Underestimated Benefits of Crypto Copy Trading for Traders

The first thing a crypto trader does when the day starts is checking the status of his portfolio over a cup of invigorating coffee. His morning newspaper is cryptocurrency world news: a dozen mailings, news feeds of websites dedicated to digital currencies...
Oleg Uppit, Russian Trader

I'm not completely sure that all 3 million crypto traders living in Russia spend their mornings this way, but I definitely know that the cryptocurrency market is a complex and orderly system with its own rules and laws. And those who have managed to understand it and have been trading profitably for a long time are really erudite people.

But today I would like to talk about something else. Let's examine a type of investment that became common in traditional financial markets in the mid-2000s — copy trading, or social trading. Experienced traders enable people with little trading experience or limited time to “mirror” their trades. Moreover, special mirror trading platforms that provide interaction between traders and investors have been built.

The benefits for newbie investors are clear, indeed. But you may ask: "What’s in it for traders?"

It goes without saying that there is no reason for professional traders to reveal their best trading strategies if it does not increase their profits.

First things first.

Crypto Copy Trading Perks for Traders:

1. Passive Income on Professionalism.

You've probably noticed that hard work in a certain area polishes your expertise. Bigger expertise means higher earnings. This is quite logical.

Copy trading services give the trader an opportunity to make money on professionalism.

We live in the information age, and you have to pay for any valuable information (especially the one that can grow your capital). Therefore, the social trading platforms mentioned above allow traders to charge commissions from newbie investors and generate additional flow of income. It can be a profit sharing or a fixed fee for a certain period.

The trader continues to trade like he did before. He just earns additional money thanks to his expertise without increasing the deposit or risk.

2. Assessing Yourself as a Trader.

Copy trading platforms allow you to evaluate yourself as a trader. Usually, the better you trade, the higher you move up in the trader rankings. You understand how successful you are among competitors, and you can mark points of growth for yourself.

At the same time, you can get acquainted with other trading strategies. Who knows, they might give you fruitful ideas.

3. Motivation for Professional Growth.

This is a direct outcome of the second point. Usually, when you get into a competitive environment, it motivates you to get better. Perhaps, copy trading can become a new era in the professional career of a trader.

Let's consider how it works on a specific copy trading platform. For example, Coinmatics.com company positions itself as a crypto copy trading platform. Here you can start both manual and automatic copy trading.

First, a trader connects his trading strategy using the exchange API key. Next, his subscribers/investors:

a) copy trades in the automatic mode using the service and pay a commission to the trader;

b) pay a monthly subscription for the coveted access to Telegram signals about trader’s deals.

And Coinmatics takes a modest commission on the trader's earnings on the platform. That’s an example of how traders can monetize their experience.

Second, when the trader submits his strategy and starts trading, its rating is calculated. It will be visible to everyone on the platform and the traders can compare his performance with other traders. The trader can estimate his performance by the number of his subscribers. Moreover, there are some cases when copy traders get enough experience and turn into traders by sharing their trading strategies. Take it as an idea of professional growth.

To make a long story short, I see that the trading sphere and cryptocurrency markets are changing with the speed of light. One of the things that I've noticed in trading careers: if you stand still, you are actually going backwards. It’s time to make your move.

Written by Sofia Gavrilenko — Marketing Content Manager at Coinmatics copy trading platform. She creates textual and visual content for the Coinmatics brand, develops herself as a Fintech writer.