What is copy trading, and how does it work on Coinmatics?
Over the last decade, cryptocurrencies have witnessed a remarkable rise in popularity, becoming an integral part of everyday life. More and more people are willing to invest in this direction and there is more and more news about big companies like PayPal investing in it or becoming part of it.
But despite its popularity, many potential investors are not ready to start trading for a variety of reasons, ranging from lack of knowledge and experience to fear of losing money due to a failed trade. For such investors and crypto beginners, Coinmatics has a solution in the form of copy trading.
Before you start exploring the platform and the functionality it’s important to understand what copy trading is and how it works.
What is Copy Trading
Copy trading is the ability to mimic the trades of the pro expert from his/her account to your exchange account. It is a game-changer for crypto investment. It lets newcomers emulate expert traders’ success. Imagine following a guide through a maze to find treasure — that’s what copy trading does. When a skilled trader buys or sells, your account automatically does the same. This way, you learn and earn together.
How does it work on Coinmatics
The inner workings of copy trading blend technology with human expertise in a harmonious dance. As you sign up with a copy trading platform, you gain access to a diverse array of accomplished traders, each with their unique strategies and risk management.
Your task? Select a trader whose approach resonates with your investment goals. Once connected, the magic unfolds. Whenever your chosen trader initiates a trade — be it buying, selling, or holding a cryptocurrency — your account mirrors their move.
This synchronization is managed by cutting-edge Coinmatics algorithms that ensure your actions align with the expert’s, while maintaining the flexibility to adapt to market dynamics. It’s like having a co-pilot who navigates turbulent markets while you steer the ship. Yet, remember that risk is an inherent part of trading.
On Coinmatics, the process of copy trading seamlessly connects with trading on exchanges like OKX, Binance, and Bybit. The money you use for trading and copy trading is always in your exchange account. This keeps things straightforward and integrated.
When traders link their strategies with Coinmatics using an API key, the platform can share their trades with users. These trades can be shared with all Coinmatics users or a specific group (read more). The trades’ details from Spot or Futures/Derivatives markets are then passed from Coinmatics to a user’s account via their API keys.
All the trades are copied as market and only after its execution on the trader’s account. When the trader opens a trade for 10% of the balance — Coinmatics will take 10% of your balance to place the same trade. To join in, users need to subscribe to a strategy and pay the fixed cost. This cost depends on their wallet balance and the trader’s setup fee.
It’s important to note that regular actions like adding or taking out money aren’t copied. Also, the Coinmatics team advises against allowing withdrawal permissions on the API key used on their platform. This helps keep things secure. And on some exchanges (OKX and Bybit) you can bind your API key to Coinmatics as a 3-party app. It means that this API key can be used only on the Coinmatics platform.
If you are interested in trying copy trading, there are free Premium and free strategy trials for 30 days. Free strategy trial means that you copy strategy for free for 30 days, then you pay a fixed cost for 30 days of copying.
Now as you know a little copy trading, you can start exploring Coinmatics and its functionality. Our team has prepared 2 separate guides on how to get started with the copy trading platform.
Please, check it out and feel free to contact us at support@coinmatics.com if you have any questions.
Submit Strategy (for traders)
We have a step-by-step guide on how to trade on Coinmatics, please check it here: https://support.coinmatics.com/en/articles/7010815-how-to-start-a-trader-account-on-coinmatics.
Subscribe to Strategy (for subscribers)
There is also a guide on how to become a subscriber and start copying a strategy: https://support.coinmatics.com/en/articles/7018154-how-to-become-a-subscriber-on-coinmatics.
