How to earn through copy trading; A comprehensive guide
What is copy trading?
Copy-trading is the reliance of crypto traders on a professional trader's position to execute their trade. Copy trading has been a tool employed in forex long before now but it has since gained traction in the crypto world especially during this long bear and uncertain market. A lot of professional traders has since seized the opportunity to hone their skills and earn from it(profit sharing with followers) with few CEX presenting this opportunity.
Terms used in copy-trading:
Elite trader: An elite trader is the professional trader that have satisfied the conditions to become the lead trader and provide trading positions for other traders to copy.
Followers: An elite trader follower is the number of his dependent traders who copy his trade positions and share their profit with him.
Risk management: All followers must input their risk management apparatus before confirming their copy-trading positions to protect them from heavy market losses.
How to copy-trade using Bitget copy-trading as a guide
In choosing a CEX for copy-trading, I relied on an assessment from Nansen stating that Bitget is the most reliable and successful copy-trading platform with over 100,000 Elite Traders and over 500,000 Follower traders.
The following are the steps involved in copy-trading:
I. Open the exchange interface and click on "copy" on the top center of the outlay. Select from the option available the best product that suits you.
- On the next page that opens, select from the available Elite trader taking into consideration their track record including their success ratio and profit sharing percentage.
- The next interface displays choice of "copy trading pair" and the amount you desire to commit to the trade. You can choose to open a maximum of 3 trade positions at a time and the minimum amount per position is 10 USDT.
- Control your trading risk by setting TP/SL ratio and maximum copy amount.
- Confirm your copy-trade details and open your position. Once the position has been opened, the rest is handled by the Elite trader who manages your trade position and close them on your behalf.
If you find this content beneficial, leave a remark in the comment section.
Happy trading!!
Images were sourced from Coincodecap.com and Bitget's UI
Your TL,DR about copy trading was informative and tbh the introduction of the concept of copy trading has been productive in encouraging trading and adoption.