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Cryptocurrency for Beginners

What is copy trading in crypto? Get started in under 15 mins

1 min read
Avoid signals provided by bots because you are going to get rekt as soon as the market conditions shift.

What is copy trading in crypto?

Copy trading in crypto basically means to copy the trade ideas of another trader.

The trader who gives trade ideas usually refer to their ideas as “trade signals”.

If you do not wish to invest time in learning and testing strategies to become a consistently profit trader, then this guide definitely isn’t for you.

Because, this is not a get rich quick guide.

 

 

Where to find trades to copy?

Binance and Bybit have extensive directories of traders who offer trade ideas to copy.

 

If you have accounts set up,  just go to the copy trading section

 

Does copy trading work?

 

There is no such thing as a 100% win rate.

Every trading strategy out there has it’s ideal conditions be it crypto or forex.

 

For example:

You have no business driving a ferrari or lamborghini in a rocky mountain terrain.

The same rules apply in trading.

Best trades to copy

 

The best person to copy is the person whose strategy compliments yours.  

So therefore, you need to go for traders who traders who trade cryptocurrencies that you had already scalp anyways

 

For example ,in my case, since I am a high leverage Bitcoin/Ethereum scalper, I look for trade ideas for altcoins with strong Bitcoin dominance.

 

 

Pro-Tip:

  • Avoid signals provided by bots because you are going to get rekt as soon as the market conditions shift.
  • BACK TEST! BACK TEST! BACK TEST!
  • If you’re a beginner, use Trading view’s paper trading feature to test them

 

Copy trading vs Bot trading

 

When it comes to choosing between the two, it depends on how much control you want over the trades.

 

I personally prefer copying trade signals since I like having full control over my trades.

However, I do have friends who prefer bot trading because they find trading too intense.

 

What do you need to copy trades

 

You will need to already have a trading strategy which you master the win AND (VERRRYYY IMPORTANT) lose rate.

 

Types of copy trading

  • Swing trading
  • Spot trading
  • Low leverage ( under 7x)T
  • High leverage (50x plus)

 

Advantages of copy trading

  • Time saver

That’s basically it 😀

 

Mistakes to avoid

  • Not doing your own technical analysis
  • Not back-testing
  • large followings because they trade against their followers

 

Who is copy trading for?

Copy trading is for experienced traders who already know how to read overall market sentiment (the dominant larger trend) and already have a trading strategy in place.

 

Who should not copy trade

Absolute beginners with no basic market analysis skills.

Simply because you will not be able to identify altseason, the market sentiment, when to get in or when to get out.

Worse, when to shift strategies

 

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