Trading is one of the activities that more people like to do in the crypto market so that they can earn money on their investments. Every trader has the same goal to earn money out of the investment but sometimes the strategy does not go the way it is planned and that's where it becomes a loss-making situation for the trader. I am not good at trading and that's why I always look for ways where I can earn well in the long term.
Trading is a way to put the money in the short term which is like buying in the morning and selling in the evening. Usually, traders don't have high holding power so if any asset's price starts falling then they have no other option than to sell-off. A smart trader always uses the stop-loss function so that there is no higher loss and when the price goes beyond his/her tolerance limit then the order gets executed and money is taken out.
There is a difference between trader and investor and in my opinion I believe that a person who invests money and hold it for the long term is called an investor whereas whoever is putting money for the short term (typically 1 day) is called a trader. A trader doesn't want to hold anything and his only motive is to bag a certain percentage of profit and take exit from the trade.
There are some great traders who understand the market well and they have expertise in this. Now there is a way called Copy Trading through which we can follow their trade and make money. This is helpful for those who are not good at trading and in this process, things seem to be easy for trading purposes.
What is Copy Trade ?
In simple words, copy trading allows us to copy the same trade of any trader that we follow and there is nothing much we need to do.
Copy-trading platforms let users to mimic the trades of more experienced traders. This allows novices to shorten the steep learning curve, while still maintaining full control of their accounts.
For Example- I follow Person A and he has purchased Bitcoin worth $100 then the same trade will be executed in my account too. When A will sell his bitcoin then my bitcoin will also be sold and this process will happen automatically that does not require any manual intervention. So if person A makes the profit the I will also be making the same and that too doing nothing much.
Copy trade platforms are built in a way that they have plenty of expert traders who are registered and its imported to choose the trader we follow and copy the trades. If we are able to choose the right trade then it will bring us a profit and its very easy too.
Here is the list of 5 platforms where we can use copy trade-
- eToro
- ZuluTrade
- Duplitrade
- cTrader
- Mirror Trader
Now the question is that is it worth using copy trade? I think, yes because if we dont have advanced market knowledge then it's better to follow someone who has more knowledge and can get us to earn some profit. It does not take too long to lose money if wrong traders are executed and whats why its very important to trade carefully.
With copy trade, we can minimize the risk with trading and maximize the profit. Wy to take a risk when we can make it better and that is where copy trade is helpful. Its a kind of great option for new traders and with his they can avoid risk and once they become experts then there is an option for them to get registered as an expert trader and build their followings.
I am yet to try my hands with it however I am exploring this part to see how can I bet some benefit easily. I will prefer to start it a small amount first and if things go well then I might pursue it further. I will share my experience once I give it a try.
Thank you so much