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 Abuja Chamber of Commerce and Industry (ACCI) has called for policy consistency, the protection of Micro Small and Medium Enterprises (MSMEs), and private sector-led growth to strengthen Nigeria’s economy in 2026.
The President of the chamber, Mr Emeka Obegolu, made the call in a New Year message issued by the ACCI Media and Strategy Officer, Mrs Olayemi John-Mensah, on Thursday in Abuja.
He submitted that consistent policies and private-sector-friendly reforms were critical to reducing the cost of doing business and achieving sustainable economic development, stressing the need for strong protection of MSMEs, describing them as the backbone of the Nigerian economy.
According to him, sustained stakeholder engagement and predictable reforms would encourage investment and business expansion.
The ACCI president said the organised private sector remained cautiously optimistic about business opportunities in 2026, noting that the optimism persisted in spite global and domestic economic pressures affecting businesses.
He commended Nigerian businesses for their resilience and adaptability in navigating the economic challenges of 2025, adding that businesses demonstrated commitment to innovation and value creation despite inflation and foreign exchange volatility.
Mr Obegolu also cited high energy costs, rising interest rates and limited access to finance as key constraints faced by enterprises.
According to him, these challenges underscored the importance of chambers of commerce in advocating stability and competitiveness.
He said economic reforms were necessary but should be carefully sequenced to safeguard MSMEs and organised businesses.
Mr Obegolu warned that poorly managed reforms could result in business closures, job losses and capital flight.
He drew attention to over N720 billion in outstanding contractor debts owed by government.
He said delayed settlement of verified obligations had weakened cash flows and disrupted supply chains.
According to him, the situation had particularly affected indigenous contractors and MSMEs nationwide.
He urged government to prioritise transparent verification and timely settlement of the debts to stimulate economic activity.
Mr Obegolu also called on the Federal Government and the FCT Administration to create a more enabling and predictable business environment.
He noted that Abuja had evolved into a major commercial and investment hub requiring stronger infrastructure and regulatory support.
He reaffirmed ACCI’s commitment to constructive engagement with government to promote ease of doing business and inclusive economic growth.
By Adedapo Adesanya
The Minister of Industry, Trade and Investment, Mrs Jumoke Oduwole, has said the federal government would deepen its participation in the African Continental Free Trade Area (AfCFTA) in 2026 by working with state governors to identify at least one exportable product in each of the country’s 774 local governments.
The move gears towards scaling production, boosting non-oil exports, and strengthening competitiveness across Africa.
She made this disclosure while speaking on Nigeria’s AfCFTA Achievements Report 2025 under the Federal Ministry of Industry, Trade and Investment.
The Minister noted that Nigeria’s AfCFTA Agenda in 2026 will be building on implementation milestones recorded in 2025.
According to her, the plan aims at positioning the country to better exploit opportunities under the continent-wide trade pact.
Operationalised through the AfCFTA Central Coordination Committee (CCC), the Ministry will collaborate with development partners across public and private sector institutions to mobilise production nationwide, while also undertaking an awareness and sensitisation campaign.
“FMITI will work with the Nigerian Governors’ Forum and State Governments to identify a minimum of one (1) product that each Local Government Area can export into the AfCFTA market,” the report stated.
Beyond local production, the 2026 agenda places a strong emphasis on creating an enabling policy and regulatory environment to support the full implementation of the AfCFTA Agreement and its protocols, with the Ministry of Industry, Trade, and Investment leading the regulatory alignment efforts.
In addition, Nigeria plans to upgrade trade data systems to effectively track AfCFTA trade flows, including disaggregated data on goods, services, and participation by women and youth, while expanding global advocacy and hosting key continental trade events ahead of the Intra-African Trade Fair in 2027.
The report also outlines plans to demystify AfCFTA rules and compliance requirements through a series of targeted publications for businesses, alongside measures to strengthen institutional coordination and improve accountability among public sector agencies involved in trade facilitation.
On investment and industrial capacity, the document notes that: “Investment mobilisation efforts with foreign and domestic investors will prioritise the exponential increase of productive capacity in key sectors, to position Nigeria as the innovation, production and distribution hub of the AfCFTA market.”
By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited plans to develop new oil fields from next year and seeks to raise at least $30 billion by the end of the decade.
According to Bloomberg, this was disclosed by senior officials familiar with the plans in the country which is Africa’s largest oil producing nation.
The state-owned oil firm is raising the money as part of efforts to reverse years of underinvestment that have left several discoveries undeveloped, the people said, without disclosing the new fields being targeted.
The publication revealed that the NNPC expects significant investment decisions to come through next year, according to the people who declined to be identified because the talks involve confidential commercial matters.
The sources also said the NNPC is also reviewing its portfolio and plans to sell non-performing fields, adding that the firm will likely meet more than half of its fundraising target.
The energy company plans to develop some of the fields in-house and is expected to call for bids early next year, the people said.
NNPC also plans to boost oil output by 5 per cent to 1.8 million barrels per day next year compared with 2025 and is targeting 4 million barrels of daily output by 2030.
It also targets the completion of the $2.8 billion Ajaokuta-Kaduna-Kano (AKK) pipeline, connecting various segments to the main line from early next year, one of the people said.
Once ready, the pipeline will deliver gas at scale to parts of northern Nigeria including the capital of Abuja, supplying industrial parks, fertilizer plants and power-generation facilities.
Recall that the chief executive of the NNPC, Mr Bashir Ojulari, recently said the country would begin to export gas from the $2.8 billion Ajaokuta-Kaduna-Kano (AKK) pipeline from early 2026.
First conceived in 2008, the AKK pipeline is central to Nigeria’s ambition to leverage its vast gas reserves for economic growth. Its completion could transform the north, where chronic power shortages and a lack of energy infrastructure have stifled manufacturing for decades.
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