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What is Copy Trading in BingX Cryptocurrency?

BingX - Editor 2022-04-21 13:45

As the International Journal of Engineering, Science and Mathematics has pointed out, any investment transaction holds risk. The biggest mistake a trader can make is not preparing an ironclad financement management plan before making an investment decision. 

Financial Management vs Lack of Financial management

Although there is no guarantee of a 100% profit rate of every transaction, minimising loss through proper management of funds is key. Even the most experienced trader does not make profits from every trade. However, if you plan your investments well through deep research and extensive tracking, you can still make profits overall.

Financial management means strictly following the systems that you have set through your trading methodology. Managing emotions is a key factor to defining a winning strategy for yourself. To form a healthy trading mindset, it requires the formation of good investment habits over time. With a well-planned strategy, you can do away with your emotions and start investing based on factors and signals. 

Without the concept of financial management in your trading routine, you may find yourself trading because of hype. The unfortunate truth is that we are naturally FOMO, and many crypto projects utilise this social phenomenon to create rugpull projects. Day traders may not face such issues as they can react to trends and updates quickly. However, the majority of traders have day jobs and crypto doesn’t sleep. With a 24/7 open market unlike the traditional stock market, traders face many challenges. Even with good financial management, traders may not be able to execute their plan like a day trader does. 

Copy Trading 

The concept of copy trading is simple: when a trade is opened by the lead trader, the system will place the exact same order at the same time accordingly for the user. Variables such as capital amounts, maximum profit rate and maximum loss rate can be set by the user before they agree to follow a trader. 

Copy trading helps users avoid the long-term learning curve but instead divert them to simply follow experienced traders. This does not mean that users should be completely oblivious to daily happenings. 

The more traders an exchange has, the more options users have.

You may also like “What Is the Difference between Social Trading, Copy Trading, and Mirror Trading?

How to Choose a Copy trader? 

Some measurements that users can look out for are cumulative PNL(Profits and loss of USDT assets) and profit rate. Each of the variables should define your strategy when copying trades. 

High profitability usually drives users to the trader and ignores the drawdown rate of traders. A lower drawdown rate means a small risk appetite. The lead traders usually close a trade at a lower percentage. Lower drawdown rate traders may not excel in a market that is filled with opportunities. 

Trading history is another key factor to look out for when choosing a copy trader. Typically you would want to invest in a trader with a proven track record. The longer the transaction history, the better. Stability within their transaction history can also show the traders performance. 

The difference between BingX copy and other exchanges

BingX is the first exchange to provide crypto copy trading services. Our volume of traders and historical records are unsurpassed by other exchanges. Additionally, every order transaction has no service fee, only an open order fee, which is 0.045%. 

BingX's documentary system regularly listens to users' opinions and upgrades. In addition to the original contract copying and spot copying .Grid copy trading will be upgraded in 2022. Documentary service is provided for different user needs and traders can provide single trading signals and long-term copying services.

FAQs

Why Cryptocurrency copy trade instead of stock copy trade?

Although no investment products can guarantee continuous profits, the stock market has been struggling in recent years due to COVID-19. Cryptocurrencies consistently kept afloat with creative ideas and projects such as NFTs, gamefi and DeFi. Many stock traders have then begun to convert to cryptocurrency in recent years. 

What is the minimum amount for account opening and copying?

There is no limit for BingX Accounts. A user can copy an order with just 1USD. 

BingX security and reliability?

BingX has multiple national trading licences, including trading licences in Europe, the United States, Australia and other countries. And it is actively applying for more regional trading licences. It has also won the title of Best Exchange in TradingView in 2021.

How to start copy trading?

BingX's copying process is very simplified. Users first choose the trader they wish to copy, and input the amount that they want to invest. The system will automatically place an order when the trader starts trading.

Are there any other fees?

There are exchanges that charge spread, sometimes as high as 3% per transaction. It is usually a hidden charge that traders only find after a closing of an order. If the market is fluctuating violently, a profit can even turn to a loss after a closure. BingX does not charge spreads and has a transaction fee of 0.045%. There are no other fees.

The fees that users pay for depositing and withdrawing funds, are miner fees. These are not charged by BingX.

What is the most economical way to deposit and withdraw money?

For deposit and withdrawal, choosing USDT stable currency TRC-20 deposit and withdrawal is the most economical way. The fee paid to the third-party service provider is 1 USD for a single transaction, and there is no limit. Other cryptocurrencies may have a higher gas fee or transaction fees. 

Depositing USDT is currently the most economical way to deposit funds through various channels of BingX.

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