Cryptocurrency trading is a complex skill requiring extensive knowledge of fundamental and technical analysis and the cryptocurrency ecosystem as a whole. As most traders lack the capability to develop a winning trading strategy, they struggle to learn a multitude of skills needed to be a successful investor (who knows how to swim through the steep tides of the waters).
Do amateur traders have no hope, then? Are they left to fend for themselves, speculating about the prices and taking to stride the sharp ups and downs of the cryptocurrency industry? Thankfully, there are tools that help such traders explore the potential of the cryptocurrency industry, simplifying over-complex cryptocurrency trading by following expert traders.
This article discusses what cryptocurrency copy trading is, how it works, its legitimacy and its limitations. It also talks about how a holistic approach to copy trading can play a key role in the evolution of traders.
What is cryptocurrency copy trading
Cryptocurrency copy trading is an automated strategy that lets one copy an experienced trader’s trading methods. This enables one to buy and sell crypto assets to earn profits without putting in a lot of time for researching or gaining proficiency in crypto trading.
Basically, cryptocurrency copy trading is all about identifying skilled traders and re-executing their moves literally. A trader doesn’t have to spend time picking market trends or learning complex trading methods. Rather, the software just mimics what the expert trader is doing.
For instance, if the trader the copy trading software is following invests $100 to buy coin A, the software will also spend $100 on the same cryptocurrency. The tool not only helps amateur traders to use the expertise of other traders but also helps them learn the skill of making smart investment decisions.
Alternatively, one could join trading groups on Facebook or Robinhood to get advice on the right cryptocurrency trading strategy at their own risk, as nothing is a sure shot in the crypto industry, given the volatility of the market. This practice…