All About Copy Trading and Passive Income

Have you already heard about copy trading? Chances are – you have. We are happy to take this topic into today’s focus. Let’s dive into the world of copy trading and passive income and see what the buzz is all about.


What Is Copy Trading?

Let’s first get the definitions straight. In the financial world, copy trading refers to a trading strategy where traders can automatically copy positions opened and managed by a selected trader. Another trading strategy called mirror trading allows traders to copy the trades and strategies of experienced investors. However, unlike mirror trading, copy trading links a portion of the copying trader’s funds to the account of the investor that they are copying. 

This means that any action taken by the experienced investor that is being copied, will also be directly executed in the copying trader’s account. The copying trader has the ability to disconnect copied trades and manage them independently or close the copy relationship. What do the copied investors get out of it? They usually receive a monthly flat compensation from the trader who is looking to copy trades. 


Copy Trading In Practice

Although we are currently at the peak of the investment hype, only 1% of all users on crypto exchanges practice active trading. The remainder buy assets and do not follow up on any actions, as they lack the skills and do not have a risk management system. However, there is a small portion of skilled traders who have extensive experience with trading crypto and a comprehensive understanding of the market – allowing them to manage their risk and end up in profits. 

Copy trading can be done in a copy trading platform. That is a place that connects expert traders to users looking to copy the cryptocurrency trading strategy of the experts. The users have access to the trade history of experienced traders and they can choose to allocate a portion of their funds to the trader they find reliable.


Let’s Talk About Passive Income

We are currently at the peak of investing into cryptocurrencies and financial instruments. As disposable income has marginally increased in developed countries and middle class portion is expanding rapidly in the developing world, people are looking for more ways to invest.

There are many forms of passive income and ways to put your digital assets or traditional funds to work. In addition to copy trading mentioned above, you can also trade baskets of assets known as ETF’s or posting margin for other traders to use. 

CoinMetro is working on offering Margin posting and ECTFs (Electronically Traded Crypto Funds) products soon, to give you even more options to earn passive income on crypto. Another great product that we already offer in the field of passive income is our Referral Program. You can earn up to 23% commission from your referred users and you get the chance to win a monthly prize of 2% from the Ambassador fee pool.

Did this get you more interested in crypto? If so, go ahead and check out our Demo platform that lets you discover the crypto trading world without even having to sign up! If you like it, hop over to the sign up page and start trading for real. We have a special deal for you – after completing your KYC process and making your first crypto-fiat trade, we award you with 20XCM! How great is that? If you have any questions about our platforms or CoinMetro in general, give a shout out to our support team. They are very friendly and love chatting with you!