Crypto Copy Trading — How to Get Started!
As Bitcoin and other cryptocurrencies are reaching their all times high, investors are looking for some better ways to trade to earn profits. Investing in Bitcoin alone has generated amazing returns over the last 12 months, and this is the reason, why investors are rushing into cryptocurrencies trying to not miss out on the potential returns.
So, you are a beginner, and you want to make money from crypto trading?
What if there was an easy way for beginners to enter the crypto market and capture the best opportunities to earn profits without much trading skills and analysis to manage risks?
Doesn’t it seem great? Enter copy trading!
Copy trading allows novice traders to replicate the expert traders’ positions automatically. The fast-paced and constantly evolving crypto sphere is an exciting field for investors. Also known as social trading or mirror trading, crypto copy trading is one of the best and easiest ways for anyone to copy the skills of expert traders and make a passive income.
Of course, it comes with an inherent risk of trading, but with the right and disciplined approach, you can definitely win the game of crypto copy trading.
But, before moving further, let’s understand what the heck is this copy trading?
Copy Trading
It’s exactly the same as what it sounds like! With copy trading, the cryptocurrency traders can copy the positions opened by expert traders automatically. By doing so, the trader performing the copying has their trading account linked to the original investor’s (i.e. expert trader whose positions you are copying) account, so that actions are executed across both. It is one of the best strategies that lets you quickly start trading cryptocurrencies.
The best crypto trading platforms available for cryptocurrency copy trading are allowing traders to put stop-loss orders on a whole copy relationship so that they can have control over the potential risks. Copy trading is a great tool for crypto investors who would like to grow their cryptocurrency portfolio.
As the popularity of copy trading is increasing very fast, many exchange platforms are allowing their users to copy the trades of the successful traders. This type of trading is beneficial for the newbie’s and beginners who have a little or no knowledge about crypto trading.
The copy trading bots/software automates buying and selling of crypto assets by mitigating the original trades of the most successful or professional traders. For this, you need to deposit an initial capital which is as low as $50. Select an expert trader on one of the best copy trading platforms, and from here, every trade of yours will be automated.
Copy trading could be manual or automated, but it’s better if you choose the automated one.
Major benefits of copy trading for the beginners
With copy trading, the traders can enjoy a host of benefits, and these are only the benefits which have contributed towards its immense popularity. Below are the key advantages of crypto copy trading for beginners:
· Allows beginners to enter and trade cryptocurrencies even with zero experience in crypto trading. With copy trading, the traders get an interesting route to enter into the world of crypto trading.
· Quick access to reliable trading information
· Lets the novice traders enjoy the same level of profits as experienced traders.
· Those who wish to learn from the experts can review and copy others’ trades.
· Use automatic copy trading to save time.
· Enhance the trading understanding and skills of the beginners. It enables the novice traders to follow the trading activities, styles, and activities of the professional traders. Many of them have immense knowledge and experience in crypto trading. As a result, you begin to learn by watching their actions and through replicating their successful strategies you may earn profits.
· With copy trading, the traders have plenty of time for day trading as they choose the strategies of professional traders. And, by just monitoring the activities of expert traders, one can make profitable trades.
How does copy trading work?
Copy trading works by harnessing the social networks like Telegram and signals on the best crypto trading platforms by providing transparency over positions and performance of the traders while allowing them to replicate the professional trades automatically. The traders’/copiers can replicate all the existing open positions of the expert traders as they are opened or closed. Traders can also select the trades to copy manually.
When a trader conducts copy trading, a part of their portfolio is automatically linked to that of the professional trader, and all of their trades are copied from account to account. Additionally, all the actions taken in the future will be copied too. The copy trader can decide how much amount they want to invest in the professional trader’s trades.
For example:
A trader may have a balance of $20000 in his account. He has no open trades and wants to copy the trades of a successful trader.
It is important that he doesn’t invest a large amount if he is a beginner, so it will be best if he uses only 10% ($2000). He decides to go with copy trade, and the professional trader has just one open trade which is copied into his (copy trader’s) account.
Rise of copy trading in the cryptocurrency market
To begin with copy trading, firstly, you need to understand that there are mainly two types of traders. First ones are those who attend several seminars, watch videos, compile strategies, and follow all the latest market trends before placing trades.
On the other, there is another group of traders who want to place profitable trades with as little input as possible. And, for the latter ones, copy trading was developed and has turned out to be a perfect option.
Copy trading is not only for the unexperienced traders, but a lot of successful traders use copy trading as a means of market research. It helps them to save time, and develop a new strategy which could be profitable.
The best crypto trading platforms like TrailingCrypto provides trading signals to take advantage of the trading strategies of expert traders.
What are trading signals?
With trading signals, the traders receive notifications which are just like the suggestions of when to enter or exit the trade, what cryptocurrency to trade, what stop-loss or take-profit orders to implement, etc. The traders may receive signals on the Telegram or other social media groups, SMS, emails, or through a dashboard.
Of course, it is important to use a signal service that lets traders get more successful trades.
Mechanics behind copy trading
Copy trading is largely automated, but there’s still a lot for the traders to do. It’s important to find the right and best traders, and determine how you would copy them.
Let’s dive deep into the working of copy trading:
Pick a copy trading platform
Copy trading starts with registering yourself on the best crypto trading platform like TrailingCrypto. Although it seems simple, so this step is overlooked many a times. The best and professional traders always prefer the platforms which are dependable and transparent.
One can usually find them on exchanges offering a diverse range of cryptocurrencies. The best trading platform, TrailingCrypto lets you execute trades at very fast speed, so that you can copy trades when it’s running hot in the market.
Choose your investment
After choosing the best copy trading platform, you need to choose the investment amount. Make sure you remain balanced and never invest all your funds in one trader’s account. Plan to share it with different traders. Choose the amount that you will allocate to each trader’s account if you plan to copy the trade from different traders. After doing this, the copy trading platform will automatically replicate the trades of all the chosen traders’ positions with their personal trading account.
Add funds
If you like the way a professional trader is placing his trades, you may add additional funds to your account. Alternatively, you may reduce the funds to keep your trading portfolio more diversified. You may also replace your existing trades at any point of time.
Finding the right copy trading platform
If you are not sure which one to pick, you must have a look at the below guide on what makes a copy trading platform great:
· Choose platforms that are API connected
Security is an important aspect when it comes to trading cryptocurrencies. Make sure to transfer funds to a verified exchange account instead of considering an unknown service provider. For investors to gain control over their capital, a connection via API key is required. Choosing platforms with API connected keys allows traders to connect their personal exchange account and manage funds without transferring to third parties.
· Pay attention to the availability of statistics on expert traders
It’s great to see a trader earning profit, but it is more important to understand how he does it. If any copy trading platform shows data on the initial balance of the trader along with average yield and drawdown as the percentage. Make sure to consider the statistics on how stable the trader is placing his trades.
· Choose the trial services before paying subscription
Its’ great if any crypto trading platform offers free services. The best copy trading platforms offer their services by a subscription model. A special time period is offered to allow traders to check the functionality and evaluating its features. The free trial period at the best platforms is from 3 to 14 days.
· Check internet reviews
Considering feedback from other users is important and most valuable. You should not trust blindly on all the good reviews over the web. Make sure to analyze those reviews that reveal the copy trading platform service’s performance.
How to start copy trading safely?
All types of trading are risky and copy trading is no different from this. You are responsible for your own losses, not for the trader that you are copying. And, that’s why it is important to trade securely.
Following the right trading signals can help traders limit their risks. Setting a stop-loss is also of great help which will automatically stop trades if you lose a pre-set amount.
Deposits and withdrawals of money in copy trading
Any copy trader who feels impressed with the trades of a successful or professional trader’s investments can also increase their investments easily. This will allow copy traders to boost more profits over time. Sometimes, it might be risky. That’s why you should make sure to build a diverse portfolio, rather than trading on a single platform and copying the trades of only one trader.
The best copy trading platforms offer a great and flexible experience to perform copy trading and makes it easier for you to control your money manually. These platforms also offer automated trading via copy trading bots.
Best copy trading platforms offering copy trading bots
Are you looking for the right copy trading bot to automate your trades? Go through the below list of the best copy trading platforms for beginners:
1. eToro- This is a pioneer of cryptp copy trading which has many popular and the most advanced social trading features in the market. It supports more than 16 cryptocurrencies for the copy trades to replicate their trades. Unlike regular copy trading, eToro’s copy trading allows you to copy other traders’ activities and strategies with some adjustable levels of risk. This way, you will not be completely dependent on other trader’s activities and can lessen the risk of losing money.
2. Cryptohopper- This is one of the most powerful crypto trading platforms that works with complete automation via copy trading bots. This platform is designed to help traders to copy most of the trading strategies from the professional trader, and maximize the chances of profits, and reducing losses. Both experienced and novice traders can join the marketplace and can perform copy trading manually or automatically using the copy trading bots.
3. 3 Commas — It is one of the most popular crypto trading platforms that offer the best copy trading strategies for the novice and expert traders available on their marketplace. It offers copy trading bot where professional traders offer their trading strategies to other users. One may choose the trading strategies of the experienced traders which you wish to copy to your account. The copy trading bot will take care of the rest and will automatically place buy or sell orders.
This platform supports an impressive list of crypto exchanges on which it is possible to perform automated copy trading like Bittrex, Binance, Kraken, etc.
4. Zignaly:- It is the best copy trading platform which allows traders to replicate the trade of successful traders for maximizing their profits. You can consider Zignaly copy trading bot that will automate all your trading strategies and helps you analyze the market, executing orders, and copy the trading activities of expert trades. These bots work throughout the day and night, and thus, keeping your account active even if you are sleeping. This platform allows traders to trade using external crypto signals on the social networks.
Conclusion
Copy trading is becoming increasingly popular among experienced and novice crypto traders who want to generate profits from trading. The beginners who are just starting their trading journey can choose from any of the best crypto trading platforms to perform buy and sell orders 24 x 7, with copy trading bots.
These platforms aim to democratize the trading process and make lucrative crypto trading strategies available to the new traders, who can copy the trades of expert traders automatically with the copy trading bots.
