Venturing into copy trading can be a rewarding journey, and understanding how to set up BingX is a crucial first step. In this comprehensive blog, we will explore how you can practise copy trading on BingX, a platform known for its user-friendly features with over 10 million users and a daily trading volume exceeding $8 billion.
From navigating the interface to selecting traders based on different categories like Trending, Conservative, Rising Stars, and All Traders, we guide you through the setup process. Uncover risk management, emphasizing the importance of never investing beyond your means. Get ready to empower your investment strategy with the insights shared in this guide.
Learn more about the crypto exchange in our full BingX review.
BingX: A Comprehensive Trading Platform
Before moving on let’s first explore why BingX stands out as an excellent choice for crypto copy trading. BingX is a Hong Kong-based cryptocurrency trading platform, founded by Josh Lu in 2018.
With a global presence, BingX brags an impressive user base exceeding 10 million and manages a daily trading volume mostly surpassing $8 billion. As a prominent crypto exchange and trading platform, BingX offers various options for trading opportunities.
Renowned for its large user base, low trading fees, and reliable trades, BingX ensures security and provides a user-friendly interface for easy navigation. Hosting over 520 cryptocurrencies, BingX stands out as a robust choice for users, especially for perpetual futures trading with up to 150x leverage on major cryptocurrencies like BTC and ETH.
What sets BingX apart is its versatility; aside from cryptocurrency, users can also engage in forex, stocks, and commodities futures trading. Moreover, offering 24/7 customer support, BingX prioritizes providing users with an exceptional customer experience. Lastly, BingX does not mandate KYC, allowing users to maintain anonymity, aligning with the fundamental values of cryptocurrencies.
Pros and Cons of Copy Trading on BingX
Here are some prominent pros and cons of copy trading on BingX.
| 👍 Pros | 👎 Cons |
|---|---|
| ✅ Trading in a trending market can multiply the deposit several times across various trading scenarios. | ❌ Investors may face financial losses in the event of the trader's strategy proving unsuccessful. |
| ✅ Every successful transaction results in actual profit. | ❌ Errors may lead to overcoming losses, restricting deposit mobility in the process |
| ✅ Observing professional traders in action is valuable for learning their techniques and strategies. | ❌ Limited entry points exist due to the focus on trading medium-term waves. |
| ✅ Undertake trading with minimal or no familiarity with copy trading. | ❌ The primary risk encountered in copy trading is market risk, posing the greatest challenge for traders. |
| ✅ Losses are minimal, with only a temporary deposit shortfall being a potential occurrence. |
Understanding Copy Trading on BingX
For novice traders, Copy Trading serves as an invaluable guide, enabling them to shadow experienced traders and grasp diverse techniques while potentially earning income. BingX extends Copy Trading functionality to both futures and spot traders, providing beginners with the option to filter experts based on various criteria. Professionals can be selected according to factors like ROI, APY, conservative strategies, emerging stars, trending experts, and more.
Conversely, skilled traders stand to earn a substantial commission from their followers’ profits. To qualify for this role, a trader needs a balance of 110 UST, a trading history of over 30 days, and a 40% win ratio within that period. BingX rewards professional traders by sharing up to 20% of their followers’ profits on the platform. This creates a symbiotic relationship, benefiting both novices and experts in the trading community.
When deciding on a trader to follow, consider crucial factors such as their overall performance and recent performance. If someone shows significant gains in the short term but lacks consistency in their total performance, it’s a clear signal to avoid them.
While a trader may experience a fortunate streak with notable successes, more often than not, this leads to a complete loss of funds (liquidation). Look for a trader with consistent performance, demonstrating a solid total Return on Investment (ROI) and a low 7-day ROI. Consistency is key.
Keep in mind that copy trading is not as smooth as it may sound. Seek a trader with gradual and steady account growth, minimizing drawdowns. Avoid being persuaded by high win rates or impressive short-term ROIs. Remember that trading is a marathon, not a sprint. So make sure you find a trader that has a slow but steady account growth with only small drawdowns.
Set up Copy Trading on BingX
Here is a step-by-step guide to start copy trading on BingX.
Step 1: Logging into your BingX account
Visit BingX’s official website or open the app. Enter your credentials to log in securely. Ensure your account is funded and verified before proceeding to copy trading.
Step 2: Click on the Copy Trading Option
Visit the platform’s Copy Trading section, enabling automatic replication of seasoned traders’ activities. Streamline your trading experience by effortlessly mirroring the strategies of established investors with this user-friendly feature.
Step 3: Scroll Down and Select a Trader
Explore the list of available traders, their performance, and trading strategies. Choose a trader whose approach aligns with your investment goals.
Note: On BingX, tailor your copy trading experience by selecting from diverse categories such as Trending Traders, Conservative Traders, Rising Stars, and All Traders.
- Trending Traders showcase current market favourites,
- Conservative Traders emphasize low-risk strategies,
- Rising Stars highlight emerging talents,
- All Traders provide a comprehensive selection.
Choose based on your preferences to align your copy trading journey with the strategies that best suit your investment goals.
Step 4: Click on Their Profile
Choose a trader and delve into their profile for comprehensive insights into their trading history, performance, and risk levels. Gain a fine understanding by clicking on their profile, facilitating well-informed decisions in your selection process.
Step 5: Scroll Down and Read Their Details
Thoroughly review the trader’s details, including performance metrics, trading style, and any other relevant information that may influence your decision to copy their trades. For example below this trader has a win rate of approx 86.93% and the PNL ratio is 2:5:1.
Step 6: Click on Copy
Start copy trading effortlessly by clicking the “Copy” button after confirming your satisfaction with a chosen trader. This simple action sets the process in motion, allowing you to seamlessly replicate the trading strategies of the selected trader on BingX.
Step 7: Choose Between Position Rate and Per Order
Select your preferred copying method, either based on position size or per order, depending on your risk management strategy.
Note:
- Position Rate: This copying method involves allocating a specific percentage of your total capital to each trade made by the selected trader. For example, if you set a position rate of 5%, each trade executed by the trader will use 5% of your total invested capital.
- Per Order: With this method, you specify a fixed amount of capital for each trade copied from the selected trader. Regardless of the size of the trade, the same predefined amount will be applied.
Choosing between position rate and per order depends on your risk tolerance, capital allocation preferences, and overall trading strategy. Position rate allows for proportional allocation, while per order provides a fixed amount approach for each trade.
Step 8: Click on the Tick Button to Agree with the Copy Trading Agreement
Select the tick button to confirm your acceptance of the Copy Trading Agreement’s terms and conditions. Your acknowledgement and agreement are finalized with a simple click, ensuring compliance with the terms set forth for the copy trading arrangement.
Step 9: Click on the “Copy Now” Button
Initiate the copy process by clicking the “Copy Now” button, seamlessly replicating the chosen trader’s transactions and finalizing the copying procedure with a simple click.
Step 10: Select on View Order
Track and manage your copied trades efficiently in the “View Order” section. Monitor performance and adjust copy trading settings to align with your preferences.
Congratulations! You’ve completed the setup for copy trading on BingX. Despite your success, it’s crucial to acknowledge the inherent risks. Only invest within your financial comfort zone and begin with modest amounts. Trading carries significant risk, with over 90% of individuals experiencing losses. Below, we’ve gathered essential considerations for effective copy trading to enhance your understanding and mitigate potential challenges.
BingX Copy Trading Checklist
Explore our BingX Copy Trading Checklist designed for evaluating a trader’s suitability.
- Evaluate Trader Reputation: Assess the trader’s reputation by considering their follower count, which can serve as an indicator of user satisfaction and confidence in the trader’s abilities.
- Analyze Performance Metrics: Examine the overall Return on Investment (ROI) and compare it to the 7-Day ROI to gauge consistency. Look beyond short-term gains to ensure sustained profitability.
- Prioritize PNL Ratio: Focus on the trader’s Profit and Loss (PNL) ratio rather than fixating solely on win rates. A higher PNL ratio signifies better profitability for your investments.
- Manage Risk with Drawdowns: Monitor the trader’s total PNL graph for significant drawdowns, as large downward spikes can indicate poor risk management. Choose traders with more stable and controlled performance.
- Ensure Trader Activity: Verify the trader’s recent activity to confirm their engagement in active trading. Avoid following inactive traders with no recent trades, ensuring a consistent and reliable trading presence.
- Balance Profit Share: Seek a balance between a lower profit share for increased personal gains and recognizing that skilled traders may justify a higher share. Consider the trader’s performance relative to their profit-sharing model.
- Diversify Portfolio: Spread your investments across multiple traders to diversify risk. Avoid putting all your funds into a single trader, as this can help mitigate potential losses and enhance overall portfolio stability.
Tips for Success in Copy Trading
1: Diversification
Enhance your BingX copy trading success with the pivotal tip of diversification. Embrace a varied portfolio by selecting multiple traders with distinct strategies and risk levels. Diversifying mitigates potential losses and maximizes opportunities for gains. This strategic approach ensures a balanced and resilient investment portfolio. By incorporating diverse trading styles, you position yourself to navigate various market conditions, increasing the likelihood of long-term success in the world of copy trading on BingX.
2: Monitor Performance
Achieve success in copy trading on BingX by regularly assessing and fine-tuning your strategy. Keep a close eye on your chosen trader’s performance metrics, analyzing factors like ROI, PNL ratio, and drawdowns. Stay informed about your copy trader’s activity, ensuring they remain actively involved in the market. This proactive monitoring empowers you to make informed decisions, maximize profitability, and navigate the dynamic landscape of copy trading with confidence.
3: Form a Clear Plan
Crafting a well-defined strategy is paramount for success in BingX copy trading. Formulating a Clear Trading Blueprint ensures a systematic approach, mitigating risks and enhancing decision-making. Outline specific goals, risk tolerance, and preferred trading styles. Regularly revisit and adapt the plan to market conditions. A strategic framework provides stability, helping navigate the complexities of copy trading, fostering confidence and yielding more favourable outcomes.
4: Prudent Copy Trading Tip
Exercise fiscal caution by adhering to the principle of never investing beyond your financial comfort zone. It’s pivotal to allocate funds wisely, acknowledging the inherent risks of copy trading on BingX. By refraining from exceeding your affordable limit, you fortify your financial resilience and promote a sustainable approach, mitigating potential losses. This discipline ensures that your investment endeavors remain within manageable bounds, fostering a more secure and balanced copy copy-transience.
Final Verdict
Navigating the domain of copy trading on BingX opens doors to diversified investment strategies. With this guide, users can seamlessly establish their copy trading journey, harnessing the potential of seasoned traders. It’s essential to remain vigilant about associated risks, emphasizing cautious investment practices. As you launch this exciting experience, remember to continually stay informed, adapt to market trends, and make informed decisions for a rewarding copy trading experience on BingX.
BingX Copy Trading FAQs
1. What are the key features and benefits of using BingX for cryptocurrency trading?
BingX offers a user-friendly crypto trading experience with over 520 cryptocurrencies, low fees, and reliable trades. It stands out with a large global user base, exceeding 10 million. Unique features include up to 150x leverage on major cryptos, versatility for forex and futures trading, and the innovative Copy Trading option, enabling beginners to follow experts and earn while learning.
2. How does BingX ensure a secure and transparent Copy Trading experience for beginners and expert traders?
BingX prioritizes security and transparency in Copy Trading by employing robust encryption protocols to safeguard user data. Additionally, thorough vetting ensures only qualified expert traders participate. Transparent performance metrics, such as ROI and win ratios, empower users to make informed decisions. This commitment creates a secure and trustworthy environment, fostering confidence for both beginners and experienced traders on the platform.
3. In what ways does BingX facilitate Copy Trading for both future and spot traders, catering to a diverse user base?
BingX empowers a diverse user base by extending its Copy Trading functionality to both future and spot traders. This inclusive approach allows beginners and experienced users alike to engage in Copy Trading, enabling them to follow expert strategies and enhance their trading skills across various cryptocurrency markets.
4. How does BingX’s Copy Trading feature empower beginners in the cryptocurrency market?
BingX’s Copy Trading feature empowers cryptocurrency beginners by allowing them to follow seasoned traders. This provides a unique learning experience as beginners observe and adopt diverse trading strategies. Through this accessible and educational platform, newcomers gain insights into the market, enhance their skills, and potentially earn income by mirroring the successful practices of expert traders.
5. Can I customize my Copy Trading preferences on BingX?
Absolutely! BingX provides users with extensive customization options for Copy Trading preferences. You can tailor your selections based on criteria such as Return on Investment (ROI), Annual Percentage Yield (APY), trading approach (conservative or aggressive), and identify emerging or trending expert traders. This flexibility ensures a personalized and tailored Copy Trading experience on the platform.
