14 May How to earn on cryptocurrency market?
We can safely say that 2017 demonstrated the greatest “bull running” on the cryptocurrency market. That is amazing, but in just one year the capitalization rate of this market increased from 17 to 800 billion dollars. The peak was reached in 2018. On January 17, that figure rose to 814 billion dollars. During this period, only the laziest didn’t talk about cryptocurrency, but no one dared to make precise projections concerning its fate.
Due to the wild growth, both experienced and new investors noticed the cryptocurrency market. However, the rapid growth was followed by the period of “correction” that hit the nerves of all market participants. As soon as the price reached its peak, the price fell. The result of this leap was the decrease in the level of market capitalization (which, as at the 30th of March 2018, was 254 billion dollars).
Many investors have drawn important conclusions from this leap: it is not so easy to make money on cryptocurrency (compared to that amazing “bull running”). To date, many investors only hold the memories about the glorious cryptocurrency portfolio, while another ask a very important question – “What did I do wrong?”
We should note that in recent years the number of traders on the cryptocurrency market has quickly increased. Despite the rapid growth, about 90% of them failed and left the market “in the hole”. Most of them started to work in copy-trading mode, allowing them to automatically copy, open and manage the positions (which should be made by experienced investor).
Recently, such an investment gains popularity in the world of cryptocurrency. We can safely say that cryptocurrency is a global phenomenon, whose growth pattern is unpredictable (all because it has a low barrier to entry).
That’s why many investors resorted to copy-trading, which allows them to pursue the path of the most experienced and the best traders. In addition, this is all made online on the platforms of the most famous exchanges.
What is the algorithm of actions?
Experienced traders are registered on the desired platform, after which they get the possibility to show the results of their activities with any other investors who sees them. The user opts for the investor he/she wants to follow. When choosing, he/she takes into account the working history of this investor, the style and the results of his/her work.
After you start following the chosen trader, the trading platform connects the follower to the trader’s steps using API. This way, the investor can either repeat or just follow the actions of expert.
There are also a number of copy-trading platforms, offering the clients to put their money in the purses of the platform itself. We should note that in this case, you lose control over your means, while the risk of losing it increases.
Actually, copy-trading allows the money owner to get passive income by putting minimum efforts. However, you shouldn’t forget that this approach to the investments involves risks (especially since the market of cryptocurrency is young and quite volatile).