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The world of cryptocurrencies is growing and expanding at a rapid rate. It can be rightfully called an ocean of opportunities that anyone can dive into with ease. But many of us are still reluctant to step into the cryptocurrency world as it seems a lot more complex and advanced. But nowadays the digital currency world is focusing on simplification as it takes a step towards becoming globally accessible and acceptable. There are some ways in which we can tap into the profitable opportunities created by crypto, without dealing with any sort of technicalities or complexities. And this write-up will enlighten you about the aspects and prospects of crypto copy trading, so that you can explore them in the best possible way.
Basics of Cryptocurrency Trading - How It Started
The invention of the world's first ever cryptocurrency Bitcoin happened in 2009, as a result of the great recession and economic system which shook the global economy as a whole. Bitcoin was introduced as a digital store of value, for making peer-to-peer exchange and online transactions easier and transparent. The decentralised and transparent digital currency concept was well-received by the markets later on as we witnessed the world wide popularity of crypto assets. This resulted in value appreciation of cryptocurrencies as their demand continued to rise over the years. Soon, people recognised the potential of cryptocurrencies as a trading instrument as well as an investment for the future.
Benefits of Cryptocurrency Trading
You might already know the fact that cryptocurrencies are one of the most volatile trading instruments. Trading is the art of making profits from favourable price fluctuations. And the volatile nature of cryptocurrencies gives birth to many such profitable trading opportunities. The volatility of cryptocurrencies is still intact which makes it an attractive trading instrument for all.
One major aspect that distinguishes the cryptocurrency market from other financial markets is the fact that there are no days when the market is closed. You can engage in buying and selling of cryptocurrencies for all days of the week without any time restrictions, which provides a lot of flexibility to traders.
Cryptocurrency markets are considered to be very liquid since they have participants from all over the world engaged in trading. There are no off days and hence you can expect to find a trading opportunity almost all the time. It is a global market and there is no centralised authority taking control of it. And the liquidity is added based on the number of people demanding a particular cryptocurrency for trading.
Security and Transparency
Another important aspect of cryptocurrency trading is that there is a higher level of security and transparency. All transactions take place within a secured block chain system with the protection of encryption and the one who is engaged in the transaction remains anonymous. Hence your privacy is protected but tracking of frauds is much easier when it comes to crypto.
Copy Trading to Follow the Lead of Top Crypto Traders
Getting started with cryptocurrency trading requires a lot of in-depth knowledge and understanding. The volatile nature of cryptocurrencies makes crypto trading risky and profitable at the same time. Managing this risk to generate profits is what we refer to as trading skill. But developing this skill from scratch can be time consuming for an average beginner. The learning curve can be a prolonged one depending on your abilities and grasping power. The technical side of crypto trading can be hard to get into for the majority of people.
Developing a profitable strategy and executing the same without any deviation is not an easy task for a novice trader. So, they may be able to learn and benefit more if they have someone trading on their behalf. Thus, the concept of copy trading aids to ease the trading process for newbies taking baby steps into the crypto world. Copy trading also known as social trading is a self explanatory term as one will simply copy the trading activities performed by someone else who happens to have an upper hand and more experience in the market.
The goal of copy trading is to enjoy the end result of trading without actually trading on your own. You will be following and copying the trade positions of an experienced trader with minimal effort on your part. The only effort required is choosing the right trader to copy trade crypto positions after careful evaluation of their trading performance, and exposure to risk. You should find a trader who resonates with you and suits your trading requirements. This task will become a lot easier once you join a transparent copy trading platform with many expert traders to choose from.
Legal Aspects of Cryptocurrency Copy Trading
There is no doubt in the fact that cryptocurrencies are emerging as a globally accepted trading instrument. But still each country and government has taken their own stand when it comes to the legal status of cryptocurrencies and regulations related to crypto trading. If we take the examples of major economies like the US, EU and UK, then we can see that they definitely accept cryptocurrencies in one way or the other.
In fact, the European Union successfully brought the crypto assets and crypto asset service providers under a regulatory framework as the Council presidency and the European Parliament reached a provisional agreement on the Markets in crypto-assets (MiCA) proposal by the end of June 2022. This ensures protection to all EU residents who are dealing with crypto assets, making it even more attractive. This is a great step to encourage traders to freely explore the crypto market without worrying about security of funds.
Even those who oppose crypto cannot deny the impact and influence of cryptocurrencies as they continue to create buzz on a global level. Cryptocurrencies and crypto markets still have a long way to go as they continue to evolve alongside the world. Anytime is a good time to step into the borderless world of cryptocurrencies and make the most out of the opportunities that exist within the digital world.
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.