Copy Trading Works with Cryptocurrency for Passive Income

Copy trading is just what it sounds like. You copy other traders who have successfully traded the cryptocurrency you are interested in previously. Of course, like any other venture, “Past performance is not an indicator of future results.”

I don’t know who first coined this phrase, but you will read it or hear it repeatedly from brokers and other financial advisors to cover their butts if your investment goes south.

Many think they can do as well as any other traders if they research and invest in solid performers. That will work well if you have time to research cryptocurrencies, but what if you don’t have the time to research and watch the market. Particularly with the pace of cryptocurrency and the 24-hour market.

You could be up 200 or 300% at the end of the day, go to sleep, and wake up to a massive loss. The first week of December 2021 has been a prime example of that possibility. Of course, if you don’t sell while the market is down, you only lose on paper. Paper losses are not fatal, nor are they long-term, typically.

How to Copy e-Toro Investors

Say you have some money to invest and no time to do the research. Instead of hiring a financial advisor, you could pick one from e-Toro. Select the Discover Top Investors & Traders page to find like-minded traders or investors.

Some investors choose to copy only cryptocurrency investors or only stock market investors. You could choose a trending investor or “most-copied” investor who has made 75% to 80% over the past 12 months.

Likewise, some top long-term stock investors have earned more than 100% over the past 12 months. Another option on e-Toro is to copy a multi-strategy investor; some have earned between 28% and 88%.

You can look at their “page” on e-Toro and see how they trade. Some use “robots” to pick investments, while others might hand-pick only high-dividend stocks, which almost everyone believes are “safe” stocks.

You can see from the screenshot that you can choose the parameters, such as where they’re from, what market, how much they’ve gained, and over what timeframe.

You can match your beliefs to an individual, group, or financial advisor and even invest a specific amount each month or quarter while taking advantage of “dollar-cost-averaging (DCA).”

“Dollar cost averaging is a strategy to manage price risk when you’re buying investments, like stocks or mutual funds. Instead of investing in a particular asset one time, with a single purchase at one price, with dollar cost averaging you divide up the amount of money you’d like to invest and buy small quantities of the asset over time at regular intervals. This decreases the risk that might pay too much for an investment before market prices drop.” — Forbes.

Then, once you’ve chosen whom to copy, you will need to confirm that you understand how it works.

e-Toro is not the only platform where you can participate in copy trading. Still, it is the one I am most familiar with, so if you want to use another platform, watch a YouTube video or read another article.

Here is a tutorial about copy trading on Bityard.

How to COPY TRADE on BITYARD Exchange | Beginner’s Guide | Complete Tutorial

#Bityard #CopyTrading #Tutorial

Final Thoughts

Copy trading isn’t for everyone. If you have the time, the best method is to do the research yourself and choose a solid investment strategy only with money you can afford to lose if the market or investment option makes a significant correction.

However, if you do not have the time to manage your account, this is a proven method cheaper than hiring a financial consultant. And, if you don't do as well as you expected, you have someone else to blame it on besides yourself.

DISCLAIMER: This article is for entertainment and informational purposes only. It should not be considered financial or legal advice. Not all information will be accurate. I am not a financial adviser, and anything I propose should be considered friendly banter to show you what is possible if you invest your money in these vehicles. However, there are no guarantees. Consult a financial professional before making any significant financial decisions.

Stephen Dalton is a retired US Army First Sergeant with a degree in journalism from the University of Maryland and a Certified US English Chicago Manual of Style Editor. Also, a Top Writer in Nutrition, Travel, Fiction, Transportation, VR, NFL, Design, Creativity, and Short Story.

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