Beginners often want to get into crypto trading without considering its technical aspects. But the world of cryptocurrencies is confusing. Its high volatility, sudden crashes and scams make the market very risky. If you enter the market without a clear strategy and knowledge, you risk placing a bet.
But that doesn’t mean you have to wait until the learning curve ends. Crypto Copy Trading is a way to get around this problem by allowing you to instantly dive into the cryptocurrency market.
What is cryptocopy?
Copy trading is a cryptocurrency trading strategy that allows you to create an automated mechanism for making transactions. Essentially, you are copying the investment decisions of an experienced trader using software.
This frees you from the tedious process of constantly analyzing price charts and tracking market trends. In addition, you do not have to learn all the strategies and master the technical aspects of the market. Copy trading apps run on autopilot and cover all of these aspects by copying the trader you follow.
In addition, it allows you to start your trading journey as a beginner, potentially making profits and earning passive income without having to trade directly.
The copy trading procedure varies from platform to platform. But in general, it consists in choosing an experienced trader and following his decisions. You then select an application that will reproduce these solutions for you.
These apps run on trained models and can mimic the investment strategies of others. Also, some cryptocurrency trading apps allow you to select multiple traders. This way you can develop your complete process.
Choose your preferred trader(s) and software, then customize its settings. After that, the copy trading software will be ready for cryptocurrency transactions on your behalf.
4 steps to start copy trading
This is how you can start your journey with cryptocurrency trading apps.
1. Choose a cryptocurrency trading app
To start copy trading, you must first choose a reliable and trustworthy copy trading application. It is advisable to conduct a thorough research on the best options available on the market. To do this, you need to check its tools, leverage ratio, educational content, supported cryptocurrencies and fees.
In addition, you should pay attention to the app’s intuitive user interface so that you can easily manage your portfolio. Also check out the reviews on the copy trade platform to evaluate its effectiveness. Finally, check the platform’s authorization status. Certification by regulatory bodies such as FCA, SEC, ESMA or others provides credibility to the platform.
2. Follow an experienced crypto trader
Once you have chosen the right software, it is often recommended to pick an experienced trader and follow along. This is the most important part of copy trades because your profit depends on it. For this reason, a trader must have the necessary skills to manage cryptocurrency investments. You are basically looking for traders who have a long-term profit history.
In addition, it is extremely important to understand the mood of the cryptocurrency market and how it works so that you can build a strategy accordingly. In addition, you must be able to identify bullish and bearish flags and analyze a trader’s performance in both markets to recognize their strategies.
3. Prepare the software to copy trades
After choosing a cryptocurrency trading platform and being an experienced trader, you need to manage the platform settings. Although this software is automated, you must initially provide your details.
For example, you must allocate the desired amount for investment. This can be the same amount as the trader you follow, or a percentage of it. It is advisable to set the amount according to your taste for risk in order to be able to tolerate any losses.
4. Track your progress
You can also track the results that copy trades generate for you. This will allow you to keep track of what worked best for you. Watching the progress will also allow you to understand how to test cryptocurrency trading strategies.
In addition, the settings panel of the copy trading app will give you full control over your assets, even if they are self-executing. So, if you think that the trading movement is not good, you can exit at any time.
Why Choose Crypto Copy Trading?
Here is why you should consider copying cryptocurrency transactions:
1. Option for beginners
This is an ideal option for beginner traders unfamiliar with the digital asset market. This allows them to enter the market immediately by learning the techniques of trading.
2. Improves your trading knowledge
Copy trades are also a great way to get up to speed on cryptocurrency trading. By observing the investment strategies of others and putting them into practice, you understand them more easily. After all, trading platforms usually offer educational content that helps you grow as a trader.
3. Helps diversify portfolio
Portfolio diversification is another plus of copy trades. You can follow several traders who use different mechanisms and invest in different assets. This allows you to embed it in your wallet for more profit.
4. Ease of trading
Watching price charts all day long can be exhausting. Copy trading relieves you of this struggle because it automates your process. There is also no need to independently develop complex investment strategies.
Is crypto copy trading safe?
In terms of legal status, copying cryptocurrency is legal. Various copy trading platforms have received approval from financial watchdogs such as the European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA). However, like any investment, copy trading has its risks and limitations. One obvious risk is that when copying trades, you can also lose trades, as that is part of trading.
It is also expensive as some platforms may charge high rates. And, if you choose an inexperienced trader, you will have to incur losses in addition to platform fees.
Also, it can limit your growth as a trader. Since you will be completely dependent on the other person, this may not give you the analytical knowledge you need to be successful in trading.
Another risk of using cryptocurrency trading apps is that they can face a system failure or cyber attack at any time. This means that your assets will depend on the performance and security of the software.
Cryptocurrency copy trading just got easier
Crypto Copy Trading is an easy way for beginners to start trading. You can do this with self-executing AI software and follow the right trader and the right platform to make a profit. Then you can customize the trading procedure according to your funds and preferences. Finally, you can track results to access strategies.