Copy Trading: How does it work?

The investment world has attracted more and more fans and the beginning of this journey can be a challenge for many people. The novice investor who does not feel confident to invest alone, or needs a “push” to get started, can rely on several effective market strategies – Copy Trading (CT) being one of them.

This investment methodology is aimed at any investor profile, from the most inexperienced to the advanced ones who don’t have time to analyze the market. That’s because all the hard work of studying and putting together a qualified portfolio is in the hands of experts.

Interested? Then this text is for you. Find out how Copy Trade works, what are the advantages of the modality and tips to benefit yourself when investing.

What is a trader?

Before we deal with Copy Trading itself, it is important that you understand what a trader means in practice. In the financial market, he is nothing more than someone who makes transactions on the Stock Exchange at certain times – generally, in a short term.

That is, the trader is based on buying and selling assets according to a strategy aimed at profit. Day Trade , for example, consists of trading assets in a short period of time – more precisely in a single day.

In the case of operations that last longer, between one day and a few weeks, it is called Swing Trade. In this environment, Copy Trading is one of the many strategies adopted for this purpose.

How does Copy Trading work?

As its name suggests, Copy Trading is a trading strategy that is based on “copying trades”, that is, it is a means for investors – beginners or advanced ones who do not have the necessary knowledge – to contribute resources according to the recommendation. of an expert.

The practice gained space in the  market as interest in the Stock Exchange and the crypto market grew among the population. Several “gurus” emerged to give investment tips and build portfolios based on recommendations.

The practice consists of copying already consolidated investment strategies and leaving responsibility for choices in the hands of a qualified manager. However, like other types of variable investments, it is a high-risk strategy that may not always work out.

Copy Trading Investor Profile

CT is suitable for all types of profiles: the novice investor can take the opportunity to gather important guidance, while the more experienced one saves time in analysis and decision-making.

To participate in the strategy, investors just need to select an elite trader and follow their positions.

Why Become a Copy Trading Investor? Know the benefits

Copy Trading offers many advantages for the stock exchange or cryptocurrency market investor. Among its numerous positive points, the following stand out:

  • Possibility of making contributions in the best investments of the moment;
  • Time savings, since extensive market analysis is not necessary;
  • Rely on the endorsement of experienced traders during operations;
  • It is usually free and accessible on multiple platforms.

When we turn our eyes to the cryptocurrency market, Copy Trading is an even more interesting strategy, since with the expansion of the market, the investor can feel lost about which choice to make.

As the crypto market is very dynamic and can change overnight, investors don’t always have time to follow fluctuations and know the right time to buy an asset. Therefore, the assistance of an experienced trader contributes to making better choices and at the right time.

When to start investing in Copy Trading?

Want to start investing in the stock market or crypto but don’t have much experience? Or are you already inserted in this environment, but feel that you lack time to make better decisions about your investments? Then Copy Trading can be the best solution to optimize your analysis.

For this, you can choose to follow recommendations on your own or access exclusive platforms for this purpose. There are exchanges that connect users and traders from all over the world, who, in turn, open their portfolios and make operations in real time. In this case, the investor can copy the shares according to his preference.

Top Crypto Copy Trading Platforms

  • PrimeXBT : international exchange that offers expert user recommendations for buying and selling crypto assets;
  • eToro : the most used platform for the segment and which has a wide range of cryptos and users;
  • Zulutrade : specialized exchange that also acts as Social Trading and connects traders from all over the world;
  • ICmarkets : has the lowest exchange rates when compared to other options.


As you can see, the Copy Trading concept is a good strategy for those who want to start investing, as well as for experienced investors looking for greater practicality when organizing their investments.

However, like other variable income strategies, this one also demands care and studies. If you want to maximize your profits and increase equity, whether in crypto or stocks, you should always look for the best teachings. Remember to evaluate the reputation of traders and also the platform before basing your choices.