The cryptocurrency market is a risky market that must be handled with special care and delicacy. With these definitions, is there a place for newbies in this market? Despite its high risk, is it possible to step into it without training? Definitely yes. In this video, we will tell you how to join the professionals of this market with a simple copy.
The purpose of copy trading is for the beginner trader to have the same trades as when you copy the trade.
How is copy trading done?
As a newbie who doesn’t have enough time to learn professionally, you can follow the professionals and, in simpler words, follow them until you learn the mechanism of the market. This is called copy trading.
To get started, you just need to find a broker or an exchange that supports this feature. Next, choose the best among all the successful traders and leave a percentage of your capital to him. At this stage, the system automatically copies all his movements and steps for you.
How to choose a professional?
When you are going to follow someone, in matters such as investment, it is better to choose the leading person with special care and obsession. In the following, we introduce some important and efficient features of a good trader that will help you in choosing.
- Activity history
Keep in mind that your leading trader has enough experience in this financial market.
If the trader’s strategy is profitable, the trader himself invests a significant amount of capital. So, when choosing a trader, pay attention to his balance.
- Amount of profit and loss:
The profit amount of the person is an important factor in the choice, but it should not be the only factor, and in any case, you have entered this field for profit, so be sure to check the profit amount of the chosen trader.
- Amount of copies:
The more people who follow a trader, the more trustworthy that person is.
Advantages and disadvantages of copy trading
Certainly, each method in this market has its own advantages and disadvantages. As a newcomer, you should step carefully and be aware of its advantages and disadvantages.
If you choose a good trader who has all the characteristics of a good trader, you will also have a good profit rate.
- Simplicity and comfort:
Consider getting into big deals easily and just by pressing a key.
- You will quickly enter the trading market:
Trading is a science. To enter this field, you need to be trained; So you have to spend a lot of time learning and testing. As a copy trader, you save time and in other words skip this step.
- Practice for the future:
A trader never shares his strengths with others. But by paying attention to the point of purchase and accuracy, you can more or less get to know his method.
- Using the experience of professionals:
In this way, you can use the experiences of your chosen trader and ask him questions. Of course, keep in mind that the trader is not required to respond.
- Account control:
As the account owner, you can control and manage your account at all stages, and the trader has no access to your account.
- Clarity of loss limit and capital conflict:
You can specify at the very beginning how much of your account capital will be involved in copying. For this reason, if a loss occurs, you can prevent the loss of your entire property.
- Diversity in choice:
Your hand is open in choosing the trader and its strategy. You are facing a list of traders, of course, each of them has conditions to start, which you must read completely before connecting to them.
- A clear path:
When you enter an exchange and intend to choose a trader, all the information, route and history of the person will be displayed for you.
In addition to all the advantages mentioned above, there are also disadvantages in this method that you should pay attention to.
- No one is without fault:
Any trader with any level of experience and skill may make mistakes. As a result of this error, you will also lose as a copy trader.
- Strategy is a secret:
Guide Trader never discloses its trading strategy and you will not be informed about the exact work done and in progress.
In the benefits section, it was said that you can enter a certain percentage of your capital into the game. This same case, along with its advantages, can also be a big disadvantage; Because in some cases, the trader intends to invest a large amount, but your capital limit is not enough.
Types of copy trading
Copy trading is done in two manual and automatic models, which we will examine in the following.
In this case, you put your work on autopilot. You don’t need to do anything anymore. The whole process is done automatically.
In this method, you have to enter the signals manually and nothing is done automatically, and you can stop investing at any stage.