Trading is the fastest way to make a lot of money in crypto.
But that's only if you have the knowledge, skills, and experience to play the market.
You have to be able to read the charts, analyze the market, and develop your own winning trading strategy.
This is all beginning to sound scary. And that's because it is scary.
Trading is a win or lose game. For you to win, some others must lose and vice versa.
And it may interest you to know that 95% of all traders lose money.
So does that mean there's no hope of making those millions we hear traders make?
Not exactly. And that is the reason for this post.
To show you one of the ways to profit from crypto trading without actually being a professional trader - copy trading.
What is copy trading and how does it work?
Copy-trading refers to the act of using the same trading strategy as another person.
In this case, when the trader you're copying buys, you buy. And when they sell you sell.
Using the same entry, stop-loss, and exit points.
This process can be automatic or manual. Depending on whether your exchange supports it or not.
If it's manual, you have to enter the trades by yourself. Using the signal provided by the expert
If the exchange supports it, then you can set it up and forget it.
The system will enter and close the same trades as the expert you're copying.
So, when the expert makes a profit you also make a profit and when they lose a trade you lose too.
For every winning trade, the expert takes a small commission that ranges between 5% to 40%. Depending on the platform, and the trader.
This commission rate is set by the expert traders themselves or the exchange. Again, depending on the platform.
So you will do well to find out what the commission rate is on each platform before you plunge in.
Crypto exchanges that support copy trading
There are several third-party copy trading platforms, but I don't recommend them.
First, because they're paid services and second because it increases your security risk.
You will want to maintain only one possible point of failure.
Bityard is the only exchange I have discovered that support copy trading direct from their platform.
So that you can register, fund your account and start copying experts' trade right away.
Click here to register on Bityard and start testing its copy trading feature right away.
When I discover other exchanges that support direct copy trading, I will add them here.
And if you know anyone, please share with us in the comments section below.
The risks with copy trading
From our discussion, it looks like copy trading is an easy way to make money without doing anything.
But is it?
Is it the ultimate passive income opportunity that will finally make you rich?
Not exactly.
There're a few things you must consider before jumping into copying an "expert's" trades.
1. Picking the right expert trader
How do you pick a good trader that will not help you lose your money?
And, no, they're not above and beyond losses.
Even the best of the best traders lost money sometimes.
Sometimes, they can even go on a losing streak that may be hard for you to recover from. Or make a single wrong move that will put your entire account balance at risk.
That's why you need to pick a trader that match your risk tolerance.
And then set up a strong fund management strategy on your own account.
So that your expert will not blow up your account with a series of losses or a single mistake.
2. Your expert is not responsible for your losses.
It's easy to believe that your expert trader is acting in your best interest.
Wake up, bro!
They're interested first in their commission and bonuses.
They may even have no feelings or consideration for the people that are copying their trades.
They will execute trades based on their own personal goals, target, and risk appetite.
You definitely don't want to put your financial situation at the mercy of some random expert.
That's why you must only fund your account with only an amount that you can afford to lose should in case.
3. Beware of dubious traders
Most times, you don't know anything about these experts.
That means the only way to check their competence is via their track records on the exchange.
Some of them will use different means to make their accounts appealing to you.
That's why you need to be careful and try to track and analyze the trades to learn what they're doing.
Even if there's nothing out of the ordinary with their trades, you should still strive to learn from them.
And strive to become an expert too if you want to go that line and manage your trades by yourself.
Conclusion
Copy-trading can be a fast route to making money with crypto trading if you find the right expert(s) to follow.
But it will be unwise to think that nothing can go wrong because, after all, they're experts.
In the end, you still have to do your own research (DYOR).
And follow traders that have similar risk appetite as you.
And don't forget to track and analyse their trades to see what they're doing.
Learning what they're doing wrong or right can put you in a position to start trading by yourself or pick better traders to follow next time.
