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Author: Admin | 2025-04-28
Become more popular in late 2017.Covesting is one popular copy trading platform for the crypto industry (it’s generally thought to be the first copy trading crypto platform). Coindash also offers a copy trading feature.Traditional investing platforms also offer cryptocurrency copy trading. eToro, for example, allows customers to track their favorite traders.Obviously, cryptocurrency copy trading is only as good as the person you’re copying. You can easily mess up your investment portfolio by following the wrong person. It’s easy to be dazzled by the returns of some investors on copy trading platforms – until you realize they’ve become really lucky with a single crypto pick over the last few months. Meanwhile, another trader might have a battle-tested strategy that delivers smaller, but more reliable returns. Depending on your exposure to risk, you can pick the copy trader that meets your preferences.ALTERNATIVE CRYPTOCURRENCY INVESTMENTS: DERIVATIVES, FUTURES, CFDS, AND OPTIONS So you want to make money from the cryptocurrency industry, but you’re bored with just buying, selling, and holding coins. Fortunately, there’s another way to make money: through cryptocurrency derivatives and futures.Cryptocurrency Derivatives Cryptocurrency derivatives typically come in the form of CFDs, or “contracts for difference”. CFDs allow traders to speculate on the price of cryptocurrencies, then leverage trades to earn massive rewards. Some trading platforms offer leverage of 30 to 1 on CFDs – although you’ll likely have to put some money up as collateral. CFDs are different from futures contracts. You can’t buy CFDs on traditional exchanges. CFDs are actually banned in many countries (including the United States), although they’re available throughout Europe and Asia.Cryptocurrency Futures In late 2017, the price of bitcoin surged when it was announced that the Chicago Mercantile Exchange, or CME Group, would begin trading bitcoin futures. The platform is the world’s largest futures exchange. Bitcoin futures will function similar to CFDs. With bitcoin futures, you are buying a position on bitcoin in the future. You’re buying a contract that states you’re going to buy or sell bitcoin at a certain price in the future. Like CFDs, you can access leverage from many trading platforms using this method. Some crypto futures platforms even have leverage of up to 100:1.Cryptocurrency Options Cryptocurrency options are a little more complicated. Crypto options have calls and puts, and you can place both in a long or short position. If you buy a call, you’re said to be “going long”, and if
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