WunderTrading Tutorial: How to start copy trading

In addition to the time invested in trading, a trader cannot do without certain knowledge and skills. What coin is better to invest in? Will Bitcoin rise or fall in price? What will be the market situation over the next few days? How to keep yourself from unnecessary emotions which interfere with trading? 

Almost every beginner always asked each of these questions. It generates uncertainty, and uncertainty prevents trading. That is why anyone who finds himself in such a situation will find a copy trading strategy helpful. 

What is crypto copy trading? 

Before we tell you how to make money on copy trading, the first thing you need to understand is what copy trading means. 

Copy trading meaning it is a way of trading assets, which does not require the analysis of various charts and statistics. All you need is just to repeat the trades of an experienced trader.

Copy-trading uses two methods. 

The manual method

This method is not particularly popular among beginning traders, but its essence is simple. A beginner chooses a trader whose experience he trusts, and that trader shares with him the information about his own trading deal. Such information includes: 

• The asset being traded.
• The volume of the deal.
• Take profit level.
• Stop-loss level.
• Time of entry into the market. 

The beginner receives this information, analyzes it, and decides for himself whether he should make this trade or not. However, this method requires at least a minimal amount of knowledge to analyze the information and make decisions. Therefore, manual trading using copy trading is less popular than the following method which we are going to describe. 

Automatic method

Beginners are increasingly using the automatic copy trading method. All they need to do in this case is to choose a trader whose experience they trust. 

Automatic copy trading is done with the help of programs. It can be copy trading software that you install on your smartphone or computer, or a trading platform that has copy trading built into it. As soon as you hit the "Start Copy Trading" button, the deals of the trader of your choice are automatically executed on your trading account. As a result, you get the same results as the trader you selected. 

Even in the case of automatic copy-trading, you can always correct some parameters. For example, the volume of the trade. Because if you don't have enough money in your account for the trades, you simply won't be able to start the process. 

This strategy will also be a good help for those who don't have enough time to monitor the market. You won't need to spend days and hours in front of the monitor, but simply start copy trading and go about your business. 

After reading all the above, you may probably have a question. What are the benefits for those who allow copying of their trades? 

In fact, this is very simple. For each transaction, you pay a small commission to your chosen trader. In other words, in addition to profiting from a successful transaction, he gets money from those who copy his transactions. For this reason, such traders try to raise their ratings. The higher his name is in the list of traders, the more likely it is that more users want to copy his deals.

Advantages and disadvantages of copy trading

The pros of the copy trading strategy are quite obvious. 

1. Low initial requirements in knowledge and experience, as well as starting capital. Since copy trading is an automated strategy, it takes little time: you can trade and learn the basics of the market at the same time.
2. Experienced traders can receive an additional profit from the information on their trades. Anyone can become such a trader - it is enough to gain the necessary experience and to rise in a rating as high as possible. Not without reason, copy trading is the main source of income for many traders. 
3. Full control over transactions. You can choose the amount and the quantity of deals, and time ranges for copying and also disable copying at any stage and close your deals by yourself.
4. One of the opportunities offered by copy trading crypto is the ability to copy deals of several traders at the same time. Such copying allows you to diversify risks, that is, to diversify your trade by distributing it among different traders with different strategies and success. Thus, if one trader loses, it can be compensated by the successes of other traders, whose deals are closed successfully.

However, copy trading also has disadvantages to which everyone should pay attention. 

1. The trader, whose signals you use, can make a mistake. Since experienced successful traders, as a rule, have at their disposal a big deposit for trading, a few losing trades are not critical for them. For the beginning trader, two or three unsuccessful transactions can mean the loss of the whole deposit.
2. If you are planning to trade on your own someday, you will have to give up copy-trading, at least not to deal only with this type of trading. Beginners will not be able to learn the details of trading, practicing only automatic copying of other people's deals. For an experienced trader, the lack of the need to constantly analyze markets leads to professional degradation.
3. Some trading platforms must be turned on all the time when the market is working. That is, your computer must be on and the trading software must be running all this time.

Therefore, when deciding whether you need copy trading, we advise you to weigh the pros and cons of this trading strategy. 

How profitable is copy trading? It all depends on the success of the trader, whose trades you will copy. The more successful trades he makes, the more money you will get. Conversely, if his trading session is not a success, you will also lose money. 

How do you choose the copy trader to trade with? 

Usually, it's easy enough to make a choice - give priority to the trader who is at the top of the rating. Every platform and every exchange that offers the possibility of copy trading has such a list. 

However, there is a non-obvious point here. The more popular the trader, the higher the commission you will have to pay him. In addition, there are many traders, most of whose deals are successful, but they have not yet managed to reach the top of the rating. Also, their commissions will be much lower than those who are at the top.

Therefore, when choosing a trader, pay attention to the following parameters: 

• The trading history duration, starts from 1 year. If the trader you selected has been trading on the exchange for a month or even less, we do not recommend choosing him. It is quite possible that he, like you, has not gained experience, and a large number of successful transactions - a coincidence of lucky circumstances.
• The number of subscribers - not many people will subscribe to the bad trader. In other words, the more subscribers a trader has, the more you can trust him. 
• Stability. If the trader has been consistently showing profit in the past few months, there is no reason to believe that this will change in the near future. Remember that stability is more important than profitability. Indicators of stability can be:
  • At least 60% of all transactions of the trader must be profitable (the more the better);
  • The maximum drawdown of 25% or lower;
  • Monthly income 10-30%.

The trader with these or similar indicators is good at risk management. The beginner with a small deposit will be comfortable earning with this strategy.

How to start copying other people's trades? 

The automatic trading platform WunderTrading has everything you need to start copy trading quickly and effortlessly. This is probably the best copy trading for beginners. 

Here are detailed instructions on how to make your first steps in the crypto market using a coping strategy.

Create an account

First of all, you need to create an account on this platform. As well as on the exchange on which you are going to trade. 

Creating an account on WunderTrading is very easy. All you need to do is click the "Get Started" button. After that, the system will ask you to enter your name, email and create a password. A link will be sent to your email to verify your email address. Clicking on it, you will get to the WunderTrading website and will be able to log in to the created account. 

Creating an account on the exchange where you are going to trade consists of approximately the same sequence of steps, but may differ depending on the exchanges. Full instructions on account creation are always available on the exchange you have chosen to trade. 

Connecting an exchange to WunderTrading 

To trade through an automated platform, you need to connect it to your exchange. This is done using an API. 

An API (Application programming interface) is a set of instructions that allows different applications to communicate with each other.

To connect any exchange to the WunderTrading platform, you need: 

1. Go to your exchanger and get API-keys. Usually this process is not difficult, in addition, at each exchange there is a detailed instruction on how to do it. 
2. Go to WunderTrading and open the "My Exchanges'' section and click "Add" under "API Profiles. Select your exchanger, insert the received keys and click "Add". 

Selecting the professional to copy deals

On the WunderTrading website, go to the "Marketplace" section and select the "Manage Copy trading" section. 

From the rating of professionals, select the one whose deals you plan to copy. You can use various filters to make your selection easier. You can always choose several traders to diversify your risks. 

Once again, selecting a trader is a very important process, because your profit depends on their knowledge and experience. We recommend you read the section telling you what you should pay attention to when choosing a trader. 

After that press the "Start CopyTrading" button. The deals of the trader you chose will start to be copied into your trading account automatically.  

Conclusion

Now you know how does copy trading work and how you can start earning with it. 

It is the strategy whereby the trader copies the deals of other traders who are deemed to be professionals. However, before you start using this strategy, you need to consider the risks and benefits, as the profit of asset trading is directly dependent on it.