What is a copy trading bot

What is a copy trading bot

Crypto trading bots are no longer a curiosity for proficient traders. With their help, users get the opportunity to automate the trading process, which helps to increase profits, as well as to carry out only those transactions that correspond to the chosen strategy. 

Crypto trading bots make trading much easier, but it remains difficult to master for beginners who are not too familiar with financial markets, forex, etc. If you are a beginner and want to try organizing 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 period it became possible to copy the actions of other traders in the financial world. All market participants benefited from this. Beginners could learn more about trading and make some profit due to the actions of proficient traders. Professionals received a certain commission for this. At the same time, the essence of their strategy was not disclosed, so they could continue to share positions without prejudice to their interests.

Scilicet, social trading is a repetition of all transactions of experienced traders. This does not always lead to profit. If the trader incurs a loss, the trade will become unprofitable for the market participant who copied his actions.

Modern social trading involves not only copying the transactions themselves. Other settings can be copied: stop loss, take profit, trailing stop loss and much more. This allows you to get a much better idea of how the market works.

Bot for social crypto trading

Copybots is software that allows you to copy signals from other crypto traders. The first bot that opened such an opportunity for users in the cryptocurrency market was the well-known Cryptohopper platform. 

The user can copy the actions of successful traders, which are called “Signallers”.  At the same time, not every user can become a signaller. The platform carefully selects traders to avoid fraud and malversation. At the moment, Cryptohopper offers over 30 signallers to choose from. The user can carefully study the indicators of each trader and choose the best option for their needs. 

Advantages and disadvantages of social crypto trading

Before using copybot trade, pay attention to the pros and cons of social crypto trading. You should carefully analyze all the information, because the wrong choice can lead to the loss of the entire deposit. 

The benefits of social crypto trading include:

  • Education. A beginner will be able to independently see how a professional works, and draw appropriate conclusions based on this.
  • Passive income. Proficient traders tend to work in plus. A beginner has the opportunity to choose a professional with whom you can depend on a stable income, even taking into account all the commissions for transactions, withdrawals and social trading. 
  • Lower risk. Beginners often emotionally rush to profitable deals at first sight, which leads to the loss of the deposit. Social crypto trading avoids this situation.

The disadvantage of social crypto trading is the high volatility of the cryptocurrency market. No one is insured against losses; in case of an unsuccessful transaction for a trader, losses will also await you.