A Beginner’s Guide: What Is Copy Trading & How To Start Copy Trading On BTCC

Copy trading in the crypto landscape enables traders to leverage the expertise of successful cryptocurrency traders and potentially profit from their trading strategies. With the fast development of cryptocurrency, copy trading has emerged as one of the most popular trading strategies for crypto enthusiasts, especially for newcomers.

Next, we will introduce all information about crypto copy trading and why should you try it.

BTCC, one of the longest-running crypto exchanges in the world,  supports trading for 300+ cryptocurrencies with a leverage ranging from 1Χ to 500Χ. If you want to start trading cryptocurrencies, you can start by signing up for BTCC.

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Table of Contents

What is Copy Trading?

How does Copy Trading Work?

Pros and Cons of Copy Trading

Social Trading vs. Copy Trading

Copy Trading Strategy

How to Use Copy Trading Strategy?

How to Start Copy Trading on BTCC?

Conclusion

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What is Copy Trading?

Crypto copy trading is a kind of trading strategy that utilizes automation to buy and sell cryptocurrencies. Copy trading feature is usually available on crypto trading platforms that allows users to mirror the trades of successful traders on the platform.

The whole concept of crypto copy trading revolves around the idea of identifying successful traders and mimicking their actions. What make is differ from regular trading is that copy trading enables traders to identify profitable traders on a copy trading platform and automatically replicate their trades in their own trading accounts without necessarily having to analyse markets or develop their own strategies from scratch.

Copy trading particularly appeals to cryptocurrency novices or those lacking the time and expertise to make trading decisions, as it offers a hands-off way to benefit from potentially successful trading strategies.

How does Copy Trading Work?

To begin copy trading in the cryptocurrency market, the first step is to establish an account with a reputable copy trading provider that facilitates access to various cryptocurrencies.

Post account creation, you can browse different traders’ strategies to find ones that align with your risk tolerance and investment goals.

Upon selecting your preferred traders, the copy trading platform seamlessly mirrors their transactions within your trading account. It’s crucial to notice that while copy trading enables you to harness the proficiency of seasoned traders, it does not ensure profitability.

The success of your copy trading strategy will depend on the performance of the traders you choose to follow, as well as the prevailing market dynamics.

Pros and Cons of Copy Trading

Just like any other trading strategy, copy trading also boosts its own set of advantages and disadvantages. Before engaging in copy trading, there are some of the pros and cons of copy trading to know:

Crypto Copy Trading vs. Crypto Social Trading

Many individuals frequently mistake crypto copy trading for crypto social trading, as both methods involve collaborating with others on your investments, and making decisions based on input from others. However, there are still some key differences between the two methods.

Social trading represents an investment approach where traders unite to form a group and collaborate. Within this group, traders share research, tips, and insights with one another, allowing multiple individuals to contribute to optimizing a trader’s portfolio. Occasionally, investors may even combine their funds to make larger investments collectively. This form of investment has gained immense popularity, largely due to the influence of social media.

While both social trading and copy trading strive to enhance traders’ capabilities by harnessing the expertise of others, there are several fundamental differences between these two methodologies. Below are some deeper insights into the differences between social trading and copy trading:

Copy Trading Strategy

Developing an efficient copy trading strategy is significant to maximize traders’ chances of success in the crypto market. Although copy trading eliminates the requirement for in-depth market analysis, it is vital to carefully choose the traders you wish to follow and adeptly manage your risk exposure.

Here are some key metrics to consider when developing an effective copy trading strategy:

• Risks: Determine the capital allocation for each trader and devise a robust risk management strategy. Many copy trading platforms facilitate setting a maximum loss limit or allocating a specific percentage of your trading account to each trader. Diversification is crucial to mitigate risks.
• Market Analysis: Even while copying successful traders, it remains vital to monitor your copied trades and make adjustments based on evolving market conditions. Keep yourself abreast of market trends and news that could impact the trades you are copying.
• Tradeable Markets: Pay attention to the markets targeted by the traders you intend to copy. Some traders may specialize in particular cryptocurrencies, while others adopt a diversified approach. Select traders whose trading style resonates with your preferred markets.
• Leverage: Decide cautiously whether to copy trades using leverage. While leverage can magnify profits, it equally escalates risks. Only invest what you can afford to lose and be fully aware of the inherent risks associated with leveraged trading.

How to Use Copy Trading Strategy?

In terms of how to use crypto copy trading strategy, here is a step-by-step guide for traders:

• Choose a Reliable Platform: Start by selecting a reputable copy trading platform that offers a diverse range of signal providers, robust security measures, and transparent fee structures. Ensure the platform is well-regulated and has a solid reputation in the industry.
• Evaluate  and Select Traders to Copy: Browse through the available traders on the platform and carefully evaluate the performance of potential signal providers. Look at their historical trading records, risk management strategies, and the types of assets they trade. Finally, choose the ones that align with your trading goals and risk appetite.
• Allocate Funds Wisely: Decide how much of your portfolio you’re comfortable allocating to copy trading. Remember, diversification is key to managing risk, so don’t put all your eggs in one basket. Consider spreading your investments across multiple signal providers or even combining copy trading with other investment strategies.
• Monitor and Adjust: While copy trading automates the execution of trades, it’s still important to monitor your portfolio regularly. Keep an eye on the performance of your chosen signal providers and be prepared to adjust your allocations if necessary. If a provider’s performance starts to decline, consider reallocating your funds to another provider or pausing your copy trading activities.
• Stay Informed: Stay up-to-date with market trends and news that could impact your investments. While copy trading takes the guesswork out of trade execution, it’s still important to have a basic understanding of the market and how it works. This will help you make more informed decisions about your investments and potentially identify new opportunities.

How to Start Copy Trading on BTCC?

BTCC, one of the longest-running crypto exchanges in the world, supports copy trading on its platform. If you want to try copy trading strategy on BTCC, follow below simple steps:

Step One: Create a BTCC account

Before you start trading, you need to register a BTCC account using an Email ID or Mobile Number.

You can register quickly by clicking the button below:

Step Two: Complete KYC Verification

KYC verification is done to ensure the security of users’ account. Only after the completion of KYC verification, traders can conduct fiat currency transactions and enjoy higher withdrawal limits.

Step Three: Fund Your Account

After completing KYC verification, the next step is fund your BTCC account. There are three methods available for funding your BTCC account, including fiat deposit, crypto deposit and convert.

Step Four: Start Copy Trading on BTCC

1、go to the BTCC homepage and select “Copy” > “Futures Copy Trading”to enter copy trading page.

2、If you want to become an lead trader, you can select “Become a Lead Trader” above and fill in your information. After completing the verification, you application for becoming a lead trader complete and your detail information would show on the market board.

3、if you want to follow other traders, you can directly browse the market board below. Based on different metrics, like Total PnL, AUM, PnL%, Win rate, No. of copy traders, etc., to choose your preferred lead traders.

4、You can click on their card to access their portfolio, which reveals more information, such as Number of trading days, Profit sharing ratio and Cumulative number of copy traders, Lead trading performance, etc.

5、Once you decide your preferred lead trader, click the“Copy Trade Now”on the right corner.

6、Next, you need to complete copy trading settings, including Copy trading margin per order, Maximum copy trading margin. You can click “ Advanced settings”to check more settings, like Take profit per order, Stop loss per order. After finish all settings, once you click “BTCC Copy Trading Agreement and Guidelines”-“Copy trade now”, you’ll start following the Lead Trader’s moves.

7、On the Futures Copy Trading page, you can monitor your trades at any time.

Conclusion

In conclusion, copy trading can be a powerful tool for cryptocurrency investors looking to maximize their profits while minimizing risk. By selecting a reliable platform, evaluating signal providers carefully, allocating funds wisely, monitoring and adjusting your portfolio regularly, and staying informed about market trends, you can harness the power of copy trading to achieve your investment goals.

However, it is also important to note that investors may face multiple risks when using copy trading strategy. By copying another trader’s actions, their success can benefits you, but their losses also reflect in your account. Therefore, before risking your funds, you should make sure that you are fully aware of all advantages and disadvantages of copy trading.

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Copy Trading FAQs

Is Copy Trading Profitable?

The profitability of copy trading hinges on diverse factors, encompassing the success rates of the traders being mirrored, prevailing market conditions, as well as your risk management strategies. While copy trading can potentially lead to profits, it is not without risks.

How do I Choose Traders to Copy?

When choosing traders to copy, take all factors such as their past performance, risk level, trading style, and market expertise into consideration.

Is Copy Trading Suitable for Beginners?

Yes,copy trading can be suitable for beginners as it enables newcomers to leverage the expertise of successful traders without spending a lot of time and extensive market knowledge.

Are There Any Fees Involved in Copy Trading?

Yes, copy trading platforms usually charge a certain of fees for using their services, and traders may also need to pay fees to the traders you are copying.

How can I Get Started with Copy Trading?

To get started with copy trading, open an account with a reliable copy trading provider like BTCC, select traders to copy, allocate funds, and monitor performance.

What should Investors Consider when Monitoring Trader Performance? 

When monitoring trader performance, taking factors like their risk management strategies, trading results, and overall market conditions into your consideration.

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About BTCC

BTCC, one of the longest-running exchanges in the world, supports crypto copy trading, spot trading, as well as futures trading for 300+ cryptocurrencies with a leverage ranging from 1Χ to 500Χ.  If you want to trade cryptocurrency, you can start by signing up for BTCC.

BTCC is among the best and safest platforms for crypto trading. The reasons why we introduce BTCC for you summarize as below:

• Industry-leading security
• High liquidity & volume
• Extremely low fees
• High and rich bonus
• Excellent customer service

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