Scalping is a trading strategy where traders take advantage of high volatility in the crypto market to earn profits. Investors make many small trades that happen quickly within a span of a few minutes.
Scalpers cannot make manual trades because it would be repetitive and tedious. Luckily, there are scalping bots that automate trades, making work easier. So, what are scalping bots and how do they work? Let’s find out!
What Is Scalping?
Scalping is a strategy that involves identifying entry and exiting points in a highly volatile market. Generally, prices of crypto change very fast, and scalpers need to make their decisions fast as well if they are to gain any profits.
Successful traders take long positions when market conditions are bullish and short positions when the market is bearish. If you want to succeed using scalping strategies, you also need to have a good investment so that the many small trades can make economic sense eventually.
To become a scalper, you need to learn technical analysis of trades as well as how to monitor charts. You have to be so quick in the analysis so that you can make a decision within a few minutes and execute your trades.
Is It Possible to Automate Scalping Strategies?
Crypto markets are volatile and unpredictable. If you’re to make any profits, you need to constantly monitor the markets and if your emotions get in the way, you could end up making losses.
Scalping bots are programmed software that can automate your trading process. A bot will follow strict guidelines and execute a trade when market conditions are favorable. Scalping bots are not only efficient but also secure and profitable if used correctly.
Do Scalping Bots Work on Crypto?
Scalping bots work best on crypto because the cryptocurrency market experiences constant price movements that open opportunities for scalpers to make profits. Expert scalpers recommend choosing an exit strategy for each trade and sticking to your plan. Besides, you also need to choose coins that have high liquidity. But generally, scalping strategies are some of the most profitable in crypto trading if applied correctly.
Is Scalping Crypto Profitable?
Scalpers use spreads to capture the difference between supply and demand. These spreads help traders to buy at the bid price and sell at the asking price. Scalping strategies can only be profitable if as a trader you’re ready to accept the market price regardless of whether there are changes in orders and sales.
Your ability to perform technical analysis or charting is also a determining factor in how profitable your scalping gets. Technical analysis will help you use past price actions and volume data to determine future price movements.
Speed is also important if you want to make profits from scalping. You should read the charts within a few seconds to minutes and make a decision so that you take advantage of the short-term price fluctuations.
Most importantly, choose token pairs that have high liquidity if you want to minimize your risks. Some scalpers prefer to scalp with Bitcoin because it is relatively stable compared to other altcoins.
How Much Does a Scalping Bot Cost?
Scalping bots sell at different prices while others are free. Here are some of the best crypto scalping bots and their pricing plans.
Pionex scalping bot is free to use and the platform gives you access to 16 free bots. Being one of the biggest exchanges, Pionex aggregates the liquidity of Binance and Huobi Global to help you make informed trading decisions. The platform is easy to use and perfect even for beginners.
Bitsgap is another great scalping bot, but unlike Pionex, you need to pay for this one. The good thing about Bitsgap is that it has a demo account so that you can test how compatible it is with your needs. The pricing starts at $24 per month for the basic plan, the advanced plan goes for $57 per month, while the pro package sells at $123 monthly.
If you want a scalping bot that will give you the ability to create your own trading rules, then Coinrule is your go-to choice. The platform offers 40+ scalping strategy templates to experiment with. Coinrule supports many exchanges including Coinbase Pro, Kucoin, Bitpand Pro, Binance, and FTX, among others.
Coinrule offers a free trading account perfect for beginners but if you’re an advanced trader looking for more features, there are paid plans. The hobbyist package sells at $29.99/month, the trader plan goes for $59.99/month, and the pro package goes for $449.99/month.
Cryptohopper scalping bots use three main strategies - momentum trend signals, pure trend following signals, and volatile trend signals. You can take advantage of the Pioneer package that is free to use or you can opt for paid plans that have more advanced features. The explorer plan sells at $16.58/month, the adventurer at $41.58/month, and the hero plan at $83.25/month.
Scalping is a profitable strategy where traders take advantage of short-term price movements. If you do it manually, it would imply that you spend hours on end on your computer monitoring the charts. However, you can automate the process using scalping bots that will enhance your efficiency and speed.