Copy Trading. How to make money on the crypto market without much effort

Copy Trading. How to make money on the crypto market without much effort

Imagine an ideal world where you don't have to study the nuances of cryptocurrency in detail, but simply follow other successful players and make money. Does it sound too perfect to be true? But it is not. Today, we will analyze what copy trading is and what earning opportunities it offers.

What is copy trading in crypto?

Copy trading is a revolutionary form of investment that allows traders to copy the strategies of professionals who have been on the market for a long time. You don't even need to follow the process, as everything can happen completely automatically. Your profile repeats the trade of a professional as soon as he makes it. They sell – you sell. They buy – you buy. In simple words, you copy successful crypto traders, you can copy traders you choose or follow the famous ones.

According to Statista, in 2023, more than 30% of new traders in the cryptocurrency market started with copy trading. And on the best copy trade platform like ByBit, the number of such people is over 70%. All you need to do is register, connect your account to the “master trader” and go about your business. You just copy a trader, the system will do everything else for you.

This is of particular value in the context of the high volatility of the cryptocurrency market, where you can make substantial profits by fluctuating prices by 10-15%. Experienced players know where the decline is temporary (the market levels off) and where the price falls for a long time. As part of this strategy, young traders can take advantage of someone else's experience with minimal risks (and even amounts). For example, bybit copy trading has a minimum deposit of only 50 USDT, and you can earn 10-15% per month. Of course, successful traders can also be wrong. But mostly their predictions come true.

Why is copytrading so popular?

1. Perfect for beginners.

You can earn good money even without technical analysis skills and deep knowledge of the market. 

2. Small time resources

The process is automatic, so you don't have to disrupt your usual schedule.

3. Learning by practice 

You don't have to think about how to put your theoretical knowledge into practice. Watch the actions of top crypto traders!

How to choose a trading platform?

Today, there are many platforms that offer a trade copy function. Choose those licensed by organizations such as the FCA (UK) or CySEC (EU). 

Let's analyze the main copy trading crypto platforms for copy trading.

ByBit

• 10 million users.

• The minimum deposit is only 50 USDT.

• User-friendly interface and analytical tools (if you want to understand why a trader makes such trades).

• Transparent statistics of trades: with indicators of profitability, the number of subscribers, and most importantly, the level of risk and drawdowns.

• Fees: bybit copy trading provides for 10% to 15% of the trader's profit.

• Filters for selection: by profitability, risk level, and trading style.

• Innovative features: copy trading bybit has insurance funds and automatic stop-loss mechanisms that provide additional security.

• Access to 1000+ assets: bybit copy trading includes popular cryptocurrencies such as BTC, ETH, ADA, etc.

AvaTrade

• Regulated in many countries, including the EU, which guarantees a high level of security.

• You can copy trades on the forex, cryptocurrency, and stock markets.

• A somewhat complicated interface.

• Higher fees compared to ByBit

OctaFX

• Focus on the foreign exchange market.

• Low minimum deposit (from $25).

• Limited selection of cryptocurrencies.

eToro

• Suitable for trading stocks, ETFs, and cryptocurrencies.

• Many assets to choose from.

• Social network for discussing strategies.

• More focus on stocks.

• High fees (up to 20% of profit).

We believe that ByBit is the best crypto copy trading platform and the best choice to receive passive income from the cryptocurrency market with maximum comfort and minimal risks. But you can choose the option that suits you best.

To start trading:

• choose a copy trading platform;

• make a deposit;

• choose a trader (we will talk about this a little further);

• start trading (there is an important point here, by the way. The system starts trade copying of a trader after you have selected him or her. Actions are performed in proportion to the amount of your investment. For example, if a trader invests $500 and you invest $50, your trades will be 10% of his positions);

• monitor your portfolio to make trading even more efficient: check open positions in real time, set stop-loss limits.

Copy trading offers an excellent opportunity to profit from the crypto market with minimal effort. However, to boost your success, a solid understanding of the market is essential. That’s where Bikotrading Academy comes in!

With Bikotrading Academy, you’ll gain the knowledge and tools needed to navigate the crypto market confidently:

• Learn the principles of market functioning and price movement.

• Explore effective strategies and proven tools for successful crypto trading.

• Identify the best opportunities for opening and closing trades.

• Find out what is copy trade approach, what copy trading software to use, and the best copy trading platforms to register on.

• Craft strategies tailored to your goals and risk tolerance for successful crypto futures copy trading.

Joining Bikotrading Academy is your chance to learn how to read charts accurately and trade effectively under any market conditions. Follow the link to start your journey toward becoming a confident and profitable trader today!

How to choose a trader for copy trading? 

Copytrading is a strategy that, if used correctly, gives you a stable passive income of 10-12% and the opportunity to learn by observing the actions of experienced practitioners. 

When choosing a trader, pay attention to:

• Profitability: a trader's profit for the last 30 days.

• Risk level: how stable the trader's income is in a volatile market. Choose traders with low or medium risk, this category is assigned to traders by the platforms themselves.

• Number of followers: indicates how much a trader is trusted. It is ideal for crypto copy trading to choose traders with 1000+ followers.

• Maximum drawdown: how much a trader loses during market fluctuations. The norm is usually up to 15-20%. It is believed that a trader with an average profitability of 10% per month for 12 months is more reliable than one who earned 50% in one month but had large drawdowns after or before that.

 

4 tips if you have chosen a copy trading strategy

1. Diversify your risks 

Spread your funds among several traders with different strategies. For example, one specializes in low-risk long-term trades. Another one specializes in aggressive short-term trades. These are the basics of copytrading.

Use risk management tools:

• Capital limit: set the maximum amount you can allocate to a copy strategy.

• Stop loss: positions will be automatically closed when the set loss level is reached.

The average drawdown rate of experienced traders is 15-20%, so be prepared for small losses.

2. Define your financial goals

Choose which strategy you plan to use to make money:

• Passive income: the risk level is low, the income is low but stable.

• Quick Profit: traders use an aggressive approach, there may be higher profits, but the risk level is also higher.

We recommend starting with small amounts to test the platform. Ideally, spread the capital among several traders with different strategies. For example:

• 50% for low-risk traders.

• 20% for more aggressive traders.

• 30% for traders with a balanced approach.

Thus, by copy trading crypto currencies, you can compensate for the losses of one trader with the profits of others.

3. Monitor the results

Check it regularly:

1. The return on your investment.

2. Risk level: whether the trader's strategy remains stable.

3. Market: what events are happening on the market. This will help you find patterns to become a master trader yourself in the future.

Statistics are updated in real time on ByBit, which is very convenient.

4. Avoid:

• Emotional decisions: don't give up after the first loss.

• Traders whose strategies you do not know.

• Concentration on one trader

Copy trading is an ideal way to get started in the cryptocurrency market even if you don't have much experience or time. Read the Bikotrading block and earn steadily!