With the five types of trading accounts, we have all it takes to fit any trader’s needs and styles. Considering all of the above, AdroFx is the perfect variant for anyone who doesn’t settle for less than the best. In copy trading, it is possible to adapt the experience of the skilled trader to mitigate the risks. Knowledge sharing within the community also helps learn about the Forex market and get a profit instead of loss.

  • CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
  • Our site intends to provide you with smart ways to make money on the side.
  • Whatever your copied trader is doing, in the end you stay in charge of your finances.
  • However, choose the wrong service and you risk making a loss.
  • But social trading is a lot more work than copy trading in crypto.
  • Its not easy to begin with, and once you throw charts and patterns into the mix, it becomes confusing enough to throw even the most enthusiastic newbie trader in panic mode.

You can duplicate their trading activities with one click once you discover a lucrative trader with a solid track record. Factoring in all aspects of cryptocurrency copy trading is important before investing. Some copied traders mention expected monthly returns based on backtesting and previous performance of the strategy. As a rule, copy trading brings up to 50%-60% depending on the situation in the market , the trader`s strategy, and the chosen financial asset, of course. That is why you should pay attention to providers that trade multiple assets.

What is Copy Trading?

When one decides to go for crypto copy trading, the first step is to identify the right trader. The efficiency of copy trading is invariably hooked https://xcritical.com/ to the skill level of the trader one is following. On the downside, if you pick a trader that has a bad streak, your portfolio is at risk.

How does Copy Trading Work

Some returns are based on how well traders performed while using a practice or demo account. This means they were trading without money, so their results cannot be viewed as a true and accurate reflection of real life trades where their own money could be lost. It’s impossible to use this information to judge their attitude to risk and how they react to losses, and indeed winning trades as well. Crypto social trading is a new model in crypto trading that allows unskilled investors to make a consistent and profitable investment.

Risks of cryptocurrency copy trading

A trader doesn’t have to spend time picking market trends or learning complex trading methods. 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 . Established in 2018, AdroFx is known for its high technology and its ability to deliver high-quality brokerage services in more than 200 countries around the world. AdroFx makes every effort to keep its customers satisfied and to meet all the trading needs of any trader.

In such a way, there will be more trading opportunities and fewer risks due to diversification. Both social trading and copy trading refer to a specific investing strategy where beginner investors have a chance to observe and/or follow a professional trader. The idea behind these two approaches is to deliver a more flexible and hands-off experience to those who do not have enough background or a well-established trading strategy. Copy trading can be a lot more hands-off than social trading. And we are not talking about a muscular, 30-year old hottie, but about pricing.

How does Copy Trading Work

Then, you’ll remain in the same trades until you close a trading position manually or it is closed by the successful trader. The profits earned, minus any commissions and fees, are all yours. First, don’t pick a single trader and follow the rule of diversifying your profile by picking up multiple traders to follow. A single trader isn’t supposed to make winning trades all the time so minimize your risk of loss by following multiple traders who use different trading strategies and tactics. An analysis of the results reveals that the effect of social learning is enormous.

Unlike advantage plays, Trading Forex, CFDs, Futures, Stocks & Cryptocurrencies involves a risk of loss. These reports comprehensively explain how you can evolve Forex Trading successfully by using world top-class tools & the full list of them. As you have seen, copy trading is legit, safe and profitable as long as you take the right approach explained in Fact Copy Trading 5). Assuming you have a daily job, thus extra income should come from side earning (otherwise it can’t be an extra income). Our site intends to provide you with smart ways to make money on the side. You may want to take a look at the below guide, which explains the whole background & rationale behind why you need Extra Income from Passive Financial Trading.

Not every type of social trading is copy trading because you dont let someone else manage your trades in an automated manner. You may use information from other traders and base your decisions on that information but ultimate if you decide to enter a trade, you are the one making the decision. Social and copy trading have the same basis but they are different in many ways. In this section we will examine them both in relation to one anther and help you understand which one is better for you with your current level of understanding. Now you might be wondering how you are supposed to know if those traders are trustworthy. When you search for an appropriate social trading platform you need to keep an eye on security arrangements.


Calculations in comparison tables will vary based on personal data input. You can always increase amounts on traders that perform well and reduce exposure when traders do not perform to your expectations. Also, technical, fundamental, and sentimental analysis is carried out on this channel for others to copy. This is similar to trading forums, except that the level of communication may decrease slightly. OctaFX is considered high-risk, with an overall Trust Score of 61 out of 99. OctaFX is authorised by zero tier-1 regulators , one tier-2 regulator , and zero tier-3 regulators .

Once a trader starts trading on his/her own, they commence attaining a profile. Bityard OfferingsBityard offers a 258 USDT welcome bonus to its new users and encourages trading. Moreover, Bityard not only offers cryptocurrency derivatives exchange but also enables the option for copy trading. To learn more about Bityard’s offerings, read ours in-depth review of the Bityard platform.

How does Copy Trading Work

Once you copy a trader, all of their opened trades are copied to your account. Furthermore, all of their actions in the future are automatically copied to your account, as well. You are prompted to choose a sum to invest in a certain trader. In most cases the sum cannot be more than 20% of your portfolio. The sums used the trades are a calculated percentage of the traders portfolio based on how much you decided to invest. You dont have any open trades but youve decided that you want to copy a trader.

Step 2: Analyze the work of a copy trader

Copy trading makes the market more transparent and as such, easier, but it will not turn you into a millionaire overnight. Make sure you take a good look at your traders, especially their trading past. If a trader has got a fast and high return, you should rather leave that one. We advise you to copy a trader who has shown a stable improvement over the course of at least six months. Give your investments time; this rule does not only apply to copy trading, but for any other form of investment you may use. After you applied one or more filters, eToro shows you the traders, their return and risks.

How does Copy Trading Work

For most new traders, trading cryptocurrencies is a whole new endeavour. Even with the basic guidelines, you can still make mistakes while trading in the crypto market. The MT5 trading signals service allows you to copy the trades of more experienced traders to your MT5 account. Bityard provides all the necessary information to the followers about the expert traders and hence making the platform transparent and empowering traders.

What does Bityard offer when a follower decides to be a trader?

You can choose to follow one trader or multiple accounts at the same time. You can also add or remove forex accounts at any time depending on your circumstances and the performance. While copy trading allows a trader to view the actions of lead traders, they don’t get to see the work behind the scenes that led them to make those moves. Cryptocurrency copy trading is an automated strategy that lets one copy an experienced trader’s trading methods.

Bityard offers all the necessary information about the traders on their profile tab. This information includes the Profit Rate , Win Rate, P/L ratio, trading days, and the number of followers. Bityard sorts the traders based on their profit rate and provides the copy-traders with an opportunity to choose the best trader of their interest.

By now, you should have at least several traders in mind, the ones that suit you more than the others. Or you can test them all, reducing the ratio to 0,5 and keeping just one after some time. Or you can copy trades from several accounts at the same time. ​ of the returns is 10%, then one will have a Sharpe ratio of 2. The maximum drawdown offers information about the peak-to-trough drop.

This lesson will cover the following

In order for you to do the same, you need to find traders that fall into the same price category as your intended investments. Do not settle for five traders or less; a good social trading platform will have a good selection of traders that fits your personal investment needs. Copy trading is popular amongst both beginner and experienced traders alike, with many promoting copy trading as a way to earn easy profits. This is because you don’t need to spend your precious time learning about the markets or watching graphs. On a social trading platform like BingX, Trader A will look forward to copying the trades of Trader B, who is more experienced and thriving in the market.

However, it is important to manage your expectations and not expect miracles. Therefore, make sure you do your research and only copy forex traders with strategies that match your trading style and risk preferences. A good forex copy trading broker should provide you with hundreds of trading accounts which you can choose to copy. This should give you a feel for the forex strategy being used and if it is something that fits within your trading style. Of course, there are risks, just like in any form of investing the key is to limit risk. The best way to limit risk is through education and experience which you are doing right now.

One should understand that if a leader has a maximum drawdown of 30%, a trader copying this person’s trades could lose 30% from peak-to-trough. But social trading is a lot more work than copy trading in crypto. In light of the benefits of using computer-based algorithms, and the amount of time that is needed to trade forex manually, copy trading is a more sensible option. Your mentor may have a great approach, but just because it worked for them doesn’t mean it will work for you. Copy exchange is a subset of social exchange that allows users to mimic other investors’ trades.

It clearly indicates Social Trading / Copy Trading is an essential tool for modern investors. Therefore, Copy Trading is one of the easiest ways to utilize the expert’s knowledge & skill in various financial trading including Forex. Alternatively, you can opt-in proportion to your account balance to open trades. This way you keep the same amount of danger as the account you copied. For all of our broker reviews, we research, validate, analyse and compare what we deem to be the most important factors to consider when choosing a broker. This includes pros, cons and an overall rating based on our findings.