Since the announcement of Apple stocks, the next investment focus will be cryptocurrencies, in particular Bitcoin, which is caught the highest trader attention. While writing this article, there are almost 1200 cryptocurrencies on the market. The choices are vast. That’s why it causes difficulties to traders in distinguish the one that brings you the best part. Traders are wondering a frequent asked question: which is the best cryptocurrency trading strategy?
Therefore, this article will help you to figure out the best trading strategy of cryptocurrency, which is also called copy trading.
WHAT IS COPY TRADING?
Copy trading is as simple as its name. The principle is that you will copy from other traders. While there are a majority of trading strategy providers out there, you would prefer a strategy that fit your expectation and characteristics. The copies trades will be similar from the providers’ account to the copier’s one. The fact is that, you win as they win and you lose as long as they lose.
The action of your trading is suggested to be as similar as the action conducted by the provider with a fund ratio, including open a position, set stop-loss, close position… For Instance, if provider deposit 10,000 USD while your fund is only 100 Dollars, so the ratio would be 1:100. As the consequence, 100 dollars providers made, 1 dollar you are profited. It sounds fair enough.
THE ADVANTAGES OF COPY TRADING
There are thousands of principles a trader need to master in order to become a successful and profitable trader. They are monitor trades, manage orders, control emotions, manage psychological, funds and risk. The time for these process would be long.
However, the learning process can be reduced as long as you copying trades. Here are some advantages:
A VARIETY OF CRYPTOCURRENCY TRADING STRATEGIES
There are hundreds of cryptocurrency ranges are available for trading that easily to access. Each tactic will be the best fit for a kind of trader characteristic. Therefore, every trader now can easily evaluate the most comfortable tactic regarding their profit rates, deposits, time frames, and risk rates. Whatever kind of trader you are, a scalper, a day trader, a swing trader or a gambler. It is your choice.
There are some trading platform, traders can check their copy trading history. It would show the amount of earnings they made or lose, their recent activities during events, their reactions toward changes. All of these information appear within their trading history. Therefore, the scammers are hard to work on this feature.
Overall, you are in-hand the best trading strategy of cryptocurrency and where to have it. Notice that, although the strategies are vast, the one you need is the most fit your characteristics.