What Is Crypto Copy Trading And Why Should You Try It.
What is crypto copy trading and why should you try it? This post will bring you the answer to this question. Most people believe that an in-depth understanding of arithmetic, copy trading crypto telegram technology, and finance is required in order to profit from cryptocurrencies.
Although the knowledge of cryptocurrency can assist you in making the best investment decision, still that’s not the whole story. In actuality, there are numerous beneficial tools available to help you, one of which is crypto copy trading software. Thanks to this, you can easily start your crypto trading without any prior experience.
What Is Crypto Copy Trading?
Copy Trading.
What Is Crypto Copy Trading – Image Source: Screenshot.
Crypto copy trading is an automated approach employed to sell and buy cryptocurrencies. It allows you to mimic the strategies of other traders, so you don’t need experience or time to perform the task.
The entire premise of cryptocurrency copy trading focuses on identifying great traders and imitating their behavior. In contrast to conventional trading, copy trading doesn’t concentrate on spotting market patterns or attempting sophisticated trading techniques.
Instead, the automatic software merely copies the actions of another trader after observing them. For instance, if a trader invests 10% of their capital in a particular coin, the program will also invest 10% of their capital in the same currency.
This approach is excellent for newbies since they don’t need to have a thorough understanding of the market. Instead, they might leverage the knowledge of other dealers to decide wisely.
How Does It Work?
How Copy Trading Works – Image Source: Screenshot.
Crypto copy trading calls for the proper software to work. Despite some required setup work, it can operate without your intervention once it’s done. A typical copy trade crypto trading system will constantly replicate the lead trader.
You can configure it to invest the exact same sum as your lead trader or allocate a portion of your funds to investments corresponding to the percentage of the lead trader.
Even though cryptocurrency copy trading does not necessitate input, you are free to do so. Any transaction the program executes can be stopped, and you can choose to close a position ahead of the lead trader manually. Keep in mind that you can always change who you imitate since cryptocurrency copy trading isn’t dependent on a single trader.
You need access to the trades of another person for crypto copy trading to function properly. This is simple to do with most copy trading programs. You browse a list of key traders and pick one whose performance you find appealing or promising.
Once you pick the trader you like, you can use the program to automatically imitate this person’s profession. When you receive the gains from the transactions, the program will take a modest charge between 5% and 10% of your winnings.
Why Should You Try Crypto Copy Trading?
Beginner Friendly.
Copy trading may seem like the ideal technique to get started if you are a novice with little trading experience. You can just ride on the success of people with more experience and knowledge in the markets, easing the steep learning curve and copy trading crypto reddit saving yourself the time and effort. Cryptocurrency investing has never been simpler than it is with copy trading.
A More Hands-Off Approach.
Each step is completed automatically for you while using copy trade cryptocurrency platforms. It is a hands-off method of trading that enables you to profit from the cryptocurrency markets with little to no work.
All you need to do is simply keep an eye on the methods you’re replicating and make changes as necessary to reduce losses and increase earnings. Cryptocurrency copy trading is the most hands-free form of trading compared to the advanced analysis and constant market monitoring requirements of a standard trader.
Minimal Investment.
The low initial expenditure needed for this trading method is another factor that makes it advantageous for novice traders. With several of the greatest platforms for copy trading in cryptocurrencies available today, you may begin copy trading and expand your cryptocurrency wallet and brokerage account with a starting price of only $200.
Is Crypto Copy Trading Risky?
Profitability.
Crypto copy trading is profitable for many traders. Still, keep in mind that your profit relies on whose trades you pick to imitate entirely. Thus, there is no assurance that copy trading will bring you significant gains.
Your best course of action as a copy trader is to split your portfolio among several distinct successful traders. This will prevent you from placing all your trust in one trading approach or trader, which could result in a complete loss.
Less Probable To Develop As A Crypto Trader.
Even with the greatest crypto clone trading platforms, you are less likely to create and grow your trading tactics. Copy trading makes it so simple to profit from cryptocurrencies that there is no motivation for traders to learn, develop, and become successful traders themselves.
Even if you are satisfied with your earnings, relying solely on copy trading might cause you to miss out on opportunities of gaining more money. Since the crypto market is constantly evolving, you will not be able to keep up with it if you only use copy trading. As a result, you risk missing out on some really profitable possibilities.
Costly Fees.
Although there are some free copy trading platforms available, copy trade is generally not free. You must pay fees for the traders’ methods and services if you want access to this valuable data.
Some traders will charge more than others depending on their experience level, yet not all high-charged ones are trustworthy. As a result, if you choose the wrong trader, you can wind up paying for information loss.
5 Best Crypto Copy Trading Platforms.
BIB.
BIB – Image Source: Screenshot.
BIB is among the best trading sites on the current market. This global platform provides trading and custody services for cryptocurrency assets to over two million consumers globally, so you can have confidence in its dependability and trustworthiness.
It supports several cryptos such as Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Shiba Inu, Polkadot, Ripple, and many more. Thanks to the user-friendly interface, you will find the site extremely easy to use.
All you need to do is sign up via your phone number or email address, and you can start your copy trading process right away. Notice that no services pertaining to the reloading and withdrawal of any nation’s legal tender are offered on this site.
Pionex.
Pionex – Image Source: Screenshot.
Pionex comes with 16 free crypto trading bots integrated into the program; each one employs a unique approach to a range of reward and risk objectives. These trading bots can be completely customized, allowing you to create your own settings to reflect your trading goals.
What makes this platform stand out is its commission price. When selling or purchasing crypto on Pionex, you will only have to pay 0.05%, making it one of the most affordable prices in the field.
More than 120 different cryptocurrencies are available on Pionex, including the most well-known ones like Bitcoin, Shiba Inu, Ethereum, Litecoin, Solana, copy trading for crypto and many more. A tip is that if you want to HODL (hold on for dear life), you can use bots to trade the coins or just buy them on the open market.
Still, keep in mind that it doesn’t provide traditional copy trading capabilities. Also, the possibility to interact socially with other platform users is absent.
eToro.
eToro – Image Source: Screenshot.
Among the finest copy trading sites for those who want to follow, connect, and gain profit from the experience of other traders, eToro stands out. It offers some of the most advanced social trading capabilities available while remaining incredibly useful. Once you visit the website, it will not take long to realize how user-friendly eToro is.
The platform presently supports more than 16 cryptocurrencies in addition to equities, Forex pairs, and commodities. You can quickly connect with the largest copy trading network in the world and find a wide variety of traders and trading approaches to emulate.
Although copy trading aspects draw a lot of people to eToro, the platform also allows for DIY investing. This implies that you can acquire cryptocurrencies whenever you want, day or night, with the touch of a button.
A 1% commission over the ask/bid price is all required in terms of fees when investing in cryptocurrencies online. With eToro, you can purchase thousands of US and foreign ETFs (exchange-traded funds) and equities for no commission in addition to cryptocurrencies.
3Commas.
3Commas – Image Source: Screenshot.
You can use plug-and-play cryptocurrency trading robots through the 3Commas platform. Professional traders collaborate with other members of their trade community to develop a network of traders who can support one another.
This platform provides you with several tactics to copy trade in the cryptocurrency market. All you have to do is select the trading strategy you wish to copy, and the bots will handle the rest for you.
Similar to many of the top trading platforms available on the market, 3Commas supports a number of exchanges and employs cold wallets to hold client funds. Overall, they have a fair selection of strategies and bots to choose from, a user-friendly interface, and a respectable reputation – all of which are positives for less experienced traders.
Coinmatics.
Coinmatics – Image Source: Screenshot.
Investors may copy their bitcoin deals using Coinmatics in either manual or automatic mode, making it ideal for both experts and newbies. It provides excellent prospects for traders to make money by capitalizing on their replicated transactions.
The primary function is cryptocurrency copy trading, and it also offers a ton of different techniques that you can take advantage of. The exchanges supported by this platform include Binance, Bybit, FTX, and Spot, which are all well-known exchanges in the field.
Additionally, you can rest assured of the platform’s security. It features reliable statistics and 2FA (two-factor authentication) for optimal account protection. You can use extra analytical tools throughout your limitless free trial, enhancing your chance of gaining more profit.
Wrapping Up.
What is crypto copy trading and why should you try it? Now you know the answer to this question. This approach might be a quick and efficient technique for making cryptocurrency trades.
You can automate your trading processes and gain some insight into how the market functions by imitating more seasoned traders. Your chances of success can be improved if you take some time to research traders extensively and stick with an established trader. Suppose you are still uncertain which platform is a good place to start your journey; we highly recommend the BIB exchange thanks to its efficiency and reliability. This platform will provide you with everything you need, from data to tools, to get your first gain.