surf trading was formed starting from Altcoins. The collapse of the Luna coin has caused the cryptocurrency market to fluctuate quite a bit. Because when investors apply a long-term buy-and-hold strategy, they will face risks when trading Altcoins. On the contrary, when investors trade surfing with Altcoins, they will achieve better risks than long-term trading. So how to trade scalping, let’s find out with Crypto Trading
Guide surf trading on the market
Crypto investors often apply surf trading to coins with strong fluctuations. They will trade at a low price and then wait for fluctuations and start selling.
What is coin scalping trading?
Scalping is a popular trading strategy in the cryptocurrency market due to its high volatility. Scalpers often use leverage to open more trades and also limit stop losses to manage risk. Traders in the cryptocurrency market often use this strategy because of the way they react quickly to market movements.
There is absolutely no need for investors to hold positions for hours, days, or weeks. Scalping trades usually react within minutes and sometimes even seconds. Scalping requires high volatility in the cryptocurrency pair that the investor has chosen. The higher the price volatility in the market, the more profit the investor can achieve.
What is coin day trading?
The day trading method is similar to the scalping method. Investors will buy low sell high and close all positions during the day. This trading method will not leave positions overnight. They help investors ensure safety when trading without risking overnight fluctuations in the Crypto market. Day trading coins also saves investors on overnight fees.
Which investors are suitable for scalping coins?
Scalping coin trading is suitable for small individual investors. Traders who want to earn extra income in the short term limit all risks in the market. However, this form of trading requires investors to update news regularly. In addition, solid analytical knowledge is needed to find good entry points.
See more: Learn Momentum – The 3 principles of optimal trading
Classification of current surf trading
Currently, investors can diversify transactions in markets with the swing trading method.
(How to trade coin swing trading) with spot trading
Spot trading is the process of investors buying and selling cryptocurrency pairs. When trading a spot, investors receive immediate payment when buying or selling. Cryptocurrency pairs will be moved directly between market participants. Investors can also have direct ownership of cryptocurrencies. When owning these coins, investors can transfer them directly to their wallets.
What is margin scalping trading?
Margin trading is a way of trading assets using third-party funds. Compared to a regular trading account, a margin account gives investors access to more capital. Margin trading allows investors to improve their positions.
When trading on margin, investors can get higher profits from successful transactions. To be able to start trading on margin, investors need to spend an amount of money equivalent to a percentage of the initial order rate. This amount of money is called margin and it is similar to leverage.
Scalping coin derivatives trading
Derivative trading is the act of trading between investors and many parties. Derivative trading will be based on a certain coin or token. When trading derivatives, investors do not need to own any coin or token. Profits when trading derivatives will be based on the price difference of those assets. Currently, there are 4 basic types of derivative contracts in the Crypto market. These include futures contracts, forward contracts, options trading, and finally swaps. Each type of contract will have different characteristics when trading.
Apply technical analysis when trading coins
Technical analysis is a practice that helps investors identify and predict market movements. Technical analysis is based entirely on price and volume fluctuations in the Crypto market. Technical analysis is widely and popularly applied. Especially when trading scalping in the market.
The principle for investors to be successful with the coin trading strategy is a good entry point. Indicators that investors can apply when scalping include Bollinger Bands, MFI indicators, Stochastic Oscillators, etc. However, when scalping, investors should also note that they should only focus on 1 to 2 types of coins or tokens to trade. This helps investors to easily control and increase the success rate.
See more: Open HTX account on computer quickly
Applying technical analysis on the MFI indicator
What is the concept of the What is MFI indicator? MFI is an indicator of money flow fluctuations in the Crypto market. The MFI indicator in the Crypto market uses both volume and price to measure the buying and selling pressure of cryptocurrency pairs. The indicator is started at a typical price depending on the period. When money flow is positive, this is typical for the market to be rising. When money flow is negative, this is typical for the market to be falling.
Investors can use the MFI indicator to identify overbought and oversold areas when trading coins or tokens. Normally, when the indicator is above 80, it will be considered an overbought area and when below 20, it is an oversold area. However, these signals will not work strongly if they are in a strong trend. Signals above 90 and below 10 are rare signals. They indicate that the market is in a volatile and unsustainable price trend.
Conclude
Above are the surf trading that we want to send to readers. Investors when trading scalping note that any trading method has profits that come with risks. Therefore, no matter which method is used to trade. Investors also need to understand the details of each method. With the method of trading surfing in the Crypto market. This method requires investors to spend a lot of time monitoring the chart. Follow Crypto Trading to better understand this trading method.
FAQs
Is time frame selection important when swing trading?
Investors need to pay attention to two time frames when trading scalping. The first is the order entry time frame and the second is the analysis time frame.
Which Crypto Exchange Should You Choose When Scalping?
Investors can refer to the exchange HTX, MEXC, Bybit, or OKX
Is capital allocation important when participating in coin trading?
Capital allocation is essential when participating in scalping trading.
