Economy
Why Scalping is the go-to Trading Strategy for Cryptos
If you’re familiar with forex dealing, you’ve also come across the word scalping. It is also known as scalp dealing. It’s a trading technique in which customers benefit from minor fluctuations in futures markets.
Functional analysis, such as the MACD, and candlestick tables, are primarily used in its implementation. This is now standard procedure for cryptocurrency traders.
The aim of this approach is to make money fast, but the issue that keeps coming up is how it works for cryptocurrencies like Bitcoin. We’ll go into the specifics of how crypto scalping operates and how you can use it to your benefit as a crypto trader.
How does scalping work?
Scalping has traditionally been shown to be a low-cost, short-term trading tactic that yields lower gains with less risk. Traders who use this technique do so by making a series of small trades easily. And as the trading day progresses, these small trades will add up to a significant amount of benefit, as in this minute scalping technique, where a trader must bring in all of his paces and focus for these small trades to come in, and this is why most veteran traders use electronic trading systems, which are built to assist traders in identifying and executing trades based on data obtained from various sources.
Traders that use this technique for cryptocurrencies can keep an eye on the values of a crypto pair, such as ETH/BTC or BTC/USD, and take advantage of market fluctuations to benefit from each small transaction. When rates rise, investors benefit from higher market volume because it adds value.
This helps you to open and close trades easily without having to keep them for an extended period of time. And as soon as the market reaches your target price, sell signs will appear, closing your positions for you while you walk away with a slight profit.
However, for the beginner on the market, it is more beneficial to use the 1-minute scalping strategy, which can be a little bit different from what the experienced traders are using. The method would still necessitate time and focus effort. If you are unable to devote at least a few hours per day to this FX approach, you should try using other, less time-consuming trading tactics.
The exchange and trading costs are two very critical factors to remember when implementing this approach. Since most trades charge a taker and a nominal creator fee on each deal, and you’ll be doing multiple minor trades in a row, you’ll need profit margins and risk resources to cover the fees you’ll incur for this approach.
Bonuses are often offered by trades that foster liquidity in order to reduce trading costs. These bonuses are often linked to an exchange-specific token that can be used to further mitigate costs, often up to a 50% discount.
Altcoin scalping vs Bitcoin scalping
Bitcoin is also the most stable of the dynamic community of cryptocurrencies when compared to other cryptocurrencies. This ensures the gains per exchange are smaller, but it’s still useful for scalping because theoretical research forecasts that BTC will stay steady during the trading session. As a result, the most popular method of scalp trading in the cryptocurrency industry is BTC scalping.
Altcoin, on the other hand, may have significant price variations. This is especially true if the coins are smaller and are not sponsored by a well-known business. A coin could be deleted from the list, so anything could go wrong, including the money you made from the trades. If the coin isn’t worth much, the cost of transaction fees can be greater than the profit you gain from trading.
Whatever crypto you want to test your scalping technique with, persistence and concentration are essential. It’s always a good idea to turn off your feelings at this stage to prevent being upset or giving up on your trade too soon if you don’t see profits within a few minutes.
What time is good for scalp trading with cryptos?
You’ll be able to tell whether the new business dynamics favour scalping or not until you know what to look out for. It’ll take some time and experience, but if you know what to look out for, you’ll be able to tell. When using the scalping technique, crypto investors are always on the lookout for three key business variables.
Relative Strength Index (RSI)
This is a tool that is measured based on recent market shifts. The relative Strength Index (RSI) determines if a commodity, such as Altcoin, is oversold or overbought and displays the results as a line graph. It could represent a number between 0 and 100. A Relative Strength Index of 70 or higher sometimes indicates that an asset is oversold or overbought, signalling a reasonable time to sell. When it is 30 or lower, the same is true: the stock is undervalued and primed for a price rise, signalling a reasonable time for a seller to buy.
Support and Resistance Levels
If an asset’s price rises or falls, its support and resistance ratios can change. As a result of this transition, an asset may experience a downward trend and a concentration of demand, or it may experience a rise in demand as prices decline.
The Moving Average
Investors use this to predict where an instrument’s price will go in the future by using historical data to predict what will sell. Some traders use charts to manually watch these metrics, but automation tools will help you interpret the same data quicker.
Scalping allows a dealer to make a lot of small gains from a large number of small transactions that accumulate easily, proving that “a little goes a long way.” Traders should be aware of the fees associated with such transactions, as the value provided can be less than the fee paid. However, much like anything else, a trader must put in time and effort to become an expert, particularly in a market as competitive as crypto trading.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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