What scalping is
Scalping is a trading style that aims for small moves, often 0.3% to 1%, held for seconds to minutes on 1–5 minute charts. Scalpers trade often and rely on a small edge repeated many times.
The costs decide whether scalping works
On a small target, fees are a large share of the profit. On major exchanges, futures fees at the base tier are roughly 0.02% for maker (limit) orders and around 0.04–0.05% for taker (market) orders, charged on the full position at entry and exit.
Example: a scalp aiming for 0.4%, entered and exited with market orders, pays about 0.1% in fees, a quarter of the target. The same trade with limit orders pays about 0.04%. Over hundreds of trades, that difference is often the whole edge.
- Use limit orders where you can.
- Trade liquid coins with tight spreads.
- Avoid targets so small that fees eat most of them.
Picking coins to scalp
- Liquidity: high 24h volume and tight spreads, such as the most traded USDT-M perpetuals.
- Movement: coins that are actually moving today, with relative volume above normal.
- A clear bias: trend direction on the 1h chart, so you scalp with the flow.
Three scalping setups
1. VWAP pullback
In a trend day, price above the session VWAP often pulls back to it and bounces. Enter on the reaction at VWAP, stop just below it, target the recent high.
VWAP pullback long
Higher-timeframe trend up, price reclaiming VWAP on the 5-minute chart.
2. Opening range breakout
Mark the high and low of the first 30–60 minutes of the UTC day. A break with volume in the direction of VWAP often runs. Stop back inside the range.
ORB long
A clean break of the opening range, above fair value, on volume.
3. Sweep and reclaim
Price wicks below an obvious level, such as the previous 15-minute low, then closes back above it. Enter on the reclaim, stop below the wick.
5-minute sweep reversal
A stop run against the higher-timeframe trend that fails.
Risk rules for scalpers
- Risk a small, fixed amount per trade, such as 0.25–0.5% of the account.
- Set a daily loss limit and stop trading when you hit it.
- Keep leverage moderate. Size from the stop, as explained in leverage trading explained.
- Avoid scalping into major news or funding settlement times, when spreads widen and wicks get extreme.
Frequently asked questions
What is the best timeframe for crypto scalping?
Most scalpers execute on the 1 to 5 minute charts and use the 15 minute or 1 hour chart for direction.
Is crypto scalping profitable?
It can be, but fees, spread and over-trading make it one of the hardest styles. Using limit orders, trading liquid coins and keeping strict risk limits matter more than the setup.
What indicators are best for scalping crypto?
Session VWAP, the opening range, short EMAs such as 9 and 21, relative volume, and price levels such as recent highs and lows. Fewer indicators work better at fast speeds.
Crypto futures are leveraged and carry a high risk of loss. This guide is educational and is not investment advice.