The popularity of cryptocurrency trading remains very high: the daily trading volume of crypto assets reaches almost $ 20 billion. Of course, trading with cryptocurrencies requires appropriate knowledge and skills. But there is a solution that allows you to make money on trading any assets without making decisions on deals.
Copy Trading: investing or still trading?
In fact, copy trading technology is not something unique and has been working in other markets for a long time. This is a type of investment in which the user allocates a certain amount of money as a deposit, which will automatically follow and repeat all the deals of another trader in real time.
This type of “trading” will be an excellent option for beginners who are still very confused in the market, unable to conduct quick and high-quality technical analysis and find a successful entry into positions. In addition, copy trading is sometimes used by experienced traders who want to save their time.
This format of work has a significant difference from trading with the help of a financial advisor or a hired trader. Indeed, in this case, you entrust your funds to a third party, and during copy trading, all assets remain on your account but are used for deals that are initiated by a third party.
How to choose a trader and platform?
In general, you can copy trades manually, just by watching experienced traders. However, in practice this will be very difficult to implement. Therefore, it is best to use one of the many platforms that offer this functionality.
As for the choice of a trader whose trades will be copied by your account, the task is more complicated. Usually, there are ratings on the platforms that provide the opportunity for copy trading. Professionals themselves are interested in having good statistics and a lot of “followers”, because from each transaction they receive a part of the commission, which is additional income. And the more “subscribers” a trader has, the more his income is.
When choosing a trader, look not only at the ratio of successful and unsuccessful deals but also at the final profit as a percentage of the deposit. After all, some have 70% of successful deals, but the income from each is small. At the same time, the market knows the stories of traders who successfully predicted the market only in 35% of cases, but successful and well-considered risk management still helped them to achieve success.
For newcomers to the cryptocurrency market who want to start trading, we would advise you to take a closer look at reputable cryptocurrency platforms, including eToro.
By the way, recently it became known that the former managing director of the British office of eToro, Iqbal V. Gandham, moved to a senior position at CoinBurp. The new team member was greeted in an official statement by Peter Wood, CEO and co-founder of CoinBurp.
As a reminder, CoinBurp is a British cryptocurrency platform that allows you to buy, exchange and store crypto assets. The project is positioned as one of the fastest secured exchanges in the UK. According to the team, it will take only 15 minutes to start trading, including the passage of KYC.
It is too early to say that another cryptocurrency platform with copy trading capabilities will appear on the market, but we advise you to continue to follow the news.