As digital assets proliferate rapidly, copy trading has soared in popularity among cryptocurrency enthusiasts, particularly those embarking on their trading journey. Let’s embark on a deeper exploration of the core concept of copy trading and discover how to strategically leverage it to amplify your cryptocurrency profit margins.
Copy Trading: Definition
Crypto copy trading is a trading strategy that uses automation to buy and sell crypto. This feature, popular on cryptocurrency trading platforms, allows users to effortlessly replicate the trades executed by proficient traders within the platform’s ecosystem.
Ideal for cryptocurrency novices or individuals with limited time and expertise to formulate trading decisions, copy trading offers a hassle-free avenue to capitalize on potentially lucrative trading strategies without the need for direct involvement or expertise.
How does Copy Trading Work?
To begin copy trading in the cryptocurrency market, the first step is to establish an account with a reputable copy trading provider that facilitates access to various cryptocurrencies.
Post account creation, you can browse different traders’ strategies to find ones that align with your risk tolerance and investment goals.
Upon selecting your preferred traders, the copy trading platform seamlessly mirrors their transactions within your trading account. It’s crucial to notice that while copy trading enables you to harness the proficiency of seasoned traders, it does not ensure profitability.
The success of your copy trading strategy will depend on the performance of the traders you choose to follow, as well as the prevailing market dynamics.
How to Start Copy Trading on BTCC?
BTCC, one of the longest-running crypto exchanges in the world, supports copy trading on its platform. If you want to try copy trading strategy on BTCC, follow below simple steps:
Step One: Create a BTCC 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 conclusion, copy trading can be a useful tool for cryptocurrency investors looking to maximize their profits while minimizing risk. By selecting a reliable platform, evaluating signal providers carefully, allocating funds wisely, monitoring and adjusting your portfolio regularly, and staying informed about market trends, you can harness the power of copy trading to achieve your investment goals.