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Understanding copy trading
What if we told you that you don’t have to wait until you become a crypto trading expert to start earning? You might ask how you can do that, and the answer to that question would be copying the bots created by successful traders! So what is copy trading exactly?
Copy trading is a form of crypto trading strategy that has grown popular in recent years due to the significant community involvement. When using copy trading, you can take advantage of the finest trading strategies without having to invest your own time, effort, or use analytical thinking that is necessary when monitoring the crypto market. All you need to do is to find the platform that has your exchange in their pool of linked exchanges, copy a successful trader's strategy or the bot/portfolio that consistently generates profits, pay the fee, and start earning your own passive income!
How does copy trading work?
You won't need to spend too much time worrying about technical details because the copy trading software will take care of everything for you. Let's examine this using TradeSanta as an illustration. Consider the scenario when you are already signed into TradeSanta and have linked your account with the chosen exchange. The only thing left for you to do is visit the Marketplace page, filter all the bots depending on the parameters that are essential to you (exchange, pair, bot's age, etc), then select the bots that have the desired return on investment and click the button “Follow/Copy”, and that’s it.
The program will automatically execute the deals on your exchange and copy one of your selected crypto trading strategies. Simple, isn’t it?
Pros of copy trading
- Friendly for beginners. Copy trading can be helpful for beginners to enter crypto trading, since they can simply follow those trading strategies that have shown a fruitful performance.
- Time saving. Since copy trading is an automated activity, it can save you time. Moreover, the transactions and the deals are executed at a speed no human can perform.
- Easy to analyze. Due to all available charts and stats presented on the copy trading platforms it’s quite simple to analyze if the bot has a big yield.
- Can change anytime. In case your chosen bot/strategy does not satisfy your needs anymore, you can always choose another one.
Cons of copy trading
- No guarantee of success. Even experienced traders can lose their money while trading, since the crypto market is constantly changing and you can never know when a bear trend will hit the market.
- Nothing is free. In case your copy trading goes well, you’ll have to pay those traders that helped you to gain profit. Still, if we’re talking about automated trading platforms, then their paid plans are usually set in stone.
About TradeSanta
TradeSanta is an automated trading platform that provides users with a powerful terminal, trading signals, bots, and trading strategies. It was founded in 2017 by a group of financial and software experts driven to create better and simpler digital asset trading software. One of the platform's numerous features is a marketplace with a variety of bots to copy (or follow), and as of right now, it is completely free.
Final thoughts
The main benefit of copy trading is that even newcomers can enter the cryptomarket without too much pressure. There is no need to analyze the market, learn about new technologies or upcoming trends - seasoned traders have already done that for you.
Still, you have to be ready to lose some of your funds during your trading routine, since no one is perfect, and even professionals don’t have a crystal ball, so they too cannot know everything and be ready for any situation that the highly volatile world of crypto throws at them.
If you want to start making money right away by copying other people's successful trading strategies, then try TradeSanta - a state-of-the-art automated trading software that can make your trading easier and more consistent.
Still have questions? Shoot them on Telegram, Discord or Twitter!
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.