Getting inspired by colleagues or friends and beginning with trading cryptocurrency sounds incredible. Nevertheless, it’s not that easy; trading without knowledge is equal to shooting in the foot. Crypto markets are very volatile, and you can lose a lot of money if you don’t have prior experience.
This is where BYDFI copy trading comes in, and it enables a trader to learn and adapt to the trading environment from an experienced trader.
What is copy trading?
The word ‘copy trading’ is very simple if it comes to its literal meaning, “copying the trades”. Copy-trading is the copying of trade of expert traders on the trading platform.
Trading can be carried forward in many different ways, but copy trading is most suitable for beginners. An individual cannot directly jump into trading; they first need to understand how the trades work.
Why do beginners prefer copy trading?
Copy-trading enables beginners to automatically copy the positions opened by the traders of their choosing by paying them a percentage of the profits or a monthly fee.
It helps the traders gain extra profit and the beginners a chance to learn the aspects of trading.
Copy-trading allows a beginner to learn directly from an expert and develop the skills needed for trading. Besides, it can even help experienced traders to gain information about the assets they might not have experienced earlier.
Getting started with BYDFI Copy Trading
Getting started with copy-trading requires signing up to the trading platform and depositing the amount you wish to invest.
What is BYDFI?
BYDFI is one of the best crypto trading exchanges, based in Singapore. Their massive network covering more than 150 countries enables their traders to trade being independently of their country.
With the concept of “complex contract simple trade” BYDFI aims to provide the opportunity to traders all around the globe to trade their assets with ease. A simple user interface and a beginner’s guide on the website aim to help newbies to trade.
What are the things BYDFI offers?
BYDFI offers a smooth and quick sign-up process, taking approximately 30 seconds to set up an account. With leverage of 100X and a currency exchange fee of 0.05%, BYDFI is the ultimate trading platform.
BYDFI offers a 258 USDT welcome bonus to its new users and encourages trading. Moreover, BYDFI not only offers cryptocurrency derivatives exchange but also enables the option for copy trading.
To learn more about BYDFI’s offerings, read our in-depth review of the BYDFI platform.
Copy-trading with BYDFI
BYDFI offers one of the most diverse copy-trading platforms and provides a simple user interface for beginners. On accessing the copy-trading tab, one can easily make out the traders’ details on the screen.
BYDFI sorts the traders based on their profit rate and provides the copy-traders with an opportunity to choose the best trader of their interest.
The process of copying a trader is straightforward, and all you need to do is click on the follow button at the bottom of each profile tab or the trader’s profile.
On clicking the follow button, the copy-trader will be directed to a new tab giving them the option to choose between fixed count and fixed ratio.
Use our BYDFI invitation code to get a 258 USD fee discount - zPe4QC
The trader is prompted to enter the copy margin anywhere between 5 USDT and 50 USDT. An option to provide daily copy margin (in USDT), MAX Position Amount (in USDT), and the stop-loss ratio is prompted.
The trader is asked to input the ratio between 2-200% and a warning value (in USDT). The user is then asked to enter a daily copy margin, MAX Position Amount, and Stop Loss Ratio.
However, these options will only be available to a trader after creating their account on the website.
What information about the trader is provided at BYDFI?
BYDFI offers all the necessary information about the traders on their profile tab. This information includes the Profit Rate (PR), Win Rate(WR), P/L ratio, trading days, and the number of followers.
The total number of trades made by a trader in 30 days can also be seen on their profile. This gives an estimate of how frequently the trader makes a trade.
There is also an option to sort the traders based on the trading style, profit rate, and trading days before following a trader.
All of the information provided on this window updates every two hours.
How to choose the best trader?
Observing the traders’ profit rate: On studying the profit, a beginner can easily follow the percentage and vouch for the trader with 80 or higher percent. Although there is no certainty of gaining a profit by copying them, they generally know their dealing.
Checking the P/L ratio: The Profit/Loss ratio can tell a lot about a trader and can be considered an actual parameter to determine their overall success. Although it is available only for 30 days, owning a P/L ratio higher than 50% is a great asset.
Win rate (30 days): Win rate is the number of profitable trades divided by the total number of trades, and then taking its percentage. This provides a rough estimate of the probability of success of the trader.
Trading days: This feature can give an estimate of the trader’s experience. Choosing a trader with more significant experience in trading can increase the chances of making a profit.
The number of followers: This estimates the total number of traders copying the selected trader. It is often seen that some experienced traders’ follower count outnumbers the total count of the rest of the traders.
A beginner should thoroughly go through expert traders’ details and then choose the trader most suitable to them.
Trading History of an Expert Trader
BYDFI provides the entire trading history of its traders to all its users. It helps the followers understand the traders and their trading pattern.
BYDFI also provides the details of every expert traders’ followers, which can help determine the followers’ profits of that particular trader.
The follower gets complete control
BYDFI offers the complete follower authority over their trade. If a follower no longer wishes to follow an expert trader or wishes to change the trader they follow, BYDFI provides them with this option.
The increasing interest in copy trading has evolved because of little or less time to spare by the traders. Even if the trader compromises his/her degree of control over the trade, copy-trading is user-friendly, time-saving, and extremely efficient trading.
What does BYDFI offer when a follower decides to be a trader?
BYDFI is a trading platform customized for copy-traders as well as traders who are being copied. Once a trader starts trading on his/her own, they commence attaining a profile.
If their profile becomes popular among other followers, and they will eventually be copied. Copy-trading at BYDFI offers the traders a percentage of the follower’s profits.
Copy-trading helps the traders become prominent investors by trading consistently and gaining a decent amount of followers.
What are the advantages of copy-trading at BYDFI?
The traders who are busy with other tasks prefer copy-trading. Many different factors prove to be an asset for traders trading at BYDFI.
- BYDFI gives a chance to beginners by allowing investments as low as 5 USD.
- Margin trading has higher rewards but also carries higher risks. However, BYDFI provides leverage from 5X to 125X.
- The data displayed is pulled from Binance & OKEx & Huobi and averaged via K-line.
- BYDFI also provides OTC services.
The disadvantages of copy-trading
Everything that has pros also has cons, and copy-trading is no different.
- Copy-trading takes away the control from the followers, and experts govern their trades.
- A follower can close a position independently, but the expert trader entirely governs the position’s opening.
What should you know about the currencies and funds at BYDFI?
At BYDFI, traders can trade with various kinds of cryptocurrencies such as BTC, ETH, SHIB, CRV, XRP, BCH, ETC, EOS Tron, Dash, DOGE and Link.
Traders can sell or buy crypto contracts on margin and leverage.
BYDFI partnered up with Binance and the funds of BYDFI’s customers are secured by Binance, one of the most prominent cryptocurrency exchanges.
Conclusion: Copy Trading
Like every other investment, Copy trading comes with risks and has its advantages. However, Copy-trading at BYDFI is secure, simple, and beneficial, and the expert traders usually know the market they’re investing.
BYDFI provides all the necessary information to the followers about the expert traders and hence making the platform transparent and empowering traders. Therefore, start your trading journey at BYDFI with copy-trading today.
Frequently Asked Questions of Copy-Trading
Is copy-trading risky?
Just like all types of investments, copy-trading also has its risks.
Why is copy-trading better for beginners?
Copy trading enables beginners to learn and trade simultaneously without having to deal with the complexities of the market.
How does copy trading work?
There are expert traders, and then there are traders who follow or copy these expert traders when an expert trader makes an investment the follower also automatically invests.
Why does a follower have to pay a commission to the expert trader?
The expert traders study the market and make the trades on behalf of the followers. On completing these trades, the expert traders charge a commission from the followers.