Copy trading is a method in which one investor can trade by copying another person’s trades on a platform. This is a good method for people new to trading in any market, especially in the cryptocurrency arena.
Initially, the introduction of cryptocurrency was treated with skepticism by global financial markets and investors. Bitcoin and Ethereum are among the best- known and their returns have been phenomenal at 800% and 400%, respectively. Since this field is complex even for veteran investors and has high barriers, copy trading platforms make it easier for beginner investors.
Copy-trading platforms in the UK have to register with the Financial Conduct Authority before investors can sign up. After signing up, an investor must have a basic idea of how to trade. They don’t need to spend too much time learning about individual market trends and what assets to hold or sell. They can watch other investors’ portfolios and choose the same method of investment by duplication.
Duplication of portfolios and trading is possible via platform interfaces. Every FCA copy trading platform offers features such as wallets, exchanges, pricing features, and even the ability to transfer tokens from one wallet to another. Trying to find investment opportunities on such platforms offers users a good experience and the opportunity to learn more about their favorite investment instrument. Not only that, one investor can reach out to another for help and advice on different aspects of a portfolio.