Why Start Crypto Trading?
Bitcoin investment strategy
There are many ways to profit from Cryptocurrencies. The most popular cryptocurrency investment strategy is to hold bitcoin (also known as Hodl). In case you don't know, Hodl is when you buy a currency and hold it until it's significantly more valuable. Another strategy is to trade cryptocurrencies, but it's much riskier, especially for those who are not professional traders. However, there is a solution for beginner traders – copy trading (also known as mirror trading or social trading).
What is Copy Trading?
Copy Trading is when you follow a group of traders and observe their trades. It allows you to mirror trades of professional traders. That way, you can have the same results as the professionals, without having the knowledge they accumulated over the years of learning and trading. Probably one of the easiest ways to create a passive income stream for beginners.
How to start Copy Trading?
It is easy to start copy trading. All you have to do is:
1) Choose a crypto trading platform you like
2) Pick a successful trader
3) Start copy-trading!
As simple as that. Even though it’s essentially simple, you can fail with copy trading too. We advise you to gain some knowledge yourself, investigate the traders before investing any money in their trades. Here are a few tips on doing so.
Best Social Trading Platform
We recommend Wunderbit Trading – best social trading platform. The platform allows you to copy trade best traders and trading bots on autopilot. There are no monthly subscription fees. As you learn from copy trading you can start trading yourself.
Best Crypto Traders to Follow
There are three main rules to follow.
First, look for a long and overall profitable track record (at least 12 months is recommended by Social Trading Guru). You may find a trader with higher profits, but a short trading period, which is riskier than the other way around. Consistency is the main factor for a good trader.
Second, the winning percentage. If it’s above 85% the trader is most likely to hold the losing positions until they turn positive. That may work, but it’s not a good trading strategy.
Third, the behaviour following a streak of losses. This is what differentiates a trader from an amateur gambler. If the trader adds risky trades to the portfolio, to make up for the losses taken, you have a gambler on your hands. Good traders never panic, always stick to the trading plan and step back when they have a losing streak.
This is probably one of the most complicated things about copy trading. It requires some knowledge to recognize a good trader.
Thank You for Reading!
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