No matter if you are an experienced or noob trader, you may not be familiar with the term ‘copy-trading’ or understand how it works. On the surface, it’s exactly as the name implies; you copy someone’s trades when they buy or sell an asset, such as cryptocurrency. As the trading history and records are transparent, this can help followers “cut through the noise” and identify who to trust and source information from (rather than friends, YouTubers or gut instinct!).
Before looking into the details, it is commonly stated that around 90-95% of cryptocurrency day-traders lose money even in a bull market. In 2020, Crypto Parrot discovered that traders on Bitfinex and BitMEX lost over $13.47 billion USD. The liquidations comprised of $9.26 billion USD in long positions and $4.21 billion USD in shorts. Clearly, if you don’t want to get ‘rekt’ in the crypto markets, you need all the help you can get!
Copy Trading With Alpha Impact
Alpha Impact ($IMPACT) is a new crypto project launching in Q3 2021 which allows traders of all skill levels access trading strategies of professional cryptocurrency traders via their non-custodial copy-trading platform. So, what does that mean in practice? We’ve compiled the answers to a few common questions below;
- How Does Copy Trading Work?
- Do I Need To Copy Every Trade?
- What Exchanges Do You Use?
- Can I Earn Money By Copy Trading?
How Does Copy Trading Work?
- When you want to copy-traders via Alpha Impact, it’s a simple process of registering for an account and then selecting a trader you wish to follow. Once you’ve decided whose trades you want to copy, you then connect your exchange account (such as Binance and FTX) via their API so that it can execute on the trades automatically. It is important to note that Alpha Impact never has access to withdraw your funds/crypto at any time.
Who Do I Copy?
- Alpha Impact will be onboarding professional traders and hobbyist traders who specialize in crypto. When the trader joins the Alpha community, all of their trades will be transparent to potential followers. The good, the bad and the downright ugly! As a user , you will be able to select which trader suits your risk profile from the regularly updated leaderboards so you can make an informed decision.
Do I Need To Copy Every Trade?
- You can decide to select “manual” copy-trading or “automatic”. In the manual environment you can receive alerts (via Email and Telegram) about potential trades and decide whether to participate or not. In the automatic setting, you will match all of the trades made by your chosen trader until you opt-out. In this way, your portfolio would match the traders allocation on a percentage basis.
What Exchanges Do You Use?
- Alpha Impact will be onboarding multiple exchanges as we roll out our product. In the first phase, we will access the Binance and FTX exchanges.
Is Leverage Copied?
- Alpha Impact has a lot of exciting features in our road map, but in the first phase we will only allow users to copy spot buying trades. So, for newbies, this means you are not at risk of highly leveraged trades in this scenario.
Can I Earn Money By Copy Trading?
- Yes! If you are a trader, or wannabe trader, then you can apply to become an Alpha Impact Trader and earn commissions based on your followers activity. If you aren’t a trader, you can earn money by inviting your friends to the platform and earning referral fees on top of your copy trading income.
What Do I Pay?
- Alpha Impact charges followers a 1% fee on each transaction, with a portion of these fees going to the Traders as commission. However, if you buy the $IMPACT token and “stake” (basically lock these tokens in an online term deposit with Alpha Impact) you will be eligible for reduced fees. Similarly, for Traders who stake $IMPACT tokens, they will be eligible for a higher rate of commission. Premium features will also be unlocked for Followers and Traders who stake $IMPACT.