Trading cryptocurrency is a skill where learning does not stop in order to stay profitable, there must be learning and unlearning to stay on top. Trying to do everything is a quick way to get rekt also. The advice is for traders to research and pick a trading strategy that works best for them, there is a unique strategy for every trader once the basics principle is understood.
One strategy traders use,especially when the trade is to be short term, is Scalping. Scalping simply means making profit from small increase/decrease in price movement, scalpers do not need a big price movement in money. The strategy is to take profit in price movement over and over, which means those into scalping do not need a massive profit target.
This strategy is common to traders on day trading, and it involves more on technical analysis than fundamental analysis. Knowing how to read charts, making use of charting tools, and making quick decisions are crucial in making use of the scalping strategy. Concentration is needed as traders can not afford to leave trades unattended to, except if tight stop-losses are put in place.
This strategy can be used to grow a trading account over time with patience as the goal is not to make huge profit at once, but to accumulate lots of profit over time. The use of short time frames (1m, 2m) is very common as traders need to see the ranging trend to know when to place trade and when to get out of it. To stay profitable with scalping, the knowledge of technical analysis cannot be overemphasised.
To identify the trading setup of a trade, some technical factors are used. Factors like support and resistance levels, trading volume, price action are used. Also, the Relative Strength Index (RSI), Bollinger Bands, the VWAP, and the Fibonacci retracement tool are the common and efficient technical indicators that scalp traders make use of.
One golden rule to remember is that every trader needs to find a strategy that works for them, all that is needed is the basic knowledge of technical and fundamental analysis and then a top crypto exchange with the right liquidity for trading. OKEx, a world leading cryptocurrency exchange, is open to traders including scalp traders to place their trades. There is the right trading atmosphere for them to do so, open an account to get started.
A world-leading cryptocurrency spot and derivatives exchange, OKEx offers the most diverse marketplace where global crypto traders, miners and institutional investors come to manage crypto assets, enhance investment opportunities and hedge risks.
We provide spot and derivatives trading — including futures, perpetual swap and options — of major cryptocurrencies, offering investors flexibility in formulating their strategies to maximize gains and mitigate risks.
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