As digital assets witness fast development and growing popularity, copy trading has risen to prominence as a favored trading approach among cryptocurrency enthusiasts, particularly novices. However, beginners would often ask the question: What is copy trading and is copy trading actually profitable?
Next, we’ll take a closer look at what copy trading is and introduce a guidance for beginners about how to get started with copy trading.
What is Crypto Copy Trading?
Crypto copy trading represents a trading strategy that harnesses automation to execute cryptocurrency trades. This feature is commonly found on copy trading platforms, empowering users to mirror the trades executed by successful traders within the platform’s ecosystem.
This approach is especially enticing for cryptocurrency newcomers or individuals who may not have the time or expertise to make informed trading decisions. By offering a passive approach, copy trading allows them to potentially capitalize on successful trading strategies without the direct involvement or expertise required in conventional trading.
How to Copy Trade for Beginners: A Comprehensive Guide
Next, we will introduce a guidance for newcomers about how to get started with copy trading. We’re using BTCC for this walkthrough.
Step One: Create an account
Before you start trading, you need to register a BTCC account using an Email ID or Mobile Number, then finish KYC verification.
Step Two: Fund Your Account
After completing KYC verification, the next step is fund your BTCC account. There are three methods available for funding your BTCC account, including fiat deposit, crypto deposit and convert.
Step Three: Choose a trader to follow
Go to the BTCC homepage and select “Copy” > “Futures Copy Trading”to enter copy trading page. You can directly browse the market board on the page below. Based on different metrics, like Total PnL, AUM, PnL%, Win rate, No. of copy traders, etc., to choose your preferred lead traders.
If you wish to learn more about the Lead Trader before making your decision, you can click on their card to access their portfolio, which reveals more information, such as Number of trading days, Profit sharing ratio and Cumulative number of copy traders, Lead trading performance, etc.
Step Four: Complete your copy trading settings
Once you decide your preferred lead trader, click “Copy”. Next, you need to complete copy trading settings, including Copy trading margin per order, Maximum copy trading margin. You can click “ Advanced settings”to check more settings, like Take profit per order, Stop loss per order.
Step Five: Confirm your decision
After finish all settings, all you have to do is confirm your decision by checking the “BTCC Copy Trading Agreement and Guidelines” box and clicking on “Copy trade now”. Once you click on “Copy trade now”, you’ll start following the Lead Trader’s moves.
Step Six: Check up on your trades
From the “My Copy trader” tab on the top right side of the Futures Copy Trading page, you can monitor your trades at any time.
Conclusion
In summary, copy trading stands as a formidable tool for cryptocurrency investors aiming to maximize returns while minimizing exposure to risks. By opting for a reputable platform, thoroughly evaluating signal providers, wisely allocating capital, regularly overseeing and adjusting your portfolio, and staying abreast of market trends, you can harness the power of copy trading strategy to drive your investment goals towards successful realization.
