Please note that since this article was written the FCA has banned retail traders from trading cryptocurrency derivatives. If you would like to speculate on Bitcoin and cryptocurrencies you need to use a cryptocurrency exchange or professional trading account.
For those not familiar with crypto copy trading it works like this.
- You open an account with a social trading broker.
- You trade or you follow.
- If you trade and make money, you get followers, every time they trade you get a percentage of their trading costs and/or profits.
- If you follow you pick a trader that makes money and follow them. Every time they trade, your account copies. If they continue to make money so do you. However, if they lose money so do you.
It’s a bit like an amateur hedge fund for private clients, or a social network for traders.