Crypto copy trading is a method of investing in the cryptocurrency market where a trader, known as the Strategist, shares their trading strategies while others copy their moves. In other words, the copiers, also known as “copy traders,” mirror the trades of the strategy provider in real-time, trading exactly as the Strategist does. This way, traders who are inexperienced or short on time can benefit from the knowledge and expertise of proven traders without having to spend time researching and analyzing the market on their own.
A crypto copy trader is responsible for executing trades with their own assets based on the market demand. Often they utilize various tools and techniques, such as technical indicators, chart patterns, market sentiment, relevant news and other data-driven methods to determine the best trades to make.
Once they identify a good trade, they execute the trade with their account, and all copiers automatically execute the same trade using their own funds. A good crypto copy Strategist's goal is to generate consistent profits and minimize risks, and this can be seen by the Strategist’s long-time performance chart.
For starters, copiers get instant access to the expertise and knowledge of experienced traders. They learn about the Strategist’s techniques in research, how they approach their trading strategy and current market insights. Thus copiers start to accumulate knowledge of the crypto market as well as investing in general, eventually leading to better trading when they are on their own – by copying the trades of successful Strategists, beginners can tap into their expertise and start making profitable trades from the get-go.
Additionally, copy trading grants access to instant diversification if the copier chooses the correct Strategist. Diversification is an important principle in investing. By copying a diversified Strategist, or even multiple Strategists, a copier’s portfolio is automatically spread out, reducing the risk of losing the value of their entire portfolio in one ill-placed trade. Since there is more than one asset in a diversified portfolio, if one underperforms, the others provide a buffer for the loss, maximizing returns and reducing the overall volatility of the portfolio.
And it’s all automated. Once a copier copies the Strategist’s portfolio, all trades are made automatically whenever the Strategist trades. Of course, investors should always do their due diligence before copying someone and should keep up to date with what is happening with their investment. On ICONOMI, you can set up notifications to notify you of how the Strategy you are copying is doing and when the Strategist rebalances their portfolio.
ICONOMI makes crypto copy trading as convenient as possible. You can go from not having an account to having a diversified portfolio by copying a Strategist in minutes. You can deposit using a credit card, for instance, which credits your accounts in seconds after confirming the transaction!
Yes, on ICONOMI, no one but you can access your funds. You can stop copying a Strategist at any time, for any reason, and withdraw your investment and any and all gains. Your funds copy the Strategist’s moves, but they do not have access to these funds; only you do.