If you’re new to cryptocurrencies or lack time for trading, copy trading can simplify your affairs. Simply put, copy trading is a tool that allows you to mirror the transactions of seasoned investors. So, what are the particulars of copy trading, and what application can you utilize for it?
What is Copy Trading?
As mentioned earlier, copy trading is a transaction duplication system. You might encounter it as social trading as well. Social trading allows you to communicate with other investors and follow their investment strategies, easing the management of your investment decisions. Furthermore, you can track other traders’ success rates with social trading and utilize it to improve your investment strategy. This option is particularly beneficial for novice investors in the crypto ecosystem, as they might miss various opportunities while learning and improving. Thus, copy trading provides a chance for investors to succeed more quickly by observing more experienced investors’ strategies.
What are the advantages and disadvantages of copy trading?
Advantages:
- Newcomers to the crypto market can familiarize themselves with the market and gain confidence for transactions through copy trading.
- Novice investors can learn how to trade by observing experienced investors’ transactions.
- Investors interested in the cryptocurrency market but lack time can remain involved in the market through social trading.
- Both new and experienced investors in cryptocurrencies can form an investor community where they can exchange ideas and strategies and collectively improve their transactions.
Disadvantages:
- In copy trading, you fully entrust your investment decisions to someone else, which inherently involves the risk of losing money without actually taking risks.
- It’s essential in copy trading to set your risk tolerances and choose strategies that suit your investment goals.
Copy trading involves three different parties: The investor, user, and platform. The investor is the individual whose buying and selling transactions are copied; the user uses their own balance and copies the experienced individual’s transactions; the platform facilitates the transactions between the investor and user.
Let’s assume that you have found a suitable platform for copy trading and joined it. After joining the platform, you need to follow these steps:
- Determine the budget you will allocate for copy trading.
- Examine the profiles and performances of investors on the platform.
- Transfer your designated budget to the pool used by the investor you decided to follow.
- Your chosen investor typically uses these funds for short-term buying and selling transactions. Profits from these transactions are automatically transferred to participants’ accounts. Conversely, in case of a loss, the damage is reflected in users’ balances.
What is TraderWagon?
TraderWagon can be described as a platform for copy trading or social trading, as previously discussed. The platform aims to fill the void between experienced and inexperienced investors. If you’re new to crypto trading or lack the time to monitor the markets, TraderWagon emerges as a platform that allows you to explore, follow, and copy transactions made by top investors worldwide. You can benefit from a lifetime discount if you register for TraderWagon through this link.
Additionally, TraderWagon enables users to perform social trading. As seen in the screenshot below, the ROI (Return on Investment) and PNL (Profit and Loss) can be viewed for the last 30 days. For example, it can be seen that the user named Tsin9 has made a profit of 354% from their trades in the past 30 days. Furthermore, TraderWagon, supported by Binance, showcases investors’ trading outcomes based on verifiable transaction data.
TraderWagon Mobile Application
With TraderWagon, users can execute copy trading transactions even without being at their computer. The TraderWagon mobile app can be downloaded from both the Google Play Store and the App Store. According to statements, the mobile app allows users to see the portfolios of more than 1,000 investors with comprehensive performance measurements transparently on the main page. The mobile app also enables users to become both investors and leading investors.
Additionally, the mobile app reportedly offers users an easy-to-use interface, allowing them to execute copy trades with a single click. Moreover, it’s stated that all your money remains safe in Binance with the TraderWagon mobile app. Users can also manage all their portfolios, transactions, and funds from one place with the mobile app. The help center is available for users’ service.
Lastly, it’s worth mentioning that the TraderWagon applications are quite fast, allowing transactions to be completed very quickly.
How to Use the TraderWagon Mobile App?
- Step 1: To start, download the TraderWagon app from Google Play Store or App Store.
- Step 2: On the main page, review the investors available. Choose the one that best aligns with your investment strategy and click on the ‘copy’ option.
- Step 3: At this stage, you will be asked to register and log into the platform. If you have an existing Binance account, you can use it to log in.
- Step 4: Once you’ve logged in, you’ll be asked to define your budget for copy trading, and set your take profit and stop loss rates. Specify your desired percentage for closing your position when you’ve reached your take profit or stop loss limits. Both the ‘stop loss’ and ‘take profit’ options are optional. If you don’t input any values, your transactions will be executed according to the investor you’re copying.
- Step 5: In the final stage, click the ‘Submit’ button to complete the process. Your funds will be automatically transferred from your Binance spot wallet to the portfolio. Once the transaction is completed, your profit/loss will be automatically reflected in your Binance account.
You can stay updated with all developments by following TraderWagon’s Twitter account, and you can become a part of the community through their Telegram channel.
