Remember how you’d copy your friends during a class test because you didn’t prepare for the test? Copy trading is like that only it is not cheating.
Just like the name implies it allows you to directly copy the position taken by another trader and connect a pair of your portfolio to theirs. The aim is to make a profit from other people’s good decisions.
It can be automatic where any step the chosen trader takes instantly applies to your account or manual where you follow a particular trader and replicate their steps in your account.
Why Copy trading is a good idea.
As a beginner with limited trading experience, this method helps you familiarize yourself with the financial market and gain trading confidence. Rather than invest time and energy learning how to trade, traders can make money from someone else’s skill. While this is not the best method, it can help you gather enough liquidity to start an independent trading journey.
The fact remains that your success and failure depend on the trader of your choice. So it is important to choose a trader with a good portfolio where the wins outnumber the losses.
DexeNetwork wallet-to-wallet trading.
To easily copy any trader of your choice:
Create a Metamask wallet if you don’t have one already.
To connect the wallet, go to dexe.network, then:
- Connect your metamask wallet
2. Accept terms
3. Click on the Metamask logo and confirm the connection.
Enter the ERC20 wallet you want to follow into the address bar of the interface.
On the left side of the interface, you’ll see the assets of the wallet you are following (1); On the right side, you will see the assets in your wallet (2).
NOTE: There is no database of wallets to follow. You need to find your own.
- Choose an asset to exchange
You will see a pop-up window: “Exchange token to the same asset as the trader?” If you select YES, it will be copied into the same asset as in the copied wallet’s transaction. If you select NO, you need to select the end asset yourself.
- Configure your copy settings
Slippage — acceptable % of slippage above which the transaction will not be copied.
Frontrunning — function, which allows you to complete your transaction before the copied wallet completes theirs by increasing the block gas fee you are willing to pay.
Minimum Exchange Volume Filter— if the volume of the asset traded by the followed wallet is below this threshold, your wallet will not copy it.
After selecting your settings, choose the asset you want to copy. Let’s use USDt as an example.
- Additional parameters that you can configure
You can choose the % of your total assets to use for copying (the red arrows below).
Choose from these 3 options:
- Choose one of the % presets (25%, 50%, 100%)
- Enter the % manually
- Enter the specific amount to use
Once you configure all the settings options, click the “FOLLOW” button to start following the selected wallet.
A pop-up window will show the selected settings for this copying request. Note that when you sign this transaction, an additional 0.1 ETH will be sent to the smart contract as collateral to cover future copying fees. You’ll see that amount on the left side of your screen and can withdraw it at any time.
Next, click on the transaction and sign it.
Then confirm the transaction in your Metamask.
After signing and confirming, wait until you see the confirmation message pop up from Metamask.
Once the transaction is confirmed, you’ll see the balance for future copying fees (which you can move back to your main wallet at any time using the “withdraw all” button).
Note that any user can set multiple copying requests for a followed wallet. So you can copy one or several of the followed wallet’s assets. All the steps are the same as for copying your first asset.
In this version, one request performs one copying action (purchase or sale). To copy again, repeat the steps.
If during a subsequent request, you will see a request to again add 0.1 ETH for fees but you have already filled up your smart contract balance, just click “cancel” and the request will still go through normally.
You can always view, cancel, or edit your copying requests in the “My Requests” tab.
New to trading? Try crypto trading bots or copy trading