Cryptocurrency Scalp Trading for Beginners: How to Scalp Trade Crypto

However, some features, like margin trading, are not available in the U.S. Users can also access portfolio and trade history, order book, and several order types. TokenTact’s DCA trading bot has gotten several new features that will make your trading even smoother and, of course, more profitable. Take Profit will follow the current price at a certain distance specified in the settings. With TTP, you can maximize profits while the price moves in a favorable direction. When you set a smaller number of active trades than the total number of DCA orders, the orders placed at the lowest prices are going to be inactive (grey lines in the chart).

  • Your investments are distributed based on the grid strategy, by dividing your price range into multiple levels or grids.
  • Used and admired by 50M+ traders around the world, TradingView is by far the best charting platform to do investment research and spot opportunities across global markets.
  • Now, when setting up Take Profit (TP), you can also enable the Trailing Take Profit functionality (TTP).
  • “Buy the dips” means purchasing a coin after it has fallen in value.

Thus, for averaging orders at lower prices, funds are not reserved on your available balance, and you can use them for other transactions. The simplicity yet effectiveness of moving averages explains their widespread popularity. Scalpers can use multiple moving average strategies to identify when to enter and exit positions to profit from short-term price fluctuations. For those new to scalping cryptocurrencies, the best approach is to test out different indicators to find the combination that fits you best. It is a process of experimentation to determine which indicators gel with your trading goals and risk limits. That said, certain indicators are popular among cryptocurrency scalpers.

Although the SAR doesn’t form the core of a trading strategy, it’s a valuable enhancement to graphical arsenal, making trend analysis more captivating and accessible. By displaying the market’s current direction through strategically placed dots, it helps decipher trends more easily. Dots positioned below the price bars signal a bullish trend, while those above the bars indicate a bearish movement. The Stochastic Oscillator (SO) is a handy tool to determine when an asset’s price trend may be about to switch directions (Pic. 3). It works by comparing the current price of an asset to its average price over a set time period.

CFDs are derivative instruments that allow you to speculate on financial markets without taking direct ownership of the underlying crypto. The contract pays the difference between an asset’s opening and closing price. So if you use CFD to short crypto, then a lower price on the close date will net you a profit. First, there are spot and derivative shorting (also applicable to crypto trading — more on it later). As the name implies, spot shorting involves taking a short position in the spot market, while derivative shorting — in the futures market.

It takes away the manual effort of doing the trades and completely automates the process. The DCA bot is mostly used in rising and falling markets, but it can be used in sideways markets as well. In trading, rising and falling markets are used by investors to take a position when trading.

To start a new GRID bot, click the [Start new bot] button located in the top menu of the Bots page. Bitfinex, Bittrex, HitBTC, Binance, Huobi, Upbit, and OKEx are now all part of Cryptopia, and the plan is to include BitMEX shortly. Furthermore, read our review of the five best free apps on TokenTact to get some free stuff. Napbots is relatively straightforward when it comes to the pricing model.


The results of our testing aim to provide valuable insights into the platform’s strengths, weaknesses, and its potential suitability for a diverse set of users. Remember that due diligence is your best friend in the world of investments and financial choices. Take the time to thoroughly research, analyze, and understand the options available to you. However, TokenTact itself does not impose any additional commissions on trades, ensuring clarity and cost-effectiveness for users. Let’s dive into the advantages and potential limitations of TokenTact.

Like any other trading bot platform, TokenTact first must connect to the user’s exchange. TokenTact can connect to several exchanges with different accounts and execute multiple trades. Grid Bot reverse mode aka “Buy the Dip” accumulates BTC during downtrends. When the market makes a new rapid upward leap the bot reverse mode will close all sell positions and lock profits in BTC acquired at the best price. From this moment user can just relax, HODL and enjoy observing how the market conquers new heights.

Now, in some ugly cases, the liquidation price can even exceed your initial margin. Then you’re looking at full bankruptcy, and the exchange’s insurance fund has to step in and take the loss. And here’s a final boot in the britches — exchanges actually charge you a liquidation fee just to add insult to injury.

Then you can follow all the steps above in the article, and then you can simply customize the tab on the right side of the screen and hit the Short button. On TokenTact, the trailing function allows DCA to follow the market trend in both directions. Though there is a dedicated Knowledge Base, it still fails to provide a comprehensive overview of how to use the software.

The KYC verified users have a withdrawal limit more than the non-verified users. However, once a sell order gets executed, the amount of the base currency used in the bot decreases. Therefore, the system recalculates its average purchase price and adjusts the BEP, respectively. The sum of the total quote amount and the reinvested profit divided by the overall base currency volume + the 2x trading fee. On the right side, we have “Positions,” which shows current P&L on open futures contracts.

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