A way for new traders who don’t have enough knowledge and skills and don’t have the ability to take risks and take advantage of opportunities. Automatic copying of positions of other traders is called copy trading. In this article, I’m going to examine this trading method and the important issues related to it. Please stay with us.
What is copy trading?
In this method, you only have to implement the strategies of a successful trader exactly. For example, if he enters a long position in Bitcoin at this hour today, you will do exactly the same thing. Or if he buys or sells a certain currency, you also act exactly according to his actions. You just have to be careful in choosing the trader that matches your goals. This process can be done both automatically and manually. In such a way that you either enter the trade yourself by modeling the signals of a professional trader, or you do this automatically by using copy trading platforms and Autopilot. A person who provides his signals and strategies to others is called Copied Investor.
why do?
You don’t need knowledge and skills and spend time, and all analyzes and strategies and other tasks are the responsibility of the trader and you just repeat his work.
The history of the traders you can choose is visible to you.
Due to the existence of a demo version in copy trading platforms, you can first measure this trading method and then choose it as a source of income.
In this process, the main trader also involves his capital in transactions, so he will not enter into a transaction until he is sure of his strategy.
Platforms also allow you to manage risk and capital.
Why don’t?
There will be a risk of losing assets and capital in such transactions as in other methods. Even the most professional trader will not make a profit on all his trades. So you will also lose at the time of the trader’s loss.
In this method, you will entrust the control and management of your investment to an unknown person.
In some of copy trading system you have to pay an extra fee for each transaction.
New to trading? Try crypto trading bots or copy trading on best crypto exchanges
Join Coinmonks Telegram Channel and Youtube Channel get daily Crypto News
