Copy trading, or social trading, is an investment method that allows investors to automatically follow the investment strategies of other investors. It enables an investor to automatically copy the investment moves of another investor.
This method can be beneficial when an investor lacks knowledge, experience, or time. In such cases, the investor has the chance to achieve the same results by following the decisions of an experienced investor. Copy trading is typically available on social trading platforms and offers a range of tools that enable investors to automatically follow other investors’ portfolios.
What are the advantages of Copy Trading?
- Easy and accessible: Copy trading allows investors to invest by following the successful strategies of other successful investors, without any special knowledge or experience.
- Reduces risks: Investing by following other investors’ investment strategies is less risky than investing on your own. This is because successful investors’ strategies have already been tested and proven correct.
- More opportunities: Copy trading offers investors more investment opportunities because other investors’ investment strategies typically focus on many different assets.
- Learning opportunity: Investors can gain more knowledge about markets and the investment world by following other investors’ strategies. This can help investors develop their own strategies in the future.
- Quick decision making: Copy trading enables investors to respond quickly and accurately to market movements. This is because investors can make quick decisions by following other investors’ strategies.
However, there are also some disadvantages to copy trading. These include investors completely leaving their investment decisions to someone else, thus risking losing money even without taking risks. In addition, copy trading carries the risk of investors following investment strategies that do not fit their risk tolerance and investment goals.
TraderWagon is a social trading platform that bridges the gap between experienced and novice investors. If you’re new to crypto trading or don’t have time to monitor the markets, TraderWagon allows you to discover, follow, and copy trades made by the best investors worldwide. If you join TraderWagon through this link, you can benefit from a lifetime discount.
The concept behind Social Trading is simple: automatically copy the real-time crypto trades of experienced and profitable investors. As can be seen in the screenshot below, the profits and losses (PNL) and Return on Investment (ROI) can be seen for the last 30 days. For instance, a user named Tsin9 has managed to achieve a profit of 354% from his trades in the past 30 days. The TraderWagon platform, supported by Binance, showcases trading results based on transaction data verified by Binance.
There are two types of users on TraderWagon: Leader Investors and Copy Investors. Leader Investors manage their portfolios and allow other investors to follow and copy their portfolios. Copy Investors are investors who follow and copy the transactions of Leader Investors. It is possible to make a profit on TraderWagon by copying the trading strategies of successful investors.
3Commas, which is designed to be easily used, can automatically trade on selected pairs. You can design your own bot without any software knowledge. Currently, it is known as one of the best bots in terms of price/performance. You can access daily performances through reports and improve your strategies.
TradeSanta, established in 2018, allows for trading 24/7. The system allows trying out popular buying and selling strategies. So far, nearly 20,000 traders have chosen this service, and approximately 700,000 transactions have been made to date. TradeSanta supports Binance, Bittrex, Bitfinex, and HitBTC and also has Android and iOS applications.
