For beginners, becoming a crypto trader can be daunting. Copy trading essentially means emulating strategies of experienced traders or influencers, meaning directly copying the positions taken by another trader.
Copy Traders are investors who follow and duplicate trades from the Lead Traders.In this strategy, the investors decide the amount they wish to invest and copy the positions taken by the trader that they are following. The investor thus gets the identical returns of traders. So potentially you make money based on others’ skills or performance. An advantage of copy trading is that even new traders, who find becoming a crypto trader daunting, can still invest like a professional. Moreover, one can invest in cryptocurrencies, which he or she has not heard of, or has very little knowledge of that.
To copy a portfolio, you can just register at traderwagon and then get started. All the portfolios would be displayed on the homepage, you could check the performance and portfolio types there. You can choose any of them. Before you start copying, please make sure to answer the questions and review the service agreement. Besides, you could stop copy trading at any time.
Copy trading allows you to follow the investment from expert traders, however, this doesn’t represent trade with no risk. Instead, copy trading is at a high level of risk. The greatest risk an investor will face when copy trading is portfolio-selection risk. If the strategy of a Lead Trader is unsuccessful, its Copy-Traders can lose money. Copy-Traders also face slippage risk when copying trades of Lead Traders, especially if the assets they are trading experience illiquid conditions when markets are volatile. Lastly, Copy-Traders can face systematic risks if the assets they are trading experience sharp declines or rallies.
When selecting a portfolio, please choose one which matches your return objectives and risk tolerance. While it might seem tempting to copy the trader with a 300% annual return, in general, these traders may be taking on far too much risk and may possibly incur huge losses. Instead, you can consider looking for traders who have a longer trading history and a smaller but consistent return.
The Lead Traders are also users from communities. Therefore, please make sure you have conducted thorough due diligence when selecting portfolios. If you want to spread out your risk you can spread out your copy trading between 2 different traders.
After you start copying, all transactions would be copied to your account automatically, you could review the details via the process, this could make you better understand how the experienced trader makes profit. Meanwhile, you could easily get 90% of the profit by copy trading.
When you have enough experience in trading, you could also become a lead trader to get profit sharing from the copy traders.
Register Now: Traderwagon