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How successful is the crypto copy trading for the traders?

Author: Jhorton Jennifer
by Jhorton Jennifer
Posted: Nov 24, 2022

Are copy trading bots profitable?

We all know it that cryptocurrencies are hyper-volatile assets. And, unlike the traditional stock markets, trading in the crypto world happens round-the-clock and crypto traders may find it difficult to react to price changes of the assets in a timely manner.

This is where crypto trading bots can come in handy. Traders can leverage the pre-defined set of rules into a bot or robot to execute the trade in the most efficient way. Trading bots not only relieve the pressures that come with trading by oneself, but they can also make better decisions and possibly outperform the market with zero emotions. Different kinds of bots are available at different exchanges like copy trading bots, Binance bots, grid trading bots, and more. Traders can use the one as per their needs and quality of the bots. TrailingCrypto is one of the best crypto trading platforms where you can find a variety of bots that can make the trading process easier. This is a third-party platform which allows its traders to connect to all the major exchanges via making use of APIs.

Trading bots

The main purpose of trading bots is to automate the buying and selling process of trading cryptocurrencies at the right time to earn profits. But, keep in mind that not all bots are profitable. And, it is the strategy which makes it successful. There are several crypto trading bots which can help you make steady profits.

A trading robot is a software program that works on the algorithm and uses APIs to communicate with financial exchanges, meaning you would need to utilize the Binance API for setting up the Binance bot. In addition to actively monitoring exchanges throughout the day, they are programmed to react according to predetermined criteria.

In order to facilitate the buying and selling of cryptocurrencies, cryptocurrency trading bots operate on some principles. They can implement a range of strategies, from trading and building custom indexing strategies to executing real-time arbitrage across exchanges. There is actually no limit to what they can do for a trader. Every trading bot uses an algorithm created by the application developer to implement its trading strategy.

If you are an expert, setting multiple strategies to earn profits might be quite easier for you, but if you are a beginner then it could be a tough process. For that, beginners can either choose some preset strategies or make use of copy trading to copy the trades of expert traders. Trading platforms like TrailingCrypto allow traders to use copy trading easily to copy the trades of professional traders.

Copy trading

Crypto copy trading is a disruptive phenomenon that’s making ordinary investors or novice traders think big in terms of consistent and profitable trades. Now, anyone can join the trading frenzy by just learning from expert traders or by copying or following their unique investment strategies.

This kind of trading is quite different from regular crypto trading. Under traditional circumstances, you would open an account with a crypto exchange to trade various types of cryptocurrencies. To make successful trades, you would rely on financial news, signals provided by trading platforms, as well as technical indicators to trade the crypto market. The best crypto trading platform like TrailingCrypto provides signals to its traders that help them place orders accordingly to earn consistent profits.

While this is the most common method of trading cryptocurrencies, it's risky at the same time. Most traders lose in the long run because they're unable to cope with the mindset needed to bag consistent profits. So, it’s quite important for the traders to have some knowledge about the market and strategies.

If you choose to manually copy trade, you have to keep track of the trader or traders whom you wish to emulate, and then copy their trading actions through the trading platform. Manual copy trading can be a time-consuming process if you want to catch every purchase or sale a particular trader makes, especially if they have a diverse and substantial portfolio.

But if you choose automatic copy trading, you need a trading platform that offers copy trading. Choose the trader from the platform and simply copy their portfolio. You can copy multiple traders by dividing the amount. But it could be risky too as different trading actions may lead to opposition to each other.

Copy trading bots

The copy trading platform plays an important role in automating the trading process, so that it becomes easy for the novice traders to earn profits without researching the market in deep. One such copy trading software used by traders is the copy trading bot.

These bots allow the traders to benefit from the success of expert traders by mirroring their trades. Those traders who send buy and send signals are often compensated in the form of a certain percentage of profit or by selling some subscriptions to their services. In addition to being able to copy the trades by making use of copy trading bots, it is also possible to copy the successful trader’s settings, such as take profit, stop loss, trailing stop loss, etc.

Crypto bots automatically execute the trades based on the instructions given to them or set for them. These bots are offered by third-party platforms and have the copy trading feature which lets traders to copy other traders’ trades.

How to copy the trades of pro traders?

So, you have decided to copy the trades of pro traders. In order to get started with copy trading, one can follow the below steps wisely:

  1. Picking up the right trader
  2. Choose your investment
  3. Keep your portfolio diversified by adding some additional funds
About the Author

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.

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Author: Jhorton Jennifer

Jhorton Jennifer

Member since: Apr 28, 2020
Published articles: 75

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