How Does Mirror Trading Work?
This week’s officially been the week of mirror trading here on the CoinMetro blog.
Repeat actions make perfection, so today we’ll focus on how mirror trading works – once more, with feeling.
Is Mirror Trading and Copy Trading the Same?
Even though mirror trading and copy trading are often linked together – obviously, because they are so similar – there is a distinct difference.
Mirror trading is a method that involves the automated trading of assets based on algorithmic strategies rather than individual trades, as is the case with copy trading.
The Whens and Whys
Why did mirror trading emerge in the 2000s?
The rise of the digital age has many pros and cons to it, but one thing is for sure – it has made our lives easier. Trading has also evolved immensely in this digital era to adapt to the changes. Basically, it’s now available to everyone, and mirror trading has made it even easier.
This type of trading promises beginner traders quick results with minimal effort. Wow! Easy money, low effort. But every stick has two ends. In the long run, it’s crucial to learn how to trade and be able to make your own decisions – no mirror trader can be successful 100% of the time.
How it Works
Starting out as a mirror trader, you’ll need to register a trading account on a mirror trading platform – it can be either a specialized platform or a crypto to fiat exchange platform that offers this type of trading among other features and services.
As a registered user, you will get access to different data, including trading metrics, such as a trader’s history, performance, capital, number of followers.
The next step is to choose a trading strategy that suits your goals. Check out our blog post 3 Tips for Mirror Trading to make sure you know what you’re doing.
Having found the one or several, you can sit back and relax a little. Mirror trading works as an automated process that duplicates the moves of the trader(s) you follow in your own account.
Mirror vs Copy Trading
As mentioned before, mirror trading and copy trading are similar. Both are examples of social trading.
The main difference between the two is that the former focuses on copying trading strategies, whereas the latter allows you to copy individual trades.
Thus, mirror trading is suited for slightly more experienced traders or those willing to invest larger amounts of money in copying several traders. You can also read more about the benefits of mirror trading in our article The Benefits of Mirror Trading.
Copy trading, on the other hand, is a simpler alternative that mainly enables you to follow a specific trader, by copying their open trades in your trading account.
The choice is always yours. Think about your goals and decide which one is best for you.
Copy Trading with CoinMetro
If you decide to go for copy trading instead of mirror trading, you are welcome to join CoinMetro to try this type of trading – safely.
There are no costs to join TraM – CoinMetro’s user-friendly copy trading platform. You’ll need to allocate funds to start copying the trades made by the manager. The most important part – if you must stop copy trading, you are free to do so any time. You are always in control of your investments.
To learn how TraM works in more detail, we strongly suggest reading our dedicated article Under the hood: TraM (Trade Mirror).
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