uphold crypto trading (____.binary-options.pw) Copy Trading Platforms: How do They Work?
If you want to make a passive income on cryptocurrencies, you might want to join a copy trading platform. Read this article to get to know how these platforms function and what their benefits are.
Copy trading is a relatively new type of trading whose popularity is steadily growing. Dedicated platforms connect investors with professional traders and allow the former to repeat the deals that the latter make. As a result, all the parties involved make a good income. From this article, you’ll get to know how copy trading platforms function and why you might want to join them.
What Is a Copy Trading Platform?
Copy trading is based on the principle of social trading yet is not identical to it. Social trading suggests that users should discuss their strategies and exchange experience. Copy trading means that you follow a more experienced trader and automatically close the same deals. To do so, you don’t need to talk or write to this professional.
The process is fully automated. You just launch it — and you don’t need to carry out any operations manually unless you deliberately want to. You should subscribe to strategy and visit the platform from time to time to check your and the trader’s profit. Some copy trading platforms provide users with strategies that can be copied for free, this is especially useful for beginner traders. The platforms use advanced technologies, which will take you less than 0.1 seconds to copy each deal of the trader you follow.
How Do Copy Trading Platforms Make Income?
They charge fees for placing strategies and offer billing plans with advanced functionality. Copy trading platforms are sustainable businesses with rather transparent sources of income. They try to attract as many users as possible. Even though each individual user’s fee might be very affordable, the platform might get a significant income thanks to a large number of clients.
As for experienced traders, they make money by selling subscriptions. They don’t teach their followers — but they allow them to copy their trading strategies. As you see, all the parties involved need to put in minimal effort to organize the process of copying. Traders and investors receive passive income thanks to the platform that acts as an intermediary and provides them with the service for interaction with each other.
How to Use a Copy Trading Platform?
To be able to use such platforms legally, you need to come of age. The exact age might vary depending on the laws of your country of residence. If you’re older than 18 (or 19, or 21), you should follow these steps.
Select a licensed and uphold crypto trading credible platform. Check which exchanges it works with and how many profitable strategies it offers. Assess its interface and functionality. Read experts’ reviews and people’s comments about it. Link your trading exchange account to the platform through API. This is an exceptionally safe process. The platform won’t get access to your funds. It will only be in charge of the technical copying. Pick a strategy that you would like to copy. The more diverse the choice of strategies on the platform, the better. Analyze the rating, trading history and profitability of each strategy. Again, read clients’ reviews. Subscribe to copying deals automatically. You can subscribe to one or several strategies simultaneously. You’ll be able to cancel the subscription at any moment.
Additionally, you can combine copying and self-trading to earn more in the same amount of time.
On top platforms, crypto copy trading strategy support teams are available every day and through multiple communication channels. Besides, the best platforms have comprehensive knowledge databases where you can easily find useful information.
You can conveniently track your trading progress in your user profile and get daily reports on the status of your portfolio on all linked exchanges and wallets. You’ll be able to analyze in detail every deal that you copy. Later on, you might want to carry out these deals independently.
The Benefits of Copy Trading Platforms:
This method is ideal for busy people who can’t stay glued to their computers 24/7. You’ll have enough time both for your full-time job and your private life. Besides, you should appreciate the following benefits of this trading method.
Low entry threshold. The exact sum that you need to start copy trading differs from one platform to another. But you don’t need to be a millionaire to try it. Diversification. You can trade multiple assets and distribute these assets between traders with different strategies. Stability. The uptime of top platforms reaches 99.9%. Risk management. You can set acceptable risk levels for each of your selected strategies. Security. As was said above, the platform won’t get any control over your funds. Access to useful tools. You’ll receive Telegram notifications about chosen tickers. You’ll be able to analyze information from various exchanges for arbitrage trading and find deals with the maximum spread. You’ll conduct a comprehensive market analysis using the platform’s charts. The exact choice of tools will depend on the platform you use.
Finally, the most compelling benefit consists in the following. You can try this type of service even if you lack skills and expertise. You won’t need to track market signals or modify the settings of some complicated software. The process is highly intuitive and accessible for people with zero experience in trading.
The Disadvantages of Copy Trading Platforms:
The shortcomings of this trading method.
Not all platforms are equally reliable. You should be picky when choosing the best one. Even the most genius traders make mistakes sometimes. You should be ready for occasional losses. But traders always try to make up for the wrong steps they make as promptly as possible. If your goal is to learn to trade independently, copying might be not the best strategy for you.
As you see, the advantages of copy trading outweigh its few disadvantages.
Final Thoughts.
Hopefully, this article came in handy and now you better understand how copy trading platforms function. Feel free to use them if you have some crypto savings that you would like to make a profit on! If you have never tried your hand at crypto trading before, copying seems to be the easiest and safest way to get started. The quicker you try it, the sooner you’ll be able to benefit from it.
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