There are many modern trading platforms available online that offers copy trading. When you engage in copy trading, you copy another trader´s trading actions. On some of these platforms, you can set your own parameters for the copy trading, e.g. by copying with smaller amounts of money than the trader you are following.
No. Copy trading can be automatic or manual.
No, copy trading is taking place for a wide range of assets, including not just shares but also options, forex, cryptocurrencies, commodities, exchange-traded funds, and more. Copy trading is also available for Contracts for Difference (CFDs).
No, the field has broadened significantly and copy trading is today a possibility for several different cryptocurrencies in addition to Bitcoin, such as Litecoin and Ethereum.
Both crypto-only pairs and crypto-fiat pairs are available for copy trading.
A few examples of platforms with a nice assortment of crypto copy trading:
Some brokers have their own bespoke copy trading software, while others will give you access to software included in a shared platform, such as MT4 or MT5.
Copy trading software makes it easy to connect your portfolio to a master and begin copying someone else’s trades.
You can adjust the parameters. You might for instance wish to make larger or smaller purchases than the master.
Important: Some platforms utilize a fixed system, where you don´t control the parameters. You can stop following a master, but little else will be in your hands.
They are a type of indicator. You receive a signal and then have the option to edit your settings before you act on it.
Generally speaking, the use of signals offers more flexibility than purely automated copy trading. Signals are a good way to go if you aren´t in a rush and know that you probably want to edit parameters such as trade size, stop loss and take profit before you go ahead.
The two dominating signal providers on the market today are MetaTrader 4 and MetaTrader 5, but other smaller alternatives are also available. MT4 and MT5 both offer a combination of free signals and signals you have to pay for.