What You Need to Know About Crypto Copy Trading?
Diversifying your portfolio
is important for any type of trading and investment. To get good results or
profits on your investments requires commitment along with a good knowledge of
the market. If you have a little or no expertise in crypto trading, you can
either consider using trading bots or may try a copy trading strategy.
Today, copy trading and bots
are equally important among novice traders. Thanks to both of these variants as
they let you earn good profits with minimum skills and efforts. All you need is
the right crypto trading bot. And one such
platform is Growlonix that allows you to earn good profits from crypto trading.
Before moving further, let’s
understand about trading bots and copy trading, and how these works?
Copy
trading
What is it exactly?
Copy trading is all about
copying the trades of professional or expert trader’s trades. But it is not a
get rich quick scheme and you need to research well before signing up for any
trader’s strategies. The meaning of copy trading is hidden itself in its name.
It is basically copying someone else’s trades to make profits.
The aim of copy trading is
to earn profit from the good decisions of expert traders. However, nothing is
guaranteed in the crypto trading world. But, there might be times when the
trades may get wrong by the expert traders, and if you are copying their
trades, then their losses may become your losses too.
Consider Trader X as an
expert trader with a particular trading strategy. His strategy has been tested
vastly on live markets based on historical data. And, there is another person,
say Trader Y who is a beginner with no or very little knowledge about the
market and trends. But he wants to participate and earn from it. Apart from
this, he doesn’t want to spend more time to learn or practice the skills but
wants to fasten this process.
Then he lands on a copy trading platform where he can
search for traders with a strategy like Trader X, and can mirror his trades. In
order to do so, the Trader Y will have to pay a certain amount as a fee to the
trading platform to avail the service.
Is
copy trading the right decision for you?
Are you a novice trader?
And, you want to invest like a professional in crypto trading?
For beginners, investing in
a crypto trading can be daunting. And, considering copy trading is something
that will let you invest like an expert.
Copy trading allows the
traders to have the same trades or copying the positions as of the experts they
are copying. This form of trading is also known as mirror trading or social
trading. While copy trading seems a lucrative option, but there are also some
risks involved with this. It also allows copying the trading bots of experts
too, or even their signal providers. Therefore, the copier will also earn the
same profits or losses as the expert traders.
For example, if you as an
investor have $1,000 allocated to copy trading, and the trader being copied has
placed a trade of $10,000, your position will be one-tenth of the copied trade.
The return, therefore, will be reflective of the investments and the
appropriate percentage.
Growlonix offers the copy
trading services to its traders. The platform allows traders to place stop-loss
or trailing stop loss strategy on the entire copy trade. This allows them to
have complete control over their risks. This kind of trading could be highly
confusing for the beginners, but they can choose it here at Growlonix to gain extensive
insight into the world of crypto trading.
Copy trading allows traders
to use multiple ways to make money in the crypto trading market. Instead of
putting all their money into one strategy or position, traders may use multiple
strategies to avoid risks. While using copy trading, the novice traders must
consider using a few different trades to copy.
The copy trading bots
automate the buying and selling of crypto assets by mitigating the original
trades of the professional traders. As a
crypto trading user, one only needs to deposit some initial amount which could
be as low as $50. The trader has to select an expert trader on the crypto trading bot where everything
will be automated to perform copying the trades.
Copy trading could be done
either manually or automatic, but considering the automated one is better. And,
if you are a pro trader, you may offer your services via social trading
platforms and can earn profits if any trader copies your trade.
Is
copy trading worth it?
Of course yes! But its worth
is completely dependent on the pro trader’s trades that you copy and how much
money you are putting in it. Here, if the trader you are copying makes
high-profit margins but having a high-risk profile, then you should consider
investing less money. But, if the expert trader you are copying has a low-risk
profile, then you may safely put in more money in it without worrying about the
investments.
But, copying the trades is
not as straightforward as it seems. It has risks involved and choosing the
right copy trading platform or trader is important. But, if you are a beginner
with very little or limited trading knowledge, copy trading is likely to be the
perfect way to get started.
Risks
involved with copying the trades
We all know it very well
that the crypto market is volatile, and many trading strategies are
time-sensitive. If such a strategy is copied by other users, its value will be
diminished, and many who are engaged in this kind of trade may end up at a
loss.
Apart from this, liquidity
is another concern. While these issues are significant, there are some
strategies which may work effectively if copied. And, Copy trading will be
beneficial if the trader’s analysis is good enough to identify these
strategies.
For inexperienced traders or
new users, who are the prime audience for the mirror trading may face such
risks or issues. They may not possess the right skills to evaluate such
strategies. Therefore, they have to rely on the features offered by strategy
makers or experienced traders.
How
does copy trading work?
Copy trading is all about
mirroring another trader’s strategies, while the exact mechanics of this
trading depends on the platform you will be choosing.
The first step of this kind
of trading is to identify the right platform and the traders from whom you are
copying. And, these traders should be the ones who best match your crypto
trading objectives. Note that you may select multiple traders with different strategies
to avoid the risks.
And, the next step is to
decide how much you want to invest. Don’t put all your money with a single
trader. If you opted to copy multiple traders, make sure to split your
investments equally among them. Please note that you can select whether to
automate your trading or can trade manually. Apart from this, you can also
select the degree of automation. Trades could be manual, semi-automated, or
fully-automated.
For fully automated crypto
copy trading, specialized crypto trading bots are the best tool.
Regardless of the degree of automation, you can monitor all the open positions
at the same time. Reputable crypto trading platforms like Growlonix are also
transparent concerning the signal providers and often provide the best data to
their users.
Let’s
understand copy trading with an example:
Copy trades are often
limited to 20% of the trader’s portfolio. Here in this example, trade sums are
expressed as a percentage of the trader’s portfolio.
Let’ say, the trader might
have $5000 in his account. However, if there are no open trades, they can copy the
successful traders. If the trader is a beginner, it’s important to not invest
in larger amounts. Instead, they should only use 10% of the amount i.e. $500
when they choose to copy the trade.
The pro trader may have one
open trade. This trade will be copied into the copy trader’s account. The $500
is actually the percentage amount from the trader’s portfolio. It will be 10%
of the trader’s portfolio which exceeds $5000.
And, the copy trader would
do the same if they conducted trade for $500.
Growlonix offers a flexible
experience to perform copy trading and make it easier to control your money
automatically by making use of copy trading bots. And, if you are performing
manual trading, then it gives you a chance to close it yourself whenever you
find a trade that doesn’t appeal to you.
Copy trading bots allow traders
to benefit from the success of expert traders by mirroring their trades
automatically. Those traders who send buy or send signals are often compensated
in the form of a certain percentage of profit or by selling some subscriptions
to their services.
In addition to being able to copy the trades,
it is also possible to copy the successful trader’s settings and strategies
such as take profit, stop loss, trailing stop loss, etc.
All-in-one
copy trading platform
Growlonix
is unique in the sense that it offers the best copy trading features. By this,
mean that this is primarily the best crypto trading website that allows you to
buy, sell, and trade assets automatically. By making use of crypto copy trading
bots, the traders can easily follow professional and profitable traders.
Trading signals are also
provided which are like the suggestions of what to trade, and when to enter or
exit the trade, and what take profit or stop loss strategies to implement. Growlonix
uses top quality sources for its copy trading, which means that here you will
gain valuable access to the seasoned traders, allowing you to benefit from
their experience.
Thus, taking advantage of
this trading strategy can be highly lucrative. We offer a good choice of the
well-established copy trading strategies.
Conclusion
Copy trading has become
increasingly popular among crypto traders in 2022 who want to earn good profits
from crypto trading. The novice traders who are just starting their trading
journey may choose the Growlonix to perform buy and sell orders 24 x 7 with
copy trading bots.
This kind of copy trading
allows beginners to follow professional and profitable traders. The platform
aims to democratize the trading process and offers the best or most lucrative
crypto trading strategies available to the new investors, who can copy the
trades of expert traders automatically with the copy trading bots.
If you want to automate the
copy trading, Growlonix will do this for you smartly.
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