Copy Trading Explained: Guide to Crypto CopyTrading

The announcement of the direct listing of Coinbase is fueling the cryptocurrency frenzy again after a brief correction in the last few days. With the advent of the digital yuan in China and the widespread adoption of digital currencies, people are increasingly seeing a cashless future.

Get the Full Ray Dalio Series in PDF

Get the entire 10-part series via Ray Dalio as a PDF. Save it to your desktop, read it on your tablet, or email it to your colleagues

Q1 2021 Hedge Fund Letters, Conferences, and More

While the United States and major European countries have made little progress in adopting centralized digital currencies, investors are counting on the decentralized system to be the next industry-disrupting technology to revolutionize global financial markets.

The ongoing crypto mania has caused major currencies like Bitcoin and Dogecoin to hit record highs in the recent past, attracting investors from around the world. However, given the complexity and workings of cryptocurrencies, it can be difficult for an inexperienced investor to read and analyze market movements on their own.

Following a copy trading investment technique should enable these individuals to make significant profits using the knowledge of an industry expert.

Copy the trade 101

As the name suggests, copy or mirror trading is a passive investment strategy where an investor replicates a specific person’s investment strategy in order to build their own portfolio, resulting in nearly identical returns. As part of this strategy, an investor who is likely to be a novice in the field will choose an industry expert or seasoned trader with a history of returns above the benchmark. Copying investors will typically have to pay a subscription fee to gain access to the deals of an industry expert.

Due to the inherent nature of the trading method, investors typically get significant returns on their portfolio provided they select an ideal investor. In addition, beginners with limited knowledge and understanding of market movements can help multiply their profits by trading copies without spending additional time deciphering the markets.

An important point to keep in mind here is the timing of the placed trades. Ideally, there should be a minimal difference between the time a copied investor places a bet and the time a copy dealer replicates it. This is due to the ever changing nature of stock markets as stock prices change continuously during trading hours. Since cryptocurrencies are also traded directly over the counter, their prices change around the clock.

However, if investors slowly build their knowledge base and understanding of the markets, they can reduce their reliance on copied traders. While reaching the skilled trader level is likely to take a long time, copy traders can learn a tremendous amount from how an industry expert identifies an entry or exit point in the stock based on real-time dynamic market developments.

What’s the point

After a decentralized blockchain system for secure transactions, cryptocurrency is one of the most complex financial instruments worldwide. Cryptocurrencies have to be mined with complicated software and coding skills, which may not be for everyone.

However, the increased public interest in decentralized currencies which resulted in a stellar rally has resulted in multiple investors entering the markets. The volatility of cryptocurrencies and frequent price fluctuations with considerable momentum have held back such relatively risk-averse beginners.

Copy trading in cryptocurrencies is the ideal way to benefit from bullish market trends with a certain degree of security. Several cryptocurrency exchange platforms that identify this market deficit have adapted their services to offer trading in copies and encouraged beginners to take advantage of current market trends.

Popular Crypto Copy trading platforms

Some of the best copy trading platforms in the international markets are:



Image source: Bingbon.

This user-centric user platform for trading asset derivatives specializes in cryptocurrency and forex trading. The platform uses the Advanced Mark & ​​Index Pricing system for crypto pricing, which is verified by spot exchanges such as Huobi, Binance and OKEx.

All trades and profits are processed in real time, which indicates the maximum profit from a trade. With competitive trading and withdrawal fees, Bingbon has made a splash in the cryptocurrency copy trade.

Bingbon also issues an analog token known as VST (Virtual USDT) that can be used as a margin in copy trading or even on a standard contract as well as demo trading. While profit from VST demo trading has no real value, users can get familiar with standard contract or copy trading without the risk of losing any real assets.

Users will be credited with 100,000 VST upon registration.



Image source: eToro.

eToro CopyTrader TM automatically copies top performing traders for users and gives investors direct access to potentially high yield investment bets. The eToro platform doesn’t charge an administration fee for its services, making it an economical option for copy traders. In addition, users get access to a collaborative community through which they can communicate with other users. This can help them scale their investment portfolio and income.



Image source: Naga Trader.

Another social trading platform that is gaining traction in the crypto space is Naga, with over 1 million traders. It is a publicly traded company and provides a platform for traders to interact with colleagues to discuss market conditions and exchange ideas.

NAGA users can invest in over 800 markets including cryptocurrency, forex, stocks, indices, commodities and much more.


Cryptocurrency can be daunting for people with a non-tech background. Even understanding its uses can be challenging at this stage as people are used to using bitcoins for Dogecoins as their preferred medium of exchange.

As the weak reserve currencies and online financial transactions gain in importance, the major cryptocurrencies are expected to hit new highs soon. Copy trading in such decentralized currencies should help investors who want to enter the market but have a basic understanding of this asset class.

Comments are closed.