Can You Make Money With Copy-Trading? Earn Income by Following Master Traders with 8V’s One-Click Copy Trading

Copy trading is becoming an increasingly popular form of trading. Unsure how to plan your investment portfolio? Consider following top traders, learning their strategies, and earning passive income without pressure!

8V’s “Contract One-Click Copy” feature provides the friendliest, simplest, and most transparent experience for both contract traders and followers, maximizing profitability and win-win outcomes. Enter the 8V official website homepage or the App’s copy trading page to experience it now👉🏻 8V Download

What is Copy Trading?

Copy trading, as the name suggests, allows users to mirror the trading strategies and operations of professional investors without spending time researching the market themselves. Users simply choose the professional traders they wish to follow, and the platform or exchange will automatically replicate these traders’ actions. Thus, users can enjoy similar investment outcomes to those of the professionals without dealing with the intricacies of market entry and exit timings or selecting trading instruments.

At the same time, these professional traders receive a portion of the performance fees or subscription fees as compensation based on the followers’ activity. Copy trading makes investing easier while also building cooperative relationships, benefiting both investors and professional traders.

Those offering trading strategies are referred to as “signal providers,” and those copying others’ strategies are known as “followers.”

Three Major Advantages of Copy/Follow Trading

Copy trading enables laypeople to entrust their funds to professional operators and pay a small performance fee to easily earn passive income. Here are three advantages of copy trading:

1. Simple Operation

Follow trading is very user-friendly. Investors select a professional trader or strategy on the platform and activate 8V’s “One-Click Follow” automatic replication feature. Even newcomers can easily participate in financial markets without needing to understand market analysis or technical indicators. Simplifying trading allows more people to get involved in investing, regardless of their trading experience.

2. Time-Saving

Copy trading spares investors from spending significant time watching the markets. Traditional active trading may require continuous market attention to catch the best moments to enter and exit trades. However, followers in copy trading can trust professional traders or strategies to monitor the markets for them. This frees up more time for investors to focus on other matters while still engaging in the investment market.

3. Low Threshold, Suitable for Beginners and ‘Lazy’ Trading

Copy trading is sometimes jokingly referred to as ‘lazy trading’ because it enables novices to achieve passive income. This ‘lazy’ approach makes investing more accessible, especially attractive for those without the time or interest to delve into trading. Moreover, compared to the traditional financial industry, the threshold for principal and performance fees in cryptocurrency copy/follow trading is more accessible.

8V Exchange’s “One-Click Follow”
Followers only need to pay a 10% performance fee to automatically engage in contract trading, achieving effortless profits.

Three Major Risks of Copy/Follow Trading

1. Platform Security

Before investing in the cryptocurrency domain, it is crucial to ensure you select a verified and reputable trading platform to protect your investments. Security is the cornerstone of successful investing; neglecting this can render even the best signal provider, highest returns, or lowest-risk strategies meaningless.

8V employs advanced security protocols, including two-factor authentication (2FA) and cutting-edge encryption technologies like the independently developed “cold wallet and hot wallet dual mechanism.” Main funds are stored offline, with assets and private keys globally distributed, user funds are 100% insured by an insurance company, and overseen by a third-party commercial bank, ensuring secure transactions.

Furthermore, 8V uses automated risk control technology to strictly verify contract addresses and automatically avoid scams such as counterfeit coins. If there is an abnormal IP login, the platform automatically initiates multi-factor authentication to prevent fraud.

We also strive to comply with regulatory standards, aligning with industry leaders and obtaining licenses to provide you with a secure and compliant environment to manage your digital assets.

2. Trader Selection

This step is the most challenging part. While platforms often feature high-performing signal providers on the homepage, performance is not the sole consideration when selecting a signal provider. Multiple aspects need to be considered, such as the duration of signal provision, trading style, risk assessment (maximum drawdown), trading instruments, and overall data. Just as you would assess whether a partner is compatible with you, it is essential to choose a trader that suits your style.

Before we guide you in your choice, you may wonder:
“If the signal provider performs so well, why would they share their secrets with everyone?”

Part of the reason lies in the differing interests of signal providers and followers. Simply put:
Followers earn through trade-related rewards; signal providers earn through the followers’ performance fees.

Becoming a signal provider on 8V Exchange allows for not only collecting performance fees from followers but also profit-sharing offered by the platform.

The detailed introduction is below; be sure to read the complete article!

When choosing a signal provider, followers need to beware of two risk scenarios:

• False Performance: Some traders may employ tricks by opening opposite positions on different exchanges to create a false performance. They can show profit on one platform while simultaneously incurring losses on another, deceiving investors. To avoid this, investors should carefully observe the consistency of a trader’s performance data across different exchanges.
• Holding Losing Positions: Some traders may lack discipline and principles, continuously waiting for losing trades to turn profitable. This practice of holding onto losing positions can lead to more significant losses. Investors should ensure that their chosen traders have strict risk management strategies, including setting stop-loss points, to prevent potential substantial losses.

In summary, selecting a trustworthy follow trader requires caution and a thorough understanding of their trading strategies and risk management methods to minimize potential investment risks.

3. Excessive Profit Performance and Frequent Trading

Although these two are difficult to scrutinize for foul play, opportunities to spot red flags should not be missed.

Some platforms’ settlement methods only display closed trades. To present a good performance on the performance page, signal providers may only close profitable strategies, while loss-making positions continue to hold. This results in astonishingly high profitability or win rates on the performance page, but in reality, many losing trades have not yet been closed, creating a significant disparity between the apparent and actual total earnings.

Additionally, some trading platforms give a portion of the transaction fee to signal providers with each trade entry and exit. Thus, many signal providers may trade frequently to obtain higher profits. However, this doesn’t necessarily bring profits to followers; instead, frequent trading can lead to substantial transaction fees.

Using 8V’s “One-Click Follow” feature can help you evaluate suitable signal providers. The platform displays detailed trader data, reducing the risk of a wrong choice. For example, you can compare and assess through the following filters:

• Overall Ranking
• Earnings in the Last Two Weeks
• Accumulated Earnings
• Total Number of Trades
• Current Number of Followers
• Profit Rate in the Last Two Weeks
• Accumulated Profit Rate
• Win Rate in the Last Two Weeks
• Historical and Current Signal Data: Orders closed within 60 minutes after the signal provider places them are directly displayed in the historical signal data. Orders not closed within 60 minutes are shown in the current signal data and moved to historical signal data upon closing.

Can Copy/Follow Trading Always Make Money?

Investors should understand and accept an important fact: following trades does not always mean making money. In fact, it may follow the “80/20 rule” in the market, where many followers might incur losses, while only a few can achieve consistent profits.

However, the essence of follow trading is to replicate someone else’s trading strategy into your own account, so it’s crucial to observe the long-term performance of the signal provider, not just one or two past trades.

Moreover, followers need to maintain a calm mindset. The goal of follow trading is to achieve “long-term” stable profits, not short-term gains. Therefore, even if short-term losses occur, one should not hastily stop following or implement excessive stop-loss orders, as this might miss out on long-term stable profit opportunities.

In summary, follow trading requires careful selection of signal providers and patience and long-term vision to achieve stable long-term investment performance.

Key Points for Using the Copy-Trading Feature

Now that you may understand the advantages and risks of copy trading, if you wish to start following, here’s a tutorial on how to use the one-click contract follow feature on 8V, along with the trading amounts and risk control settings that followers need to note.

How to use the follow feature on 8V?

1. Open the 8V APP homepage and tap “Copy Trade”.
2. Select the trader you want to follow and tap on their page.
3. Here you can view detailed data about the trader’s performance.
4. Tap the “Follow” button and set your data.

• Follow by fixed ratio: The system will place orders based on the ratio of your asset balance to that of the signal provider. For example, if the signal provider’s opening capital is 100 USDT, and you set it to 3 times, then you will place an order for 100*3=300 USDT.
  
  Here you need to enter the ratio you want to follow (0 – 5) times, as well as set the maximum margin use.
  
• Follow by fixed amount: No matter how much the signal provider orders, your order margin will be a fixed follow amount.
  
  Here you need to enter the follow amount you want to invest, as well as set the maximum margin use.

5. Set risk control data.

• Profit stop %: can set a ratio of 10% – 200%
• Loss stop %: can set a ratio of 1% – 90%

6. Click the “Confirm Follow” button to place an order immediately.

8V “Futures Copy-Trading” User Agreement

Leverage trading is a high market risk activity. While it can bring substantial profits, it can also result in significant losses. Past earnings do not represent future returns. Severe price volatility may cause your entire margin balance to be liquidated forcibly. The information provided here should not be regarded as financial or investment advice from the 8V platform. All trading strategies are decided by you and are at your own risk. 8V platform assumes no responsibility for any losses incurred due to leverage use.

Please read the following terms of service carefully:

Signal Provider Research Indicators

To clarify the pros and cons of copy trading for users, the following explains signal provider research indicators and key term definitions, so you don’t choose blindly. Please refer to several key indicators on the follow platform, including:

ROI (Return on Investment)

ROI is an important indicator of signal provider performance, reflecting their return on investment. However, investors should not only pursue signal providers with the highest ROI, as extremely high ROI may represent the use of high-risk strategies that could unnecessarily risk the follower’s capital.

Total Returns

Total returns refer to the total profit or loss realized by the signal provider in their trades. This indicator can tell you how the signal provider performs in actual trading. However, it’s worth noting that the amount of capital used, leverage ratios, profit and loss points, etc., may differ between the signal provider and the follower, so total returns only represent the signal provider’s performance, not necessarily the outcome for the follower.

Total Returns for Followers

Total returns for followers indicate how much profit the signal provider has generated for followers. This is one of the most critical indicators for followers, as their goal is to achieve returns, not losses.

Total returns for followers are the most crucial indicator when choosing quality traders, followed by ROI and total returns. Ideally, all three indicators should be positive. If the ROI is often negative while total returns are positive, this may indicate that the trader might be incurring losses, and such traders should be avoided.

For example, if a signal provider has a very high ROI, but the total returns for followers continue to be negative, this may suggest that the signal provider’s high ROI is achieved through high-risk strategies, leading to losses for the followers. Therefore, investors should carefully consider these indicators to ensure they select a suitable signal provider.

Finally

Copy trading offers an opportunity to create passive income, yet it also comes with risks. It’s crucial to understand that it does not guarantee a 100% profit rate. Therefore, followers should assess their risk tolerance before engaging in this trading model.

Before starting copy trading, the primary task is to choose a secure and trustworthy trading platform. Followers can then start selecting suitable signal providers. It is advisable to follow multiple signal providers initially to help diversify risk. At the same time, followers need to closely monitor the trading strategies of each signal provider to ensure they align with their investment goals and risk preferences.

In conclusion, copy trading provides a convenient way to participate in the market, but followers need to carefully consider the risks and minimize potential losses by choosing the right platform and signal providers.