memecoins such as Dogecoin, Dogelon Mars, and Shiba Inu. The overwhelming success of the coin holders continues to draw in many desperate investors who believe they can become the next multi-millionaire.&nbsp;</p>\n<p>Desperation for success can make people purchase coins that are obvious scams. For instance, the &ldquo;Squid Game&rdquo; coin that was derived from a popular South Korean TV series. In this case, the value of the coin sunk from over $2000 dollars per coin to zero.</p>\n<p>In essence, <strong>the person referred to as the &ldquo;greater fool&rdquo; is the one person that will buy the overvalued asset</strong>.</p>","level":"easy","meta_title":"What is The Greater Fool Theory? Definition & Meaning | Crypto Wiki","meta_description":"The Greater Fool Theory meaning: The Greater Fool Theory - states that no matter how overvalued an asset is, there will always be someone to buy it.","meta_keywords":null,"language":"en","created_at":"2022-03-16T07:34:44.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-the-greater-fool-theory"},"prevSection":{"id":1023,"original_id":null,"author_id":42,"translator_id":null,"title":"What is Support?","slug":"what-is-support","section":"S","keyword":"Support","status":"published","definition":"a technical analysis term that refers to a level that keeps the price of an asset stable and prevents it from going down.","content":"<p>Support is a price level that keeps an asset's price stable. Usually, support levels are formed by <strong>significant buying pressure</strong> in a certain price range. However, support levels can also be created by <strong>large <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-buy-wall/">buy walls</a>.</strong> This happens because the buy walls make it difficult for the price to drop lower.</p>\n<p>Therefore, a support level is typically triggered by a big supply of buyers in a particular price range. Besides, <strong>it operates as a &ldquo;floor.&rdquo;</strong> Overall, the price can only decrease under heavy selling pressure when it is at a support level.</p>\n<p>Usually, traders construct support lines based on prior lows because it helps to identify probable price reversal points. The reversal points can suggest good buying options.</p>\n<p>Support levels are mostly portrayed by <strong>straight horizontal lines.</strong> However, they can also be represented by <strong>diagonals</strong>. Though diagonals are mostly interpreted as <strong>trend lines.</strong></p>\n<p>When a support level is breached, it&rsquo;s more likely to become <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-resistance-line-level/">a resistance level</strong></a>. The resistance level has the opposite impact in comparison to the support level. Thus, it would <strong>operate as a &ldquo;ceiling.&rdquo;</strong> This means that it would stop the price from climbing any further. Usually, when resistance or support levels are breached, great trading options develop.</p>\n<p>Keep in mind that you should always consider at least two previous lows when creating support lines. The level of trustworthiness of your claim depends on the amount of evidence you have to back it. When drawing resistance and trend lines, the same rules apply.</p>","level":"easy","meta_title":"What is Support? Definition & Meaning | Crypto Wiki","meta_description":"Support meaning: Support - a technical analysis term that refers to a level that keeps the price of an asset stable and prevents it from going down.","meta_keywords":null,"language":"en","created_at":"2022-05-24T11:31:53.000000Z","updated_at":"2022-06-07T11:49:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-support"},"currentChapter":"S","currentSection":"what-is-scalping","chapterTitle":"S","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-scalping","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
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Crypto Terms: Letter S

What is Scalping?

Scalping MEANING:
Scalping - a day trading strategy where investors buy and sell the same security, stock, or asset several times throughout the same day. The traders that engage in this strategy are known as scalpers.
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Let's find out Scalping meaning, definition in crypto, what is Scalping, and all other detailed facts.

Scalping is a trading strategy used by investors who buy and sell the same asset or stock several or even hundreds of times in a single day. It’s common among day traders who are looking to make a smaller profit that accumulates over time through multiple trades rather than going all in and making fewer big trades.

Traders that participate in scalping are known as scalpers. They rely heavily on short-term market performance and typically focus on intervals lasting around 1-5 minutes. Typically, a scalper sets a daily profit goal and works to achieve it throughout the trading day, often executing trades in very short timeframes.

Setting up a scalping strategy requires both financial and technical resources. Having a fast and reliable internet connection is one of the prerequisites for this trading strategy, as it requires continuous tracking of the most up-to-date market data. Furthermore, scalpers need to ensure they have sufficient funds to pay for all market positions that they open.

Scalpers work with various market indicators to support their exit strategy. Although scalping works with smaller trades, it can still be considered to be relatively risky as one wrong investment move can write off all gains of the day. It’s highly recommended to not leave any positions open to carry over to the following trading day.

Scalping is a legitimate strategy used in both traditional and crypto markets. However, in some instances, scalping is used as a market manipulation technique. A common manipulation tactic is buying an asset and then utilizing social media, e.g., Twitter, to recommend it for investment, leading to its price suddenly increasing.
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