Copy Trading: Things You Need to Know about in 2022 (for newbies)
Welcome to Bitget - the world’s fastest growing crypto derivatives trading platform.
Copy trading allows investors to directly copy another master trader's order. You just decide the amount to invest, which traders you pick, and when the master trader places an order, your account will do the same.
Copy trading suits both newbie investors and experienced traders that simply don’t have the time to actively buy and sell assets. In this article, we will walk you through the basics of Copy Trade.
What is Copy trading?
If you’re a crypto newbie, you may not have time to watch the markets and do research on thousands of crypto. Due to the volatility of the crypto market, if you don’t keep close to it, you may suffer from a huge loss easily.
Copy trading refers to the trading that investors copy or follow other investors (commonly known as professional traders/ experts) to have the same positions as the experts they are copying. For investors, copy trading is easy to operate and transactions can be carried out automatically and instantly.
Copy trading is focused on short-term trading, especially for day trading and swing trading strategies. Therefore, copy trading can apply to the Foreign Exchange Market as well as the Crypto Market.
You can leverage other traders’ resources like insight, trading experience, research and risk management strategies. On Bitget’s copy trading, you can automatically copy 12+ professional traders’ strategies, and instantly follow their action on the market. You can enjoy a profit as a master trader even if you are a crypto newbie.
The benefits and risks of Copy trading
1. A relatively low entry barrier: Copy trading provides a way for newbies to enter the market, rather than starting from scratch without a clear roadmap.
2. More time for leisure: You can carry out trading 24/7 without watching the market all the time. As the traders you follow have carried out the trading and earn profits for you.
3. Developing your own crypto trading knowledge and strategies:Through following professional traders with experience, risk management and insights, you may learn a lot of crypto trading knowledge in a short period of time.
4. An alternative way to diversify your portfolio: Of course, you can carry out crypto trading yourself. Through diversifying your assets to different traders with different strategies and styles, you may reduce the risk of trading.
1. Picking the right traders: Different traders have different trading strategies and styles. No one can guarantee a trader can profit forever.
On Bitget, you may go through the track record of a trader including trader’s rate of return, trading details…etc.
2. Implied cost of trading: Like most cases of investing, there may be an implied cost for each transaction.
On Bitget, traders can maximum get 10% in dividend profits from their followers, rather than charging the commission for each transaction.
The pricing mechanism provides incentives for traders to maximize the profit of followers, rather than carry out trading frequently and ignore the interest of followers.
3. Market Risk: Copy trading is completely the same as the traditional stock market. There is a risk of suffering from the loss of capital. All you need to do is risk management.
On Bitget copy trading, you may do the take profit/stop loss setting to minimize your loss.
For your information: Bitget Copy Trade: The Basics
What investors should know before doing Cryptos Copy Trade?
The key to profiting from copy trading is picking reliable traders with stunning performance. Here are the keys to doing research before getting involved in copy trading:
High yield, high return, and high total follower return are the most important data indicators. Like the P/L ratio and total income can show whether a trader is able to maintain a relatively stable profit in the long-term.
By checking the trader's check-in time, number of transactions, and the profit and loss ratio, we can see whether the trader has stability.
Through checking the positions and trading volume, it can be seen whether the trader knows where to stop loss or take profit.
By looking at AUM, you can understand his popularity and other people's recognition of his trading ability. You can see whether the trader misled his followers or not.
Here is an example of the track record of a reliable trader:
For your information: The List of Top traders that you can follow on Bitget
Benefits of Bitget’s Copy Trading
Bitget is the biggest copy trading system in cryptocurrency. Bitget One-Click Copy Trade is designed for contract beginners to follow experienced traders to open positions with just one click.
Here are some impressive achievements:
No of Expert Traders: 80K+
Accumulated Profit Sharing of traders: US$20M
No of Copiers: 380K+
Total Trades Completed: 100M+
Moreover, the platform provides margin trading - the opportunity to borrow equity and significantly increase your buying power. There are more than 50 margin trading pairs available on Bitget, with a maximum leverage of 125X.
Are you intrigued by copy trading? Secure your trading account on Bitget today!
Bitget’s One-Click Copy Trade is open to all Bitget users, and registering as a copy trader opens the door to multiple revenue streams, including follower commissions and dividends. For traders in copy trading, they can enjoy the following benefits:
High yield of dividend profits: Traders can enjoy a maximum of 8% in dividend profits from their followers. Moreover, with more than 8000 Daily Active Users for contract trading, Bitget provides huge exposure opportunities for high-quality traders.
Potential huge market: Launched in 2020, Bitget’s One-Click Copy has more than 380K+ followers. And since the birth of Bitget in 2018, there are more than 2M registered users. The number of users of Bitget keeps increasing, which means more followers to participate in the copy trading.
For more detailed guidelines for traders, you may refer to Copy Trade: Things You Need to Know as a Trader
For followers in copy trading, they can enjoy several benefits:
Easy to control: Followers easily choose an expert trader to follow, then copy their trading movements and gain profit without any interventions.
Transparency in all traders’ behavior: Transparency is the foundation of the copy trading system. To maintain a transparent exchange environment, all the traders’ data on Bitget is available for public view, and the records have been strictly reviewed by Bitget.
Followers can view the trading behaviors of the traders they follow, so that they can use Bitget’s One-Click Copy Trade with confidence.
Profit Gain/Stop Loss control to maximize profit and minimize the loss: Bitget’s One-Click Copy Trade allows followers to follow multiple traders at the same time to gain the maximum profit.
The profit is displayed in real-time and in each order. Followers can also revise the copy amount and the copy contract, or stop the copy orders and close positions to stop loss.
For more detailed guidelines for Investors/ Followers, you may refer to Copy Trade: Things You Need to Know as a Follower
If you want to know more about blockchain and crypto-trading information, don’t forget to follow us on Bitget Academy.
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