Copy Trading Crypto: What to Know Before Investing.
If you're new to the world of cryptocurrency, explore the best ways to earn without investing time with the best crypto copy trading platforms.
Many people consider investing in cryptocurrency, but it’s easy to be intimidated by the learning curve. You can get around this if you copy trade crypto. But what does that mean, and how do you do it?
Table of Contents.
What Is Crypto Copy Trading? How Does Copy Trading Work? Risks of Crypto Copy Trading How Much Can You Earn With Copy Trading? Main Types of Crypto Copy Trading Software Top Crypto Copy Trading Platforms and Apps in 2022 How to Start Copying Trades Is Crypto Copy Trading Profitable? Conclusion.
What Is Crypto Copy Trading?
Copy trading or social trading is when you use a special program or piece of software to copy the trades of another trader. Ideally, the person you copy will be an experienced crypto trader so that you get to take advantage of their expertise.
How Does Copy Trading Work?
The exact process of copy trading will depend on the platform and software you use. But you start by choosing a particular software and then a trader to copy. Then, whenever that trader makes a trade, it is automatically copied into your account. You get to choose the proportion of the original trader’s trade that you want to copy, and you have the ability to copy multiple traders.
Risks of Crypto Copy Trading.
The most obvious risk of copy trading cryptocurrency is that you can copy losing trades. You will have to carefully choose whom to copy to minimize this risk. You can also reduce the risk by spreading your portfolio among various copy traders.
Another risk of copy trading crypto is that it doesn’t give you the chance to grow and develop your own strategies. There’s not really an incentive to learn. Of course, you can still read about crypto and use demo accounts to learn if you want.
You also need to be aware of fees. These vary by platform and based on whose trades you copy.
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How Much Can You Earn With Copy Trading?
There is no set amount that you can earn with copy trading. You can predict your profits somewhat by looking at the past performance of the traders you copy, but this is no guarantee.
Main Types of Crypto Copy Trading Software.
When it comes to copy-and-paste crypto trading, there are three main types of software that you may find yourself using.
Crypto Exchanges’ Software.
As the name implies, this software comes from a specific cryptocurrency exchange. Offering crypto copy trading attracts beginners who can copy the trades of more experienced traders and potentially profit. At the same time, it attracts expert traders who can supplement their trading profits with income from copy trading fees.
Copy Trading Bots.
Another very popular option for copy traders is to use bots. These give you the versatility to use them on various supported crypto exchanges. The bots will automatically execute trades according to the instructions. They are similar to other types of crypto bots , but the ones for a copy trader will specifically copy the trades of someone. There are both free and paid options.
Crypto Broker’s Software.
This is similar to using software from crypto exchanges, copy trade crypto terbaik but the main difference is who created and runs the software. Instead of crypto exchanges, the software comes from brokers who support cryptocurrency trading. These include a growing number of traditional brokers.
Top Crypto Copy Trading Platforms and Apps in 2022.
There are plenty of options if you want to copy trade crypto, with the following being among the most popular platforms and apps. You can find more detail here .
3Commas : This is a bot builder for crypto exchanges, and it supports more than 13 exchanges. Choose from a free plan or one of several packages priced at between $29 and $99 a month. CryptoHopper : This is a crypto trading bot designer. The bot works on Coinbase Pro, Binance U.S., Binance, Kraken, and BitFinex, among others. eToro : This is a propriety copy trading platform from a crypto exchange, so you can only trade on eToro. As a bonus, you can also copy trade with traditional assets, like stocks. Gate.io: As a proprietary platform, you must trade on Gate.io. It has very low fees for copy traders. PrimeXBT: This is another proprietary platform, so you must trade on PrimeXBT. It stands out with its advanced functionalities and high-speed operations. Zignaly : copy crypto traders reddit This is a crypto trading bot and copy trading software that you can use with KuCoin or Binance. There are free bots and profit-sharing options.
How to Start Copying Trades.
If you decide that crypto copy trading is for you, it is pretty easy to start.
Choose a Copy Trading Software.
Your first step will be to choose which crypto trading software you want to use. Think about the costs and the size of the trader network. Remember that larger networks come with more options. You should also consider the information available about the traders you copy. On top of that, consider reliability and what exchanges are supported.
Choose a Trader to Copy.
Next, you will have to figure out whom you want to copy. Your goal is to maximize profitability. But you should also look at other factors, including how long they have traded on the platform, the equity of followers, and the number of followers. Remember that past performance is just a hint; it is no guarantee of future success.
Select the Copy Trading Settings for the Trader.
Now, you will be ready to adjust your settings. You should be able to allocate the total you will invest with that trader’s methods. You can also set minimums or maximums per trade. Beginners should always stick to a maximum amount per trade of one to two percent (or less) of their total balance.
Constantly Monitor the Results.
The key to success with crypto copy trading is to monitor your profits. Remember that you don’t know how a trader will perform, even if they have a great track record. Monitoring your profits lets you adjust strategies or stop copying someone when necessary.
Is Crypto Copy Trading Profitable?
Crypto copy trading can be profitable, but it may not be. Your results will depend entirely on whom you follow. The issue is that it can be risky, as the crypto market itself is risky. On top of that, as mentioned before, past performance does not guarantee future results. So, even if you copy a trader who looks great, you may lose funds.
Conclusion.
Instead of copy trading, consider letting experts handle your crypto with a crypto savings account or managed crypto investment account.
Let experts handle your crypto.
All investment strategies and investments involve risk of loss. Nothing contained in this website should be construed as investment advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.