There are scores of ways you can trade and invest in cryptocurrencies.
Sure, you can buy and HODL or frantically day-trade to catch the day’s highs and lows. But how about going beyond all that? How about using the techniques traders in other markets apply when they invest?
It’s time to learn a little more about forex scalping – and how you might be able to apply it to your own trading strategy in the crypto markets.
What Is Forex Scalping?
If you have ever dabbled in forex trading, chances are you will probably have come across the term scalping.
In currency trading, scalping (also known as scalp trading) refers to when a trader makes a large number of small transactions to profit off small price movements throughout the day.
By generating dozens (or even hundreds) of short-term trades a day, successful scalp traders can generate sizable daily trading profits. And they can do this despite the fact that they are essentially engaging in a relatively low-risk trading strategy in a volatile market.
To execute this type of strategy, traders usually deploy a system that provides them with trading signals – often based on technical indicators – that they use to make buying and selling decisions.
Because machines can execute technical indicator-based trades faster than humans, most experienced forex traders use Source…