Copy trading is a popular choice for some investors in the cryptocurrency market. Among the leading traders in this field, how did they become successful? This article explores the data behind the copy trading feature on Bitget, a cryptocurrency exchange.
Table of Contents:
Principles, Advantages, and Risks of Copy Trading
Surprising Data on the Popularity of Copy Trading
How are Star Traders on Bitget Born?
Comparing and Selecting the Top Traders for Copying:
a. Historical Performance
b. Trading Style
c. Trading Expert Level
d. Trading Period
Exploring the “Proud Operations” of Star Traders:
Using the Top Contract Trader as an Example: Concentrated Short Positions
The Evolution of the Copy Trading System: Premium
Conclusion: Copy Trading is a Powerful Tool for Social Investors
For many retail investors, staying up all night to monitor investments in order to generate profits may not be a sustainable habit. To bridge the gap between professional investors and retail investors, many platforms have introduced “social copy trading systems” in recent years.
In the design of a copy trading system, top elite traders act as the driving force behind the capital, increasing the utilization of funds for retail investors who lack experience and time. It is an efficient tool for proactive and direct participation in the market. Some investors rely on automatically replicating orders from experienced traders and use the research results of others to help themselves profit.
Taking Bitget, an exchange famous for its copy trading feature, as an example, it currently attracts hundreds of thousands of users with copy trading demands. This has also led to competition among the traders who lead these copy orders, resulting in a “competition within” the platform. How do these top star traders become successful?
In order to understand the principles and risks of copy trading, it is worth looking at Bitget, a representative product in the copy trading market. This product has been in operation for 3 years and is widely used by the trading community. Users can easily engage in copy trading by opening the official website or app after registration. They can choose from a list of traders to follow and automatically synchronize their trading activities without the need for manual opening or closing of positions. This allows for potential profits without the need to monitor the market constantly.
The infrastructure of the copy trading feature on Bitget is very convenient and intuitive. The profit and loss dashboard provides a clear overview of the current position status. By opening the page of a trader to follow, users can quickly filter based on the trader’s ROI, maximum drawdown, number of followers, total earnings, win rate, and AUM. Bitget also automatically provides various identification labels for traders, allowing users to distinguish their trading styles.
There are risks and considerations that users need to be aware of when engaging in copy trading. Before using copy trading, it is recommended to pay special attention to the following points:
– If a trader has extremely high profits within a short period of time, it may be due to high leverage with a small amount of capital.
– Pay attention to the “total follower earnings” to filter out traders who have high profits but have caused followers to be liquidated.
– Set personal risk control measures in advance, such as leverage limits and profit/loss ratios, as well as the maximum amount to follow a single trader.
– In order to incentivize traders, they can earn a portion of the profits from their followers (0-13%), so followers should be aware that their profits may be partially reduced.
While exploring the data of copy trading on Bitget, we also found that there has been a rapid increase in demand for copy trading, which reflects the success and popularity of Bitget in this product. Based on user changes within this year, from January 1st to October 31st, the number of total contract followers has increased by nearly 240,000, reaching 617,000 users. In terms of spot copy trading, since its launch on January 10th, there has been an increase of 53,000 users until October 31st. It is also evident that users prefer contract trading.
Looking deeper into the user sources of contract copy trading, 48.28% come from Asia. For spot copy trading, Asia and Africa account for the highest proportion, with a total of 42.87%.
Bitget supports a wide range of cryptocurrencies for copy trading. There are 208 cryptocurrencies available for contract copy trading, accounting for 84.9% of the total listed contract trading pairs.
Analyzing the data behind the star traders on Bitget, it can be seen that they have achieved their positions through solid trading experience. Currently, Bitget has over 120,000 trading experts (traders who open orders) on its copy trading platform, making it a large community. The question we want to understand is how the top traders on the ranking list are selected. By referring to the publicly available data provided by Bitget, the selection is mainly based on six key dimensions:
– Profit Rate
– Maximum Drawdown
– Total Number of Followers
– Total Earnings
– Win Rate
– AUM (Assets Under Management)
In addition to the above data, auxiliary data is also taken into account, including total equity, total trades, days since joining, and current number of followers. Based on these data, Bitget classifies the top-performing traders into four types:
– Highest Profit Rate
– Highest Earnings
– Highest Earnings for Followers
– Emerging Trading Experts
The profit rate refers to the investment return rate, generally expressed as a percentage per year. The profit rate is calculated as profit/initial capital x 100%. Total earnings refer to the total earnings from closed orders. Follower earnings refer to the total earnings of the followers from closed orders.
The “Emerging Trading Experts” category provides more exposure opportunities for novice traders. The criteria for entry are as follows: contract account balance >= 500 USDT, profit rate >= 10%, total number of copy trades in the past 7 days >= 10, total number of followers in the past 7 days >= 1, total earnings in the past 7 days >= 40 USDT. Although the criteria for entry into the emerging ranking list may seem simple, it is still not easy to achieve in the highly competitive world of traders.
In addition to the ranking list based on the above data, users can view the rankings and trading currency data of traders based on the past 24 hours, past 7 days, past 3 weeks, past 1 month, and past 3 months. This allows users to observe the top traders who are most skilled in investing in different market sectors during market rotations.
Taking a step further, Bitget’s copy trading system includes a “Comparative Trader” feature, which allows users to compare different traders using more data. In addition to the aforementioned data comparison, the system also provides the trader’s public posts, allowing users to gain insights into the trader’s market judgments.
For inexperienced and novice investors, it is recommended to pay special attention to four important indicators of traders on the Bitget copy trading system:
– Historical Performance: To assess a trader’s long-term performance, users should focus on the trader’s performance and risk control ability in different tokens, including trading frequency, profit rate, win rate, drawdown rate, and total earnings. This can help determine if a trader relies on carrying trades or speculative nature to beautify data.
– Trading Style: Bitget’s copy trading system provides style labels based on traders’ historical data, which have objective accuracy. Users can interpret the characteristics of different traders through these labels, which are quite diverse, including top labels such as high earnings, high return rate, stability, frequent winners, and most popular, as well as style labels such as high frequency, low frequency, aggressive, conservative, long-term, and short-term, and labels for newcomers and traders with a preference for specific cryptocurrencies.
– Trading Expert Level: Traders on Bitget’s copy trading system are divided into six different levels (bronze, silver, gold, platinum, black gold, and legend). The higher the level, the stricter the requirements for copy trading data. For example, legend traders need to have a win rate of at least 80% in the past 30 days, at least 300 copy trades in the past 30 days, a copy trading amount of at least $50,000 in the past 30 days, total earnings of at least $2,000 in the past 30 days, and a total equity of the contract account in the past 7 days of at least $10,000. The grading system allows followers to evaluate traders to some extent.
– Trading Period: Traders’ individual pages display a time distribution chart that can align with the follower’s investment period, risk tolerance, and time habits, making it the most suitable star trader.
After understanding how the top traders are selected, it is natural to be curious about their most successful operations. According to statistics from Bitget, the top ten star traders in terms of contract trading most frequently trade BTC, ETH, and XRP.
Taking the top-ranked contract trader as an example, their operations mainly focus on shorting BTC and ETH with high leverage (50x) and closing positions quickly within a short period of time (around 10 minutes). This strategy is estimated to capture the appropriate selling pressure period based on quantitative data. Although this top-ranked trader’s current profit record is 100%, it is a high-risk operation that has still attracted many followers who have profited from it.
To keep the copy trading system active, it is important to encourage high-quality traders to stay on the platform and continue to generate profits. Bitget understands this and has recently launched the “Trading Expert Honor Mode,” which directly addresses deeper needs. It consists of four key features:
– Whitelist Invitations: Trading experts can invite “specified users” to copy their trades and follow their strategies.
– Trading Strategy Protection: Only followers in the honor mode can access and copy trading strategies.
– Profit Sharing Ratio Setting: Trading experts can flexibly set the profit sharing ratio without locking BGB tokens, ranging from 0% to 99%.
– Follower Customized Management: Trading experts can closely monitor the trading activities of their followers and add or remove followers.
Does the “Trading Expert Honor Mode” sound familiar? The logic is similar to the channel subscription and upgraded premium membership on well-known media platform YouTube. It enhances the interaction community for both content providers and demand-side users, provides value-added content sharing, and strengthens management tools. By applying this logic to the investment copy trading system, Bitget has created a rare optimization.
Having analyzed the complete picture of the copy trading feature on Bitget, it is clear that for any retail investor, studying how experienced contract traders operate in current strong or popular cryptocurrencies can provide a valuable source of trading data. Even if you do not copy others’ trades, you can conduct extensive research on the drawdown data of successful traders.
On the other hand, in spot copy trading, experienced traders’ strategies for long-term order placement or potential cryptocurrencies to watch can also be understood.
Investors who have transitioned from retail investors to elite traders can also expand their market influence and gain more community reputation and profits through the copy trading feature. For investors who have a genuine need for copy trading, they undoubtedly seek a powerful and intuitive interface. Bitget’s trader pages already provide comprehensive data, saving a significant amount of personal analysis time and making investment decisions more agile and flexible. In the rapidly changing cryptocurrency market, this is truly a rare and powerful tool.
Risk Disclosure: The data used in this article is provided by Bitget. Copy trading involves different risks depending on the traders’ actions. This article does not provide any investment or use of investment product advice. Readers should conduct their own research before making any decisions.