Over the past few months, billions worth of trader’s money has been liquidated as the cryptocurrency field witnessed one of its most volatile periods ever. Many experienced traders and newbies lost huge chunks of money trying to predict the future price of Bitcoin during its rise to $62,000 and the sudden crush to below $29,000.
However, successful crypto traders have honed their skills by spending hours in front of their trading screens and closely following the markets. These crypto traders must be assiduous in watching the market and learning it deeply, given its markets are still in the budding stage compared to traditional stocks and forex markets. It requires paying close attention to the rumblings in social sites (such as Elon Musk’s tweets), deeply understanding the market conditions, and sometimes using bots to execute the trades.
Despite the high returns in actively trading cryptos, most investors are not skilled enough or don’t have the time to learn the market or keep an eye on their screens 24/7. As a result, active trading can sometimes be difficult and expensive, especially for newbies in crypto. Nonetheless, the high returns associated with active trading can not be dismissed – but only when done successfully.
Copy-trading has pushed most crypto investors to choose HODLing overactive trading, choosing to forego the high returns in active trading due to their little skill and experience in the field. What if you could still earn high returns in trading crypto markets without actively trading?
Combining the Best of Both Worlds
NewsCrypto Copy Trading platform aims to make it possible for anyone to have a successful trading portfolio in crypto. The platform makes professional traders for traders, earning them a sizable return from the trades without the need of being an experienced or a trader at all. All you need to do is start following an experienced trader’s trading strategy and get returns!
Similar to eToro’s copy trading feature, NewsCrypto allows users to copy an experienced trader’s moves and then automatically invests the amount of money you placed at the start into the same assets they buy or sell. To incentivize traders, a small fee is paid to the experienced traders who help their followers make a profit.
Traders are listed on a profit and loss (PnL) leaderboard in descending order, and the list is available to the public. It allows users to select their pick amongst the world’s top-tier crypto traders and investors and their strategies, earning them a passive income in returns.
Copy-trading the little-known and unknown traders to showcase their skills and build their trading skillset alongside the best. Furthermore, the platform offers passive earning opportunities to both the trader and the follower. Additionally, the less-experienced traders also learn a lot in following traders and compete with the world’s most experienced crypto traders.
The copy trading platform is slated for launch in the summer once the new upgrade, NewsCrypto 3.0 version, is complete. In preparing for the launch, NWC (the platform’s native token) holders will be able to receive several rewards and benefits.
The Future and Risks of Copy Trading
Copy-trading also referred to as social trading, is expected to grow to €70bn in 2025 (annual growth of 48%) as more traders enter the space. With crypto platforms such as NewsCrypto in the mix, new traders and inexperienced traders will be able to have a cut of the returns – especially in the volatile crypto market.
While the advantages of copy trading are undeniable, there are still some risks involved in placing your capital on another trader. The overall market risk, liquidity risk and trader’s histories are some of the challenges that new traders still face. In addition, choosing a long-term reliable trader to copy can be difficult. Therefore, it is up to you to do your own homework to make sure you understand your chosen traders.
As is with any financial market, there are risks involved if the traded assets have an illiquid market, i.e. how easy it is to enter or exit a position. It is important to note which assets a trader has in their portfolio, transaction fees and how easy it is to move between the assets they buy and sell. Return is not everything!
Copy-trading was first launched in 2005 and has been on a growth path for the past decade and a half. It is key to select a trusted and regulated exchange such as NewsCrypto to ensure the platform always works as planned. Nonetheless, copy trading is not a “set and forget” tactic – you need to keep checking your portfolio to get the best returns.
While copy trading looks like an easy route to get returns from the best professional traders, it could be challenging to achieve the exact results in your accounts. Therefore, traders – especially in the crypto market – need to be patient and keen to achieve desired results.