When you need life’s journey advice, you’ll never turn to someone who’s never been out of the woods. On the contrary, the tendency is to look for those who already have a lot of experience in several places. In this sense, in cryptocurrency trading, as in life, there are people who are more experienced than you.
These people have made more money and know more about all the pitfalls along the way. So, while you are learning all about the cryptocurrency niche, there is no need to wait until you reach that professional level and start earning.
You can start by copying bots created by successful traders, or you can follow these traders. That is, copying already successful strategies. One of them is Copy tradingwhich has gained popularity recently.
What is copy trading?
Copy trading is a type of cryptocurrency trading strategy that has gained popularity in recent years because the role of the community in this area is strong. This model allows you to seize the best trading opportunities in the market.
The name Copy Trading means “copy trading” in a free translation. That is, the method consists in identifying winning strategies and copying them with minor modifications. By doing this, the user saves time and research and has a good strategy on hand.
Performing copy trading is simple. If you are trading on an exchange, simply find a pool that has several associated exchanges and choose which pool to trade on. Then copy the strategy or robot (bot) for a specific trader or a profitable portfolio.
Above all, the model allows traders who do not have the necessary trading skills, time and analysis to follow the market and manage risk. You just need to follow the strategy, pay the usage fee and get enough passive income.
How does copy trading work?
Usually, copy trading works through software that copies strategies. This program will do all the work for you behind the scenes, so you won’t have to spend a lot of time thinking about technical details. TradeSanta, used here as an example, is one such program.
By logging into TradeSanta, you have already linked your account to the exchange of your choice. Now, just go to the Marketplace and filter out all the bots based on the parameters of interest. You can choose any parameters you want, including:
- exchange;
- market type
- pair (BTC/USDC, BTC/ETH, etc.);
- android age.
- Among others
Next, the program provides a list of bots. You just need to choose the bots with the desired ROI and then click the Continue/Copy button.
The platform will copy one of the chosen cryptocurrency trading strategies for you and automatically execute the trades on your exchange account.
Advantages of copy trading
Copy trading is a convenient way for beginners to enter the cryptocurrency market, because you can choose trading strategies that work and that have shown certain performance.
It may be a better and easier way to get started than trying to create your own strategy. In this sense, copy trading It is usually an automated activity that saves a lot of time.
Also, transactions will be done in a timely manner and as quickly as possible. With this said, the program can perform many more transactions than a human.
You can analyze the statistics of robots or traders before following their strategies. With all the stats and graphs displayed on the copy trading platforms, it is very easy to know if a trader or bot has a lot of followers and a big income.
Finally, copy trading offers great potential for change. If for some reason you stop liking a trader, robot or strategy after a certain period of time? No problem: just unfollow it and choose another one.
cons
However, copy trading also carries many risks, especially for novice users. First, and most importantly, there are no guarantees of returns. Even using the best professional and experienced experts or popular trading robots and strategies, you can still lose money.
The market changes and no trading strategy is so universal that it will work at its best forever. Therefore, do not expect the strategy to bring only positive returns, because it will not. As the time frame increases, so does the risk of the strategy.
If your copy trading is doing well, get ready to pay these other traders/platforms that help you. Yes, the prices are not really cheap and they are usually fixed. So, get ready to earn well and also to pay higher fees.
TradeSanta
TradeSanta, founded in 2017 by a team of financial and software engineers passionate about building better and simpler digital asset trading software, is an automated trading platform that gives you a powerful terminal with trading signals, robots and trading strategies.
Your Marketplace has plenty of bots to copy (or follow) and it’s just one of the platform’s many features. In addition, the use of the platform is, from now on, completely free of charge. However, the more advanced features require a subscription to one of the plans.
Pricing depends on your subscription plan and starts at just $15 per month for unlimited pairs, all strategies, Telegram notifications, and 49 bots.
New TradeSanta users are welcome to browse the top performing robots on the market, click through and start copying. Futures and spot trading instruments are available.
conclusion
Copy trading, also known as social trading or mirror trading, is a form of investment that allows you to monitor the behavior of fellow and expert traders and copy their trading strategies.
The biggest advantage of this strategy is that it is a beginner-friendly way to get into the cryptocurrency market. There is no need to do fundamental and technical analysis, just entrust it to a professional trader.
However, be prepared to lose money in some cases, because no one is perfect. Even experts make mistakes, especially in volatile markets like cryptocurrencies.
If you want to start earning right away from other people’s profitable strategies, give it a try TradeSantaa sophisticated automation tool that will help you dive deep into copy trading without spending time on technical and fundamental analysis – Buy and sell easily with cryptocurrency trading robots.
Still have doubts? Join TradeSanta channels on Telegram, Discord or Twitter And submit your question!