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Trading cryptocurrencies has been popular probably ever since the 2017 bubble. During that time, Bitcoin’s price increased twentyfold, from about 1,000 dollars to almost 20,000 in less than a year. Several other cryptocurrencies made even higher profits, which gave many uninformed people the misconception that it is easy to make money from cryptocurrencies.
However, that is not true. Making money, especially via trading, is a proper full time job. It needs experience, knowledge, education and last but definitely not least a lot of time and patience. However in today’s fast-paced world, vast majority of people has neither time nor patience, yet they want to benefit from “trading ideas.” And that is why copy trading was created.
Copy trading is a form of trading where investors follow lead traders to the dot. More precisely, they usually use autonomous systems that copy any trade that the trader they are following, known in this case as a lead trader, opens.
This means that the traders that follow can profit from the same trades that the lead trader opens. Yet, they do not have to spend time behind the screen, analysing any charts or assets. Moreover, they also do not need to have any experience in trading, which means that they do not need to spend thousands of hours self-educating.
The only thing that the follower trader, who can also be viewed as an investor in this case, needs, is the money that they put in. While some platforms put a minimum cap that the investors need to put in for the copy trades to open, BingX does not have any minimum investment, which means that people can start copy trading with an investment as low as 1 USDT.
Copy trading, in its essence, is very simple. Once you, as an investor/copier, not a trader, decide that you want to make money off some other people’s traders, you need to choose a platform such as BingX, that will allow you to copy trade.
Then, you need to find a lead trader, whose trades you or your account will follow. In the case of BingX, there are thousands of different lead traders. They are even divided into different groups and categories not only based on what they are trading, but also how conservative or aggressive they are.
For instance, the above list shows traders who have been classified as more conservative. They are trading different asset classes or financial instruments, which means that the traders who want to follow them need to make sure that they are not expecting a huge pay-out. In case of conservative strategies, the lead traders always put low risk and are usually looking at a longer time horizon.
There are many more criteria that can help the copy trader to find an ideal lead trader. These are for instance, cumulative PnL (Profit and Loss), account assets in USDT, number of people following them known as copiers, 30D ROI, or risk level. Win ratio or P&L ratio are also some of the filtering settings that the aspiring copiers could play with to find the lead trader that would suit their needs.
All of these, and much more data about each of the lead traders, are available for the aspiring copiers to see how well he or she is doing. Favourite assets to trade, risk assessment or weekly profit or loss are also just some of the personal statistics about the lead trader are provided by BingX for the copiers.
Once you have found your “trading soulmate”, you can simply follow that trader. It is very simple and helpful, since it also gives you a chance to copy pro traders with conditions suited to your needs.
These are for instance the percentage of the trading capital that will go into the trade or the overall size of the whole account. Moreover, sometimes it can also state which trades to follow based on their risk of assets being traded.
While the advantages of copy trading are more than obvious, there are some things about copy trading that need to be pointed out. While these are not disadvantages or warnings per se, they are definitely some aspects that the aspiring copiers should read and do before they jump into the “copy trading” pool.
Lead traders are only humans. This means that their trades do not have to end up in profit every single time. They could lose. More times in a row. They could make a mistake and be in a loss for a month or two. Copy trading does not necessarily mean that you as a copier will always make money.
It only means that you do not need to know a lot about trading or you do not need to stay behind the screen and trade for yourself. However, the lead trader does need to do it and there is always a possibility that they might not be having the best day/week/month. This is not some form of demo trading. Everything that happens with copy trading either leads to a profit or loss. No paper money or fake accounts.
Another warning is that while lead traders can have an excellent strategy, markets are always unpredictable. This simply means that some trades will end in a loss no matter what, so having the right mindset and reasonable expectations when copy trading is very important. Copy trading is definitely not a certainty or guaranteed profit.
While we have mentioned most of the technicalities about copy trading, there are still some things that you need to know before learning how to copy trade or starting with copy trading.
First of all, BingX has gone above and beyond to ensure that it provides the best service when it comes to copy trading. This is for instance visible when looking at the fees. While some cryptocurrency exchanges or copy trading platforms charge almost up to 3% per transaction, BingX has their fees as low as 0.045%. This is the only transaction fee there is, since there are no spread charges.
When it comes to withdrawals or deposits, the account will be charged fees that will be given directly to miners. BingX does not profit in any way from these. The most economical way to deposit or withdraw money from the account is via USDT stablecoin using the TRC-20 protocol. The fee should not exceed 1 USD for a single transaction.
Copy trading is becoming more popular. And that is no surprise as it has many advantages. BingX has been one of the first and most recognised exchanges to provide this specific service to its platform users so that anyone could benefit from the skills of lead traders. If you do not know how to copy trade or want to try it, make sure to check this link.
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