Getting Started

Scalping is one of the most popular trading strategies among retail traders. Scalping usually involves capitalizing on small gains over very short time horizons, mostly intraday. Traders usually use technical indicators and price action analysis to define their entry and exit points. Scalping is very popular among crypto traders, as cryptos are highly volatile compared to other traditional investment vehicles.

Scalping in general is similar to high-frequency trading that involves buying low and selling high within a short period of time. The goal of a scalper is to capture small price differences, profiting from the market's inefficiency. Unlike traditional trading, which focuses on larger price movements, scalpers focus on making small, frequent trades. Crypto Scalping has become a popular trading strategy amongst traders, especially those who are experienced in the field of cryptocurrency trading.


WHY CHOOSE CRYPTO SCALPING?

1. High Reward Potential:
As a scalper, you have the potential to make significant profits from small price movements. Given that a trader is efficient in choosing the right exit point more frequently, he can make use of the compounding effect to grow his or her account exponentially. This is especially true in volatile markets, where prices can change rapidly.

2. Low Capital Requirements:
Scalping requires less capital than other forms of trading, as you don't need to invest large sums of money. This makes it an attractive option for traders with limited funds. Moreover, Binance provides leveraged products, which further increase profitability. However, one must be very careful with such products, as they also increase the chance of losing money. We do not advise any beginner traders to use leveraged products (e.g. perpetual pairs) in the beginning.

3. Flexible Trading Hours:
Since scalping involves making multiple trades within a short period, you can trade during any market hours that suit your schedule. Moreover, crypto currency markets are open and trading every day without any holidays (subject to available market liquidity).

4. Technical Analysis:
Crypto scalping relies heavily on technical analysis, which allows you to identify patterns in price movements that can be exploited for profit.


TIPS AND STRATEGIES

1. Understand the Market:
Before you begin scalping, it's important to have a solid understanding of the market and the financial tools available. This includes understanding market trends, how prices are determined, and how volatility affects your trades. In addition, if you are willing to trade other instruments available on Binance (Futures, Options, etc.) we strongly advise you to get familiar with the pricing mechanism for those products.

2. Use Technical Analysis:
Technical analysis is crucial for scalping, as it allows you to spot patterns in price movement that can be used to your advantage. Some popular technical analysis tools include moving averages, support and resistance levels, and candlestick patterns. You can find more about technical analysis in our weekly blog.

3. Manage Your Risk:
Scalping involves taking on more risk than other forms of trading. To mitigate this risk, it's essential to use stop-loss orders and limit orders to protect your capital. We strongly advise you to improve your knowledge of financial risk management, as most of your results will be directly affected by your risk management tactics. More on risk management can be found in our blog.

4. Trade Multiple Coins:
Instead of focusing on one coin, try to trade a variety of coins to maximize your profit potential. This will help you take advantage of small price differences across multiple coins. It is especially crucial to trade lower-correlated coins, which will lower your portfolio risk overall. To learn more about it, read our blog on diversification.


OSIRIS AI

A scalping screener is an essential tool for anyone exploring the world of scalping. A good scanner should be providing real-time updates from the market, as being on time for trends is essential for traders' profitability. It also should provide additional tools to analyze and guide one through the uncertain world of trading.

Osiris is a fast and simple environment engineered by a group of traders to support their everyday trading activities. It is designed to provide all the necessary tools and resources that traders rely on to make successful trading decisions. We are also in progress of uploading custom-developed tools and strategies used by our team.

Our platform collects the essential information required for scalping and trading by offering tools such as scanners, market data aggregators, and market screeners. Additionally, our algorithms generate live quantitative summaries for all crypto coins listed on the Binance Exchange, including breakout summaries (with other resources currently under development).