Copy trading, also known as mirror trading or social trading, is a type of trading strategy in which traders replicate the trades of another trader or group of traders. In the context of crypto trading, copy trading allows investors to automatically copy the trades of successful and experienced traders in real-time.
Copy trading platforms typically offer a wide range of traders to choose from, and users can choose to follow and copy the trades of one or multiple traders. When a trader they are following makes a trade, the platform automatically replicates that trade in the user’s account based on the parameters set by the user.
Copy trading can be beneficial for novice traders who are looking to learn from experienced traders, as well as for investors who do not have the time or expertise to actively manage their portfolios. However, it’s important to note that copy trading comes with risks, as traders may not always have a full understanding of the risks and complexities of crypto trading. Therefore, it’s important for users to do their own research and due diligence before following or copying any trades on a copy trading platform.