The popularity of crypto copy trading is growing steadily. From this article, you’ll get to know the primary advantages of this method.
More and more people realize the potential of cryptocurrencies and try to make money on them. Copy trading is one of the easiest, most efficient and affordable ways of getting income on crypto. You join a copy trading platform such as Coinmatics or subscribe to a private trader who offers such services. Then, you automatically copy their deals and make a profit. From this article, you’ll get to know the benefits of this approach — and probably, will want to try it right now.
You don’t need to have deep knowledge
To start using a copy trading strategy, you need to have a certain amount of coins. Plus, you should be old enough to be allowed to trade legally (the exact age depends on the laws of your country of residence). You don’t need to complete any courses or pass an exam. Your education doesn’t matter. Crypto copy trading is a highly liberal sphere that nearly anyone can join.
You can gain experience for a free while copying
If you want to start trading independently one day, you’ll be able to analyze the deals of the traders whom you copy. You’ll get to know exhaustive information about their deals.
- Which exchanges do they prefer?
- Which technical analysis tools do they use and how?
- At what moments do they start selling or buying assets?
- Which mistakes do they make and what do they do to make up for the losses?
- And so on
You’ll be learning from your own hands-on experience. Some traders find such an approach more efficient than theoretical studies. If you need theory, it won’t be a problem for you to find textbooks, articles, podcasts and videos on the Internet. The prices of educational materials are usually very affordable.
However, many people lack time because they’re too busy with their full-time jobs and families. They remain copy crypto traders for many years and are not planning to act independently.
You can combine copy trading with self-trading
You can copy strategies, using only a part of your assets. Meanwhile, you can use the other part to trade independently. It would be wise to start trading on your own only when you gain enough confidence and only with the assets that you know very well.
Your funds remain under your total control
The copy trading platform will charge you a fee but you won’t need to transfer your funds to it. A private trader will sell a subscription to you — but he or she won’t be able to reach the assets in your wallet or on your account.
By contrast: if you use trading bots, you’ll need to entrust your coins to them.
Some strategies can be copied for free
Just as their paid counterparts, these strategies can help you to earn money. You pay a fee to the platform and you start trading right away. It is especially important for beginner traders. You’ll be able to understand how the platform functions without excessive expenses. Also, this serves as a great motivational tool.
You get valuable information about each strategy
Before you start copying someone else’s strategy, you can thoroughly examine their trading profile. On most platforms, such profiles include the following information.
- Trading period
- Assets and exchanges the trader works with
- Trading volume
- Risk level
- And so on
You’ll be able to make a conscious choice and select the professional who produces the most favorable impression on you.
You don’t need to stay glued to your computer 24/7
When you follow crypto signals without automated copying, you need to spend many hours per day on the exchange. Thanks to copying, you just need to check how the trading process goes from time to time.
Automated trading Is quicker and more accurate than manual
When novice traders try to act independently, they tend to either make hasty decisions or lose the most opportune moments. When you copy someone else’s deals, you don’t need to think. Emotions can’t impact your behavior. You’ll be copying an experienced professional who won’t get stressed too often.
It will be easy for you to avoid obstacles
Sometimes, you might not be able to trade on a certain exchange because it’s not available in your country. Nevertheless, copy crypto traders can use this platform.
It allows experienced traders to get additional income
Crypto traders with extensive expertise in their sphere can sell subscriptions to those who are just getting started. It works like a snowball.
- The more people subscribe to you, the more money you earn on subscriptions.
- Your personal brand awareness increases. You become famous.
- The number of subscribers grows because they trust your reputation.
You don’t need to communicate with your subscribers or educate them. Copy trading is not identical to social trading. The social approach is focused on exchanging experiences. But if you just sell subscriptions, you have no other obligations.
Hopefully, this article came in handy and now, you better understand how you can benefit from crypto copy trading. This method has been gaining popularity among both novice and experienced participants of the market. You can try it with minimum risks and expenses. It will save your time and effort.