What is Copy Trade? Platform Copy outstanding trades

Copy trading is a tool used by many people in both financial markets and cryptocurrency markets. So what is copy trading? Which outstanding trading platform to copy?
What is Copy Trade?
Copy trade is a financial tool that allows users to copy the entire buying and selling transactions of other investors. The purpose of copy trading is to help users profit from the trading decisions of others while having limited time to learn fundamental analysis and technical analysis. In return, for those who are copied, they receive a commission based on the amount of money that others decide to invest.
However, similar to investing, users need to choose the right investor to copy and make a profit. If you choose an investor with a high rate of losing transactions, users will still have to suffer losses because of their wrong investment decisions.
Copy trade is a financial tool that was first introduced in the financial market in 2005. In the crypto market, this form has only appeared since about 2022.
Copy Trade Components in Crypto
The components of copy trade include:
Master/Lead Trader: These are traders that allow users to copy. The lead trader's benefit comes from the copier's commission on the trading amount, which is around 8-13%/transaction. At the same time, some people also take advantage of lead traders to build their own community.
Copier: Is the person who chooses the copy account, decides the amount of investment capital, and monitors his or her copying activities. Additionally, the copier is the one who charges the lead trader a commission.
Centralized exchange (CEX): A provider of a professional copy trade platform, a bridge between the copier and the copied person.
Benefits of Copy Trade
Here are some benefits of copy trading:
Save time and effort: Unlike conventional financial markets, the crypto market operates 24/7, making users need to be constantly active and spend a lot of time learning to keep up with the pace in the market. crypto. Therefore, for individuals who do not have much time, copy trading is still a way to help users trade even when "slow" compared to the crypto market.
Learning opportunities: Most lead traders in copy trade are professional traders and have a lot of experience in the crypto market. Copiers can learn and learn about how lead traders enter orders, find coins, use leverage...
Passive income: If copiers choose the right lead traders, they can generate passive income every month. Even if the lead trader you choose begins to show signs of gradual loss, the copier is free to choose another lead trader to copy. However, passive income from copy trading is often not sustainable compared to other forms of income.
Steps to participate in Copy Trade
To be able to participate in copy trade, users need to:

• Choose a platform that supports copy trade service: Exchange (CEX).
• Find and filter lead traders according to basic criteria.
• Prepare idle capital for testing. Copy trading is a relatively new type for those new to the crypto market, as they do not have much experience and knowledge in the industry.

Copy trading can help new users learn the market faster, by following the trading activities of more experienced people.
First, users choose a platform that supports copy trading services. Normally, most centralized exchanges (CEX) already have a copy trading function for users with many different fees and interfaces.
As for Binance, the exchange only started supporting copy trading at the end of 2023, so the interface, fees... may not be as optimal as the exchanges OKX, MEXC, Bybit... In which, Bybit is the exchange that supports copy trading with many features and settings that serve well in copying lead traders' trades.
After completing the selection, the user finds a suitable trader to copy. Some criteria for choosing a suitable lead trader include:
ROI index: A ratio that reflects the level of profit of a lead trader. The larger the ROI, the higher the likelihood of profit if the user decides to copy their trades. In the case of some exchanges displaying the PnL index instead of ROI, the larger the PnL, the higher the win rate and profit.
Lead trader's risk management ability: Most exchanges display the lead trader's trading history, from here users can evaluate risk management ability through order size and quantity. order within a time frame, stop loss limit and take profit point.
Transaction time: Long transaction times combined with a large enough number of transactions often cause the ROI and PnL indicators to show up correctly.
In addition, although some parameters are not shown on many exchanges, users can still calculate them themselves to make the right decision when choosing a lead trader. The first is how long the lead trader's losing streak lasts. Then there is the average profit of the entire order, the higher the profit, the better.