An Introduction to Copy Trading

When it comes to crypto trading there are many ways to diversify your income. Now it doesn't matter if you are a novice trader because of the availability of copy trading that is most crypto trading exchanges. Today in this post copy trading is what we are here to learn about.

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Copy Trading

Copy trading is simply a means of trading that allows inexperienced traders to copy the trade of experienced traders. In a nutshell, copy trading means copying the work of someone, in a way that is beneficial to you.

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Looking at copying trading in the aspect of crypto traders, means copying the exact trade of that traders who are more perfect in trading the crypto market than you, in a more convenient way.

The idea of copy trading is gotten from a classroom setting. You know in a classroom setting, a student who wants to get a good grade, will follow in the footsteps of a student who knows better or can decide to follow the brilliant student into the exam hall so he or she can at least copy from the brilliant student.

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That example of a classroom setting is what copy trading looks like. The reason for copy trading is for novice traders or anyone who doesn't know how to analyze the market or trade to make the same profit as a successful trader. The fact that copy trading means copying the trade of an expert doesn't mean you should just jump into copy trading without understanding the process first.

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The process of copy-trading

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• OPEN AN ACCOUNT WITH A GOOD CRYPTO EXCHANGE

This is the first step in copy trading you need to create an account with a reliable crypto exchange that offers the service of copy trading. Binance the largest crypto exchange offers traders copy trading services.

Once you have created an account you will see many options experienced traders, and investors that you can follow and copy what they are already trading

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• CHOOSE THE AMOUNT YOU WANT TO TRADE WITH:

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This is where you have to decide how much you want to invest and strategies for your risk management. You begin with less amount of capital until you have mastered the strategy.

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• LOOK OVER YOUR TRADE:

In some exchanges copy trading is done automatically, whereas in some exchanges it is done manually where you need to select your pairs and fix everything concerning the trade all by yourself.

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Advantages and Disadvantages

Everything that has advantages also has disadvantages attached to it and copy trading also has its pros and cons. Let's check them out.

Advantages	Disadvantages
The possibility of making money is high	It is difficult to get the right platform without paying for the software
It is the best way you can trade the crypto market as a novice	It is hard to determine the legitimacy of a trader
It helps you to connect with expert traders	You have to also spend time and monitor your trade as losses can occur.

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Conclusion

_{Today, we have so far learned what copy trading which we are sure by now you have gotten an understanding of what copy trading means. Note: this post is not financial or investment advice, but educational content that is written to educate you about copy trading.}

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