Copy trading allows traders and investors to automatically copy the trades of successful and experienced traders.
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Copy trading is suitable for new investors to the crypto market due to its automated trading system, which replicates the trading actions of experienced traders. For example, if a selected trader spends 10% of their portfolio on a certain token, the system also copies this trading action by spending 10% of your portfolio on that same token as well. However, new investors who would like to utilize copy trading should learn and understand the selected traders’ strategies beforehand, as every tool comes with advantages and disadvantages.
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☑️Advantages of Copy Trading
– Appropriate for new investors: They can mimic the trading actions of experienced traders without having to study or have much experience in the crypto world.
– It’s like self-learning: new investors can learn more about the crypto markets by watching and following trading strategies from experienced traders that they have selected.
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❌Disadvantages of Copy Trading
Risk during market volatility: since there is a slight delay in the trading actions of selected traders, the results may turn out differently in volatile markets.
Risk from not having control: If new investors copy investors with high risk, they may lose their investment funds because each trader has different investment funds and risk tolerance.
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There are many tools that can help investors become successful in the crypto market, but it’s important to first understand the advantages and disadvantages of the tools. Therefore, do your research about the tools that can help with your strategies and your risk tolerance before investing!
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Follow for more trader-friendly knowledge at Bitazza Thailand and Bitazza Content Hub https://content.bitazza.com
Cryptocurrency is highly risky; investors may lose all their investment money. Investors should study the information carefully and make investments according to their own risk profile.
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Source
https://dailycoin.com/ultimate-guide-to-crypto-copy-trading/
https://learn.bybit.com/th/copy-trading/what-is-crypto-copy-trading/
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