What You Need to Know About Crypto Copy Trading?
Diversifying your portfoliornis important for any type of trading and investment. To get good results orrnprofits on your investments requires commitment along with a good knowledge ofrnthe market. If you have a little or no expertise in crypto trading, you canrneither consider using trading bots or may try a copy trading strategy.
Today, copy trading and botsrnare equally important among novice traders. Thanks to both of these variants asrnthey let you earn good profits with minimum skills and efforts. All you need isrnthe right crypto trading bot. And one suchrnplatform is Growlonix that allows you to earn good profits from crypto trading.
rnrnBefore moving further, let’srnunderstand about trading bots and copy trading, and how these works?
Copyrntrading
What is it exactly?
Copy trading is all aboutrncopying the trades of professional or expert trader’s trades. But it is not arnget rich quick scheme and you need to research well before signing up for anyrntrader’s strategies. The meaning of copy trading is hidden itself in its name.rnIt is basically copying someone else’s trades to make profits.
The aim of copy trading isrnto earn profit from the good decisions of expert traders. However, nothing isrnguaranteed in the crypto trading world. But, there might be times when therntrades may get wrong by the expert traders, and if you are copying theirrntrades, then their losses may become your losses too.
Consider Trader X as anrnexpert trader with a particular trading strategy. His strategy has been testedrnvastly on live markets based on historical data. And, there is another person,rnsay Trader Y who is a beginner with no or very little knowledge about thernmarket and trends. But he wants to participate and earn from it. Apart fromrnthis, he doesn’t want to spend more time to learn or practice the skills butrnwants to fasten this process.
Then he lands on a copyrntrading platform where he can search for traders with a strategy like Trader X,rnand can mirror his trades. In order to do so, the Trader Y will have to pay arncertain amount as a fee to the trading platform to avail the service.
Isrncopy trading the right decision for you?
Are you a novice trader?rnAnd, you want to invest like a professional in crypto trading?
For beginners, investing inrna crypto trading can be daunting. And, considering copy trading is somethingrnthat will let you invest like an expert.
Copy trading allows therntraders to have the same trades or copying the positions as of the experts theyrnare copying. This form of trading is also known as mirror trading or socialrntrading. While copy trading seems a lucrative option, but there are also somernrisks involved with this. It also allows copying the trading bots of expertsrntoo, or even their signal providers. Therefore, the copier will also earn thernsame profits or losses as the expert traders.
For example, if you as anrninvestor have $1,000 allocated to copy trading, and the trader being copied hasrnplaced a trade of $10,000, your position will be one-tenth of the copied trade.rnThe return, therefore, will be reflective of the investments and thernappropriate percentage.
Growlonix offers the copyrntrading services to its traders. The platform allows traders to place stop-lossrnor trailing stop loss strategy on the entire copy trade. This allows them tornhave complete control over their risks. This kind of trading could be highlyrnconfusing for the beginners, but they can choose it here at Growlonix to gain extensiverninsight into the world of crypto trading.
Copy trading allows tradersrnto use multiple ways to make money in the crypto trading market. Instead ofrnputting all their money into one strategy or position, traders may use multiplernstrategies to avoid risks. While using copy trading, the novice traders mustrnconsider using a few different trades to copy.
The copy trading botsrnautomate the buying and selling of crypto assets by mitigating the originalrntrades of the professional traders. As arncrypto trading user, one only needs to deposit some initial amount which couldrnbe as low as $50. The trader has to select an expert trader on the cryptorntrading bot where everything will be automated to perform copying the trades.
Copy trading could be donerneither manually or automatic, but considering the automated one is better. And,rnif you are a pro trader, you may offer your services via social tradingrnplatforms and can earn profits if any trader copies your trade.
Isrncopy trading worth it?
Of course yes! But its worthrnis completely dependent on the pro trader’s trades that you copy and how muchrnmoney you are putting in it. Here, if the trader you are copying makesrnhigh-profit margins but having a high-risk profile, then you should considerrninvesting less money. But, if the expert trader you are copying has a low-riskrnprofile, then you may safely put in more money in it without worrying about therninvestments.
But, copying the trades isrnnot as straightforward as it seems. It has risks involved and choosing thernright copy trading platform or trader is important. But, if you are a beginnerrnwith very little or limited trading knowledge, copy trading is likely to be thernperfect way to get started.
Risksrninvolved with copying the trades
We all know it very wellrnthat the crypto market is volatile, and many trading strategies arerntime-sensitive. If such a strategy is copied by other users, its value will berndiminished, and many who are engaged in this kind of trade may end up at arnloss.
Apart from this, liquidityrnis another concern. While these issues are significant, there are somernstrategies which may work effectively if copied. And, Copy trading will bernbeneficial if the trader’s analysis is good enough to identify thesernstrategies.
For inexperienced traders orrnnew users, who are the prime audience for the mirror trading may face suchrnrisks or issues. They may not possess the right skills to evaluate suchrnstrategies. Therefore, they have to rely on the features offered by strategyrnmakers or experienced traders.
Howrndoes copy trading work?
Copy trading is all aboutrnmirroring another trader’s strategies, while the exact mechanics of thisrntrading depends on the platform you will be choosing.
The first step of this kindrnof trading is to identify the right platform and the traders from whom you arerncopying. And, these traders should be the ones who best match your cryptorntrading objectives. Note that you may select multiple traders with different strategiesrnto avoid the risks.
And, the next step is torndecide how much you want to invest. Don’t put all your money with a singlerntrader. If you opted to copy multiple traders, make sure to split yourrninvestments equally among them. Please note that you can select whether tornautomate your trading or can trade manually. Apart from this, you can alsornselect the degree of automation. Trades could be manual, semi-automated, orrnfully-automated.
For fully automated cryptorncopy trading, specialized crypto trading bots are the best tool.rnRegardless of the degree of automation, you can monitor all the open positionsrnat the same time. Reputable crypto trading platforms like Growlonix are alsorntransparent concerning the signal providers and often provide the best data torntheir users.
Let’srnunderstand copy trading with an example:
Copy trades are oftenrnlimited to 20% of the trader’s portfolio. Here in this example, trade sums arernexpressed as a percentage of the trader’s portfolio.
Let’ say, the trader mightrnhave $5000 in his account. However, if there are no open trades, they can copy thernsuccessful traders. If the trader is a beginner, it’s important to not investrnin larger amounts. Instead, they should only use 10% of the amount i.e. $500rnwhen they choose to copy the trade.
The pro trader may have onernopen trade. This trade will be copied into the copy trader’s account. The $500rnis actually the percentage amount from the trader’s portfolio. It will be 10%rnof the trader’s portfolio which exceeds $5000.
And, the copy trader wouldrndo the same if they conducted trade for $500.
Growlonix offers a flexiblernexperience to perform copy trading and make it easier to control your moneyrnautomatically by making use of copy trading bots. And, if you are performingrnmanual trading, then it gives you a chance to close it yourself whenever yournfind a trade that doesn’t appeal to you.
Copy trading bots allow tradersrnto benefit from the success of expert traders by mirroring their tradesrnautomatically. Those traders who send buy or send signals are often compensatedrnin the form of a certain percentage of profit or by selling some subscriptionsrnto their services.
In addition to being able to copy the trades,rnit is also possible to copy the successful trader’s settings and strategiesrnsuch as take profit, stop loss, trailing stop loss, etc.
All-in-onerncopy trading platform
Growlonixrnis unique in the sense that it offers the best copy trading features. By this,rnmean that this is primarily the best crypto trading website that allows you tornbuy, sell, and trade assets automatically. By making use of crypto copy tradingrnbots, the traders can easily follow professional and profitable traders.
Trading signals are alsornprovided which are like the suggestions of what to trade, and when to enter orrnexit the trade, and what take profit or stop loss strategies to implement. Growlonixrnuses top quality sources for its copy trading, which means that here you willrngain valuable access to the seasoned traders, allowing you to benefit fromrntheir experience.
Thus, taking advantage ofrnthis trading strategy can be highly lucrative. We offer a good choice of thernwell-established copy trading strategies.
Conclusion
Copy trading has becomernincreasingly popular among crypto traders in 2022 who want to earn good profitsrnfrom crypto trading. The novice traders who are just starting their tradingrnjourney may choose the Growlonix to perform buy and sell orders 24 x 7 withrncopy trading bots.
This kind of copy tradingrnallows beginners to follow professional and profitable traders. The platformrnaims to democratize the trading process and offers the best or most lucrativerncrypto trading strategies available to the new investors, who can copy therntrades of expert traders automatically with the copy trading bots.
If you want to automate therncopy trading, Growlonix will do this for you smartly.