How to get started with copy trading with Bitget?

Trader in the markets is meticulous and thoughtful work. To become a trader efficient, it takes months, if not years, to learn and practice. Well, where to begin ? Bitget, the largest platform of copy trading in the world, offers a simple, accessible and profitable service! But then what is the copy trading ? Why choose this method? What are the advantages ? We will explain everything to you.

What is the copy trading ?

the copy trading is a means of investment in which the investor copies the transactions made by another trader on his trading account. Trades are opened on the exact same assets, prices or settings (stop order levels) as the account of the trader.

Bitget: the benchmark platform for copy trading

Bitget is the obvious choice for investors looking for a trusted platform and a chance to trade. copy trading accessible and cost effective. It is a trading venue with a wide range of assets and many traders that you can track and that can provide excellent profitability at low drawdown (maximum loss). Bitget is a simple and easy to use platform for copying cryptocurrency transactions.

Why the copy trading is he popular?

the copy trading is a popular tool for winning in the markets for those who do not have sufficient trading knowledge and skills. Even beginners can try making copy trading and maybe make money in the market just by connecting their accounts to the strategy of a trader to success. The traders are paid for their knowledge – they receive a commission on the successful transactions of their followers. In this way the copy trading is a win-win situation: investors earn money without the need for trader by themselves while the trader on his master account (this is what we call the account of the trader) receives a commission in case of a successful trade. However, the copy trading is not as simple as it seems at first glance, and there are some nuances to consider before deciding to copy someone else’s transactions.

How does the copy trading ?

It is easy to start copying trades: the investor registers on a trading platform, chooses a trader which presents good results according to the opinion of the investor, and connects his trading account to that of the trader. In this case, the accounts of the investor and the trader are called slave account and master account respectively. Then the trader starts trading on the account and its trades are copied to the slave account (belonging to the investors) for a predetermined amount. When a transaction brings a profit, the investor also receives his reward. Therefore, a loss on the master account will result in a loss on the slave account. For profitable trades, the trader receives a percentage of the investors’ return. However, despite its simplicity, the copy trading has its advantages and disadvantages.

What are the advantages of copy trading ?

Obviously, the main advantage of copy trading is the simplicity of this method of making money with a higher return than bank deposits or mutual funds: all an investor needs to do is connect their account to that of a trader prosper and start getting paid regularly for the money invested. It’s that simple ! There is no need to study technical or fundamental analysis, make your own mistakes and learn from them, read specialist books, etc. It’s the trader who does all the work. Also, the investor does not need to spend time trading and monitoring the markets, as there is an option to enable auto-copying.

Another advantage of copy trading is that the investor can diversify his portfolio. Thus, he can choose some traders having different trading styles: conservative, aggressive, etc., and allocating funds among them. In this way, the investor can win both on the long trends and on the sideways markets.

Of course, one of the main advantages of copy trading (if not the most important) is the possibility of making money, much more money than with a bank deposit or mutual funds.

What are the disadvantages of copy trading ?

Despite all the ease of copy trading, this method also has drawbacks. Here are a few :

  • Profit not guaranteed: This means that even if you find a trader who made 100% profit in the last year and you connect your account to it, they may trade at a loss next year. As the saying goes, “profits in the past do not guarantee the same performance in the future”. It could happen that the investor suffers a loss instead of obtaining a profit.
  • The systematic risk of trading : Each trader successful has its own style of trading and only makes money under certain market conditions. Some of them “grab” long trends, which last from a few days to several months, while others tend to trade from the boundaries of a channel. Market conditions may at any time differ from those at which the trader is used to it and suffers a loss instead of making a profit. This does not mean that the trader lost control of his tradingbut rather that his strategy is not working at this particular stage.
  • Non-market risks : Keep in mind that non-market risks will also influence your trading results. tradingoutside the jurisdiction of the trader. For example, the broker you have chosen may turn out to be fraudulent and your funds may be stolen.

It should also be noted that the copy trading has emotional elements: under the pressure of losses, the investor may disconnect his account from the main account when the trader starts making profitable trades and exits the drawdown.

How to make copy trading ?

To start copying transactions from others tradersyou need to follow these steps:

  1. Choose a platform on which you will copy trades. It is worth paying attention to trusted platforms with a lot of positive reviews.
  2. Choose one trader to be continued. When you choose a tradertake into account parameters other than profitability over the last year: the drawdown maximum, the total yield and the overall duration of the activity of the trader. These are also important aspects that you must take into account.
  3. Allocate a share of your account that you will use for the trading. The exact amount will be calculated automatically.
  4. Connect your account to that of the trader.

What are the main criteria for choosing a platform for copy trading ?

  • Check reviews from platform users. The more positive reviews, the better.
  • Research the financial regulatory authorities that oversee the operation of the broker. Trusted companies always comply with financial legislation;
  • Check the overall uptime of the broker, the longer the better.

Selection criteria for traders :

  • the total performance since the very beginning of the activity of the trader ; how much profit (as a percentage of the original amount) the trader has realised.
  • the total duration of activity of the trader ; it is obvious that it is useless to copy a trader who only worked for 3 months.
  • the yield curve of the trader must be more or less smoothed out, because sudden drops can easily destabilize you and the trader.

Bitget is a good choice for investors looking for a trusted platform and a chance to trade copy trading profitably. It is a trading venue with a wide range of assets and many traders that you can follow and that can offer excellent low drawdown profitability. Bitget is a simple and easy to use platform for copying cryptocurrency transactions.

What to look for when choosing a platform copy trading ?

  • Check reviews from platform users. The more positive reviews, the better.
  • Research the financial regulatory authorities that oversee the operation of the broker. Trusted companies always comply with financial legislation;
  • Check the overall uptime of the broker, the longer the better.

Selection criteria for traders :

  • the total performance since the very beginning of the activity of the trader ; how much profit (as a percentage of the original amount) the trader has realised.
  • the total duration of activity of the trader ; it is obvious that it is useless to copy a trader who only worked for 3 months.
  • the yield curve of the trader must be more or less smoothed out, because sudden drops can easily destabilize you and the trader.

the copy trading is it worth trying?

The main question is therefore the following: copy trading is it worth trying? Everyone is master of their choices, however, there are several conditions that can favor the fact of turning to the copy trading :

  • if you are a busy person with no free time to do your own transactions but want to be a part of the world of tradingthen yes, you can give it a try.
  • if you want to have a higher return than mutual funds, you can also try the copy trading (you can earn several tens of percent per year).
  • however, do not forget the risks associated with this type of investment.

the copy trading turns out to be a simple and effective method for anyone wishing to get started in the world of trading and investment. However, this practice is not as simple as it seems and several factors must be taken into account before committing to it. The choice of a trusted platform on which to select a trader experience is essential.

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