Remember those old school days when you decided to watch your favorite cartoon show or your favorite cricket match over preparing for exams? You were still confident you would pass! You had decided to sit next to the most intelligent guy in class and copy. Let us today touch upon such a cryptocurrency trading mechanism that is not as prevalent as of date, but is gaining fast acceptance due to the ease and convenience that copying offers. Yes, you are right, we are going to be talking about Copy Trading today.
What is Copy Trading?
Copy Trading works exactly as its name suggests. It is trading by copying. In this mechanism, a trader who wants to copy, links his account to the trader from whom he wishes to copy. So, the copier links to the copied (with the consent of the copied). As soon as the copied performs some trade action, the transaction gets reflected upon the account of the copier too. Furthermore, the ratio in which this copier account transaction happens is the same as is his investments compared to the copied account.
How Does Copy Trading Work?
It is like a parent and child relationship if we speak in terms of programming terminology. For example, let’s say the copied account has $1000 in all and it buys Bitcoin worth $100 on a particular date and time. And the copier account has a deposit of $100 altogether. Then the copier account will also show a $10 investment to buy Bitcoin on the same date and time. Also, the copier account will pay a small fee to the copied account on a monthly or quarterly basis, to be associated with it.
Why is Copy Trading Useful?
The concept of Copy Trading has emerged much from traditional financial markets but is now gaining rapid popularity and implementation in the cryptocurrency trading zone too. In fact, Copy Trading is considered to be one of the most important strategies in cryptocurrency trading, because of the inherent risks that are associated with cryptocurrency all the time. Copy Trading works towards covering much of these risks and offering guaranteed profits most of the time by copying a successful account. Even if there are losses sometimes, a trader is still contended as he did what the “best considered trader” did in the digital market. That is, what best could be done.
Is Copy Trading Legal?
Now the corollary of this trading practice by copying, it is not legal everywhere. As in exams, cheating or copying was banned, and likewise holds true for Copy Trading in Cryptocurrency as well in many places. However, Copy Trading is for adults doing it and those who do so by consent. So, it is not everywhere that it is banned or is illegal. Copy Trading is legal but requires a valid license on the part of the online trading brokerage firm to offer such services to its clients legally. Cryptocurrency trading is becoming so prevalent that there are a number of online sites who offer consultancy services in this regard. But most of them lack the skill and the mandates to do so. And when it comes to concepts like Copy Trading, we for sure need to find a legally licensed broker for ourselves. Executium.com is one such genuine firm among the few options. It is an online based cryptocurrency platform that offers a platter of services like multiple exchanges, legal Copy Trading, Crypto Portfolio Re-engineering and things like that. Although it is a much more recent device, executium.com has risen like no other such firm in the crypto domain. Probably because they are more talented and more trustworthy than the rest.
Advantages of Copy Trading
1. Speed: Speed is perhaps the biggest advantage of Copy Trading. If you have got some experience in cryptocurrency trading, you would know that speed matters. And it matters a lot. The same transaction can be fruitful if carried out quickly and otherwise the opposite. And with Copy Trading comes speed. The transactions get copied by itself as soon as the main account performs it.
2. Time: As is with most cryptocurrency traders, time is always an issue. Also, time opportunity of money is always a big consideration. If a trader can pay a small fee and copy successful accounts, he can save a lot of time to concentrate on other things or other trades that require his attention urgently. In the process, the trader ends up making more net profits (even after paying the Copy Trading fee) than he would have otherwise. We also cannot ignore the fact that cryptocurrency trading is a side business for many. So, they need more time for their primary source of income. Copy Trading proves useful in this regard.
3. Guaranteed: The factor that drives most of us to Copy Trading is guaranteed outcomes. We just have to choose a copy carefully and the job is done. Not half done but fully done in fact! Cryptocurrency trading requires a lot of skill and practice and only a few big whales possess that. That is why they keep on making more and more out of their cryptos all the time while the rest of the lot finds this niche to be useless. Copying them with Copy Trading helps to copy this skill and practice without possessing it. And therefore, profits are guaranteed.
4. Low Investment: If we compare Copy Trading to any other trading strategy, this is one of the cheapest. There's a small fee to the copied account and that’s it. You earn more in successful trades than you pay to the copy.
So, Copy Trading is easy and useful, the only consideration that it requires is you copy an account that is apt. By apt, we mean not only a successful account, but also an account that suits your own portfolio. Executium.com can be a big help in deciding on this aspect as they carefully analyze your account and then try to find the best match for a copied account.