Which Cryptocurrency Exchange is the best for Bitcoin Scalping Trade?
Scalping trade on BTC. Table of Contents
“Scalping” is one of the methods for trading crypto-assets such as Bitcoin (BTC).
Even if you have heard the term scalping, you may not know in detail what kind of trading method it is.
Therefore, this time, we will introduce scalping according to the following.
What is Bitcoin (BTC) Scalping?
Before explaining scalping, we will first introduce the methods used in crypto-asset transactions such as Bitcoin (BTC).
The main methods used in trading crypto assets such as Bitcoin (BTC) are as follows.
- Scalping
- Day trading
- Swing trading
- Long-term trading
These trading methods have different trading periods and number of transactions, but of these, scalping is the trading method with the shortest trading period of a few seconds to a few minutes and the largest number of transactions per day.
In the case of the Scalping trade, you can take full advantage of AltumBrokers’ average BTCUSD spread of $3 which is average 500% less than other service providers.
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What are the Benefits of Scalping Trade?
So what are the benefits of scalping trading? Here are two benefits of scalping.
1. You can trade at any time
Scalping can be completed in a short time of a few seconds to a few minutes, so you can take advantage of your free time.
For those who are busy with work or housework and cannot secure much time for trading, it can be said that being able to trade even in the gap time is one of the merits.
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2. Easy to respond to sudden market fluctuations
In transactions that assume long-term holding, we do not always look at the price while holding crypto-assets such as Bitcoin (BTC), so when sudden price fluctuations occur, it may not be possible to correspond to.
On the other hand, in scalping, we always look at the price while holding crypto assets such as Bitcoin (BTC), so even if sudden price fluctuations occur, you can trade according to price fluctuations and respond flexibly.
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What are the Disadvantages of Scalping Trade?
When scalping, you want to understand not only the advantages but also the disadvantages. Here are two disadvantages of scalping.
1. It costs a lot of fees
Scalping involves many transactions in a short period of time, but transaction fees are incurred each time you make a transaction, so compared to the method of making a small number of transactions over the long term, you will incur more fees.
This is one of the disadvantages for those who want to trade with as low fees as possible.
With AltumBrokers’ one of the lowest trading costs on Bitcoin pairs, you can save a lot of money when performing Scalping Trades.
2. Skills to trade accurately in a short time are required
Since scalping is a method of trading many times in a short period of time, it is necessary to decide the content and timing of the transaction within a limited time and select and operate a tool that can accurately trade with the content and timing.
In particular, regarding the content and timing of transactions, it depends on the market situation.
It may be a difficult trading method for beginners who are not accustomed to trading because it is necessary to judge such things instantly.
For traders who are new to the Cryptocurrency market, AltumBrokers provides a demo trading account with virtual money.
In AltumBrokers’ Demo trading account, you can practice trading without risking your own funds.
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Important Tips to keep in mind with Bitcoin (BTC) Scalping
So, if you want to trade crypto assets such as Bitcoin (BTC) by scalping, what points should you keep down?
- Use a crypto asset exchange with low transaction fees such as AltumBrokers
- The first is to use a crypto exchange, which requires a low fee to trade. Scalping requires more transactions than other trading methods, so it tends to increase the burden of commissions incurred during transactions. Before scalping, it is a good idea to research the fees of the crypto exchange you use.
- Use a crypto exchange with a narrow spread
- The second is to use a crypto exchange with narrow spreads. The spread is the difference between the selling price (BID) and the buying price (ASK), and is incurred as a substantial fee in addition to the transaction fee. Spreads are different for each crypto exchange, so when scalping, it is a good idea to compare spreads before selecting the exchange to use.
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Conclusion
This time, we introduced Bitcoin (BTC) scalping from the viewpoints of “Overview,” “Merits,” “Disadvantages,” and “Tips at the time of trading.”
While scalping has the advantage of being able to trade in the gap time, it has the disadvantage of incurring a large amount of fees, so it is advisable to fully understand the characteristics when scalping.
In addition to scalping, there are “day trading,” “swing trading,” and “long-term trading” as methods used in trading crypto assets such as Bitcoin (BTC).
Each method differs depending on the transaction period and the number of transactions, so why not find a transaction method that suits you?
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Please click "Introduction of AltumBrokers", if you want to know the details and the company information of AltumBrokers.
(Forex Broker)
Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...