Today, a lot of people are investing in cryptocurrencies, as this field of activity is gaining immense popularity and provides traders with many opportunities to earn passive income. Even beginners can master the process of crypto trading with the help of algorithmic tools that fully automate the process.
A huge number of crypto trading platforms provide traders with automated trading methods. One such platform is Cryptorobotics. This platform offers a variety of cryptocurrency trading tools to ensure traders enter trades successfully. Among the most effective functions of algorithmic trading is copy trading. Let’s understand what this feature is and how it works.
Definition of Copy Trading
Copy trading is an automatic feature that allows traders to copy the trades of professional traders. This feature is also called social or mirror trading.
One of the main advantages of copy trading is that it ensures a seamless trading process and you always remain active in the market. As we mentioned above, the trader makes the investment instead of you. Trades execute automatically, so users don’t have to do anything. All it is necessary to do is select which professional trader you will copy trades and trust your funds.
Since your profit depends on the trader you choose, before you start trading with this tool, you should definitely look at the statistics of successfully completed trades and pay attention to the trading strategy that he uses. This way, you can make sure that his goals are aligned with yours. Also, make sure you have enough funds in your trading account to cover your trading activities.
Advantages of Copy Trading
- You do not need to analyze the movements or trends of the cryptocurrency market in order to decide which digital asset to buy, sell or hold. You can simply copy the trades of a professional trader.
- Owing to copy trading, traders can get passive income as the master trader makes his own investment decisions.
- Risk management is also carried out, as the Cryptorobotics platform allows you to set smart orders (Stop Loss, Take Profit, and Trailing) to reduce risks.
Disadvantages of Copy Trading
As we have already mentioned, copy trading is one of the most effective instruments for crypto trading. However, this feature may not be suitable for every investor. Before starting to use this tool, there are a few important things to keep in mind.
- Your success depends on the investor’s decisions. There is no perfect trader. Since even experienced traders can make mistakes, you should take this into account. Therefore, copy trading carries some risk, as there is no guarantee that the strategy of an experienced trader will bring you the maximum profit.
- You should spend some time researching a portfolio of traders to get more information about how they make trades and how profitable they are. Choosing a random trader can lead to losses.
- Pay attention to the commission and the cost of the feature. If you are interested in paying low commissions, you should carefully study the prices before trading.
Why Is It Worth Using Copy Trading on the Cryptorobotics Platform?
- Copy trading can help inexperienced traders learn about the crypto market and learn how to trade on their own.
- Traders can get a ready trading strategy that will bring high profits.
- This is a convenient way to start the trading process without the need to control the market. In addition, copy trading helps beginners gain knowledge and experience in the field of crypto trading.
- Thanks to this feature, traders have the opportunity to minimize the loss of their funds.
- This function does not require much time.
How to Set up the Copy Trading Feature on the Cryptorobotics Platform?
If you want to set up the сopy trading tool and start copying strategies and trades of an experienced trader, you need to:
- Go to this source.
- Register.
- Choose the “Algotrading” tab.
- Click on the Copytrading button.
- Subscribe to one (several) of the traders’ channels.
It is worth noting that Cryptorobotics allows traders to use promo codes to get discounts or even use the algotrading tool for free for a certain period. For example, platform users can use the E-TRADE (USDT) copy trading channel absolutely free for 1 month. To do this, the user needs to copy this promo code Copy30 and paste it into the required field here.
- Customize and launch the copy trading function.
- Select a crypto exchange. Traders can use Copy Trading on Binance and Binance Futures.
You must trade the same cryptocurrency as a professional trader (USDT, BTC, etc.).
The same applies to your balance. It must be the same as the trader’s balance or greater than the minimal balances specified in the trader’s channel.
It should also be noted that in order to copy deals in each channel, you need to connect a separate account that does not have other deals and other algorithmic tools.
Conclusion
Copy trading is one of the algorithmic trading tools designed to automate the trading process and improve strategy. This tool allows traders to enter trades 24/7 and still receive a good income. Although every trader should take into account that this tool may be suitable for some investors, not for others. It is necessary to be aware of the risks and potential rewards as it can help you decide if copy trading is the right feature for you to use in your trading.