Can you make money from the crypto market even if you don’t have the time to read charts and follow market trends? Definitely Yes.
When we were much younger, copying our friends’ homework was greatly shunned by our teachers. And as adults, replicating what someone else has done might lead to infringement and copyright issues.
But what if we collaborate on various activities on earning money? The financial market offers such opportunities via copy trading.
The premise of copy trading is simple. The adept trader makes money through his trades and earns extra rewards from the trades of others who copied his trades. So, for those other traders who profit by copying the predictions of well-known traders do not need to have advanced or specialized knowledge of the crypto market or market performance.
What is copy trading?
Copy trading is a way to get exposure to the crypto market by following the trade of peers or a more experienced trader. The setup for this form of social trading can be either automatic or manual based on the trader’s prerogatives.
Copy trading is not without its risk, but the advantage of freeing up time for a trader to do other things seem appreciable. Although not necessary, it is an added advantage to have basic risk management knowledge before you put in much capital to copy someone’s trades. Even the most experienced traders make mistakes, which puts your capital at huge risk.
How does copy trading work?
Social networks and platforms are essential tools for copy trading. When one experienced trader opens a position, they can notify other traders that subscribed to their network. Those can decide if they want to hop on the opportunity or not. For traders who use algorithmic trading, their bots can automatically pick up the signal and follow suit.
Copy trading is a very popular strategy in Forex trading, but it has slowly started gaining recognition in the crypto market. The similarity between both markets is their volatility, and traders can leverage these fast-paced environments with little or no experience in the market.
Tapbit copy trading features
For newbies who want to get into the crypto contracts market but don’t have the time to research and watch the market, Tapbit‘s contract copy trade tool is appropriate. It enables you to trade contracts automatically, quickly, and effectively by letting you follow a chosen adept trader directly. This allows you to have more extra time and reduces the emotional stress generated by trading as well, while the trader you choose to follow will also earn an additional 10% of any profits from following his trades. It is a win-win situation for both sides.
Advantages of Tapbit Copy Trading
The advent of copy trading increases the accessibility of the crypto market to everyone. Newbies can still make money before learning the basics of the market, and Tapbit copy trading gives you a soft landing in mitigating your losses until you hone your trading skills.
Upskill your trading knowledge
While copying the trades of others, Tapbit allows the new traders to see the trades themselves and how they are set up. This way, you can learn the technical part of trading while you develop your strategy.
With the enormous selection of trade strategies available on Tapbit, you can now distribute your portfolio among many providers across various assets. You can reduce losses if one trader performs poorly by distributing the risks involved with individual decisions. In various market conditions, you can also be able to make money.
You are in charge of your account with Tapbit Copy trading. If you don’t automate the trades from a copy trader of your choice, you will manually select which trades you want to go in and which you are not going into. This creates flexibility in how you want to trade. Additionally, Tapbit provides $40 million in insurance against Tapbit platform errors.
Automating your trading account via copy trading is a good way to passively make money from the cryptocurrency and forex market, but it is not without its flaws. Unlike entering trades using automated bots, Copy traders are humans, and they can often fall into the strategy drift. In this trading mistake, the trader leaves the known and proven strategies to enter a trade, either with the hopes that macroeconomic news will go in their favour or due to trading stress. New traders can also fall into the recency bias and choose recently profitable traders, not people with a proven track record.
Copy trading might not be a fail-proof method of making money from cryptocurrencies, but when you harness it using a wide range of risk management techniques, it can help you diversify your account.
Tapbit is one of the best copy-trade brokers available – not just for its emphasis on security but because of the various copy trading tools to help you effectively monitor and manage your account in real-time.