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 lower risk.
As the name suggests, copy trading is trading that involves copying other investors.
This practice is frequent and more and more widespread because it is very simple and allows anyone to make profits without knowing trading. 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 obviously need several prerequisites :
- Know 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 benefit from it.
Copy trading 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 best known and most widely used exchange in the world for buying and selling crypto. The platform also offers several tools for trading cryptos.
The number 1 cryptocurrency exchange does not yet offer copy trading functionality as such. However, it is possible to use the platform to do so, but 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 kind of solution is widespread despite the fact that some platforms offer copy trading features directly inside their platform.
eToro copy trading : an easy way
If you are interested in cryptocurrency trading or investing, you certainly know 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, financial services with a social network side 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 novice trader to create an account on eToro and follow experienced traders by seeing exactly the results achieved and the investments he makes.
Copy trading review : watch out for scams
As with all things investment, especially trading, you have to be careful. First of all, be careful in all circumstances when it comes to investing.
You should never go blind in an approximate plan and with capital that represents too much of your overall financial situation.
As we always say in investing, only invest what you are prepared to lose.
Then and in relation to 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 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 attention about 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 on social media and when something seems too easy, always be wary.