Are you looking to enhance your crypto trading skills? Or maybe you’re a beginner in the market and are still learning the ropes? Either way, if you want to build a portfolio that matches the results of top trading pros, then copy trading may be the tool for you. Copy trading can be a powerful resource when used correctly.
What is copy trading?
Before you can learn how to copy trade successfully, you need to understand what it is and why it works. Copy trading enables traders to bypass the usual learning curve associated with cryptocurrency.
Copy trading works exactly as it sounds: a trader will select an experienced or professional trader to follow and copy their moves. Therefore, when the professional trader buys crypto, the trader copying their actions will mirror the trades of the Copy Leader.
How to Copy Trade
Copy trading can be performed through a copy trading-enabled platform such as League of Traders. League of Traders is a trading platform that is based around the idea of social trading and leveraging the experience of other traders.
Here’s how to begin copy trading through the app:
First, find a trader whose trading style matches one you would like to emulate. As you scroll through the leaderboard, any trader labeled as “Copyable” is a Copy Leader. You can only copy the moves of a Copy Leader, a trader who has allowed their account to be copied. Click on their name to see the trader’s profile.
Use this opportunity to evaluate their trading style, their risk assessment, recent growth and long term performance. Once you are sure, click “Copy.”
View their detailed statistics and click, “Copy this Account”.
Select the exchange account that you wish to use for copying. This is the exchange account that will copy the trades from the copy leader you have selected. Your exchange must match the exchange that the Copy Leader has enabled for copying.
If you can’t select your desired account, this could mean two things: 1) You have not enabled “Trade” permissions for the account. 2) You are not connected to the same exchange as your selected copy leader.
The app will ask you a few questions about your desired settings. Answer the questions and select your setting preferences then let the copying begin! The platform enables automatic trading based on the actions of the copied trader.
League of Traders is the perfect platform to begin copy trading as it was built on the idea of social trading as a method to grow as an investor.
How to Become a Copy Leader
If you understand the market well, and want to offer your expertise to other traders, you may want to consider becoming a Copy Leader. In the future, League of Traders will offer incentives for users to become Copy Leaders, which may include earning rewards and compensation based on their followers and their followers’ behavior.
If you’re ready to share your skills with others, here’s how to start:
From the app, go to the services tab. Select the “Copy Leader” button.
Enter a new leader name. This name can be different from your League of Traders account name. This is the name others will see when they choose to copy you. Select the exchange that you would like to register as a Copy Leader. Your trading behavior on that particular exchange will be copied by your followers.
Note: If you would like to offer copying on multiple exchanges, you can set up additional Copy Leader names and link each profile individually.
Why Use Copy Trading?
Ok, so now you’ve learned what copy trading is and how to get started in copy trading — but why use copy trading?
If you’re a beginner to the crypto trading scene, copy trading is a useful tool to understand the market and shorten the learning curve associated with crypto. In general, crypto trading can be risky due to the volatility of the market, but copy trading enables you to copy the moves of traders who already understand crypto trading.
Copy trading is also a good move for investors who are too busy to manage their own trades. Automatic trading means that busy investors can set an amount to be traded and trade based solely off others’ activity, with no direct intervention.
Now that you understand the basics of copy trading, you’re ready to go out and begin. Good luck and happy trading!