A Quick Guide to Crypto Copy Trading

Whenever a novice trader decides to enter the crypto market by copying the trades of the expert and successful traders, they come across the best crypto trading bot. This is called copy trading.

Copy trading is all about following the already in-profit bots, signals, or the expert traders. For this, all you need is to connect an exchange account to the right copy trading platform, check out their marketplace, and then following the strategy that you prefer for maximum profits. After performing these tasks, the copy trading platform automatically copies the trades to your exchange account.

Copy trading

Also known as social trading or mirror trading, copy trading lets you develop a trading strategy for you by copying the exact same deals of the successful traders. The best option is considering the automatic mode, but the manual one also works well.

Of course, crypto trading can make lots of profits. But trading without knowledge and experience can cause huge losses to the novice traders. And, copy trading is something that helps novice traders to earn good profits. With this type of trading, the copiers will get the same results as profits or losses as the expert traders whose trades are copied.

Copy trading allows traders to diversify their portfolio which means that a trader is using multiple ways to earn goof profits. Instead of putting all their capital into on position, or a strategy, traders can consider multiple trading strategies.

How does copy trading platform work?

For the traders, copy trading platform links their portfolio to the expert trader. After that, all the expert’s open trades are copied to the novice trader’s portfolio. Further actions are also copied. Therefore, the novice traders will get the exact same profits or losses as the traders they are following.

Generally, copy trading is not dependent on the information of the expert traders, rather it is much dependent on the behavior of their trades. Copy trading also allows the traders to check the expert trader’s history and previous profits before copying them. Such trading methods are profitable and that’s why copy trading is gaining huge popularity.

Additionally, choosing a copy trading bot at the best trading platforms like TrailingCrypto automates the whole copy trading process for you. These bots automate the buying and selling of the crypto assets by copying the original trades of the expert traders.

As a crypto copy trading user, you have to deposit some initial amount which could be as low as $50. Select the expert trader or a copy trading bot on the copy trading platform where everything will be automated. The best crypto trading platforms available for copy trading allow traders to put stop-loss orders on copy trading so that they can have an exert control over the potential risks.

With copy trading, you are getting a replica from the expert trader’s real account. Basically, there is a master account, and the follower account. Whenever the master opens, closes, or exits any trade, all their activities will be replicated to the follower account automatically.

All that means, if the expert trader opens any position with 5% of his balance, you will use 5% of your invested amount to that trade too. Selecting the right copy trading platform is important while considering its pros and cons. Always make sure to choose a copy trading platform which is integrated with the trusted platforms like KuCoin, Binance, etc.

Let’s understand all this with an example:

Note: Often copy trades are limited to 20% of the trader’s portfolio.

Let’s say, a trader might have $5000 in his account. However, if they are no open trades, they can copy the successful traders.

If the trader is a beginner, it’s important for him to not invest in larger amounts. Instead, it’s better to invest 10% of the total amount i.e. $500 when they are copying the trade.

The expert trader may have one open trade and this trade will be copied in the copy trader’s account. And, you know $500 is actually the percentage amount from the trader’s portfolio. It will be 10% of their portfolio. And, the copy trader will also follow the same of they have conducted the trade for $500.

Is copy trading really beneficial/profitable?

Copy trading may result in higher profits if the trader finds the right and successful trader to copy. However, the greatest risk a trader might face while copy trading is market risk. If the strategy a trader is copying is unsuccessful, they may lose money. They may also face liquidity risks and systematic risks.

It’s always better to choose the copy trading bot to automate your trading.

Benefits of considering the copy trading bots

There are numerous benefits of choosing the copy trading bots as compared to manual trading:

• Saves time
• Helpful for beginners
• Copy trades 24 x 7
• Lets traders earn even with zero experience

The best copy trading platforms

The award-winning crypto copy trading platforms allows traders to directly copy trades and technical analysis on to their own charts. Copy trading is a portfolio management strategy where one’s trades are transacted automatically. Traders can certainly make money through copy trading but considering the right trading platform is important

So, which trading platforms are the best for the crypto traders? Let’s have a look at these:

• eToro
• Coinmatics
• Shrimpy
• Cryptohopper
• 3 Commas
• Zignaly

All these crypto trading platforms work with complete automation and allow crypto investors to copy trades from the expert traders. These platforms help traders to make the most of their trading strategies, reducing losses, and maximizing their profits. TrailingCrypto is the best crypto trading platform allowing traders to automate their trading.

Conclusion

Crypto copy trading has become increasingly popular among the novice traders who want to generate profits without researching much. This type of trading allows beginners to follow the professional traders. The best crypto trading platforms offer copy trading bots to automate the copy trading.

And, it’s up to you which platform you choose to copy trades from the experts!

Aim of Trailingcrypto is to Provide a Unified Trading Platform to enable user to do trading on multiple cryptocurrency exchanges from single platform. We provide many Advance Order types which is natively not available on all exchanges.