What is a bot for copy trading
Bots for crypto trading have long ceased to be a gimmick for experienced traders. With their help, users are able to automate the trading process, which helps to increase profits, as well as to make only those trades that match the chosen strategy.
Bots for crypto-trading make trading much easier, but their mastery remains difficult for newcomers who are not too familiar with financial markets, Forex, etc. If you are a beginner and want to try organizing a passive income for yourself, pay attention to copybot. This is a special software for social crypto trading.
What is social trading
Social trading first appeared in 2005. That’s when the financial world saw the opportunity to copy the actions of other traders. All market participants benefited from it. Beginners could learn more about trading and get some profit from the actions of experienced traders. Professionals received a commission for it. At the same time the essence of their strategy was not disclosed, so they could continue to exchange positions without prejudice to their interests.
That is, the social trading is a repetition of all the deals of the experienced traders. It does not always lead to profit. If the trader suffers a loss, the trade becomes unprofitable for the market participant who copied his actions.
Modern social trading provides not only copying of deals. It is possible to copy other parameters: stop-loss, take-profit, trailing stop-loss and many other things. This allows you to learn much better how the market works.
Bot for social crypto-trading
Copybots is a software that allows you to copy other crypto traders’ signals. The first bot that opened such an opportunity for users in the cryptocurrency market was the famous Cryptohopper platform.
The user can copy the actions of successful traders, which are called “Signalists”. However, not every user can become a Signaller. The platform carefully selects traders to avoid fraud and abuse. Currently, Cryptohopper offers more than 30 signalers to choose from. The user can carefully read the performance of each trader and choose the best option for their needs.
Advantages and disadvantages of social crypto trading
Before using copbot trade, pay attention to the pros and cons of social crypto trading. You should carefully analyze all the information, because a wrong choice can lead to the loss of your entire deposit.
The advantages of social crypto trading should include:
- Training. A beginner will be able to see for himself how a professional works, and on the basis of this to make appropriate conclusions.
- Passive earnings. Experienced traders, as a rule, work in profit. A beginner has an opportunity to choose a professional with the help of which he can count on the stable income even taking into consideration all commissions for transactions, withdrawal of funds and social trading.
- Lower risk. Beginners often rush into seemingly profitable deals emotionally, which leads to loss of deposit. Social crypto trading avoids this situation.
The disadvantage of social crypto trading is the high volatility of the cryptocurrency market. No one is immune to losses, in case of an unsuccessful transaction for a trader, losses will be waiting for you as well.