A few years back, researchers did a study on a group of day traders to find out how many of them are making money from cryptocurrency consistently. And, do you know what the results are?
- More than 95% have lost their money
- There were some who earned about $54 per day
- But the top traders have earned more than $300 per day
You might be among that 95% and odds are against you. Isn’t it? So, what to do now? Is there any way to earn good profits for beginners?
Well, the solution is Cryptocurrency copy trading. Since trading is very difficult, then why don’t you follow the trades of pro traders- without having to figure out the market and strategies on your own?
And, this really makes sense! But there are some pitfalls too, so you must play wisely.
Cryptocurrency Copy trading
Copy trading is when you follow the trades of other expert traders. This kind of trade simply copies all the trades of expert traders if the trader buys, you also buy, and if he sells, you also sell. There are two types of accounts in copy trading, one is the master, and the other is the follower.
Copy trading works well for everyone, not only for beginners. However, it is often the novice traders who take benefit from this type of trading. This trading strategy is great for busy people who want to make money in the cryptocurrency market but do not have time to trade themselves.
Why is Cryptocurrency copy trading a good option for beginners?
Cryptocurrency trading requires a lot of time, research, and effort from traders to understand the market well. For example, they need to find good projects or hidden crypto options that can make them earn good profits. Apart from this, they have to manage all their trades and keep track of what’s going on when it comes to the crypto market. So, one must have advanced knowledge of the market and have to perform technical analysis to perform successful trades.
And, all this is not possible for a novice trader. Therefore, copy trading is the best option as it allows them to make money while investing lesser time and effort. No matter what your experience is in cryptocurrency trading, choosing the right cryptocurrency trading terminal is your gateway to successful copy trading.
Copy trading bots
The best trading platforms let you copy the trades of pro traders by making use of copy trading bots. One may use the unique trading tools and strategies on these platforms to trade more efficiently. These platforms offer copy trading bots that automate trading and allow traders to get benefit from the success of expert traders. Considering copy trading bot allows its traders to connect to their exchange account directly and then place orders automatically.
The expert traders who send buy and send signals to the traders on these platforms are often compensated in the form of a certain percentage of profit or by selling some subscriptions to their services.
Read More: Profits From Cryptocurrency Trading
Benefits of Cryptocurrency copy trading
There are numerous reasons why the popularity of copy trading has been growing rapidly. Let’s have a look at these:
- It lets you earn profits even if you lack skills, experience, and knowledge related to the cryptocurrency market
- You may choose from different trading strategies via copy-trading bots
- You need not stick to the system 24×7 as the trades will be performed automatically
- At any moment, you can switch to a new trading strategy
- Apart from this, you can also make independent trades
- Another key benefit of copy trading is that you can use only some part of your savings rather than putting your whole wallet amount
- Copy trading allows you to analyze all the deals that a pro trader makes
So, copy trading is the best option for those who want to earn good profits without making extra effort and attention. But, you have to pay a fee to the platform or the pro trader for the same. One drawback of copy trading is that if the trader you are following is making some mistakes occasionally or incurring losses, then there will be a loss at your trade too.
How do copy trading platforms work?
Apart from mirroring the trades of successful traders, copy trading platforms also make it easy for traders to access up-to-date news from cryptocurrency trading market experts. These platforms allow investors to trade smartly by linking them to pro traders from the industry with proven statistics and performance history.
Copy trading bots are usually created by third-party cryptocurrency trading platforms which can be integrated with certain exchanges. These bots automatically execute the trades based on the specific instructions given to them. These bots copy the trades of the pro traders to your account and perform trading on your behalf.
Copy trading is just like regular trading except that you are not the one deciding what to buy and sell, and when to perform the trade. So, this trading method works and it is worth it. You can earn money from this in the long run without knowing the proper strategies on your own or having to trade yourself. Today, beginners are earning good money from this method. But, before performing copy trading, it’s important to pick the right cryptocurrency trading terminal, and right trader, and invest the right sum of money.
Here are some important points to keep in mind which will help you with your copy trading journey:
- Before copying the trade, make sure to understand the concept behind this strategy
- Choose the trader wisely and have confidence in him
- Diversify between different strategies so that you can improve your returns relative to risks
This was all about cryptocurrency copy trading. And, if you want to automate copy trading, you can do the same by choosing the best cryptocurrency trading terminal like Errna. This platform has its own set of tools and strategies which traders can use to earn good profits.