Bitcoin is a relatively volatile market compared to the exchange market. Therefore, when scalping, you have to trade with a low trading volume. However, depending on the market situation, even a one-minute bar can be a trading opportunity.
Is 1 minute scalping possible?
Is it possible to perform one-minute scalping by repeatedly buying and selling while using an indicator with Bitcoin in virtual currency FX?It is quite possible. The 1-minute scalping method is likely to work effectively in the following situations. Basically, it is preferable to trade during periods of very high volatility. This applies not only to Bitcoin, but also to altcoins. Please note that some exchanges may prohibit it or charge high fees.
high liquidity period
In the case of currency pairs with fiat currencies, such as BTC/USD and BTC/JPY, entering at the timing of a political event or important economic indicator can widen the market spread and immediately increase volatility, which is also a risk. At this time, 1-minute scalping is very useful. In particular, when it comes to important indicators such as policy interest rates, unemployment rates, CPI, and GDP, fiat currencies can be very volatile, causing large fluctuations. As the fluctuations are large, it is easy to incur losses, so you must be careful with your funds.
weekday trade
From my experience, the market price of virtual currencies, including Bitcoin, is stable and quiet for a day on Saturdays and Sundays, and there is little price movement, so it becomes a range, which is an advantage. Gradually, the movements become rougher and trends are more likely to emerge. In such cases, it is easy to use short-term 1-minute or 5-minute scalping. Determine market conditions in detail and trade. Therefore, it will be important to be able to perform technical analysis.
When bitcoin is rough
Recently, Bitcoin has become the base currency in the virtual currency market. For this reason, when Bitcoin initially becomes volatile, different types of Ripple, Ethereum, Tether coins, etc. tend to move significantly in conjunction with it. At this time, it is very convenient to order 1-minute scalping. When day trading altcoins, it is a good idea to keep an eye on Bitcoin price movements. If you can win at least one, you will gain some confidence.
When 1 minute scalping is not effective
Basically, 1-minute scalping, as explained above, is easy to use as a strategy when the market moves frequently. In the following market conditions, the difficulty level increases and scalping is not recommended. Consider whether to draw Bollinger Bands or moving average lines to assess the market situation. There are cases in which the desired results do not appear even after waiting for a long time. In order to win efficiently in a short period of time, it is important to at least understand and predict the market price.
range market
This is the same for exchanges and stocks, but trends do not always occur in the market. The trend is about 20% of the total. When the trend ends, the market will always go into a range. It is very difficult to win with scalping because this market has only small price movements and no price range. Even if you earn a lot of money, if you lose once, the profit often disappears. The reason is that the price range is not available.
Saturday and Sunday trading
The virtual currency market basically tends to create large trades on weekdays. On Saturdays and Sundays, there are many cases where investors and securities companies do not show any movement, so there are not many price movements. In that case, scalping for 1 minute will not be very effective.
asia time
This is the same for stocks and foreign exchange, but in the case of Asian time, the market rarely moves. Asian time often ends in a range, and there is little price range. The target will be the London market and the New York market.
Open an account
In order to actually start investing, you must first open an account. MEXC allows you to open an account for free, so you can easily open an account. The article below explains how to open an account, so please refer to it.
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