Trading has surged in popularity during the coronavirus pandemic, a consequence of speculation by people stuck at home, broader access to no-fee or low-fee trading, and the potentially high upside.
Whether transacting cryptocurrencies, stocks, bonds, derivatives or physical assets, millions of novice investors have flooded the markets in recent months, enticed by the idea of “buying the dip” after the spectacular crash in prices during March.
The problem is, most traders are, to be blunt, bad. Research shows that the majority of day traders haemorrhage money while trying to wrestle with the unpredictability of the market. One solution is to master the art of trading by listening to, reading and generally soaking up the wisdom of experienced and successful traders.
It’s even possible to obtain full access to the trades of millionaire investors, and many newcomers spend most of their time studying such data to inform their own strategy. Of course, there’s a simpler way to tap into great traders’ good fortune – and that’s by utilizing the copy trading feature on compatible cryptocurrency exchanges. If you’re a bad trader, consider opening an account at the following exchanges and doing as the pros do.
Notable for its advanced charts and analysis tools, eToro might seem a little daunting to new traders at first. But it’s surprisingly easy to get to grips with, letting users invest in countless cryptocurrencies and fund their trading account via PayPal and credit card. Like Bingbon, it also has its own Copy Trading interface, enabling inexperienced users to see what the pros are doing in real time and auto-replicate their moves.
The great thing is, there are no management or ticket fees; traders will be charged spreads on their trading and transaction fees as appropriate. Participating in copy trading is idiot-proof: all you have to do is select the user you’d like to emulate, enter the amount you want to allocate, and click Copy. You’ll then replicate their trades automatically in real time and direct proportion.
Aside from its intuitive UX, smooth flow and range of trading options (digital assets, indices, forex, commodities), Bingbon is suited to novice traders due to its excellent copy trading feature which incentivizes both poor traders and great ones.
The latter (known as ‘copy traders’) can earn an 8% profit share of the daily net profit of their followers’ copy trading, while the former get the chance to follow in the footsteps of veterans whose total trading volume for the previous three weeks exceeds $1 million. Reassuringly, Bingbon prevents copy traders from chasing high commission by trading at an abnormally high frequency and thereby increasing followers’ risk, restricting their trading frequency accordingly.
Once a trader starts sharing trades, all of their trades will be visible and copied by followers, who can capitalize by making more efficient and profitable trades themselves.
Although Bingbon only launched last year, its vast copy trading database and easy-to-use interface make it one of the best platforms for self-described bad traders, as evidenced by the fact that it’s already onboarded just shy of half a million users.
Norwegian Block Exchange (NBX) is another international platform budding crypto traders need to bookmark. Like Bingbon, it was created to provide a smooth onramp to the industry while prioritizing security (2FA) and transparency, with support for popular pairs like BTC/USDC, ETH/USDC, ETH/BTC, BTC/NOK and ETH/NOK and the ability to fund from your local bank account.
Users also receive 10% cashback on fees paid for every trade, points that can then be used to buy flight tickets and other services via Norwegian Air Shuttle, the Scandinavian country’s largest airline with over 100 destinations in Europe, USA and Asia. We think the Knowledge Base is useful for newbies, too – make sure you know what you’re doing before chasing crazy profits.
When it comes to crypto trading, there’s no end of exchanges out there hustling for your business. But if you’re someone who loses more often than you win, you need to be more careful about your choice of platform. All of them will assure you they’re just as suitable for novices as pros, but then we wouldn’t expect anything else.
With the aforementioned options, you stand a good chance of hitting the ground running without burning through your capital in short order. Take your time, weigh up your moves, and keep your eye on the prize.