Copy trading refers to the fact that ordinary users, traders or not, follow expert traders to have the same portfolio or the same positions. By using copy trading, users can copy the orders of expert traders in the market of their choice, while by copying a strategist, you replicate the trades they will make. In short, the investor can start trading with ease, without the need for in-depth knowledge of the different trading strategies.
Make profit with copy trading
In 2020, an influencer partnered with a trader and created an expert trader profile on bitget. They thus integrated a nascent community that would generate hundreds of millions of dollars in profits for its members.
Their project got off to a phenomenal start, taking off like a rocket. From the first 48 hours, the 500 places reserved for subscribers were fully occupied. During the first 26 trading days, the final rate of return (P&L) reached 27.64%, demonstrating the effectiveness of the investment strategy.
Following the success of the first expert trader profile, they created two other new profiles to copy. The 500 places available for each profile were filled in less than 24 hours. The three accounts added together now combine a profit for copy traders (subscriber P&L) of more than $250,000.
How to choose the best trader to follow
One of the biggest challenges in copy trading is choosing who to copy among the large number of traders. Before following a trader who will meet your return and risk expectations, the key is to review the trader’s detailed portfolios as well as their performance history, such as total profit and loss (P&L) , its success rate, or its assets under management (AUM).
Here are some tips for analyzing the data available to you:
- Analyze the performance of the trader over a long period. The longer the period, the better. Having a long trading history helps to know the performance of the trader when the market is bullish as well as bearish.
- Look for traders who are consistent with their trading volume, it shows they are taking a solid approach and sticking to a strategy they know works.
- The return on investment (ROI) is important. If it gradually increases, it could be a good trader to copy. If the spikes are erratic, better follow someone else.
bitget offers full transparency, allowing users to make informed decisions on which traders to copy as well as how much to invest.
Indeed, by clicking on the profile of the trader, you will immediately see the number of transactions carried out, the ROI and the P&L.
By accessing the “Orders” menu, the subscriber can see all the history of trades made by the expert trader, including those that ended in losses.
How to get started and become a copy trading subscriber
The beginnings of trading can sometimes be a little scary, especially if you don’t have any expertise in this area yet, but it can also be very profitable. As of June 2023, the number of profitable copy trades made on Bitget, the world’s largest crypto copy trading platform, stands at over 60 million, with trades generating gains of over $380 million and including participation in profits paid to expert traders amounts to 23 million dollars.
By following experts, you can avoid rookie mistakes and learn effective strategies faster than trading on your own. However, you should implement risk management strategies to mitigate potential losses and trade safely. We advise implementing stop losses, managing position sizes and diversifying portfolios to mitigate potential losses.
Also, the process of copying an expert trader is very simple. Just find a profile you like, click the “Follow” button, configure your settings, and you’re done! In less than 5 minutes you will already be making the same moves as the best traders in the world.
bitget was the first platform to introduce copy trading to the cryptocurrency market. In today’s market, it stands out as the world’s leading crypto copy trading platform, offering advanced features along with an unwavering commitment to transparency and security. It is now possible to carry out copy trading of Futures, copy trading Spot, and to copy strategists verified by Bitget. Whether you are a beginner trader or an experienced trader looking for new opportunities, Bitget Copy Trading is a most relevant choice.
Disclaimer: Bitget does not recommend any expert traders. The mentioned profile is just one example of many available profiles.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
