This guide lists the best crypto trading exchanges for crypto scalping strategies. We cover
- what is a crypto scalping strategy?
- lowest spot market fees
- lowest futures trading fees
- the best spread in the market
- tools for automatic scalping strategy implementation
In addition to mastering your crypto trading strategy of choice, you must also master crypto trading risk management before becoming a profitable crypto trader.
List: Best Exchange for Crypto Scalping
Only a few of the top crypto trading platforms are suitable for crypto scalping trading since you need both very low fees and very high trading volumes.
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 trading risks strictly, especially the exit strategy, since one significant loss could eliminate the many, or even all, small gains.
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.
The Crypto scalping strategy is not for beginners in trading. However, if you are a crypto newbie, we suggest reading our guide for cryptocurrency trading for beginners.
What the minimum account balance for a scalping strategy?
A benchmark is a minimum balance of USD 10.000.
How much can I put at risk per trade in a scalping strategy?
Usually, any trade shouldn´t risk more than 0.5-1% of your total balance.
What is the target or take profit goal in a scalping strategy?
Scalping traders usually look for a 0.5-1% profit before taking a profit. Remember, if you are a low-volume spot trader, you might pay 0.1% to open a trade and 0.1% to close a transaction.
What is a good stop loss in a scalping strategy?
There are different strategies here, and it depends on your take-profit plan. One way many restrict their losses is to put a stop loss of 1/3 of take profit. If your take profit limit is 1%, your stop loss could be 0.33%. It means you can have three unsuccessful trades and one successful trade to break even (not considering trading fees).
Do you do crypto scalping with, or without, leverage?
Crypto scalping trading involves using very high leverages. Use only pairs with a low spread, aiming at a tiny %-target. Scalping usually compensating the higher risk exposure with tighter stop-losses.
How many trades is scalping per day?
Crypto scalping traders can place 10 to 100+ trades in one day.
Scalping makes small profits and attracts traders because it exposes them to less risk and offers more significant trading opportunities.
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 three most important things to consider
- Trading Fees – Significant since scalping means a lot of trade executions and a lot of fees. Read about the crypto exchanges with the lowest spot market trading fees.
- 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). See the article about the crypto exchanges with the lowest spread in spot markets.
- Trading Volume – A high trading volume usually ends up in more narrow spreads and make sure you can always exit your trade.
Since a scalping strategy involves many trades with a small margin, it´s crucial to keep anything related to fees or minimize your profit (per trade) as low as possible. Both trading fees and spread are minimizing your profits and they occur in every trade.
Best Crypto Spot Trading Fees - Scalping
If you are about doing crypto scalping on the spot market or margin trading with leverage on the spot market, you should compare spot market trading fees.
See our article where we compare the lowest crypto spot market trading fees.
Note: If you are doing crypto spot market scalping trading, aim for some of the largest markets which are BTC or ETH. If you do this, the spread will be very similar among the top crypto trading sites.
Best Crypto Futures Trading Fees - Scalping
Most traders performing a scalping crypto strategy aim for very high leverage only applicable to futures and perpetual markets.
See our article about the lowest crypto futures trading fees to find an exchange suitable for your needs.
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.
Important to note that spreads are dynamic and change all the time depending on the market situation. Still, if a crypto exchange has larger trading volumes, they usually have a lower trading spread.
What is crypto trading spread?
The spread is the difference between the highest bid and lowest sell orders in an order book. If you make an instant trade, you pay the trading fees, but you also lose the spread since the lowest sell order is always higher than the highest bid order.
How big is a crypto spread?
For a crypto scalping strategy to be profitable, you should aim for the BTC and ETH markets since the spread is very narrow here. Once you get to lower marketcap coins, the trading volume decreases, the spread increases, and the liquidity falls.
The trading spread usually correlates pretty well with trading volume. Compare the top crypto exchanges by trading volume.
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 you analyze and manage your crypto portfolio over several exchanges. These crypto trading software tools extract data, research, and transfer funds. Some even provide automatic integration, similar to crypto trading bots.
Crypto Trading Bots For Scalping Trading
There are many different crypto trading bots on the market, and some specialize in specific strategies, such as scalping trading.
Crypto trading bots can be free and premium, and they have a lot of different functionalities and pricing plans. So, analyze what crypto trading bot strategy you want to use before purchasing a crypto trading bot.
Read more about the Best ai crypto trading robot for scalping trading.
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 tools mentioned above, 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 visually presents the market. You can even combine different exchanges and track where fluctuations are more significant.
Other Types of Crypto Trading Strategies
Crypto Day Trading
Crypto day trading can rightly call itself an umbrella tactic on which all others base their philosophy.
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 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 from 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 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 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
The swing trading tactic uses the graphical presentation of price fluctuations 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 the best crypto exchange for swing trading.
Crypto Trend Trading
The trend is similar to the 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 and compare data. This should give you a clearer idea of how the industry moves.
- If you wish to buy and sell coins to own them, prepare wallet and trade platforms before your activities. It is also good to check the terms of trade as well.
If you are interested in further information, look through our article discussing the Best Cryptocurrency 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 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
Strategies are meaningless if you do not research beforehand. Thus, everyone involved with crypto investment uses technical analysis.
These investigations focus on statistics and numerical changes in the industry in terms of price and volume fluctuations. Charting is essential here, and numerous platforms provide combined findings from several crypto trading websites.
Read more about signals and how to set up your investigations in our article about the best crypto technical analysis app.
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, 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. Read more about these practices in our article about how to trade crypto with profit in 4 simple steps.