You may consider purchasing and holding one or more crypto coins when considering cryptocurrency investment. Although purchasing cryptocurrencies directly is arguably the most common approach to adding some crypto exposure to your portfolio, you have a few different options for investing in cryptocurrency.
In the world of cryptocurrencies, a scalper will take a calculated risk because they regularly monitor the market before trading. The issue with the cryptocurrency market is that it is incredibly volatile, but traders who know what they’re doing can earn despite the volatility.
In reality, many of them can profit from the market’s volatility. Scalping is a type of trading that requires you to keep watch of the market to profit from price changes. This article will discuss what a scalping bot is and the finest crypto scalping platform for your high-frequency trading.
Why Engage in Cryptocurrency Scalping?
Smaller position sizes are used in the crypto scalping trading technique, which means there are fewer risks. Because small price swings occur more frequently, success is easier to attain. Also, scalp trading is usually based on technical factors that can be quantified, and it is simple to automate.
Crypto scalping is fundamental analysis-based trading. Because of the price noise in shorter time frames, technical indicators are best employed as a supplement. Although it is not suggested for novices to deal with news, it might be easier and more entertaining in training and simulator use than technical analysis. It’s subjective, but I’d argue scalping has this advantage.
Crypto scalping gives you a realistic possibility to make a significant profit. Everything is debatable, but high-frequency trading can yield larger returns than daily trading tactics before a professional. In scalping, a trader can benefit from practically all price changes in both directions, but, in intraday trading, setbacks and corrections cause a considerable portion of the profit to be “lost.” Furthermore, it is independent of the current trend.
Scalping crypto methods work well with automation, whether in the form of investment bots or signals. Basically, as a crypto scalp trader, you get to enjoy:
- Reduced risk
Scalping cryptos has a lower risk than longer-term day trading because you take small position sizes.
- More profit
Traders who have the right mindset and commitment can accrue little earnings over time, which can add up to a significant profit by the end of the trading session.
Top 5 Best Cryptocurrency Scaling Platforms In 2023
Let’s walk through some of the best crypto scalping platforms and highlight the benefits and disbenefits of using them.
1. Uphold
Uphold provides internet crypto scalp traders with a single unique multi-currency trading platform. This is accessible as a mobile application as well as a desktop program. The platform is simple to use and ideal for newcomers. Yet, the lack of complex graphs and charting capabilities was disappointing; however, the interface tiles are configurable. This means you can consolidate all of your investments into a single account.
For cryptocurrency scalp purchases, a little spread, normally about 0.5 percent to 1 percent trading fee, is included in live prices. The broker’s exchange approach, which obtains the best prices from three pools, drives the competitive pricing network. A UK customer would face a 0.85 percent purchase spread for BTC and a 1% cost for selling when tested. With a 0.05 percent fee to acquire USD, this was substantially lower for fiat currencies. You can get started on Uphold here.
Pros
- Global regulation of cryptocurrency staking
- A demo account for crypto scalping is available for free
- Scalp trading 100+ crypto assets after hours
Cons
- Customer contact options are limited
2. Crypto.com
Crypto.com comes in second on this list of the best platforms for crypto scalp trading. This platform, launched in 2016, is popular with traders of various skill levels and budgets. You’ll have access to approximately 250 cryptocurrencies, representing a good mix of major and mid-capitalized projects. Crypto.com has a maker/taker pricing structure for costs, which is especially beneficial for day traders.
For those who are unaware, market makers supply liquidity to crypto exchanges and, as a result, are compensated with higher commissions. You will be classified as a market taker and a rookie crypto scalp trader. As a result, you’ll only have to pay a 0.4 percent trading fee for every slide. You can get even cheaper commissions if you trade greater sums. If you trade $50,000 or more in 30 days, your commission is decreased to 0.15 percent per slide. You can get started on Crypto.com here.
Pros
- Users are exposed to affordable trading fees
- Debit and credit card payments are accepted
Cons
- Leveraged financial solutions are not adequately provided
3. Robinhood
Robinhood is a streamlined scalp trading company that has gained much attention for its free software that makes online day trading accessible to the masses. It specializes in stock, ETF, and cryptocurrency trading. However, as reviews have pointed out, there may be a cost associated with such low costs.
If you’re looking for a low-cost option for crypto scalp trading, Robinhood’s crypto scalp trading service is unbeatable. However, while the broker provides just enough for customers to trade comfortably, it is arguably best suited to newbies seeking a straightforward, user-friendly interface. As product and platform reviews point out, experienced scalpers may wish to search elsewhere for sophisticated tools and additional resources. You can get started on Robinhood here.
Pros
- There is no account minimum
- Simple to use
- Free bank transfers
Cons
- Limited research and education
4. CoinbaseÂ
Users of Coinbase can trade on a variety of platforms. The Coinbase platform provides a basic interface that allows scalpers to buy cryptocurrencies with US dollars. Users can make crypto-to-crypto transactions and place market, limit, and stop orders with Coinbase Pro’s enhanced charting features. With a tool called Advanced Trade, Coinbase has just extended some of Coinbase Pro’s features and cheaper pricing to its original UI.
Coinbase is also experimenting with Coinbase One, a new service that offers no-cost trades and other perks for a monthly subscription. Though the program was still in beta testing in May of 2022, the trading fee was around $30. Coinbase offers a series of video lessons and examinations to educate users about cryptocurrency trading and some of the available cryptocurrencies, a creative method to “earn while you learn.” Scalpers can also earn particular cryptocurrencies by taking the classes. You can get started on Coinbase Pro here.
Pros
- It gives you access to approximately 100 different cryptocurrencies
- Account funding has a low minimum requirement
Cons
- Fees are higher than those charged by other bitcoin exchanges
5. Binance US
Binance US is a cryptocurrency exchange platform, and you’ve undoubtedly heard of it and may even be using it to exchange your bitcoin currencies. However, you may not be aware that they are also a crypto scalping bot, and you can use their grid trading bot to grow successfully and make numerous global transactions.
If you want to get the most out of their grid bot, you’ll have to make sure you’re trading futures. Because futures trading is based on leverage, you should complete your research before taking such a risk. The good news is that the grid trading bot you’ll discover here is absolutely free to use, which means there’s no monthly price for signing up, but they will charge a 0.1 percent transaction fee. You can get started on Binance US here.
Pros
- Scalpers get to work with affordable trading fees
- A smooth user interface is guaranteed
Cons
- Customer service options are limited
Final Thoughts
Crypto scalping is a high-risk, high-volume, fast-paced trading strategy. One of the most important things you can do to become a good crypto scalper is to improve your technical analysis and chart reading skills and your understanding of various trading methods. Recognize the dangers of crypto scalping and how to apply risk management techniques. Because you will need to react fast to the cryptocurrency markets, crypto scalping is geared at more experienced traders.
This information aims to assist you in selecting a reliable, respectable, and professional broker who can meet your online scalp trading needs.
