Crypto investing during times of high market volatility can be very rewarding but also comes with elevated risks. However, contrasted with the buy-and-hold strategy, the potential for short-term gains can be much higher. Although copy trading does not guarantee profits, and nobody can 100% predict the markets, some traders use advanced strategies to take advantage of the market swings and will sometimes share them for others to copy.
One of the platforms with the most diverse set of copy trading strategies and tools is Gate.io's Copy Trading platform, which is tailored to both copiers and strategy creators alike.
What is copy trading?
Copy trading on Gate.io is the process where you can piggyback off other traders by automatically copying their trading positions. The way this works is that other traders build and publish strategies along with stats and trading positions, allowing other traders to subscribe and automatically copy the positions, with the ability to halt copying at any time.
Whatever trades the creator makes, the copier will automatically make as well. But, of course, this comes with a small fee for the strategy creators. Lastly, copy trading has pros and cons that we'll get into later.
Why Gate.io Copy Trading stands out
With a low barrier for entry and a user-centric dashboard, Gate.io Copy Trading supports spot, futures, margin and predefined strategies for grid trading, smart rebalancing, combined indicator, CTA, and much more. When compared with other exchanges, Gate.io's layout remains unmatched. As a result, anyone can easily research and copy high-quality strategies with minimal effort or create their own strategy.
Gate.io Copy Trading has become a top-rated tool for traders, with $2.1 billion in total value on 1.5 million active strategies with 240,000 copies.
Profit is not guaranteed, but Gate.io Copy Trading provides tools and strategies to help you optimize your trades. However, not all strategies are optimal for all market situations. A few examples would be Grid Trading strategies, which are more suited for volatile markets, and CTA strategies, which are preferable for medium to long-term trends.
Now, strategies won't get very far without the proper tools to build them. Unfortunately, some exchanges are lacking in the strategy-building tools department. Although, on Gate.io, creators can access predefined strategies or, alternatively, create custom ones.
When you copy a custom strategy on Gate.io, you're copying a strategy where the creator has access to a wide range of advanced quantitative tools that help refine, test, and optimize each strategy. Of course, this doesn't mean every custom strategy is sound. Still, it has facilitated an environment where you can find many high-quality and proven custom strategies.
Pros & Cons of copy trading
Although copy trading can help reduce trading risk in certain circumstances, you should understand the pros and cons.
- Save time by automating your trading
- Trade beyond your experience level
- Simplified portfolio diversification
- Reduced learning curve
- Results depend on another trader's performance
- Past results do not guarantee future profits
- Additional fees
Gate.io's copy trading platform is a handy tool widely used by both experienced and inexperienced crypto traders. The latter often use it to avoid the risks of trading with less experience and knowledge. If you are newer to trading during volatile markets, copy trading may be a good approach to gain exposure to advanced techniques and portfolio diversification.
Several platforms provide copy trading, but Gate.io offers the most comprehensive tools with the highest flexibility. Overall, if you are going to copy trade, you may want to use a platform like Gate.io, which boasts a large number of creators, tools, and strategies to choose from. Finally, copy trading is not risk-free, as you will share the gains and the losses with the strategy creator.