Top 10 Reasons Your Crypto Scalping Strategy is Failing in Volatile Markets (And How to Fix It!)
Cryptocurrency scalping, a high-frequency trading strategy, promises quick profits through numerous trades capitalizing on minor price movements. The approach hinges on accumulating small gains over multiple transactions, minimizing exposure to market volatility during brief holding periods.
Yet the crypto market’s notorious price swings—often likened to a rollercoaster—present a double-edged sword. Volatility creates trading opportunities but also fuels the failure of many scalping systems. Factors driving this turbulence range from speculative trading and shifting investor sentiment to liquidity constraints, regulatory uncertainty, macroeconomic events, and rapid technological evolution in the sector.