Best Exchanges for Scalping Crypto Trading Screen Image

Best Exchanges for Scalping Crypto

This guide lists the best crypto trading exchanges for crypto scalping strategies. We talk about crypto trading strategies, their types, and how traders should use them. 

We will discuss how vital strategies are, emotional trading, crypto trading tools, crypto trading tips, crypto signals, technical analysis, and fundamental analysis. 

In addition to mastering your crypto trading strategy of choice, you must also master crypto trading risk management before becoming a profitable crypto trader.

No Financial Advice, Information only. Do your own research

What is Crypto Trading Scalping Strategy?

Crypto scalping strategy focuses on taking small and fast profits very often.

Scalping requires a trader to manage crypto risks strictly, especially the exit strategy since one significant loss could eliminate the many, or even all, small gains.

Thus, having the right crypto trading tools, such as crypto trading bots and crypto trading software toolsis required for a scalping strategy to be successful.

Also, it´s crucial to eliminate emotional trading, and technical tools, like those mentioned above, can be beneficial here. In the next section, we cover more about emotions in trading.

What is the Best Exchange for Crypto Scalping?

What are the most important properties and features to look for when doing a crypto scalping strategy?

Here, we list the two most important things to consider

  1. Trading Fees – Significant since scalping means a lot of trade executions and a lot of fees.
  2. Spreads – Also crucial since this is a form of a passive fee paid on each trade. Spreads usually are more significant in non-liquid markets (Lower trading volumes)

Lis: Best Exchange for Crypto Scalping

In the table below, we have listed the best exchanges for crypto scalping strategy.

*Crypto sign up bonuses with terms and conditions.

Note: KuCoin allow US citizens to register but they don’t hold a US license

Best Crypto Spot Trading Fees - Scalping

Both Kucoin and Binance offer very low fees with chances to reduce the trading fees even further.

Kucoin and Binance use a 30-day average trading volume to decide your tier level for fees. In the table below, we have written the highest fee (0 in trading volume) and the lowest fee possible to achieve.

Reduce your fees by paying them with the native token Binance Coin or Kucoin Token:

  • Pay fees with Binance Coin BNB: -25% on spot trading fees
  • Pay fees with Kucoin Token KCS: -20% on spot trading fees
Crypto Trading Platform Reviews Binance
KuCoin logo

Best Crypto Futures Trading Fees - Scalping

Both Kucoin and Binance offer very low fees with chances to reduce the trading fees even further.

  • USDT High fee: The highest fee you can pay for futures trading denominated in USDT
  • USDT Low Fee: The lowest fee you can pay for futures trading denominated in USDT (With no extra discount)

Reduce your costs by paying them with the native token Binance Coin or Kucoin Token:

  • Pay fees with Binance Coin BNB: -10% on futures trading fees
  • Pay fees with Kucoin Token KCS: No reduction in fees

Binance BUSD Futures Fees

Binance is also offering futures denominated in BUSD, you can get very (almost insane) low fees for trading these derivatives. 

The BUSD denominated futures trading fees start at -0.01/0.023% and can go as low as -0.01/0.0207% if you pay the fees with the Binance Coin BNB.

Crypto Trading Platform Reviews Binance
KuCoin logo

Spreads - Best Exchange For Scalping Crypto

Spread is very important for crypto scalping strategies since you have to outperform the spread in each trade to become profitable.

Both Binance and Kucoin have very low spreads for the large market-caps, as you can see in the table below; however, once we are going to the top 10-20 cryptos in market-cap, the spread increase and diverse, as you can see in the table.

Important to note that spreads are dynamic and change all the time depending on the market situation. The table below is just taken from a single moment of the market conditions.

Crypto Trading Platform Reviews Binance
KuCoin logo

Tools for Crypto Trading Strategy Implementation

Various tools can help you in crypto strategy implementation. These often come as accessible functions through paid ones that are more complex and, thus, more helpful. Here are the most important ones that beginners should be aware of:

Crypto Trading Software Tools for Scalping Trading

Crypto trading software tools come as a whole deal of automated programs that help extract data, provide analysis, and transfer funds around. But, most of the time, you get a flashy interface, pinpointing issues and opportunities by downloading it. 

Altrady logo

Crypto Trading Bots For Scalping Trading

Although software solutions are fantastic, we would recommend starting with individual packages. Bots come in different shapes, prices, and functionalities. Bots that gather and analyze data are enough to kick off their bitcoin day trading. Read more and compare the best crypto trading bots.

Coinrule logo
Napbots logo
Wunderbit trading bot logo

Crypto API tools for Scalping Tradiing

APIs connect you with the trading platform by performing complex operations within seconds. Thus, instead of you manually gathering data in excel, use APIs to get that spreadsheet and alarm systems to do the job instead of you. Just faster and better.

Crypto Trading Chart Tools for Scalping Trading

Although it is possible to work out the market without the aforementioned tools, charts are mandatory if you want to profit. Price and volume charts provide vitally important information for your cryptocurrency trading strategies.

Take the Trading View snapshot below. At the top corner, you have indicators showing price patterns, while the graph gives a visual presentation of the market. You can even combine different exchanges and track out where fluctuations are more significant.

Crypto trading analysis software TradingView logo

Other Types of Crypto Trading Strategies

Crypto Day Trading

Crypto day trading can rightly call itself an umbrella tactic that all others base their philosophy on. 

Day trading is one of the oldest concepts in the trading industry. You make an order and close it within 24 hours, with hourly analysis based on your assumptions. However, Crypto day trading is high-risk trading since mall price differences and large fluctuations can take a toll on investors prone to emotional trading.

Crypto day trading is perfect for advanced traders that like to perform automated trading and program their strategies into crypto trading bots. 

Numerous cryptocurrency trading sites provide charts containing hourly and daily data. 

If you are about to test crypto day trading, you will look for a great trading platform with low fees. So we would go for Binance.

Crypto Arbitrage Trading

The Crypto arbitrage trading strategy is quite common in the crypto world due to large fluctuations on an hourly basis. 

Bitcoin trading sites are many, leaving space for investors to buy quickly and sell quickly. The idea is to make a small profit out of several transactions in one day or even an hour. You buy cryptos cheaply at one exchange and sell them expensively, creating an easy profit.

This strategy has its merits, as it lowers the risk of losses. On the other hand, even though cryptos can fluctuate, you still depend on exchange rates on different platforms. This can render your activities useless if unfavorable. 

Thus, we recommend this strategy only once you have everything set. It would help if you also understood the cryptos you are trading. Therefore a little bit of experience in the crypto markets is necessary. For crypto arbitrage trading, a bot is required. Read more about crypto trading bots in our specialized article.

Crypto HODL (Buy & Hold)

Another popular trade method, buy & hold, even has a name in the crypto jargon – HODL. In this strategy, the trader looks to purchase the coin at the low price level and hold it until the market trends push the currency into the favorable zone. 

According to this strategy, the price would inflate upwards as time passes, earning you more significant profits as you wait out.

This has several advantages and disadvantages. On the pro side, you can purchase the coin and lend it out to others, earning interest. You also bypass complex analysis daily and concentrate on long-term crypto trading indicators

On the con side, bitcoin rose to $20.000 at one point in 2018, only to fall to $4.000 at the end of the year. 

You stand to lose a lot if your long-term analyses misfire. For crypto HODL, there are many excellent and exciting crypto trading platforms. You probably want to look for good deposit and withdrawal options. If you are about to invest more than $5.000, eToro crypto portfolios might be attractive. Otherwise, you can check the complete table of trading platforms.

Crypto Swing Trading

Swing trading tactic uses the graphical presentation of price fluctuations as a means to locate trends within a certain period. 

The market moves in both directions, as the price sometimes falls and rises. Swinging in the market means locating repeating timeframes of price behavior and then capitalizing on it by buying or selling.

This is reserved for experienced traders, especially those that understand charts and indicators. Mobile apps and chart platforms in this strategy are invaluable. You do need to understand peaks and drops to use this strategy correctly. Binance is an excellent choice for a crypto swing trading strategy. Read more about which cryptocurrency to trade with a swing trading strategy.

Crypto Trend Trading

The trend is very similar to Swing tactic, though with a bit of a twist. Where swing is used for short-term trading purposes, trading with trends is long-term oriented. 

You pick up significant events and reasons behind fluctuations but do not get into an hourly rate of change. However, you should be interested more in daily changes, as you wish to grab more considerable price differences.

The Crypto scalping strategy has more significant potential in terms of profit than the swing tactic, but it requires a bit larger investments. 

However, you are also at a higher risk of losses if you misinterpret signs. Whereas swinging is better suited for experts, trend trading can accommodate starters and experts.

It would help if you kept in mind that cryptocurrencies change value reasonably quickly and drastically. Bitcoin scalping can land you quite a lot of money, but you also stand to lose it fast. Binance is the perfect choice for a crypto trend trading strategy.

Crypto Scalping Trading Tips

We have several tips for you to consider while scalping trading cryptocurrencies:

  • Always look at the market data before you use a strategy. Sometimes the market might move against you, so it is best to be prepared.
  • When using tools like charts and bots, open up several of them and compare data. This should give you clearer idea on how the industry moves.
  • If you wish to buy and sell coins to own them, prepare wallet and trade platforms prior to your activities. It is also good to check the terms of trade as well.

If you are interested in reading further information, look through our article discussing the Best Cryptocurency for day trading and swing trading.

Crypto Trading Signals

Many APIs and apps are out there that provide you with signal services. These are alarms whose main aim is to guide your attention towards significant trends happening momentarily in the market.

What is essential to understand is that you should either set them yourself or use someone else’s. 

Twitter and Facebook are good sources if you would rather wish to use the latter option. Check out our guide regarding top Twitter accounts to follow for cryptocurrency trading for significant crypto trade signals to get a better idea.

Crypto Technical Analysis

Suffice to say, strategies are meaningless if you do not do research beforehand. Thus, everyone involved with crypto investment uses technical analysis. 

These investigations focus on statistics and numerical changes of the industry in terms of price and volume fluctuations. Charting is essential here and there are numerous platforms that provide combined findings from several crypto trading websites.

Read more about signals and how to set up your own investigations in our article about crypto technical analysis.

Crypto Price Predictions

Crypto traders use fundamental analysis to make crypto price predictions, apart from a technical aspect. Fundamental investigation works out psychological patterns in the crypto industry. 

This is an essential tool to use because the blockchain world bases its value on market trends and human factors.

Mainstream markets have regulators and central banks controlling interest rates and, thus, pricing. On the other hand, Cryptos allow investors, miners, and users to set evaluations according to the demand and supply. 

Best Crypto Trading Exchange for Scalping Strategies

In this crypto trading guide about strategies in 2022, we went over several of them regarding the advantages and disadvantages they have. 

Traders should use each crypto trading strategy with great care, as most involve serious funding.

Without an understanding of the market functions and strategies themselves, it is easy to picture the bankruptcy of your operations. Keep your emotions in check, practice good trading habits, and hang in there. You will reach your goals if you keep yourself disciplined and vigilant.

*Crypto sign up bonuses with terms and conditions.

Note: KuCoin allow US citizens to register but they don’t hold a US license

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