The Best Ways To Copy Pro Trader’s Success

When it comes to trading, regardless of whether it be stocks, crypto, or baseball cards, everyone wants to copy the most successful traders. However, this can be very difficult and is quite risky when it doesn't pan out the way you want it to.

Fundamentally, it's quite difficult to always stay on high alert to make trades at the exact same time your expert of choice does. However, there are still many ways that we can use to help you copy professional traders' strategies and trades. Today, we'll be comparing the best of them to find out which one is the best for you.

Manual Copying

This is the oldest way to copy someone's trades. It involves looking up their trades, and then manually inputting them into your platform of choice. This is made easier through social media platforms like Twitter which make finding expert trades a breeze.

However, this strategy is quite risky. The first element of risk comes from the delay between when you find their trade and when you're able to register it. Prices and market conditions can change in these times, especially when it comes to volatile assets like cryptocurrencies.

Even outside of this, the process is time and labor-intensive. While it might be simpler than directly learning how to make good trades, it's pretty much a worse, outdated version of copy trading.

Copy Trading

Copy trading is quite a self-explanatory trading technique. Essentially, it involves directly copying another trader's position. You decide on what amount you want to invest, and from then on you copy everything they do automatically.

Many trading platforms already have this functionality, with there generally being caveats such as a percentage of profits going to the trader that initially made the trade or similar. One of the biggest advantages of this technique is that it's by far the easiest technique to use.

However, in the investing world, the easiest way to do something is oftentimes not the most effective. While copy trading allows you to directly copy another trader's trades, it usually comes with caveats that can decrease, or even eliminate your profits.

Another risk is that, unlike most methods, you don't get any reasoning or strategy information. This means you're making trades completely blindly, and while the original trader might have a unique position where a trade would be a good idea for them, it doesn't mean it is for you.

Finally, on many of the platforms supporting copy trading, it can be difficult to figure out who is an expert, and who has just been on a lucky streak. While this may seem irrelevant, copying the wrong one could lead to you losing thousands of dollars.

All in all, while copy trading is definitely a good method to try out investing, it's quite risky. Look at the method below if you're looking for something a bit more involved, but also less prone to risk.

Venture Capital And Web 3

Now, both of the past two techniques are simply too volatile for most users and are done with little to no guidance from the experts themselves. While copy trading can be risky, and often loses money, venture capital has been steadily rising.

Certain Web3 platforms like Hectagon are looking to revolutionize the way we approach venture capital. While venture capital or VC has always been considered a matter of the wealthy, Hectagon and firms like it are looking to bring it to the masses.

The biggest proof of why VC is more effective than copy trading lies in where the rich invest their money. You've probably never heard of a wealthy individual holding their funds up in a copy trading portfolio. However, you've probably heard of many affluent people that have invested in venture capital funds.

Unfortunately, to join this lucrative club of venture capital investors, you'd need to have a net worth of over $300,000 a year. That is, of course, unless you participate in Web3 platforms that enable anyone to invest in venture capital.

Starting with their TGE on August 8, Hectagon will be providing everyone with an opportunity to invest in venture capital with no minimum buy-in. Whereas traditional investments like copy trading are lucky with an ROI of 6-8%, venture capital rarely does under 20%. 

Furthermore, the platform is backed by actual verifiable experts like Taizo Son and Vu Han. This helps you ensure that your funds are handled by people that actually know how to invest, rather than someone that just got lucky.

Closing Words

There's no shame in wanting to invest money without going through the grueling process of learning how to become a professional trader. Oftentimes, the best way to do this as someone with no training in trading is through copying.

Systems like manual copying and copy trading are great for this, albeit they introduce an unnecessary amount of risk and uncertainty. Web3 platforms like Hectagon provide certainty and a higher ROI, and we believe they're the next step forward for this lucrative field.