Copy trading is a type of social trading traders can observe and follow the trading strategies (such as take profit and stop loss) of their peers either manually or by use of a copy trading bot. This is the perfect way where novice traders can get the same results as professional traders.
A crypto trading bot refers to a platform that uses pre-programmed algorithms to run automated tasks of managing your trading portfolio. They are seen as an alternative to exhaustive manual trading.
Benefits of Using Crypto Copy Trading Bot
There are many benefits of using bots for copy trading as compared to manual copy trading.
Saves on time – The process involved in copy trading can be time-consuming and draining. You have to choose an expert from a pool of traders, find out when they place a trade and keep monitoring until they stop a trade. This is a long process. A bot automates the process to make it almost instant.
Copy trade 24/7 – As humans, we are limited on how many hours we can work daily. The trading robot never sleeps. It’s always analyzing your peers and copying their trades even when you’re sleeping.
Emotions free trading – At times, it can be irritating when you copy the wrong trade. This could make you develop a negative attitude towards crypto trading, which in turn leads you to even more wrong decisions. With a Crypto bot, you eliminate the stress and anxiety involved in trading.
Earn with zero experience – Crypto bots do most of the work for you. Your only input is choosing the bot that meets your needs and sets your terms. From there, you sit back and allow the bot to do the complex things for you.
Access to information – A crypto trading bot is usually linked to other sites through APIs. A bot, therefore, has a wide range of information to analyze, compare, and make viable decisions.
How to Copy Trade with Shrimpy
Shrimpy is the number one crypto trading platform in the market today. The platform stands out as the best portfolio management with its social trading functionalities. It offers a wide range of features and possibilities that makes crypto trading easy and more profitable. The following are some of the unique features of Shrimpy that makes it outstanding.
Shrimpy Unique Features
The following are some of the unique features that make Shrimpy outstanding.
Rebalancing – Shrimpy trades on your behalf buy automatically executing a buy or sell request for pairs that are aligned with your goals at any given time.
Backtesting – involves analyzing a strategy and simulating its potential performance over historical data to reduce the risks.
Multi-exchange support – Shrimpy supports several crypto exchanges including KuCoin, Binance, Bittrex, Coinbase Pro, Poloniex, Kraken, Bibox, Huobi, Huobi Global, Gemini, BitMart, OKEX, HitBTC, and Bitstamp.
Social trading portfolios – The social trading platform on Shrimpy is a unique one with incentives for both leaders and followers. Shrimpy’s Social Portfolio dashboard presents a breakdown of allocations for each cryptocurrency trade made by leaders. The platform also offers several bots to help traders with their portfolios. Notable among them is the copy trading bot.
The Philosophy of Leaders and Followers in Shrimpy – Leaders are experienced traders who set the pace for others to follow. Unlike other bots, Shrimpy followers are not limited to only one leader. Rather, they can divide their portfolio to allow multiple leaders to manage a percentage of their funds. For effective copy trading, Shrimpy monitors changes on a leader’s account balance every minute. Any relevant change detected on the leader’s account balance is sent to all followers of that leader who then execute relevant trades to match the leader.
Benefits of Copy Trading with Shrimpy
Almost Instant Notifications – Shrimpy collects balances of traders’ accounts on a 1-minute interval. In other words, followers are only 1 minute behind their leader.
Wide Range Trading Opportunities – Rather than only allowing copying of strategies that the platform supports, Shrimpy leaders can also execute their trades on other platforms, manually, or use bots. The bot will then detect that trade and notify followers on Shrimpy.
In a short time, cryptocurrency trading has joined the list of top ways to make money online. It has attracted people across governments, the private sector, as well as the developers’ community. Many tools and policies have been developed to improve efficiency, profitability, and ease of use of crypto trading platforms. Copy-trading concept has been around in financial trading, and it’s now taking crypto traders by storm.
It isn’t a surprise that trading bots are now being developed for this very reason – to help people learn through practice. This is the most selfless act by crypto trading platforms towards novice traders. And what’s more, some of these platforms, like Shrimpy, have gone further to provide extra features for their users to make more profit. Indeed, there has never been a better time to start trading crypto.