#跟单日记 In crypto trading, can copy trading make money?

Now, most exchanges have a copy-trading function. When you open the exchange’s copy-trading page, the whole screen is filled with “monthly profits of 500%-1000%” from so-called trading experts. Newcomers can’t help feeling itchy—like they’ve found a wealth password. You don’t need to learn trading skills; just press a button and you can lie down and make money.
The truth is that you think you’re copying homework, but you might end up copying into a trap set by someone else for you.
Copy-trading is basically futures trading. When you see those “celebrity trader” ranking lists, it’s hard not to feel impulsive to copy them!
However, the top exchanges are at least somewhat different. For those unknown exchanges, it’s not the same—they design the data to make you see it and earn your trust.
The “mentors” who lead trades have two income sources.
1. Trading fees fanyong. If it’s normal trading, it’s fine, but some people frequently lead others to trade. Every time they trade, they earn a commission markup. They don’t care whether the people below can make money.
2. Taking customer losses. This only exists in small, untrusted exchanges. They agree on cooperation with the exchange in advance, then they split the profits. That’s also why copy trading with small capital will often make money; once the capital size increases, the main reason they start losing is that. So that’s why you often hear that some small exchange “runs away” or stops operations.
There are also some trading mentors who use two accounts—one places a short, the other places a long. That way, no matter which direction the market goes, they won’t lose. But they still earn the trading-fee commission markup. Then they’ll only show off in their朋友圈 whichever trade is correct. That’s why you usually only see the profitable trades, and this is how they attract more newbies to copy-trade.
Copy-trading also has a major drawback: timing issues. For example: if Bitcoin hits 80,000 and someone goes long first, then when copy traders enter afterward, they push the price higher. The later people enter, the higher their entry cost becomes. If it’s 100x leverage, then when the price moves up by just 1 point, they earn 100% profit. When closing positions, it’s the same—whoever closes first is the one who gets out at the higher price, and the later people close at a lower price. This causes the profits of later closers to shrink, and it can even lead to losses.
So copy trading must also be cautious. It’s fine to play with small capital, but the bigger the capital, the higher the risk. The probability of making money by copy-trading is basically the same as going to a casino.
The above analysis only represents personal views and does not constitute any investment advice.