Crypto Copy Trading
Copy trading has made a remarkable impact on global trading, but it can be a complex topic for newcomers.
At its core, copy trading revolves around learning from success. Just as making mistakes teaches you how to avoid repeating them and to achieve better results in the future, positive outcomes can show you how to keep succeeding too.
Let’s take a closer look at what this means and how it applies to cryptocurrency trading.
What does copy trading mean ?
With copy trading, cryptocurrency traders can copy positions opened by one or more investors automatically, specifically within a social trading network. By doing this, the trader performing the copying has their account linked to the original investor’s, so that actions (such as opening or closing a position) are executed across both.
In most cases, the copying trader has the flexibility to stop trades which have been copied and manage them on their own. This means that they can bring copy-based relationships they have initiated to an end, as they see fit. Original investors, whose trades are being copied, typically earn fees (through month-by-month subscriptions) as compensation.
There are various platforms available for cryptocurrency copy trading, and they utilize a wide range of logic to facilitate trade copying. A number of copy trading platforms allow traders to put Stop Loss orders on a whole copy relationship, so that they can exert control over their potential risk.
It’s certainly complicated for beginners, but crypto copy trading is a popular choice, and there’s an active community to tap into for hands-on insights.
Main advantages of copy trading
Anyone new to the world of trading understands how daunting it can be. There’s a lot of complex elements to grasp, with so much data, analysis, and fluctuations at play.
But crypto copy trading helps novices to overcome their fears and start trading without the level of knowledge that more experienced traders have. You can monitor which choices seasoned traders make and understand why. Certain traders may be more willing to communicate than others, and provide one-to-one guidance.
Cryptocurrencies are highly volatile, and fluctuations are incredibly regular, so adapting to the market can take time. You can learn from your mistakes, too, and keep improving as you put more time into observing other crypto traders.
That’s why copy trading works so well for newcomers to cryptocurrency trading. Over time, inexperienced traders can learn from their more successful counterparts and start generating real profits across different exchanges.
How does copy trading work ?
Copy trading is less dependent on information provided by fellow traders, and more so on their behavior. As we’ve already established, this system allows one trader to copy the actions of others. Users have to copy a trader with a chosen platform’s automated system for the process to count as ‘official’ copy trading.
When a trader conducts copy trading, a part of their portfolio is linked to that of another user’s, and all of their open trades may be copied from account to account. All actions taken in the future will be copied, too.The cryptocurrency copy trader can decide how much they want to invest in the trader they’re copying from, though often, this is unable to be higher than 20 percent of the copy trader’s portfolio.
How to start Copy Trading Crypto ?
Copy-trading Crypto has never been easier. All you have to do is:
1) Choose a crypto trading software you like
2) Sign up and connect your Binance account through API
3) Pick a successful trader and follow him
4) That’s it – social trading will now start making you more crypto.
Simple as that. Even though it’s essentially simple, you can fail with copy trading too. We advise you to gain some knowledge yourself, investigate the traders before investing any money in their trades. Here are a few tips on doing so.
Best Copy Trading Brokers in 2020
( The following list of trading platforms are in ranked in no order and are completely random.while Etoro and zuluTrade are
the most commonly used platforms,I higly recommend you to do your own research and choose your prefferd platform.)