Have you ever heard of a platform that lets you copy the trading methods of an experienced trader to earn money? You don’t need to analyze the market or conduct any research for that. Just sign up on the platform, and it will do all the work for you.
From letting you take advantage of a particular opportunity to offering a chance to earn profits by familiarizing you with the market dynamics, it does everything. This technique is popular as crypto copy trading and is rapidly gaining popularity among young traders. It is a valuable resource for traders who don’t have time to engage in market activity.
So, if you are planning to earn a side income without stressing the brain, engaging in crypto copy trading is the most suitable option. However, before registering on a platform, ensure it offers rewards and features according to your requirements. Bidsbee has some of the top traders who can help grow your income by leveraging their experience and strategies. Since the concept is becoming increasingly popular, let’s learn everything about it.
What is meant by Crypto Copy Trading?
Dealing with digital money demands tremendous research, analysis, time, and patience to learn the latest trends and market movements. However, there is a way to dodge all the hard work and still make a lot of money. We refer to this concept as crypto copy trading.
It is an innovative strategy where you imitate the approaches of a professional trader. Since the expert trader already conducts the hard work, the entire process is automated. It does not require you to conduct extensive market and chart analysis or research to decide. All you have to do is choose the professional whose practices you want to imitate after a thorough background and record analysis.
Whether a novice or a passive investor, this method helps you earn profits from crypto with minimal effort. However, keep in mind that this approach is short-term. It primarily deals in day-to-day and swing strategies. Moreover, it is suitable for foreign exchange and the cryptocurrency markets.
After extensive research, choose a platform that manages everything for you, like Bidsbee, so that you can earn money without putting in tremendous effort.
How Does Crypto Copy Trading Work?
As already discussed, this method copies the practices of an experienced trader to help you create a strong portfolio. You have to pick a trader who you find the best and align your portfolio with them.
Although you can decide the investment amount, the rest of the process is automated and takes place in real time. You don’t need to monitor the market movement to make the right decision.
The primary reason more and more traders are switching to copy trading is the ease it offers. Since the traditional crypto dealing concept is a little complex, many traders consider it tough to wrap their heads around it. Although they want to make easy money, they cannot do so due to the complexity of the practice.
That’s where copy trading comes in. It gives novice traders the ability to open and close a deal according to their mood and benefit from another trader’s skill and knowledge.
How is Copy Trading Different from Social Trading?
While learning about crypto copy dealing, you must have heard about social trading. It is a type of trade where you don’t imitate the approaches of a professional. Instead, you exchange ideas and research data on the market with people in similar businesses. They help you improve your portfolio and performance and earn more money.
Social trading is the best way to gain insight into the working of copy techniques and increase your understanding. You can learn from the professionals and understand why they do what they do. With their guidance, you can better analyze the market and learn how to manage the trade in a better manner.
However, unlike copy, social trading is not automated. It is a platform to exchange learning, research data, and ideas. Nothing more. Moreover, it is time-consuming.
Advantages of the Imitation Technique
- Without stressing the brain, a novice trader benefits from someone else’s knowledge and expertise.
- It is helpful for traders with limited time and energy to engage in market movements.
- Since the experienced traders have a solid record and promise to earn you high returns, the risk is very low.
- While following expert advice, you can earn money that positively affects the portfolio and make it more appealing to other traders.
- You can pick from various platforms and experts to grab the most lucrative deal.
Disadvantages of the Copying Method
- Since your dealing movements follow those of the experts, you have no say in a deal.
- Although you imitate an already-proven technique, some level of risk always exists.
- Some platforms charge 8 to 10% fees from the traders on their gains.
- Although novice traders benefit from expert knowledge, it can backfire. So, there’s no guarantee.
- Since you deliberately have no say in the approaches, if there is a loss, there is no one to blame. You take the entire responsibility for the loss or gain.
Hopefully, this article has given you valuable insight into the concept of crypto copy trading and how it can benefit you in various ways. If you also want to get into the practice, you may do so either manually or automatically. Many platforms on the internet allow new traders to begin copy trading in a hassle-free manner. They choose the portfolio they wish to imitate and leave the rest to the professionals.
However, before investing a hefty sum, remember you have no control over the risks. If the professional trader makes a poor decision, it will appear in your portfolio. So, choose a platform that lets you decide how much to allocate to a particular trader and how much you can lose on a trade.