Experienced traders give perhaps the most portfolio diversification advice to those who are new to cryptocurrency trading. That is, novice investors are advised to invest capital not in one product, but in many. This is because capital can be protected against spikes in a product.
The wallets and exchanges to use also differ, as it means investing your portfolio in cryptocurrencies with different infrastructures. A novice trader needs to learn many different things about the world of cryptocurrencies to be able to do this. Since the functioning of each blockchain, cryptocurrency wallet and exchange will be different, one has to spend a lot of effort and time to obtain the necessary information. One tool to facilitate this whole process is the copy trade.
Copy trading allows traders to trade automatically without much effort. The working principle of copy trading is not complicated. Once the trader has entered the data according to his plan, the trading bot will do the rest. This method can be called the low-risk method.
Time and Risk Factor
When you first step into the cryptocurrency market, you realize that things are not that simple. This market has a different operation and conditions compared to the classical markets.
It may take some time to have a clear understanding of the market. Moreover, just learning is not enough. If you do not constantly follow the developments in the market, you can easily miss opportunities.
In fact, using a copy trading method can enable a novice trader to invest while learning about the dynamics of the market. Of course, you have to manage your risks well when trading copy. You should not use all your capital for such a method in the first place. For example, you can test your chosen copy trading method by depositing small amounts. Note that even if this method is successful, you should never invest all of your capital.
Over the last few weeks, we've seen more than enough how volatile the cryptocurrency market can be in short periods of time. One day there is a very good rising market, the next morning it may face a falling market. When the market goes up, we might be upset that we didn't sell our cryptocurrencies. That's why it's important to find the right method to protect the capital we have.
The cryptocurrency market is a highly volatile one. Thanks to copy trading, your portfolio is managed automatically and seizes opportunities for you around the clock. Lets you win even while you sleep
The trading robot you use can close the position in case of danger or evaluate it when it is profitable.
Being Emotionless
People who lose while trading in the cryptocurrency market often lose because they succumb to their emotions. The stress of work or some personal life situations they experience in their daily life can upset their balance while trading crypto. A person may not be patient enough or easily succumb to greed or make a mistake after a momentary panic. This may result in serious losses.
A trading robot may be better at making the right decision than a novice trader, as it lacks all human emotions.
In fact, it is not much to make quick profits in the crypto money market. However, one bad decision at the wrong time can ruin everything. Copy trading can help minimize risks.
Conclusion
There are many platforms in the market that offer their customers the opportunity to trade with copy trading robots. There are exchanges such as Kucoin and Probit among the ones I have come across. As far as I know, leveraged exchanges like Bityard and PrimeXBT also offer copy trading services.
By doing some research, you can find different platforms where you can trade copies with trading bots.
However, I feel the need to reiterate that you need to be meticulous about risk management. You can give it a try, starting with a small amount.
The choice and risk is yours.
You should never invest all of your capital, that is correct. Ang I agree that market went rise and fall and all users can relate this. Hayst thanks for sharing your ideas friend.