Experience Good Opportunities to Earn Profits via Copy Trading in 2023
So, you are a beginner and want to start trading crypto? If yes, then it can be challenging to know where to start as you have no experience in crypto trading world. And, gaining knowledge takes a lot of time and efforts from your side. Now, the question is what to do in that case.
Well! There is a path that novice traders can take. It is copy trading. If you have ever traded crypto, there are chances that you might have heard about this term. Let’s understand this in deep:
Copy trading
So, what is copy trading?
This is a popular investment tool that enables you to copy the trades of successful traders automatically. This kind of trading method allows traders to invest in successful/experienced traders rather than assets. The traders whose trade you are copying will earn either a flat fee or a profit percentage from the copying accounts. Generally, copy traders receive signals and execute the same trades in their trading accounts.
Copy trading strategy allows you to invest in crypto markets by copying the trades of experts from third-party crypto trading platforms like TrailingCrypto. Make sure to find the right trader whose trading style and risk tolerance is matching your preferences. Whenever the experienced trader you are following opens a trade of their own, the same trade will be copied to your account. If you are not comfortable with the associated risks, then you may either lower the amount or close the copied trade.
How does copy trading work?
Copy trading is an easier trading method. Whenever you sign up for a copy trading platform, you can easily scroll through several experienced traders or investors that you can copy. Pick the right investment option based on your funds and risk tolerance.
A variety of features that you are required to choose for your copy trading strategy are:
- Trade entry
When the expert trader you are copying takes a new position, you can set your portfolio to automatically buy. - Take profit
Some trading platforms will allow you to set up your portfolio to sell automatically at a certain percentage. This will ensure you guaranteed profits. - Stop loss
This feature will let you sell automatically if the portfolio falls, so as to protect you against losses. However, this will guarantee some amount of loss as you will sell whenever the price of the asset falls.
Deciding on who you are copying is one of the most important considerations when it comes to copy trading. Try to choose the one who has a long track record of solid performance.
Reasons to choose copy trading
Copy trading is the best way to get started in the crypto trading world for those who are just beginners or can’t dedicate much time to watching market trends. Some of the key reasons why traders choose copy trading are:
- It helps beginners to get a chance from industry experts to learn about the crypto trading world. All you have to do is to mimic the expert’s steps to earn profits.
- Copy trading ensures transparency. The best copy trading platforms provide a detailed track record of the expert traders to make it simpler for beginners to select an expert to copy.
- Major copy trading platforms are developed keeping beginners in mind. These platforms are user-friendly and ensure to provide full assistance and support to the traders.
- With copy trading, you will also get an opportunity to diversify your portfolio.
Features to look in a copy trading platform
The idea behind any copy trading platform is to deliver a user-friendly experience to traders who are beginners. If you are planning to start copy trading, make sure to choose the platform wisely. Here are some baseline features which must be available for users on any platform:
- Ease of use
- Assets to trade
- Risk management tools
- Reputation
- Copy trading tools
If you are busy and don’t have much time to watch the market trends or you can’t manage your trades, considering copy trading and copy trading bot is the best option as it will help you discover new strategies to invest.
How copy trading bots help the beginner traders?
Trading via crypto trading bots has become the latest and most popular trend in the market. The best crypto trading terminals help traders to automate their trading strategies via making use of advanced tools and trading bots. Copy trading bots give traders the flexibility to use them on various supported and popular crypto exchanges. These bots will execute all the trades automatically according to the preset instructions given to them. They work in asimilar way to other types of crypto bots, but the ones used by traders for copy trading will specifically copy the trades of the expert traders.
Choosing copy trading bots will allow the traders to earn profits/benefits from the success of expert traders by mirroring their trades. But,at the same time, copy trading could be quite risky for the traders as if the trades of expert traders fail, the one who is copying the trades will also face losses.
In addition to being able to copy the trades by using copy trading bots from third-party platforms like Cryptohopper, TrailingCrypto, etc., the traders can also copy the successful trader’s settings, such as take profit, stop loss, trailing stop loss, etc.Generally trading bots automatically execute the trades based on the preset instructions.The copy trading feature at the best trading platforms lets newbies or beginners to copy the expert/successful traders’ trades.
How to start copy trading?
• Firstly, choose the copy trading terminal/platform
• Open an account and deposit funds
• Choose the successful trader whose trades you wish to copy
• Choose how much money or percentage of the funds you want to invest
• Start trading
Copy trading is the better option for beginners and it is very less risky.