As Bitcoin jumps to an all time high of $66,000, neophyte investors are more eager than ever to share in the digital currency mode, emphasizing to book easy gains. One among them is cryptocurrency copy trading which we will be discussing in this article.
Curiously, any investment in Bitcoin would have offered an 834% return over the past 12 months, while other digital currencies that are the same as Cardano provided more than 3500 while Ethereum provided a 464.1% return.
Trading with digital currency has also created a social subcaste, with millions of people gathering on Discord and Reddit forums to discuss the potential space with the traders who are experienced, hoping for some investment tips and advice in the process. Emphasizing on this trend, entities are now creating copy trading platforms, focused to target beginners who are aiming to earn gains.
What Is Cryptocurrency Copy Trading?
Cryptocurrency copy trading platforms enable the users to copy the trades of more experienced traders. This enables the beginners to evaluate and learn the steep curve, while still preserving complete control of their accounts.
For example, if an expert trader purchases 100 shares of saying Tesla stock, the layman will do the same. However, they imitate them and do similar things. If they sell coins when the value is high, however, any normal person would do the same, trusting that the trader predicts the value to go up in the future if they purchase a digital currency when the price declines.
According to the CEO of Alpha Impact, which is a cryptocurrency copy trading platform Hayden Hughes, said,
“There’s too much noise and too important volatility from unqualified people hyping or abhorring coins. We want to remove that noise and educate people about crypto trading and value investing by erecting a mecca for investment perceptivity where druggies can identify a top trader grounded on the dealer’s factual trading history, and copy that expert’s trades through our platform.”
Best crypto copy trading platforms are created so that beginning investors do not have to go through periods of trial and error to determine how gains are kept. The user does not have to take courses that will describe how the crypto market operates. In short, the user will not require to lose any money while learning how the crypto market operates.
But is it worth it?
This is fully subordinate to who you copy and how important the money that you put in is. Now, if the expert trader the user is mimicking has a low-threat profile, the user can safely put in further amounts without panicking about losing their investment. On the other hand, if the trader the user is copying makes high-profit bars but also has a high-threat profile, the user might want to consider investing in a lower amount. To put it into the track, cryptocurrency copy trading is worth it only if the user opts for the right trader.
Still, it’s frequently beginners who profit the utmost from this copy trading technique, as they are the ones who are most likely to lose money if they had to trade themselves.
It is worth taking into account that an important drawback of using a copy trading platform is that fees for transactions are high in these cases. These transaction fees can consume all your profit. The user should always be on the search for hidden fees when copy trading.
How Does A Cryptocurrency Copy Trading Platform Work?
Apart from copying the trades of community members, experienced traders, mainly beginners, can also get access to the rearmost news from crypto enthusiasts and experts, and learn the art of investing in digital currency through attendants and masterclasses. In return for that, traders on the platform get benefited from evolving a base of followers as a trusted opinion leaders, which enables them to earn passive income from subscriptions and through a profit share model that allows them to earn a commission for every trade.
Hughes affirmed that the thing is to enable people to invest smarter in digital currencies
“by connecting with the industry’s best traders with performance history and proven statistics; and the best part is, people, do not need to put money on our platform to copy traders–– they can copy traders from their existing Binance or investment account.”
He further added that,
“We encourage traders to become key influencers and bridge communication between followers and traders, aiming to not only simplify copy trading but empower people to profit from crypto currencies by providing an educational platform where traders can explain their rationale behind trades and discuss strategies and industry news.”
Best Cryptocurrency Copy Trading Platform
Now that you know the concept of crypto copy trading in India and in other parts of the globe, let us have a look at the best crypto copy trading apps and platforms that enable the swift operation of copy trading. But before that, know that the best crypto copy trader eToro is in stiff competition with Binance.
- 3 Commas
- Trade Mate
Cryptocurrency copy trading is becoming quite famous among crypto investors, especially beginners who wish to generate passive crypto income for a long period of time. For beginners who are just beginning their crypto trading journey, this opportunity looks quite attractive. There are many platforms among which, Binance copy trading and eToro copy trading are the best in the market. There are also copy trading crypto bots available for users.