Bybit is one of the top crypto exchanges in the world by trading volume with millions of registered users across the globe. One of the things that make the exchange so popular is the number of coins listed and markets available, giving traders a wide range of assets to trade. However, with so much choice it becomes overwhelming particularly for beginners as it’s difficult to decide how and where to invest.
In such cases you need a more experienced and knowledgeable trader to guide you toward the right decisions. Normally, this can be done by reading online trading forums and blogs for tips and making the trades, but it’s very tedious especially if you have a day job and can’t trade cryptos full time. This is where copy trading comes in – to automate the process and help you increase your trading performance.
How copy trading works
As the name implies, copy trading is the process of making trades by copying the orders made by another trader. For example, if another trader places a buy order for the BTC/USDT pair for $100, you can place the same order yourself. The idea is to receive trading ideas without having to put in the effort to analyse the market on your own and potentially receive similar gains.
Although this does reduce how much effort you will need to put in directly, it’s still quite dull and uninteresting. That is why copy trading has also been automated so that the whole process can be completed without any of your input. All you will need is a trading platform that can receive signals from another trader and then execute the orders on your behalf.
It starts with a proficient trader signing up to a copy trading platform. There, they set up a system that sends trading signals to subscribers based on the trades they make. Subscribers then receive these signals on their trading platforms which automatically mimics the same orders. The subscriber still has control of their trading account and can choose to modify or exit a position, but the system is left alone for the most part.
Copy trading on Bybit exchange
If you have a Bybit trading account, you may have already discovered the copy trading feature offered by the exchange. To access it, simply log into your account, hover your mouse over the Tools command in the top menu bar and click on Copy trading from the drop down menu that appears.
Here, you will see a list of Master Traders all of whom provide trading signals which you can choose to copy. You can filter the list of Master Traders using various parameters such as country, rank, trader type, etc. to find the best choice for you. Once you find the best option for you, click on Copy and set the parameters for your copy trading service.
For instance, you can select specific markets to trade, limit the maximum value of every contract, set the daily position limit, and many others. Bybit even has a CopyGuard feature which identifies the optimal price to copy an order rather than opening a trade at the same time as the Master Trader.
How to identify the ideal Master Trader for you
Bybit has thousands of master traders you can choose to copy from, but it’s important to find one that closely adheres to your trading goals and style. One master trader may have a very high ROI but then you realise that they’ve only been active for less than a week such as the one in the screenshot below. Another may have a very aggressive approach using high leverage to increase returns, but this is a very risky strategy that could lead to heavy losses.
This is why we recommend identifying a trader with a similar mindset to yours. For instance, if your goal is long-term investment in crypto as a store of value, what you need is a master trader using positional trading techniques with little risks. On the other hand, you may want to choose a master trader with a high risk profile if you’re willing to take the risk for large short-term gains.
Why Bybit copy trading is recommended
The biggest challenge for copy traders is finding trustworthy master traders. Fortunately, Bybit does the vetting for you and shows you every master trader’s trading history so that you can choose wisely. Moreover, there are over 5,000 master traders to choose from so there is no shortage of options, meaning that you can always find a reliable option for you.
Finally, master traders are only paid when they make a profit. Bybit imposes a 10% fee on any profits earned from copy trading so you don’t pay if the master trader makes losses. This is different from many other platforms which charge subscription fees meaning that you pay regardless of whether the service was effective or not.
Alternative platforms offering Bybit copy trading
For one reason or another, you could decide not to use the integrated Bybit copy trading features and opt for an alternative. If so, you have several platforms to choose from each of which could have some appealing facilities. Some of these include:
This is one of the most popular crypto copy trading services around that caters to several crypto exchanges including Bybit. To set up Bybit copy trading using WunderTrading, log into your Bybit account, go to your user page, and then click on API management. When you enter the API key on your WunderTrading account, the service will be able to execute trades on your behalf and you will just need to select a master trader.
WunderTrading is preferred by most traders because it uses trading bots/algorithms to analyse crypto markets. Trading bots are sometimes more reliable than humans and can thus generate higher returns although this is not guaranteed. And you will need to purchase a monthly subscription worth up to $62.30 when you opt into an annual plan.