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Guide to Copy Trading | Is it a Future Trading Strategy in 2023?

Copy trading is a popular way to trade on the stock market, the foreign exchange market, and the cryptocurrency market. Copy trading, which is exactly what it sounds like, is the process of automatically and in real-time imitating the positions of another trader.

Let’s look at the pros and cons of copy trading to help you decide if it’s something you should use in your trading strategy or build a new trading strategy!

If you use copy trading, you can automatically copy what expert investors or traders do, which can help you as a crypto trader.

Expert cryptocurrency traders no longer trade cryptocurrency by hand; instead, they use automated trading strategies, also known as “crypto trading bots.” This is done for several reasons, such as increasing speed and efficiency, getting rid of emotions from the trading process, spreading out risks, and using historical data to test and improve their strategies. 

People who want to trade a cryptocurrency can still do so by hand. Because of this, when you use a Copy trading bot that was made by a professional trader you have chosen, you then start using the same trading strategy they use. Because the whole process is automated, it not only saves you time and work but also makes it more likely that your investment will pay off.

What are the steps involved in copy trading?

In the financial world, the idea of copy trading is used in every financial market. You could copy trade with someone who deals in forex, CFDs, or stocks, or you could do the same thing with someone who deals in the cryptocurrency market.

There are a few different ways to copy the trades of other people. Most people have copied trades at some point in their lives by following more experienced traders into a deal on Twitter, Telegram, or Discord. This probably happened to them at some point in their lives. 

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This manual copy trading method can also be bought, and a lot of “influencers” act as paid signal providers, usually in closed Discord groups.

Even so, over the past few years, a growing number of cryptocurrency exchanges and other third-party platforms have started offering copy trading services that are automated and run in real-time. 

Advantages of Copy Trading

  • There are many good things about copy trading. Copy traders, for example, may be able to make money on the market without spending much time researching. After you choose a trader to copy, the rest of the process is done for you automatically.
  • In addition to this, duplicate trading lets you get rid of trading emotions. By having someone else carry out the plan, you will be able to focus on other things and not have to make decisions based on your feelings when the situation is unstable.
  • If you pay attention to the trades you copy and learn from the traders whose trades you copy, copy trading could help you become more comfortable with new trading strategies.
  • Last but not least, copy trading lets you trade in markets that you might not know much about. Even a crypto trader can make money from the volatility of the stock market or the foreign exchange market because they don’t have to know everything about the industry.

Disadvantages of Copy Trading

Copy trading is often one of the best options for traders, and it should now be clear that it has some benefits as well. However, you should also be aware that there may be some cons, and you should be ready for them as well.

  • How much do you know about that “professional” trader and his or her trading method? How much do you know about that “professional” trader and his or her trading strategy? Do you feel safe giving them the money or coins you’ve worked so hard to get? All of these questions confuse beginners as there’s a lot of Lack of information regarding copy trading in the market.
  • Various trading platform brands offer automated trading systems that haven’t been tested and were made by people nobody knows, you should only choose a crypto copy trading platform that gives clear information about both the authors and their methods.
  • You could make money by copying the trades of a successful trader, but you could also lose money if the successful trader’s bot goes on a losing streak. You will have to make the hard choice of whether or not to stay on board with the trader as you both navigate the rough waters of the cryptocurrency markets, or whether or not to jump ship and look for other traders who are more profitable to follow. You now have to pay for the losses they made.
  • Even though profitable copy-trading bots aren’t the most beautiful things in life, some of the most beautiful things in life may be free. Why should they be, considering how much time and effort is involved? It is reasonable for professional copy traders to expect to get paid in the form of a commission for their services. But if you’re not careful, and depending on how committed you are, these transactional costs or fees could quickly eat into the margins of your earned profit.
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Is copy trading in cryptocurrency profitable?

Yes, Social trading has become more and more popular over time, and there’s a good reason for this. If there wasn’t a chance to make money, no one would continue to do this. In point of fact, this is how easy it is.

There are, however, a few things to keep in mind when thinking about copy trading and its potential to make money. Before choosing a reliable trading platform, you should take your time and do some research, just as businesses are required to know their customers. Copy trading should only be done through reliable sources, and we’ve listed one of the most popular Trading platforms below for your convenience.

  1. Binance
  2. PrimeXBT
  3. ByBit
  4. eToro

You can also learn more about these exchanges on CryptoSharX

How to get started with Copy Trading?

Well, the first step may be where you need to pay the most attention to detail. Choosing the best copy trading platform can often be the difference between short-term success and long-term success, as well as between expectations being met and not being met.

Even though most publications tell investors to copy someone else’s trading strategies, you should focus on finding the best trading platform. 

Success leads to more and more success. 

Looking for some funds to start your crypto investing or trading right from scratch? Well, Give a one-shot to read Best Guide for Bitcoin Loan or Borrowing.


There are some Good & Badreasons to take trades from copying experts. Copy trading does ensure you from time-free, Hassle-free, and still doing profitable trades only if your trader is doing well.

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Before you invest your hard-earned money, you must do your research, and you should never spend more than you can afford to lose. Trading is a risky business, so giving this job to someone else could end up costing you more money than it brings in.

We wish you the best of luck with your trading!