If you’re looking to invest in cryptocurrency, there are many different options to choose from, including mining, staking, trading, and ICO investing. The one that most people ignore, however, is the best way to get into cryptocurrency trading—namely by copying the trades of successful investors who are already doing it with brokerages offering cryptoassets like eToro. Tip: you can check out this eToro wiki site from Wikitoro if you’re interested to know more about this brokerage.
So, are you interested to explore copy trading? Here’s why this strategy works so well and how you can start using it today:
What is Copy Trading?
Copy trading is a way to mimic an experienced trader’s moves—without actually having to learn how to trade. Traders offer their services on crypto copy-trading platforms, which match investors with traders whose strategies they want to follow. Once an investor copies a trader, his or her crypto assets are automatically traded according to that trader’s strategy. Many professionals who have made it big in crypto share their strategies and allow others to copy them for a fee. Copying these individuals can be a great way to potentially make lots of money over time (see Copying Profits). However, just like any other investment, it also carries risk; your portfolio may not necessarily grow as fast as you want if you choose an unwise leader. Be sure to do your research before choosing a professional trader!
How to Start Copy Trading
If you want to copy trade, start by registering an account on a crypto trading platform. When it comes to choosing a platform, there are a lot of factors to consider: security and ease-of-use come first, but also how many cryptocurrencies you can trade with and how low (or high) your trading fees are. There’s no perfect answer here; each has their own benefits, so take your time researching what works best for you. Let’s say that you have your cryptocurrency exchange of choice, it’s time to set up your profile page. Each site is different, so be sure to follow their individual process, but most will require: enter basic information like name, email address etc., input link to a social media profile like Facebook or LinkedIn and even upload photos of yourself or a government issued ID. Next—and sometimes using an outside tool—generate 2-factor authentication codes for verification.
The Best Copy Trade Platforms
Copy trading allows you to replicate investments made by another person or group, without having to do all of your own research and work. If you want to replicate someone else’s success, copy trading is a great way to get started. There’s a lot of platforms available today but the best ones that are worth checking out are those that already have been in the business for years such as eToro, Pionex and Shrimpy. Most of these brands offer a demo account so you can test their platforms first before you decide to continue with their service.
Other Options to Earn Money from Crypto
There are a variety of options available to crypto investors who want to earn money from their investment. These include long-term hodling strategies, short-term trading (day or swing trading), arbitrage, and even copy trading. It’s important to understand what these all mean before taking any steps into the cryptocurrency markets; investing in cryptocurrency isn’t for everyone, after all.
The first step is deciding on a type of cryptocurrency to invest in; there’s no single best coin, but rather coins that have different use cases that appeal to different people.
When you think about copy trading, it sounds like an easy thing to do: find some people doing well in an industry, invest their money as they have, rinse and repeat until your account has grown over time. Unfortunately, it doesn’t always work out quite so simply (and hey—we can hardly blame those looking to make more money). In order to be successful when engaging in any form of copy trading (in crypto), there are several crucial steps you need to take into consideration. Although copy trading has made a name for itself as a way to minimize risk and make money, it’s still important to practice caution when using these services. While exchanges do their best to ensure security and correct pricing, you should never risk more than you can afford to lose. And always remember that while copy trading can save you money, it doesn’t protect you from buying at an inopportune time. Regardless of what happens with your investments, taking profit is sometimes an even more pressing concern.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.