Copy Trading
Copy trading on crypto exchanges is the interaction with other traders in order to repeat their transactions on the crypto market and ultimately increase your profits. The phenomenon is not entirely new, it has been known since 2007, and it has also gained great popularity in cryptocurrency, because both parties benefit from it - experienced traders receive a percentage of the profits of those who copy its transactions.
In this post, we will talk about how copy trading works (it is also sometimes called social trading, although these concepts are slightly different) and on which exchanges this functionality is available.
◽What is copy trading and social trading
The direction is especially relevant for beginners who have not yet had time to fully get used to the market and develop their own strategy. With the help of copy trading, you can earn on a par with experienced traders by copying the transactions they make.
Traditional trading requires the study of markets, charts, research to form trading decisions. Copy trading is essentially a type of passive income.
◽How copy trading works:
The concept is fully automated.
🔸The software needs to be set up and it will automatically repeat the trades of a successful trader.
🔸You can set up trading in different ways, depending on the functions and conditions of the platform. For example, make sure that the exact amount of all transactions is copied or its percentage of the total capital.
🔸At any time, you can intervene, cancel the deal by manually closing the position.
🔸The user is not tied to one selected trader, but can switch between different ones, looking for the most successful ones at the moment.
🔸A list of experienced traders is available, just choose any of them.
🔸The trader that people subscribe to receives a reward of 5-10% of their profits. Therefore, it is also profitable for him to trade in plus (more profitable than usual).
A little about the difference between copy trading and social trading. Social trading is not an automated solution. In fact, you just read sites and forums with different opinions, forecasts, and you can also leave your own forecasts, like and comment on others, etc. In the process of communication, traders draw conclusions on how best to adjust their strategy. An example of a platform with social trading features is TradingView.
Copy trading means automation. The user hardly needs to do anything other than fund the account and select the trader whose trades he wants to copy. No need to manually place orders or conduct any research.
◽Cryptocurrency Copy Trading Platforms
Here are a few options for copy trading platforms, from which you can choose one or more suitable ones by doing your own research. When choosing, it is important to take into account such factors: specific instruments offered, commissions, minimum deposit, sufficiently large liquidity, a wide choice of traders for subscription, legal status and site licenses, security and reputation.
Bybit
🔸Website: https://www.bybit.com/copyTrade
🔸KYC: no for subscribers, yes for masters, 2 levels
🔸Trading pairs: futures on BTC , ETH, BIT, XRP, ADA, SOL, LUNA, MATIC, SAND, NEAR, ATOM, FTM, LINK, AVAX and AXS
🔸Leverage : master - from 25x to 100x, depending on the pair, subscriber - no more than 5x
🔸Order size for subscriber - from 10 to 1000 USDT Profit
🔸distribution: 10% to the master
The platform was launched in July 2022. To start using it, you need to transfer funds from a spot account to a copy trading account. You can use the API provided by the developers. Additional commissions are not charged when trading, only those that are applied in the usual way.
For each trading pair of the trading master there is a quota - 2.5% of the amount of open positions. Copy trades use the same price caps as futures trades. In addition, the same minimum and maximum order limits apply as in derivatives trading.
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Thankyou for your attention and diving your interest