What is Copy Trading? – Cryptopolitan

Copy trading is a type of investing that allows investors to copy the trades of more experienced or successful traders. This can be a helpful way to get started in investing, or to learn from more successful investors. Copy trading can be done manually or through special platforms and brokerages. Before you start copy trading, it’s important to understand how it works and what risks are involved.

How does copy trading work?

Copy trading is an innovative technique that allows traders to automatically replicate the trades of a successful trader.

It works by connecting investors with automated as well as manual traders who are willing to share their strategies and trading decisions in exchange for a commission.

Copy trading facilitates the rapid acquisition of knowledge while focusing decision-making on experienced brokers. By leveraging collective wisdom, losses incurred due to a lack of expertise or experience can be minimized.

The copy trader is able to benefit from the previous and future selected transactions even when they’re away from their computer screen. It also allows beginners to enter the markets much sooner than otherwise possible and provides insight into global trends that may prove useful in developing personal investment preferences.

Common copy trading terms and their meanings

Copy trading is an increasingly popular trading strategy that enables traders to automatically copy the trades of other, more experienced investors. It is important to be aware of the common terms and definitions associated with this practice if one hopes to be successful at it.

For example, ‘provider’, when used in the context of copy trading, is someone who publishes their own trade signals so they can be copied by others. A ‘follower’ refers to traders who are receiving signals from providers and either partially or fully copying their trades, while a ‘signal provider’ is an investor who might generate trade alerts or signal notifications that followers can then take advantage of.

‘Pips’ term is the smallest unit price movement and helps traders to determine how much money they might stand to gain or lose from any given trade. Knowing these basic terms ensures users experience smooth and efficient copy trading practices.

Benefits of copy trading

Copy trading has become an increasingly popular means of investing in financial markets. Utilizing this strategy, investors can take full advantage of market opportunities without having to manually monitor various markets or understand complex trading platforms.

Its convenience reduces the amount of time required to be spent researching. Since all trades are handled electronically and automatically, it eliminates human errors that can often lead to costly losses. Copy trading is accessible to a larger pool of investors with smaller capital amounts, opening up lucrative possibilities for many new traders.

Risks of copy trading

Copy trading has become popular among investors, but with this type of investing comes a variety of risks. Investors should be aware that copy trading may expose them to potential losses due to different levels of risk tolerance, which could result in copied trades performing differently than expected.

Copy traders should consider the amount of time they have available to track their investments when making decisions. Since the success rate is not guaranteed and depends heavily on the performance of those you imitate, it’s advisable that most investors proceed with caution and do extensive research before engaging in copy trading for its full range of benefits.

How to get started with copy trading

Copy trading can be an incredibly powerful tool for trading in the crypto market, but it can also be intimidating to those unfamiliar with the process. To get started with copy trading, your first step should be to find a reputable and reliable broker or online investing platform. You’ll want to research their reputation, fees, and commissions before signing up so that you’re confident you’re getting the best out of your investment.

Once you have chosen a platform and signed up, familiarizing yourself with its features is key; look for tutorials or trial accounts to get comfortable with how copy trading works.

After familiarizing you are ready to search for other traders whose performance histories meet your desired criteria.

Ensure that you monitor your trades regularly and make adjustments as needed along the way. With good research, education, and regular check-ins on your investments, you can soon become a successful copy trader!

5 platforms to copy trade cryptocurrencies.

With the evolution of technology, trading cryptocurrencies has become increasingly easier. Now people can copy trade cryptos through several platforms which can lead to better investment returns and no need for professional trading knowledge.

Examples of platforms to use when considering such activities are

eToro – eToro CopyTrader is a revolutionary peer-to-peer cryptocurrency trading platform that provides users access to trade a multitude of digital assets. Developed using sophisticated algorithms, it allows users to mirror the trades of more experienced traders in order to capitalize on their successes and knowledge. Utilizing real-time market data, it helps beginners build confidence in making cryptocurrency investments while providing experienced traders with an efficient way of diversifying their portfolios. With its innovative technology, eToro CopyTrader is redefining the landscape of cryptocurrency trading and investment.

ZuluTrade – Zulutrade is an innovative trading system that allows users to automatically copy trades from other users across different types of financial markets such as cryptocurrencies. The system works by monitoring the activity of successful traders and using a clever algorithm to automatically place the same trades in the accounts of its followers. This eliminates the effort and time associated with manual trading and allows users to benefit from seasoned traders without the need for extensive training or research.

NAGA Trader – Naga Trader is a technology that allows digital asset traders to model their trading strategies using an established multiple-cryptocurrency exchange platform. Investing can be done manually if desired, or through automated tools like Naga Trader. By using the platform, investors can quickly compare different digital assets and create portfolios featuring a selection of diverse tokens and currencies. This is useful as it reduces both the effort and cost associated with complex algorithmic trading decisions. Additionally, experienced traders can also use this technology to copy the strategies of more successful investors, allowing beginners to learn from their mistakes and accelerate their own success in the cryptocurrency markets.

InstaForex – Insta Forex Copy Trading Crypto is a software suite designed to make it easier for individual traders to participate in the cryptocurrency market. The system automates the process of placing buy and sell orders without any manual intervention, utilizing advanced technical indicators and smart pattern-matching algorithms to identify profitable trading opportunities. Trades are executed quickly and securely, enabling more frequent investments and quicker profits than traditional trading methods. Insta Forex also offers access to abundant educational resources and tools to facilitate long-term success, setting it apart from other copy trading services.

Traderwagon –  This is a copy trading platform for the cryptocurrency market that allows traders to copy the strategies of more successful investors. Using sophisticated algorithms, the system identifies profitable trades and automatically places similar orders in its users’ accounts. This eliminates the need for manual analysis and reduces the time associated with complex investment decisions. It also provides access to educational resources and tools to help novice traders gain real-time insights into making profitable trades.

It is important to learn more about these platforms and research their features in order to choose the one that suits your needs. Trading cryptocurrencies can be profitable with the right platform and investors should take advantage of what these platforms offer.


There you have it! A comprehensive guide to copy trading cryptocurrency, from what it is and how it works, to the benefits and risks, and even some suggestions on where to get started. Copy trading can be a great way to learn from more experienced traders and take advantage of their knowledge, but remember that there are still risks involved. Do your own research before getting started on any platform, and never risk more than you can afford to lose.

Source: https://www.cryptopolitan.com/what-is-copy-trading/