A deep dive into Bitget copy trading
Leading crypto exchange Bitget.com is well known in the crypto industry for its trading products, easy on-off ramp Fiat solutions but especially the copy trading platform. The platform launched its partnership with Lionel Messi in October 2022 and is the primary sponsor of the upcoming Coin Bureau conference on 10 June 2023 organised by the well-known YouTuber.
In this article, we will take a deep dive into what copy trading is, the pros and cons, and how you can effectively use top experienced trader strategies with Bitget’s copy trading platform.
Bitget copy trading
Copy trading describes the practice of investors taking trading positions that are identical to those of other investors (commonly referred to as professional traders or experts). Bitget Copy Trade offers a transparent trading environment where you gain profits when the trader you are following wins.
Bitget was the pioneer in launching copy trading in the crypto world in 2020. To date, Bitget has amassed over 80,000 traders and more than 338,000 copy traders, and has developed a global network of more than 100,000 KOL making it the largest cryptocurrency copy trading platform in the world.
The platform has increased its functionality and number of professional traders ever since and we would like to provide an overview of the main product features.
How to Pick traders in Bitget
The first step to initiate copy trading is to find a competent trader to follow and make profits with. What are the most important key performance indicators to look at when picking a trader?
– Long-term profit: A trader that has been profitable for the long term will very likely guarantee you a long-term profitability
– Trader strategy: A trade that is using a sound strategy such as setting appropriate take profits and stop loss features
Bitget also provides you with a list of key performance indicators (KPIs) to monitor to evaluate your perfect trader.
Analyse traders proven track record
As a follower of copy trading, Bitget makes available the ranking, followers, return on invest (ROI), total profit & loss (P&L) of each trader.
You can look at how many other people have invested with the trader using actual money to get signals from them. The benefits that followers receive from adhering to that signal provider should also be considered. On the Traders Bitget profile page, you can find this information.
In addition, another important factor to consider when managing risk whilst participating in Bitget’s copy trade is to stay informed about the underlying trader’s development. This includes assets under management (AUM), PNL ratio on different time frames and follower count.
These variables can help to identify potential issues that may impact the performance of a crypto copy trading expert. In turn, it will be easier to make informed decisions with who you follow. It is also important to have a clear understanding of one’s trading capital goals and risk tolerance. This can help to ensure that investments are aligned with a new trader’s personal financial strategy and help to avoid making impulsive decisions based on market volatility.
The ideal trader to imitate must have consistent returns.
Extremely high returns might sound alluring, but proceed with caution because they are rare and typically the result of excessive risk. Look at the monthly returns to see if the performance can be attributed to a particular month or if it is steady. Bitget provides a chart to monitor this KPI.
Two main KPIs are analyzed in this charge: 1) P/L Ratio (%). If the yield curve has an upward trend and is stable for a long time it denotes good profitability. 2) Total Income: The trader’s profitability is correlated with total return.
Number of followers
Similar to social media, having a lot of followers can be another indicator that the trader has popularity. A good practice for you as a follower is to approach the trader followers to get their thoughts and trading strategies in addition to trading advice. The fact that the trader below has the most followers makes them a trustworthy trader at Bitget.
An important point to be aware of is that on Bitget each trader can have a maximum of 300 followers. As such, if your preferred trader does not have spots for your to follow, you can set up a reminder and Bitget will notify you when a spot is available.
Other performance indicators, not less important, can be analysed:
Number of Trades: this will help you understand how consistent the trader is and if the profits generated are occasional or consistent.
Consistency: You should pay attention to consistency in addition to the number of completed trades. A successful trader has a run of profitable months (for example 12 months) with only minor losses in between. At Bitget copy trading platform you can see the trader’s track record by visiting their profile page. In addition to that, the volume traded can say a lot about the trader’s consistency. If the volume traded remains steady, it shows that a solid strategy is implemented. If the volume fluctuates heavily, it might point toward excessive risk-taking and trading on high leverage.
Confidence: Copy Trading is a social endeavour, which means you can learn not only from the trader, but from its followers as well. Confidence from other people can say a lot about the trader’s skill level. If there are followers that allocate significant funds to the trader, it can be an indication that this trader has had proven success in the past, and that traders are deciding to allocate more funds as they come to trust the trader’s results.
Risk management for One Click Copy Trade
Risk management is a critical aspect of investing in the cryptocurrency market, particularly when starting with a relatively small account size of $100 or $1,000.
Cryptocurrency prices are highly volatile, and without proper risk management, it can be easy to lose a significant portion of one’s trading capital. An important strategy for managing risk in the cryptocurrency market is to diversify one’s portfolio.
Likewise, this well-known principle can be applied to our social trading product, One Click Copy trade. Thus, by following a range of different expert crypto traders a follower can feel more confident in their market exposure, as opposed to putting all of one’s trading capital into a single trader.
Using the outlined points above a follower can make an informed decision about which traders to follow. Additionally, setting stop-loss orders can help limit potential losses by automatically selling a cryptocurrency if its price falls to a certain level – protecting a trader in uncertain market sessions.
In conclusion, the following notes are important to find a good trader:
– High yield, high return, and high total follower return are the most crucial data indicators.
– Examine the trader’s positions and trading volume to understand the trader’s strategy
– Focus on traders that have long-term track records (such as > 12 months) as those are the ones with more consistency and long-term view
– Effective risk management even when copy trading is crucial for success in the cryptocurrency market, particularly for those starting with a small account size. A diversified portfolio, stop-loss orders, staying informed, and having a clear understanding of your investment strategy’s risk tolerance are all important things to consider for managing your exposure in the crypto market.
Bitget, established in 2018, is the world’s leading crypto exchange with a core focus on social trading, currently serving over eight million users in more than 100 countries worldwide. The exchange is committed to providing users with secure, professional, and one-stop trading solutions and aims to increase crypto adoption through collaborations with credible partners. Bitget is the exclusive crypto exchange partner with legendary Argentinian footballer Lionel Messi, the official eSports events organizer PGL, and the first sleeve partner of the leading Italian football team Juventus.
To safeguard users’ funds on the platform, Bitget adopts top-notch security and protection measures, including a $300 million Protection Fund, a Fund Custody service, pledged to be fully reserved by the Merkle Tree Proof of Reserves model.
To learn more about Bitget, please visit https://www.bitget.com.
The value of your investments can go down as well as up and you may get back less than you originally invested.
In paid partnership with Bitget.