ZoneBitcoin EditorialThe platform bybit is growing in the crypto industry and always looking to offer new services for its customers. Recently, the exchange platform launched the Copy-trading service.
Copy trading consists of automatically copying the operations of the best traders and thereby achieving – without any knowledge – the same performances. This is a great opportunity to make profits with trading, for those who do not have the time to learn and train.
So, opening a copy-trading service comes at the right time. It is a service that is increasingly sought after by traders (especially beginners) and by those who do not have the time or knowledge to trade on their own.
In this article, we will see what the copy trading on Bybit in order to see whether or not this is a good method to follow.
How does copy trading work?
As the name suggests, copy trading is a method of copying traders' trades. Thus, it is a form of automated trading without the use of a trading bot. Here, by copy trading, you passively copy the trader's trades.
The idea is to be able to have the same winning positions of an experienced trader without even having to do any trading yourself. So, in principle, by doing copy-trading, on Bybit or on other platforms, you have the same performance as the trader you follow.
If the latter generates 35% profit for example, the copier will also generate the same profit rate. For the amounts invoked, one can "put on the table" the amount one wishes. The operations are executed on his account with his balance by simply following the trader's operations, not the amount used.
Regarding copy-trading fees, copiers pay between 10% and 15% of their profits to traders. It is the traders who choose the commission rate. This is the commission to pay for copying traders.
Anyone can copy-trade on Bybit as long as you can do it with a minimum deposit of €10. So this is still a good way to try and see if it suits you.
The copier program has a low barrier to entry, as you only need to make your first deposit.
How to start copy trading on Bybit?
Here are the steps to follow if you are interested in the copy-trading option on Bybit:
1️ The first step is to register on the Bybit platform. You are not required to follow the KYC and identity verification procedure. You can do this later.
2️The second step consists of depositing cryptocurrencies on the platform. You can buy cryptocurrencies directly by credit card or by transfer. You will receive the cryptocurrency of your choice directly into your account. Otherwise, you can also send cryptocurrencies like BTC or USDT directly to your wallet. Transfers take place in just a few minutes.
3️Once you have a balance, you can start observing and seeing the traders that interest you. You should know that the best traders are generally (and this is logical), the most followed. Also, there is a limit. So you may not be able to follow the best traders because they have reached the copier limit.
4️ Now that you have chosen your trader, you must choose the amount you want to allocate for copy-trading. You must also choose the stop-loss amount. This gives you protection if the trader makes losses. You give the amount of loss at which you want to be automatically unsubscribed if the amount is reached.
You must now confirm and your copy-trading is activated. You can unsubscribe and withdraw your funds at any time.
Can you make a lot of money with copy trading?
We can easily understand the success of copy trading. The platform that made copy-trading known is certainly Etoro, which has been very successful for around ten years now. However, other platforms have entered this niche including Bybit, with much more attractive fees.
Copy trading is attractive because it helps you make profits in an activity that is difficult. Yes, more than 90% of retail traders lose money. It is good to know this and be aware of it. You don't improvise as a trader overnight despite the young traders who sell you dreams next to a Lamborghini that they have rented. No, it's not a game. It's real work that requires real experience. You will need to train if you want to become a successful trader. Otherwise, if you don't have the time or energy, then copy-trading and automated trading may be a good alternative for you.
This explains the crazy success that copy-trading platforms are experiencing. On Bybit, you can then imitate experienced traders without making the slightest effort and generate the same profit rates as them. The principle is great, when you think about it.
However, copy trading, like trading, is risky. You can also follow an experienced trader who makes mistakes. It happens. Likewise, sometimes Mr. Market is very surprising and even the best are wrong.
💸 To conclude, yes, it is possible to earn money but it is also possible to lose it. You must practice this activity while being aware of the potential losses and above all to do it with capital that you can afford to lose.
What are the other benefits of using Bybit?
Our Bybit review is positive overall because the platform offers many products and services. The platform was created in 2018 and has grown exponentially since then with over 5 million users worldwide. It is comprehensive and has a large transaction volume. For trading, liquidity is essential. This therefore makes it an ideal platform for traders, especially as leverage can go up to x100. Moreover, it is one of the platforms that organize the biggest trading events like the “World Series of Trading” (WSOT 2022) ».
The interface is intuitive and easy to understand, even for a beginner. For seasoned traders, there are all the necessary tools and options. Likewise, for VIP clients – that is to say those who have significant trading volumes – there are interesting programs.
Customer support is very responsive and is operational 24/24. Mainly in English, you will also find French-speaking customer support.
No KYC is required to open a new account (limits account withdrawals to 2 BTC)
The platform offers insurance fund guarantee to cover potential losses.
Another important point of the platform which can be considered as an advantage or a disadvantage is depending on: there is no need for KYC below a withdrawal threshold of 2 BTC. Thus, it is a platform that can be used by everyone anonymously.
What are the disadvantages of Bybit?
The biggest drawback of bybit is due to the fact that the company is based in Singapore and has numerous subsidiaries in tax havens. In fact, the company does not have strong regulations. It is therefore a platform on which you must remain vigilant when it comes to the amount you deposit.
The company has nevertheless provided a "proof of reserve" which clearly indicates the amounts that the company has in reserve. However, the transparency is not quite optimal, as is the case with many exchange platforms, even the largest ones...
The other big disadvantage of Bybit is that it is not possible to sell its cryptocurrencies in fiat currency. However, you can withdraw your cryptocurrencies at any time to another wallet that includes crypto-to-fiat conversion. This is also how traders operate on Bybit.
Note: We ourselves have invested to test the platform. In a month, we will give you the results on our Youtube channel. It's clear.
This is not investment advice. Always do your own research. Only invest amounts you are willing to lose.
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