So many people start trading digital assets on stocks, and many of them lose money due to inability to analyze the market or a wrong decision. Copytrading is an ideal option for newbies to dive into this world. They don’t need to have a detailed understanding of the market, trading strategies and serious investments. In this case, a novice can earn a lot of money just by copying the trades of more experienced colleagues. The main thing is to know how to copy crypto traders.
How does it work?
Copytrading is the process of repeating deals of professionals manual or automatic. In this case, novice users can choose specialists, whose trades they want to copy.
In practice, it looks as follows. The professional trader provides the intermediary platform with his API keys so that users can see all of their trades, as well as track the percentage of and unsuccessful trades, the amount of profit and other parameters. Next, traders subscribe to one or more professional participants and set the limit of funds for trades. Copying of trades is automatic without the intervention of participants.
Where can I start copy trading?
The answer to this question depends on what type of copy trade crypto you are going to use.
Manual – in this case, you choose a specialist whose trading strategy you like and manually select deals to copy.
You can do manual copy trading on any cryptocurrency exchange. Choose the most convenient one for you, register and trade using the same techniques and tools as your chosen trader.
Automatic – this type of copy trade cryptocurrency, as you can understand from the name, completely automates the process. All you need to do is choose the trader you like, use the “follow” button and get the same results as he does.
If you’re going to earn income with automated copy trading, it’s not enough just to register on an exchange. You need special software – a copy trading platform.
What is a copy trading platform?
As we briefly mentioned, it is software, most often a website, in which the function of automatic copy trading is implemented. In other words, the platform is an intermediary between a copy trader and a trader, allowing the one to copy trades of the other. Sometimes, crypto copy trading platforms are a complete cryptocurrency trading environment that includes many tools without which the modern cryptocurrency trader cannot imagine their work.
Let’s explain by example how copy trading platforms work. Let’s say you want to start copy trading crypto Binance. To do this, you need to
- Register on Binance if you don’t have an account on this exchange.
- Register on your chosen copy trading platform, for example, Wundertrading.
- Connect your Binance accounts to the trading platform of your choice using the API.
- Select the traders whose strategies you want to copy.
- Click the “start copy trading” button.
As a result, you will receive the same income as your chosen trader. However, if his trades turn out to be unprofitable, you will also lose your money.
All platforms work according to the above scheme. Whether you want to copy trade Bitcoin or any other coin, the sequence of steps will always be about the same.
How much do crypto traders make?
To answer this question, let us remind you that a copy trader earns the same income as the trader he has chosen. However, he also loses the same amount if a deal of his chosen profession is unsuccessful. That is why it is so important to choose the right specialist whose trades you want to use for your income.
When choosing a copy trader, pay attention to the following parameters:
- The rate of successful trades.
- A number of subscribers.
- Feedback about the trader.
The right choice of a trader will help to minimize risks, thereby increasing your income, that’s why it is so important to give enough time to this.