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Scalping on Binance is a common type of short-term asset trading. The strategy is to make money on small exchange rate fluctuations. This trading technique is suitable for those who have basic cryptocurrency trading skills , are able to concentrate and make decisions quickly. Let’s talk more about what scalping is cryptocurrencies on the Binance exchange .
How does scalping work on Binance?
Scalping is the name of a trading style. The trader who has chosen it must respond to the slightest changes in the cryptocurrency rate by opening positions to buy or sell. The duration of the transaction ranges from a few seconds to several minutes. This tactic allows you to receive a small but quick income from the transaction, and thanks to high-frequency trading within one session, traders can receive high income by gradually increasing the deposit.
scalping cryptocurrencies on Binance involves making a large number of short-term transactions throughout the day, traders do not leave open positions for the next session. For effective trading, technical analysis is used, which helps to predict the dynamics of the exchange rate in the short term. And as an asset, scalpers choose a cryptocurrency with high volatility, the price of which can change many times during the day.
Scalpers make money on short jumps in the rate, while an experienced trader receives income regardless of the trend, up or down. This strategy is applicable to both the spot and futures markets. For example, scalping on Binance with futures is considered one of the most profitable, as it is an asset with high volatility and liquidity.
To earn money by scalping on the popular exchange, different strategies and tools are used. A common option is scalping on Binance by glass. Analyzing the data of the glass of orders, the trader makes a forecast in which direction the rate will move. Many traders choose scalping on indicators. In this style of trading, indicators work exactly the same as in others, but scalpers have to process the received signals as quickly as possible, because positions are held for only a few minutes.
Is scalping on Binance right for you?
Scalping on Binance by glass , indicators, graphic patterns, trend is suitable for those who are ready to spend a lot of time on the exchange, closely following the movement of the course. This is a stressful and energy-intensive short-term trading strategy that requires the trader to be able to act consistently, quickly respond to changes and make decisions right away.
Binance is a good choice to use this strategy. The most popular exchange is easy to use, has a reliable protection system, transparent and understandable conditions. In addition, Binance users scalping on the phone , not only from the computer. The mobile application of the exchange allows you to easily and efficiently make transactions anywhere and anytime.
Beginners should try automatic scalping on Binance with trading bots. The program allows you to open more short-term trades per day, increasing the potential profit.
Discretionary vs System Traders: What’s the Difference?
All scalpers on the exchange can be conditionally divided into two groups – discretionary and systemic. Discretionary scalpers are guided by the situation, make a decision immediately, based on the dynamics of the asset price. They do not have hard and fast rules for entering the market, discretionary traders rely more on intuition.
System scalpers choose a different tactic of action. They tend to have a rigid trading system that they stick to. Traders think over the conditions for entering and exiting the transaction in advance, do not violate them. They create an order only if there are certain conditions for entering the market, they rely more on indicators and analytical data.
Do you want to master this trading strategy and start making money on the stock exchange? Take a course at Crypto Crew ! We teach scalping on the Binance spot as well as on the futures market. Our course is designed for everyone who wants to make trading the main source of income and achieve real success on the stock exchange.