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?
As for whether scalping is possible with Bitcoin for 1 minute, it is quite possible. The phases where 1-minute scalping tends to work effectively are as follows. Basically, it is preferable to trade aiming for a time zone with very high volatility. This is true not only for Bitcoin, but also for altcoins.
high liquidity period
In the case of currency pairs with fiat currencies, such as BTC/USD and BTC/JPY, volatility increases suddenly when political events or important economic indicators occur. At this time, 1 minute scalping is very useful. Especially when important indicators such as policy interest rates, unemployment rate, CPI, GDP, etc., the legal currency is very volatile, so it will cause large fluctuations.
Bitcoin and other virtual currency markets will be quieter on Saturdays and Sundays and will be in a range. And when it becomes hesitant, the movement becomes rougher and it becomes easier to create trends. In such a case, 1 minute scalping is easy to use.
When bitcoin is rough
Bitcoin will be the key currency in the virtual currency market. For that reason, when Bitcoin becomes rough, Ripple, Ethereum, Tethercoin, etc. tend to move in conjunction with it. At this time, 1 minute scalping is very useful. If you do altcoin, it is very good to see the price movement of bitcoin.
When 1 minute scalping is not effective
1 minute scalping is basically as explained above, it is easy to fit as a strategy when the market moves well. Scalping is not recommended in the following market conditions. Let’s consider whether to take a look at the market situation.
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.
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.