What You Need to Know About Crypto Copy Trading?

by Thomas Redfield Trading Consultant

Diversifying your portfolio is important for any type of trading and investment. To get good results or profits on your investments requires commitment along with a good knowledge of the market. If you have a little or no expertise in crypto trading, you can either consider using trading bots or may try a copy trading strategy.

Today, copy trading and bots are equally important among novice traders. Thanks to both of these variants as they let you earn good profits with minimum skills and efforts. All you need is the right crypto trading bot. And one such platform is Growlonix that allows you to earn good profits from crypto trading.

Before moving further, let’s understand about trading bots and copy trading, and how these works?

Copy trading

What is it exactly?

Copy trading is all about copying the trades of professional or expert trader’s trades. But it is not a get rich quick scheme and you need to research well before signing up for any trader’s strategies. The meaning of copy trading is hidden itself in its name. It is basically copying someone else’s trades to make profits.

The aim of copy trading is to earn profit from the good decisions of expert traders. However, nothing is guaranteed in the crypto trading world. But, there might be times when the trades may get wrong by the expert traders, and if you are copying their trades, then their losses may become your losses too.

Consider Trader X as an expert trader with a particular trading strategy. His strategy has been tested vastly on live markets based on historical data. And, there is another person, say Trader Y who is a beginner with no or very little knowledge about the market and trends. But he wants to participate and earn from it. Apart from this, he doesn’t want to spend more time to learn or practice the skills but wants to fasten this process.

Then he lands on a copy trading platform where he can search for traders with a strategy like Trader X, and can mirror his trades. In order to do so, the Trader Y will have to pay a certain amount as a fee to the trading platform to avail the service.

Is copy trading the right decision for you?

Are you a novice trader? And, you want to invest like a professional in crypto trading?

For beginners, investing in a crypto trading can be daunting. And, considering copy trading is something that will let you invest like an expert.

Copy trading allows the traders to have the same trades or copying the positions as of the experts they are copying. This form of trading is also known as mirror trading or social trading. While copy trading seems a lucrative option, but there are also some risks involved with this. It also allows copying the trading bots of experts too, or even their signal providers. Therefore, the copier will also earn the same profits or losses as the expert traders.  

For example, if you as an investor have $1,000 allocated to copy trading, and the trader being copied has placed a trade of $10,000, your position will be one-tenth of the copied trade. The return, therefore, will be reflective of the investments and the appropriate percentage.

Growlonix offers the copy trading services to its traders. The platform allows traders to place stop-loss or trailing stop loss strategy on the entire copy trade. This allows them to have complete control over their risks. This kind of trading could be highly confusing for the beginners, but they can choose it here at Growlonix to gain extensive insight into the world of crypto trading.

Copy trading allows traders to use multiple ways to make money in the crypto trading market. Instead of putting all their money into one strategy or position, traders may use multiple strategies to avoid risks. While using copy trading, the novice traders must consider using a few different trades to copy.

The copy trading bots automate the buying and selling of crypto assets by mitigating the original trades of the professional traders.  As a crypto trading user, one only needs to deposit some initial amount which could be as low as $50. The trader has to select an expert trader on the crypto trading bot where everything will be automated to perform copying the trades.

Copy trading could be done either manually or automatic, but considering the automated one is better. And, if you are a pro trader, you may offer your services via social trading platforms and can earn profits if any trader copies your trade.

Is copy trading worth it?

Of course yes! But its worth is completely dependent on the pro trader’s trades that you copy and how much money you are putting in it. Here, if the trader you are copying makes high-profit margins but having a high-risk profile, then you should consider investing less money. But, if the expert trader you are copying has a low-risk profile, then you may safely put in more money in it without worrying about the investments.

But, copying the trades is not as straightforward as it seems. It has risks involved and choosing the right copy trading platform or trader is important. But, if you are a beginner with very little or limited trading knowledge, copy trading is likely to be the perfect way to get started.

Risks involved with copying the trades

We all know it very well that the crypto market is volatile, and many trading strategies are time-sensitive. If such a strategy is copied by other users, its value will be diminished, and many who are engaged in this kind of trade may end up at a loss.

Apart from this, liquidity is another concern. While these issues are significant, there are some strategies which may work effectively if copied. And, Copy trading will be beneficial if the trader’s analysis is good enough to identify these strategies.

For inexperienced traders or new users, who are the prime audience for the mirror trading may face such risks or issues. They may not possess the right skills to evaluate such strategies. Therefore, they have to rely on the features offered by strategy makers or experienced traders.

How does copy trading work?

Copy trading is all about mirroring another trader’s strategies, while the exact mechanics of this trading depends on the platform you will be choosing.

The first step of this kind of trading is to identify the right platform and the traders from whom you are copying. And, these traders should be the ones who best match your crypto trading objectives. Note that you may select multiple traders with different strategies to avoid the risks.

And, the next step is to decide how much you want to invest. Don’t put all your money with a single trader. If you opted to copy multiple traders, make sure to split your investments equally among them. Please note that you can select whether to automate your trading or can trade manually. Apart from this, you can also select the degree of automation. Trades could be manual, semi-automated, or fully-automated.

For fully automated crypto copy trading, specialized crypto trading bots are the best tool. Regardless of the degree of automation, you can monitor all the open positions at the same time. Reputable crypto trading platforms like Growlonix are also transparent concerning the signal providers and often provide the best data to their users.

Let’s understand copy trading with an example:

Copy trades are often limited to 20% of the trader’s portfolio. Here in this example, trade sums are expressed as a percentage of the trader’s portfolio.

Let’ say, the trader might have $5000 in his account. However, if there are no open trades, they can copy the successful traders. If the trader is a beginner, it’s important to not invest in larger amounts. Instead, they should only use 10% of the amount i.e. $500 when they choose to copy the trade.

The pro trader may have one open trade. This trade will be copied into the copy trader’s account. The $500 is actually the percentage amount from the trader’s portfolio. It will be 10% of the trader’s portfolio which exceeds $5000.

And, the copy trader would do the same if they conducted trade for $500.

Growlonix offers a flexible experience to perform copy trading and make it easier to control your money automatically by making use of copy trading bots. And, if you are performing manual trading, then it gives you a chance to close it yourself whenever you find a trade that doesn’t appeal to you.

Copy trading bots allow traders to benefit from the success of expert traders by mirroring their trades automatically. Those traders who send buy or send signals are often compensated in the form of a certain percentage of profit or by selling some subscriptions to their services.

 In addition to being able to copy the trades, it is also possible to copy the successful trader’s settings and strategies such as take profit, stop loss, trailing stop loss, etc.

All-in-one copy trading platform

Growlonix is unique in the sense that it offers the best copy trading features. By this, mean that this is primarily the best crypto trading website that allows you to buy, sell, and trade assets automatically. By making use of crypto copy trading bots, the traders can easily follow professional and profitable traders.

Trading signals are also provided which are like the suggestions of what to trade, and when to enter or exit the trade, and what take profit or stop loss strategies to implement. Growlonix uses top quality sources for its copy trading, which means that here you will gain valuable access to the seasoned traders, allowing you to benefit from their experience. 

Thus, taking advantage of this trading strategy can be highly lucrative. We offer a good choice of the well-established copy trading strategies.

Conclusion

Copy trading has become increasingly popular among crypto traders in 2022 who want to earn good profits from crypto trading. The novice traders who are just starting their trading journey may choose the Growlonix to perform buy and sell orders 24 x 7 with copy trading bots.

This kind of copy trading allows beginners to follow professional and profitable traders. The platform aims to democratize the trading process and offers the best or most lucrative crypto trading strategies available to the new investors, who can copy the trades of expert traders automatically with the copy trading bots. 

If you want to automate the copy trading, Growlonix will do this for you smartly.  

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Created on Mar 28th 2024 11:09. Viewed 66 times.

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