Spot copy trading

In the case of spot copy trading, the trader will simply buy assets or cryptocurrencies for you, without leverage. An example: imagine that your trader simply buys and sells bitcoins on your behalf on the exchange. This option is especially interesting during a bull market, because asset prices increase sharply. That said, spot trading can also be interesting in a bear market context, because there are also upward movements. In addition, it is possible to accumulate coins using a spot copy trader.

Spot traders generally use longer periods to make profits. It can be days, weeks or even months. This is why these traders are ready to keep larger positions over a longer period of time and absorb losses. However, some cash traders also buy extremely volatile altcoins and then sell them in a short period of time. So don't panic if you see numbers in red!

To protect themselves against losses, traders use what are called "stops" or "stop orders". Thus, if the price of an asset takes the "bad" direction and goes below a certain price threshold, the position automatically closes with the order. To make profits, traders thus use take profit orders. These two types of orders can also be copied into each type of copy trading.