Crypto Copy Trading: All You Need To Know About A Popular Investment Method

You have certainly heard of copy trading before. Often sold as a miracle solution, it is an investment technique that allows novice investors to benefit from the expertise of experienced investors.

In this article, you will discover what automated crypto trading is, how to do it, and the points of attention that you should keep in mind about this investment technique.

What is Crypto Copy Trading?

Copy trading is a popular and recently exposed trading technique that involves copying the trades of successful investors. Most trading accounts are public, and copy trading allows more novice investors to trade at a lower risk.

As the name suggests, copy trading is trading that involves copying other investors.

This practice is frequent and becoming more and more widespread because it is very simple and allows anyone to make profits without knowing how to trade. It is also a way for “dream sellers” to sell a very easy way to make money.

To be able to apply this technique, you need several prerequisites:

► Invest in known investors who have interesting returns to follow their trades.

► Be registered on a platform that allows you to follow the investments of other traders.

Many traders on social networks promote this technique to make their community want to start trading with moderate risk. Trading is very technical and it takes a lot of knowledge to hope to make a profit from it. 

Copy trading in crypto is therefore an easy alternative that allows you to believe or make believe in easy profits because you are only copying someone who has the knowledge required to invest in trading.

Copy Trading Binance: The Possibilities

Binance is the world’s best-known and most widely used exchange for buying and selling crypto. The platform also offers several tools for trading cryptos.

The number one cryptocurrency exchange does not yet offer copy trading functionality as such. However, it is possible to use the platform to do so, but only by using a third-party platform.

For example, one solution is to work with a platform called Diabolo, which will serve as a “social network” where you can find experienced traders to follow. All you have to do is link your Binance account via the Diabolo API to be able to automatically follow the chosen traders.

This type of solution is common, even though some platforms provide crypto auto trading features directly within their platform.

eToro Copy Trading: An Easy Way

If you’re interested in cryptocurrency trading or investing, you’ve probably heard of eToro. The reputable broker offers many financial services, including crypto trading.

eToro markets itself as a social trading platform. That is to say, it combines trading and financial services with a social network that allows users to share their performance.

In this sense, eToro has developed a copy trading functionality within its platform. Investors have the opportunity to share their trades and earnings. Other users can therefore have access to all their movements and follow the trades of renowned investors.

This feature is known and promoted by the broker eToro. It is very easy for a beginner trader to create an account on eToro and follow experienced traders by seeing the results achieved and the investments they make.

Copy Trading Review: Watch Out For Scams

As with all things investing, especially trading, you have to be careful. First of all, be careful in all circumstances when faced with an investment.

You should never go blind in an approximate plan with capital that represents too much of your overall financial situation.

As the saying goes in investing, you should only invest what you are willing to lose.

Then, and with copy trading as such, you also have to be very careful. On the surface, this investment technique seems simple, almost childish. Zero risk does not exist and it is not because a trader made +20% last year that he is the king of trading and that everything will necessarily continue to go well.

Even if it is enough to copy and paste, it remains an investment that calls on your self-control. Investing can quickly become problematic and can lead to unthoughtful or hasty decisions.

The last big point of interest in copy trading is about influencers. Many investment influencers talk about copy trading as a miracle solution to get rich without any knowledge or risk.

Zero risk does not exist and no one has a secret recipe for getting rich by snapping their fingers. Always pay attention to overly beautiful promises and remember to always take a step back from what you see.

Anyone can create any image for themselves on social media, and when something seems too easy, always be wary.

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Copy Trading: Follow In The Footsteps Of Other Traders

Copying other traders in exchange for a share of our earnings? Thanks to the copy trading proposed by the Bybit and Bitget exchanges, it is possible.

Introduction To Copy Trading

Among the tools available to us in the crypto world, copy trading deserves to be explored.

The attentive trader is constantly looking for new ways to maximise profit, or decrease risk. The topic of this article follows this path, but beware: there are still dangers, and there is no guarantee of success.

Soon we will find out what copy trading is and analyse its pros and cons. We will then see Bybit and Bitget, two platforms that offer it to their customers.

Our focus will be oriented on the world of cryptocurrencies.

However, copy trading is common in other asset classes such as forex, stocks, commodities, and futures. Therefore, what we will see will also be interesting for those who trade outside of crypto.

We can start by stating that in the next paragraph, we will understand what cryptocurrency copy trading is, highlighting its risks and opportunities.

What Is Copy Trading?

The name is enough to spoil the answer: Copy trading is a mode of operation that allows users to copy the actions of another trader.

This system works in a totally automated way. The user only needs to choose which trader to copy, as well as allocate a certain amount of funds. After that, everything proceeds on autopilot.

Let’s imagine we have decided to copy trader ABC. If he/she set a short position on bitcoin, we would also do the same thing automatically. When the trader was ready to close the position, we would follow suit.

Simple!

A point in favour of this operation lies in the management of the capital: the trader we will copy will not have any access to our funds, as could happen with other instruments. Everything passes through the trading platform.

Copy trading is not to be confused with other practices. For example, there is also social trading, but it is not the same thing: it is one thing to follow the performance of a user, comment on them and discuss them; another is to tell a platform “OK, copy everything it does”. We can see copy trading as a type of operation that falls within social trading.

But now we may be wondering why we should consider crypto automated trading. We respond immediately.

By choosing the right model to copy, we will be able to make a good profit without having to spend hours analysing charts and setting strategies. The right trader achieves high performance, and we are happy with it.

Here, it all looks beautiful, but it isn’t.

First of all, by doing auto trading cryptocurrency, we give control to someone else. It could be a good thing, but in investing, we believe it is essential to take responsibility.

In addition, copy trading seems perfect for the novice or novice. From one perspective, it may be true; however, understanding of the tools is lacking: copying another person lacks all of the series of actions that provide awareness.

In addition, the copied trader could take losses; no one is immune. Herein lies the importance of our experience: with the right baggage, we would be able to evaluate his moves in advance, evaluating their riskiness. The latter will have to be aligned with our risk profile; otherwise, it would make no sense to continue.

In short, copy trading should be seen as an additional method to differentiate the investment portfolio. We may allocate a portion of the trading fee to this instrument to benefit from any positive performance. However, it is forbidden to go all-in; it would be crazy.

Before proceeding, let’s repeat it. Let’s analyse the trader data we want to copy. We evaluate each issue and action and then decide if it reflects our ideas. We will continue to monitor and study, being ready to intervene if necessary.

Copy trading can only be useful if followed. To abandon everything to oneself would be dangerous and devoid of useful experience.

An alternative to automated cryptocurrency trading is precisely the aforementioned social trading, which limits itself to observation. Confronting and snooping on what others are doing provides valuable insights for evaluating our strategies.

Looking at things from different points of view is always an added value. However, there remains a fixed point: to choose with your own head. 
Let’s move on to crypto platforms that offer their customers the copy trading function. Let’s start with Bybit!

Bybit Copy Trading

Bybit is a famous crypto exchange that we have talked about several times, even in my videos.

Bybit is a platform known for its generous bonuses to new users and offers various products and tools, including crypto spot market, margin trading and trading bots (on the topic: do you know Bitsgap?). We also find copy trading, accessible from the main menu under the Derivatives heading.

Starting from the top, by clicking on the Introduction button, you can access an exhaustive information section. A tutorial is also proposed that answers all common questions, guiding us from scratch to placing the order.

The most important part, however, is the long list of copiable traders. Already here, we can immediately see the performances in the last 7 and 21 days, as well as the profits and the number of trades.

Each trader can be copied by a limited number of users. In the case of the image, all the alternatives are full, which means they are already at maximum capacity. By scrolling through the following pages, we will still be able to find valid alternatives that can be subscribed to.

Clicking on a specific box opens the trader’s detail screen :

In addition to the information already displayed above, it will be possible to consult every single trade made. This feature is essential to be able to thoroughly evaluate the trader, comparing his operations with our analyses.

To report the presence of many young profiles, so let’s not just look at the win rate but measure every aspect.

In addition, also pay attention to the levers: even if limited, users (called followers ) can reach up to 5x, a multiplier more than enough to get hurt.

Bybit copy trading supports 14 cryptocurrency pairs , specifically: BTC-USDT, ETH-USDT, BIT-USDT, XRP-USDT, ADA-USDT, SOL-USDT, MATIC-USDT, SAND-USDT, NEAR-USDT, ATOM-USDT, FTM-USDT, LINK-USDT, AVAX-USDT and AXS-USDT. The omnipresence of the USDT stablecoin immediately catches the eye, which can be both good and bad: it depends on how we are used to reasoning.

Speaking of costs, great news: there aren’t any! The only price to pay will be having to give 10% of our profits to the trader we copied. A fee that, in the case of success, you are more than happy to pay, right?

Bybit copy trading provides the minimum and maximum limits on invested capital. On the first, the figure must be equal to or greater than 10 USDT; the cap is instead set at 1000 USDT.

The procedure to become a follower of a trader is very simple: we will have to choose it, click on the Copy button, set capital and leverage and the game will be done!

Newcomers will first have to make a capital payment: just click on the My Copy Trades button (see the first image of the paragraph) and select the Transfer button to proceed.

In any case, FAQs and dedicated guides are always in the foreground and easy to consult.

If you think it’s right for you, sign up to Bybit and immediately get a $ 5 bonus and a 5% discount on fees.

We complete the work with a video dedicated to Bybit and updated to 2022. At the end of the tutorial, this exchange will have no more secrets!

Bitget Copy Trade

The alternative to Bybit for copy trading is Bitget.

Although less high-sounding than some competitors, this exchange is available in around 50 states and serves over 2 million users.

In addition to the classic cryptocurrency spot trading, Bitget offers futures, launchpads and passive income tools.

Copy trading plays a central role in this platform; let’s take a look.

Copy Trade is already visible in the main menu. By clicking on it, we will find ourselves in the dedicated section.

Outside of the graphic aspect, there are not many differences compared to Bybit. Even in this case, we find a grid of copiable traders, each of which has a maximum number of followers. Parameters such as ROI, total P& L, and above all, the GNP of followers are clearly in view.

As seen in Bybit, clicking on a specific box opens the screen dedicated to the trader in question.

Traders receive 4 to 8% of the follower profit, based on the number of blocked BGBs (this is the native Bitget token ).

Followers benefit from ready-made strategies; they don’t have to worry about anything because the system is fully automated.

The observations made above are valid: it is right to carefully analyse the traders, choose the most suitable one, and monitor the trend of the investment.

Good documentation with FAQs can be accessed from the Support menu item. The section reserved for copy trade is large; it is difficult not to find what you are looking for. However, the operation follows the lines of Bybit and is rather quick and easy.

Bybit or Bitget? Both are valid exchanges to operate through cryptocurrency copy trading.

Copy Trading: Promoted With Reservation

Surely, there is a need to reflect after what has been written.

Copy trading is an interesting alternative to classic trading, but not free from critical points.

Seeing it as a method to differentiate your wallet, it’s definitely worth considering.

Instead, if we want to chase easy profits without commitment, well, we’ll probably be disappointed. Individual analysis and monitoring must, in any case, be a constant.

Perhaps the best aspect of copy trading comes from its teaching strength: by copying a trader, we will have the opportunity to learn new things, as well as achieve success or make mistakes in a different situation than usual.

Have you ever exploited copy trading, even outside the crypto world? How did it go? If you want to share your experience, our social channels are at your disposal!

How To Start Cryptocurrencies Copy Trading?

As Bitcoin hits five-day highs ($20,000), while Ethereum jumps above the $1,100 mark, amateur investors are more motivated to participate in the cryptocurrency fad, aiming to secure easy profits.

Cryptocurrency trading has also created a social layer, with thousands upon thousands of users flocking to Discord and Reddit forums to discuss the potential market with veteran traders, hoping for some guidance and investment suggestions.

Taking advantage of this trend, some companies are creating copy crypto trading platforms aimed at novice investors. 

Definition: Copy Trade

Copy trading platforms allow users to mimic or copy trades from more skilled traders and reduce the steep learning curve while retaining full control of their cryptocurrency accounts.

For example, if an experienced trader buys 100 Tesla shares, you copy them. If they sell coins at a high price, you follow suit. If they buy cryptocurrencies when the price drops, you will buy them too, believing the trader anticipates the price will increase in the future.

Cryptocurrency copy trading platforms save new investors years of trial and error learning how to book profits. You are not required to take classes that describe in detail how the cryptocurrency market works. In short, they keep you from taking losses while learning about the cryptocurrency market.

How to Choose Crypto Copy Trading Software

Before choosing copy exchange encryption software, consider different criteria to ensure you choose the best one. These are the most critical aspects to consider before venturing into this industry.

1. Compatible With Your Platform  

If you have a smartphone or laptop, you can download apps that are compatible with most operating systems, such as Android and Apple products.

You can also sign up with companies through their websites, which means you don’t need any specific software. Always check if the company offers other platforms so you can use the device you prefer.

2. Number Of Trading Opportunities On Offer

The number of different trading opportunities offered by different copy trading software varies greatly and depends on the platform and its popularity.

Be sure to check what kind of trading opportunities the software offers you. There are typically three different types of trading opportunities you can choose from:

► Copy trades from a single trader: This is the easiest option because you don’t need to do any research yourself. All you need to do is decide which trader suits your needs and follow your trades.

► Copy trades from multiple traders: In this case, you can choose which traders to copy and follow their trades. As these traders often offer different trading options, this will increase your chances of higher returns, but it will also increase your risk factor; it’s easy to get confused.

► Copy trades for a specific currency: This one is the most complicated and requires you to research the types of trades different investors make on each currency. You need to choose the one that fits your needs and make sure you can carry on your business.

3. Technical Support

Many copy exchange platforms offer 24/7 live chat support. This means that whenever you have an issue, you can open a support ticket and get instant help from the team. However, this does not mean that all platforms are trustworthy because some are not currently running.

Typically, you will find out about the availability of this feature by visiting their websites and checking any information about its availability.

4. Merchant Information

Before making your final choice, you should consider the available trading information, carefully checking their features and fees to see which one is best for you.

5. Prices

The price of auto crypto trader software depends on the quality of the platform and the number of potential traders, which are usually determined by the number of subscribers, their experience, and their popularity.

That’s why you should pay close attention to this element. It would be best to look for copy exchange software that offers a reasonable fee, usually around 0.1% per trade.

6. Security

Copy exchange software security is crucial if you invest a lot of money. You should carefully check the platforms you will choose from and their features and services to see which one is right for you.

However, as with other financial products, ensuring that sending your funds to others should be done with extreme caution and only after reaching an agreement.

Conclusion

As you probably know, copy trading software is still a relatively new concept, and finding suitable automated cryptocurrency trading software is quite challenging.

However, as more people become aware of the benefits of this type of trading platform, more companies will offer these services to their clients.

If you are planning to invest in cryptocurrencies and are interested in copy trading software, we recommend that you choose the most recommended companies.

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How To Start With Copy Trading Crypto?

Faced with the danger of inflation, which could slowly kill your savings?

Crypto copy trading is an investment solution worthy of your interest, to protect your savings, diversify your wealth and obtain a significant additional income.

In the lines that follow this post, I will show you how it is possible to make money now with crypto copy trading.

It may seem too good to be true, not to mention utopian, but it is entirely possible.

This is not the method followed by the majority of amateurs who prefer to lose money in the stock market with bogus methods and tips gleaned from the web.

This may not interest you.

But the only way to find out is to read on.

Now find out what you will learn by reading the article:

► What is crypto copy trading?

► How to do crypto copy trading?

What Is Automated Crypto Trading?

Wages are no longer sufficient today to guarantee a decent standard of living in the face of the rising cost of living linked to inflation.

As a reminder, inflation corresponds to the general increase in the prices of food, energy, raw materials and consumer goods.

And this situation has not improved because wage earners have not been indexed to inflation for a long time.

You also have retirement pensions that are melting like snow in the sun.

Wage increases are close to nil.

Begging for a raise in order to finally get crumbs is frequently perceived as a humiliation, not to mention an insult to the person!

Let us now look at the capital income offered by the various financial products of banks.

The different yields offered by regulated savings accounts are too low and even cause savers to lose money.

As a reminder, the Livret A preferred investment of the French caused the lucky elected holders of this investment to lose 3,600 billion euros, according to the consumer defence association (source magazine Le Capital).

How will you tell me?

It’s very simple; you just have to compare the rate of remuneration of the Livret A with the rate of inflation.

With a return of just 0.75% in 2018, savers lost money as inflation was at 1.9%.

Below is the collapse of the Livret A yield against inflation.

Below is the evolution of the remuneration of the Livret A since its creation.

The situation even deteriorated due to the COVID 2019 pandemic with rising inflation.

I have reservations about the inflation figures communicated by the public authorities because they seem to me to be underestimated in relation to reality.

Faced with the general rise in prices, which has undermined purchasing power, the government has taken the following 3 measures:

► An inflation check.

► The freezing of price increases on electricity and natural gas.

► An energy check.

Today you have the choice between plague and cholera.

The plague of doing nothing and patiently waiting for inflation to “pocket” all your savings.

Cholera is regulated investments that yield peanuts with your savings that will melt like snow in the sun due to the high level of inflation.

Fortunately, there is a solution, not to say a vaccine, to protect your savings from inflation thanks to the stock market.

Thanks to the financial markets, it is now possible to earn money online and increase your purchasing power.

It has never been so simple and easy to open an online account with a broker in 2 clicks for trading.

But it will first be necessary to follow quality trading courses and accumulate experience (between 2 and 5 years) to hope to be able to earn money.

Fortunately, there is an easy, legal and profitable way to take a leap in time and make money now through automated trading cryptocurrency.

Auto trade crypto is a service that allows the performance of profitable crypto traders to be copied.

The benefits of this new service are enormous for the following 3 reasons:

► The time saving is obvious because it is no longer necessary to train in trading, gain experience or follow the news of the financial markets.

► The gain of money, because you just have to select a profitable and efficient trader who has already proven himself.

Gaining security by working with a broker who is regulated and authorised by the FCA or the relevant regulatory body.

Why Crypto Copy Trading And Not Another Class Of Financial Assets?

Cryptocurrencies recorded the best performance, compared to other financial instruments such as stocks, indices, commodities or Forex.

The performance of bitcoin (BTC) over 10 years amounts to 924,772% today (source market zone March 03, 2022), i.e. an average of 92,477.2 per year!

And it is all the more spectacular because this figure takes into account the different cycles of the decline of bitcoin since its launch in 2008.

You can see, for example, that the underlying trend of bitcoin is bullish over the long term.

I achieved my best performance on the stock market since 2005, thanks to cryptocurrency, because my capital was multiplied by 11 in a few months between 2019 and 2021.

Cryptocurrency holders, in other words, long-term investors, have become millionaires.

I know of investors who bought bitcoins for $100 each when the price was $0.10 in October 2010 for a total of 1,000 bitcoins.

They sold 50% of their bitcoins when the price reached $60,000 in April 2021, a gain of $30,000,000.

Now let’s compare the performance of bitcoin with that of the Nasdaq Composite.

The Nasdaq Composite is an American stock market index comprising a total of 2,226 companies.

Stock traders appreciate the companies that make up the Nasdaq Composite because their stock prices are highly volatile with performances that are close to record highs.

For example, TESLA achieved a performance of 700% in 2020.

Equity speculators particularly target small and mid-caps with a low free float because the upward or downward shifts are very violent compared to large caps.

How To Do Automated Crypto Trading?

There are two forms of crypto copy trading, as you will discover below:

Copy Trading Crypto Broker

This is the easiest way to copy trade crypto by directly copying traders’ transactions through their broker.

Founded in 2007, eToro is the global leader in social trading with over 20 million customers worldwide.

eToro has democratised stock market trading and investing for the general public for the following 3 reasons:

► It has simplified access to the financial markets as much as possible with a very intuitive and easy-to-use investment platform.

► They are the pioneers in the development of social trading.

► They are the first to launch no-brokerage offerings in equities around the world.

At the regulatory level, the broker eToro is regulated by the FCA, Cysec and ASIC.

You must first open a free real or virtual account with eToro.

You then fill in the following information.

You then arrive on the following welcome screen, then click on “Search”.

Then scroll to the bottom of the page and click on “Show all” to bring up the list of cryptocurrency wallets to copy.

You will then have to click on verify to complete your profile by mentioning your first name, last name, gender and date of birth.

You will also need to specify your address and then select from the choices your investment experience in stocks, crypto-currencies, and your trading knowledge.

You will then need to attach proof of address, proof of identity and make the first deposit of a minimum amount of 200 euros to do crypto copy trading.

Telegram Copy Trading

It consists of copying trading signals sent by amateur traders on telegram groups.

The copy trading of cryptocurrency offered in the groups on Telegram is not automatic compared to the copy trader function of Earnex Exchange.

Investors receive notifications and then decide to replicate the signal through their brokers.

I have reservations about copy trading on Telegram for the following reasons:

► It is not possible to view the performance history of copy traders and other strategic information such as risk level, drawdown, average profit and loss against the copy trader service offered by Earnex Exchange.

► The trading signals sent are not profitable because the signal providers are not traders.

► They are just marketers and influencers paid by brokers when a trader opens an account.