What is Bybit Copy Trading?
Bybit copy trading is a system that automates cryptocurrency transactions by shadowing the trades of selected traders. It takes a lot of effort to make a triumphant and stable return on your cryptocurrency investment. In particular, ordinary investors often need help with steady returns in the cryptocurrency market due to the aimless use of tons of information and investment strategies that manipulate beginner investors’ psychology.
Bybit copy trading allows users to select professional traders directly and automatically shadow the trading strategies of the designated trader. This system will enable users to view professional traders’ investment strategies for a small amount of money, which could also aid in developing the users’ investment strategy. In addition, Bybit copy trading proves an efficient trading system for users who cannot devote much time and focus to trading due to personal reasons. Currently, Bybit has over 600,000 users using the copy trading service.
As much as Bybit copy trading can provide high returns, it also has an increased risk of loss. In this article, we are not trying to encourage investment.
Since 2021, Coin-Labs.com has partnered with Bybit and is few of the highest-ranking of affiliate program contracts.
Therefore, if you sign up for Bybit through the button above, you will get the most discounted fee benefit and participation in a bonus event offering up to $500.
Bybit Copy Trading
The Bybit copy trading system mirrors the transactions of registered professional traders in real-time. When a registered professional trader fulfils a transaction, the same trade positions are fulfilled automatically by Bybit’s operations algorithm for users who have selected the registered trader. Concurrently, users’ cryptocurrency assets are kept safe in their wallets. Without transferring the cryptocurrency to a specific counterparty, only the same trading position of the registered trader automatically performs on the user’s account.
Users can also set up the same percentage or amount of money as professional traders. Copy trading was established in the early 2000s with the development of Internet technology and utilized in various forms in numerous markets, including stocks, gold, and currency.
Pros and Cons of Bybit Copy Trading
The copy trading system in the Bybit Exchange has the following advantages compared to other exchanges: A close analysis of the advantages and disadvantages of the Bybit copy trading will help you determine whether this is an exemplary service.
👍 Pros of Bybit Copy Trading
- The most efficient and effective investment learning method for novice investors
- Convenient, user-friendly interface and highly transparent system
- Reduction of commitment devoted to cryptocurrency investing, resulting in additional time saved
- No registration fee, and investment settings range from a minimum amount of 10 USDT to a maximum amount of 1000 USDT
- Users can use the copy trading service without identity verification (KYC.)
- User assets are stored in their account wallets and only execute and replicate the closing positions in the entry.
👎 Cons of Bybit Copy Trading
- Requires User’s preference to select suitable traders based on the user’s investment risk-taking
- Charge of 10% for trader selection from the profit resulting in copy trading
- Risk of potential investment losses
- Selection of only one copy trader at a time
Bybit Copy Trading Instructions
You must have a registered account through Bybit sign-up before using the copy trading service. Copy trading is available without identity verification (KYC), but if you wish to register as a professional trader, you must complete steps 1 and 2 of the identity verification (KYC). Let us show you how to use the copy trading system on Bybit.
The Bybit copy trading service is not yet available through the mobile application. Thus, please note that the Bybit copy trading service is currently only available through the Bybit website.
1. Go to the Bybit Copy Trading Page
Bybit copy trading is classified as a derivative product, also only with USDT funds. Users can go to the copy trading page by selecting ‘Copy Trading’ under ‘Derivatives’ on the Bybit Exchange website.
2. Follow Bybit Copy Trading Professional Trader
In Bybit copy trading, it is most important to follow the professional trader that best suits the users. Users can only follow one professional trader. Therefore, it is crucial that users carefully examine the trader’s investment propensity, risk appetite, winning rate, and other transaction details before making the selection.
More often than not, users cannot follow professional traders with high winning rates because they have already reached the maximum number of followers due to their popularity.
Details of professional traders registered with Bybit copy trading include, but are not limited to, the trader’s investment propensity, risk appetite, trading details, and profit or loss. We will provide you with more information on the details page and the information you must consider when selecting a trader.
(1) Select a Professional Trader
Click ‘Copy’ to follow the professional trader. Subsequently, when the user selects the amount of investment, leverage, and type of cryptocurrency to complete the copy trading setting, the Bybit copy trading professional trader following process will then be complete.
(2) Copy Trader’s Recent Trading Win-Rate and Profits
| Indicators | Explanation |
|---|---|
| 7-Day Win Rate(%) | The total winning rate of each completed transaction from the trader’s entry position to liquidation for the past seven days. |
| 3-Week Win Rate(%) | The total winning rate of each completed transaction from the trader’s entry position to liquidation for the past three weeks. |
| 7-Day Profit | A total number of users who have followed professional traders since they became registered with the Bybit copy trading system. Traders with stable transactions rarely have users who unfollow them. As such, this is also an important indicator as well. |
| 7-Day Follower Profit | Total profits earned by users who have selected the professional trader for seven days. |
| Winning / Losing Trades | This refers to the number of transactions completed from entry to exit trading position. If the user closes the position with a profit, it will be counted as a Winning Trade. On the other hand, if the user closes the position with a loss, it will be counted as a Losing Trade. |
| Total No. of Trades | The total number of trades for the trader. Please note that this includes trades prior to registration with the copy trading system. |
| No.of Total Followers | Total number of users who have followed professional traders since they became registered with the Bybit copy trading system. Traders with stable transactions rarely have users who unfollow them. As such, this is also an important indicator as well. |
(3) Date of Registration and the Number of Followers
| Indicators | Explanation |
|---|---|
| Days have elapsed since joining Bybit | Days elapsed since joining Bybit |
| 281/500 | Indicates the number of followers out of the maximum number of followers |
(4) Contract List
Bybit copy trading professional traders elect to trade in the cryptocurrency they have confidence in maintaining a high winning rate and prefer the most. And users can also change the settings to follow only transactions in a specified cryptocurrency.
(5) Trader Transaction History
The transaction history of a copy trading professional trader shows which cryptocurrency is used with what level of leverage in fulfilling short-selling or long-margin trades, with details on the entry and closing price as well as the corresponding profit and loss of each transaction. Please note that the ROI profitability metric has factored in any leverage in the calculation of the return on investment.
3. Bybit Copy Trading Settings
Once you have selected a Bybit copy trading professional trader, you will be able to set now the amount of investment, leverage, target return, loss rate, and so forth. These settings allow users to avoid reckless loss and manage risk.
The amount of investment (Order Cost) can be set from 10 USDT to 1,000 USDT, and leverage can be applied up to 10 times the investment amount. An effective investment strategy is to set the target return (TP) and loss rate (SL) appropriately, leaving the entry up to the professional trader and limiting the return and loss to the individual user.
Bybit Copy Trading Example and Review
There are many reasons behind utilizing the Bybit copy trading service. We believe there is no better way to invest than automatically mirroring the positions of a professional trader, especially if you are not in the position to constantly commit your attention to the cryptocurrency price charts, market conditions, etc., or if you have an emotional trading habit. Many users have tried the copy trading service by choosing the appropriate professional trader to follow and calculating the corresponding profits.
Bybit Copy Trading Professional Trader Selection
Professional trader selection is very important in the Bybit copy trading service. Traders may be trading bots or actual human traders. The trader selected in the picture does not make high-risk investments to achieve a high ROI. By contrast, traders with high-risk investments often have very high returns on ROI. Based on historical transaction data, it was confirmed that this trader stably pursues profits within 2% to 4% with a leverage level of fewer than five times the investment amount. Based on these transaction specifications, this Bybit copy trading trader was selected.
Bybit Copy Trading Setting
After selecting the professional trader to follow, users are required to set the amount of investment and leverage. Considering the investment appetite of the trader who stably pursues a 2% to 4% return, leverage of 5x and the investment amount per transaction of 500 USDT were selected. It should be noted that if 2,000 USD is deposited into the copy trading account and the following trader fulfills four trades of the same position to average down or add to the current position, four trades of 500 USDT each will be executed. Users should be careful, as many traders exploit this pattern.
Bybit Copy Trading Profits, Transaction History Review
The realized profits from Bybit copy trading were 104.9 USDT. From analyzing the investment history of the following trader, the user can confirm that the transactions were conducted in accordance with the low-risk trading strategy as planned. With 850 USDT deposited into the copy trading wallet, the user was able to earn 104.9 USDT over three days of trading, signifying a profit yield of approximately 12.3%.
Conclusion
In the cryptocurrency market, there are many ways to invest to succeed. For investors who have no previous investment strategies to win in the market, make too many emotional investments, or are unable to focus on the charts or the market conditions in their busy lives, Bybit copy trading can be an attractive investment method. As previously mentioned, the most important step is to select the appropriate copy trading trader aligning with the user’s investment appetite.
At Coin-Labs, we will answer any inquiries if you have any questions on the compatibility and appropriateness of the professional traders registered within the Bybit copy trading service. Please send us an inquiry email, and we will provide an answer as soon as possible.
