .
To use Binance Grid bot , you would need to be trading on futures. Futures trading utilizes leverage hence traders have to do their due diligence before getting into it .
Using Grid Trading bot on Binance is free to use .
No monthly payment to be made however transaction fee is 0.1%
With a 7 day free trial and later a minimum of $29 and maximum of $149 monthly subscription, Bitsgap gives traders the opportunity with their bots to scalp the market .
With the same principle of benefiting small profits created by the bid – ask spread traders get to buy low and sell high to make immediate gains and this is achieved using the grid bots .
Cryptohopper Scalping Bots
Scalping can be best when the market moves sideways .
On cryptohopper you get to scan as many coins as possible as finding a scalping opportunity that’s made possible by the trading bots
Scalping trades like never before.
sell assets when they hit a profit of as little as 0.8%. This would not be worth it when you trade manually, but can lead to big gains with Cryptohopper.
3Commas Scalping Bot
3commas provide users the opportunity to scalp the markets. The same principle is used by the bots .
The bot helps you automatically take profit with little effort. Simply choose a coin and initial investment and the bot will scalp on your behalf .
On 3commas the free package does not give traders the opportunity to use scalping bots hence it has to be paid .
Now that we know the platforms available for scalping let’s delve into some strategies we can deploy .
Types of Crypto Scalping Strategies
First of all we have to decide the coin or asset we would love to trade . It’s always best to choose a coin that has a high volatility index .
A high volatility would improve transaction rate hence more trades would be done. The more the trades the more the profits .
Second is the Range of price you would like to scalp within. Some factors to consider are ,
Is the market moving sideways in a confined range or is the market trending ?
If the market is moving sideways you can set a tight range to scalp within . If the market is trending you would want to set a wider range .
Btc-usdt range : 53 879 – 58 00 . This could be a tight range to scalp within .
Now that we know how best to scalp let’s pick one platform as a case study and set up a scalping trading opportunity .
We will be using Pionex for this example .
Getting started with Pionex you first have to sign up if you don’t already have an account .
Once you set up, you then make your deposit and begin trading .
We then move to markets to choose the coin we want to trade or scalp .
Let’s go for Bitcoin .
After selecting the coin we select the create bot button to get started !
You then select the Grid trading bot .
You input your necessary parameters .
Pionex provide traders with a bactested Ai settings that you can just copy if it meets your analysis.
In this case AI strategy gives us a range of 53000 – $68 000 to scalp within .
In cases where you want to input your own parameters. You switch to the manual option and put in your parameters.
Once all the parameters are set you click create and the bot sets up your trade !
The bot Will automatically buy and sell within the range over and over until the price is out of range or the bot is switched off .
Scalping has become a thing in the crypto industry where people want to take quick profits a lot of times .
There are several platforms available to consider eg. Pionex , cryptohopper , Binance , Bitsgap , 3commas .
Trading strategy to consider is if the market is sideways or trading .
Find your upper range and lower range and set you bot within the range .
Let the bot automatically buy and sell until it’s out of range or you personally close the both .
Trade safe and always do your research before taking any actions .