SatoshiLibrary

Cryptocurrency for Beginners

5 Most Profitable Crypto Scalping Strategies For Beginners

5 min read
By now, you must have realized that if it's in the news then it's too late to enter the trade.So, therefore relying on the news to enter a trade is the worst strategy.

Crypto Scalping: Learn to Scalp with whales

If you want to learn how to make consistent profit  crypto scalping, you’ve come to the right place.

These are not get rich-quick strategies, they will require work and time investment.

But they work!

 

DISCLAIMER: If you are looking for a get-rich quick scheme, then this guide isn’t for you

 

 

What is crypto scalping ?(specifically)

Crypto scalping means to make money off of the short-term volatility created by whales throughout the day.

A.k.a The challenge of the scalper is to avoid becoming whale food by getting stopped out.

As you go into leverage trading and smaller time frames, liquidity refers to limit orders, stop losses and open orders.

 

What is scalping in crypto

Newbie traders usually find crypto scalping intimidating because of price manipulation.

 

Why you should you learn scalping

Depending on the trader,

and MARKET CONDITIONS (!) ,

a decent scalper can VERY EASILY market 100% -500% profit on his trades in a day.

So,

if YOU interested in getting into crypto scalping  to :

 

  1.  Earn CONSISTENT additional income as side income?
  2.  And ACCUMULATE more crypto (e.g Bitcoin, Ethereum,Solana or even XRP?)
  3. Potentially Make MASSIVE profits riding the 2024 Bull-Run
  4. Avoid going negative when the market pulls back

And maybe… 

Just maybe…

IF it works out …

5) Then do it full time ? ….

And maybe,

6) Trade on other markets … like forex?

Sounds nice, huh?

 

SO, if you are looking for a SERIOUS and  SUSTAINABLE source of additional income while LOSING The LEAST Amount of Money, then this guide is DEFINITELY for YOU

 

The trick: Trading with Whales

Scalpers can sometimes take months and even years to become profitable.

Well, let me tell you the most well-kept secret in scalper-land ,

And, it is NOT  about finding the highest win/rate,

 

The ULTIMATE KEY to success in scalping is Mastering:

 How To Protect Your Positions Against Price Manipulation by understanding what the institutions are doing.

 

The second key ingredient is :

learning how to identifying shifts in market tends AS SOON AS POSSIBLE.

 

IndicatorsRetailersInstitutions
TrendsTrend lines/Moving Averages/RSIWhere there is the highest liquidity supply
SupportFibonacciRetail Limit and stop losses
Price Actionhead and shoulders, cup and handle, pennants, flagsFind the next liquidity zone once area is finished
Oscillators MACD,CVD, Open interest rate
EntryLast support levelthe highest or lowest stop loss

 

Best Scalping Strategies

IT DOES NOT MATTER WHICH STRATEGY YOU ARE USING TO TRADE

Whether you are using trading bots, signals , grid trading or copy trading,

You WILL Lose Money When the Market Changes Direction.

And to improve your win rate (a.k.a profitability),

You need to learn how to SHIFT to the CORRECT strategy ASAP.

THE FASTER you shift your strategy to match NEW TREND, the LOWER your LOSE RATE will get  AND HIGHER your WIN RATE will become.

 

For retail :

Here are what the retailers (dumb money) are using everywhere

  • Trends: Moving averages
  • For entries: Support resistance (Fibonnacci)
  • Price action: Set up
  • Oscillators: confirmation
  • Stop loss: winging it ...urghh 🙁

 

Please include attribution to satoshilibrary.com with this graphic.

Crypto Scalping strategy

 

Share this Image On Your Site

 

Strategy 1: UPTRENDS (A.k.a Break out)

RETAIL Technical Analysis

  • Chart trading patterns – cup and handle, bull pennant
  • Trend : RSI /MACD
  • Support and resistance : Andrew Pitchfork/ Fibonacci
  • Entry: above the trading pattern formation
  • Stop loss: Risk: Reward Ratio 1:1

 

SMART MONEY 

  • Sniper Entry Indicator: Footprint profile
  • Trend : Volume profile/Cumulative Volume Data – Institutions are attracted to the larger supply zone
  • Support : Heatmap order clusters – the more orders, the stronger the support
  • Stop Loss: Order heat map- Enter below the lowest order clusters
  • Risk Reward: 1: 4-10

 

Strategy 2: DOWNTRENDS (a.k.a pull backs)

RETAIL Technical Analysis

 

SMART MONEY 

 

Strategy 3:  Sideways (make money while others aren’t)

RETAIL Technical Analysis

  • Chart patterns – Double Top/ Head and shoulders, bearish pennant
  • Trend : RSI /MACD
  • Support and resistance : Andrew Pitchfork/ Fibonacci
  • Entry: on support and resistance lines
  • Stop loss: Risk: Reward Ratio 1:1

 

SMART MONEY 

  • Entry Indicator: Footprint profile
  • Trend : Volume profile/Cumulative Volume Data
  • Support : Footprint clusters
  • Stop Loss: Order heat map
  • Risk Reward: 1: 4-10

 

Strategy 4: Reversals (profit in Both directions)

RETAIL Technical Analysis

  • Chart patterns – Double Top/ Head and shoulders, bearish pennant
  • Trend : RSI /MACD
  • Support and resistance : Andrew Pitchfork/ Fibonacci
  • Entry: Below support
  • Stop loss: Risk: Reward Ratio 1:1

 

SMART MONEY 

  • Entry Indicator: Footprint profile
  • Trend : Volume profile/Cumulative Volume Data
  • Support : Footprint clusters
  • Stop Loss: Order heat map
  • Risk Reward: 1: 4-10

 

Strategy 5: Liquidity grabs (weekends)

RETAIL Technical Analysis

  • Chart patterns – Double Top/ Head and shoulders, bearish pennant
  • Trend : RSI /MACD
  • Support and resistance : Andrew Pitchfork/ Fibonacci
  • Entry: Below support
  • Stop loss: Risk: Reward Ratio 1:1

 

SMART MONEY 

  • Entry Indicator: Footprint profile
  • Trend : Volume profile/Cumulative Volume Data
  • Support : Footprint clusters
  • Stop Loss: Order heat map
  • Risk Reward: 1: 4-10

 

Other popular scalping strategies

Scalping bots

Some scalping bots work best in an uptrend, others in a downtrend and others side ways.

Trick: change bots as soon as the market shifts

 

Trading signals

The accuracy signals depend on the skill of the trader.

The more skilled the scalper, the more accurate the signals.

 

Best Charting software for scalpers

A pro usually does the Technical Analysis pre-market on charting tools on Trading View and Tradinglite.

 

We avoid doing anything directly on centralized crypto exchanges because they have internal trading desk.

To trade against their customers.

If you are interested in making profits consistently, you will need right tools

I recommend:

 

  • Trading view
  • Trading lite

 

Best Scalping Indicators  :

We all know that there are buyers and sellers.

And all the different indicators are various representations of buyers of sellers.

The problem with most oscillators like the RSI, MACD, Bollinger Bands or VWAP, is

Is that they were designed for stock and larger markets like forex.

 

If you would like a profitable strategy with 1-2 indicators,

then forex is better option for you.

Seriously,

Forex IS EASIER than crypto 😀

For institutions:

(you won’t get them on binance or trading view 😉 )

 

Institutions trade liquidity:

If you want to avoid become exit liquidity,you need to follow the liquidity in the same directions as whales.

  • Trends : Cumulative Volume Data (CVD)
  • Support resistance : Volume profile (basic : Trading view Advanced: trading lite)
  • Price action: it means limit order build up (or food)
  • Stop losses: Heat maps
  • Entries: Footprint profiles

 

Best Cryptos to Scalp

Not all cryptocurrencies are created equal.

Some strategies are better adapted for high volume cryptocurrency and others for low leverage

Choosing the right cryptocurrency is just as important as the strategy that you choose.

 

High Leverage (40x plus)  >Low Volatility> high market cap cryptos (Bitcoin, Ethereum)

Low Leverage (Under 20x) > High Volatility > mid cap cryptos

Spot Trading> breakout> Low Cap Cryptos

 

Getting Started

While Crypto Scalping won’t make you rich overnight.

It is great source of additional income once you become profitable.

And just like any new job or career, it requires training.

So, this could take months and years.

 

The real reason 99% of traders fail, they want to do a job they are not trained for and expect to become crypto millionaires overnight.

 

Step 1: Do a retail scalper Technical Analysis using popular indicators

(see above infographic on “What not to do”)

The purpose of doing a retail analysis is to get an idea of where liquidity (limit orders, stop losses) are building up.

 

Step 2: Do  a whale Technical Analysis A using more advanced indicators

Institutions have a different type of account-

And therefore, use different strategies with different tools.

If you want to trade with the whales, you will need to learn to use the same indicators as them.

As a what, your job is to go after the liquidity build up of retail scalpers.

 

The best time to scalp

The first thing you need to know is that there are three main sessions through out the week to trade.

  • The East Asian Session
  • The London Session
  • The New York Session

 

At the start and end of each session, there is usually a shift in trend depending on which one has the most volume.

The goal is to spend as little time as possible with an open position in case the market changes.

 

All the action usually happens an hour before and after the market opens.

If the volatility is low, then you could potentially see yourself stuck in a trade for more than 15 hours.

 

Institutions absorb the liquidity by trading against the traders.

On all time frames, there are buyers and there are sellers.

 

What happens during scalping?

Let’s the trade play out.

A professional scalper does not risk more than 1-2% of his/her portfolio per trade.

Amateurs on the other hand will, but they risk losing everything if the market shift.

 

Common Questions

Is crypto scalping profitable?

Crypto scalping has an intimidating reputation, and truth be told, it is not for the faint of heart.

To become profitable, it requires a lot practice and back testing several strategies.

But there are hacks to speed up the process 😉

 

What are problems profitable crypto scalpers get?

The biggest problem crypto scalper will face are cashing out.

As cryptocurrency exchanges start to get regulated, converting the crypto to fiat has become challenging in some countries.

 

Who is crypto scalping not for?

Scalping is not for those looking for a side hustle over the weekend.

The weekends have too low liquidity, which means the odds of stop hunts are higher.

 

Day Trading vs Scalping?

Crypto scalping and day trading are terms which are often interchanged to describe traders who place several trades in a day.

All scalpers are day traders but not all day traders are scalpers.

More specifically, getting stopped out by whales through stop hunts.

To be a profitable crypto scalper, you need to avoid becoming  liquidity for whales.

You also need to learn how price manipulation works, so you can use it to your advantage.

 

Crypto Scalping Tips:

  • ProTIP 1:

The trick is to identify a the shift in the larger market trend so you can change strategy.

Very often, traders think their strategy sucks, but in reality, the market simply shifted and you need to shift gears,

For example,

If volatility is low, then you increase leverage.

On the flip slide

  • Pro Tip 2: Replay the trades over and over again with trading view UNTIL IT GETS BORING
  • Pro Tip 3: Don’t skimp on the trading tools –
  • Pro Tip 4: Get clear on the lose rate on the strategy, otherwise you will waste time second guessing yourself
  • Pro Tip 5: Find a mentor

 

The best mentors brag about charts and the art, you want to avoid those who brag about their profits because it means they’re still new in the game.

An experienced trader has executed his strategy so many times, that he knows is win rate and lose rate.

Most importantly, knows that he is winning.

 

  • Pro Tip 7: Avoid groups (discord/telegram) because they will mess with your ego. In crypto, you need to be completely neutral.
  • Pro Tip 6: There are days when it’s best not to trade because the conditions do not match your strategy.

 

CONCLUSION:

By now, you must have realized that if it’s in the news then it’s too late to enter the trade.

So, therefore relying on the news to enter a trade is the worst strategy.

 

While retail crypto scalping strategies can potentially have a lower win rate,

To get a higher win rate, you need to use more advanced crypto scalping strategies.

And advanced crypto scalping strategies usually use around 10 indicators.

So, if you want to make consistent profits, then that is the minimum you have to learn.

 

That said, I do still recommend learning scalping strategies because it not only give you and edge on what’s happening in the cryptocurrency market.

 

 

About The Author

Leave a Reply

Your email address will not be published. Required fields are marked *