Decades ago, traders coded their own programs to ensure the right analysis of the market trends. In 2023, making money no longer means being a quant, especially in a democratized crypto world. We invite you to explore how algorithms penetrated the blockchain market and how "robots" can help you save time and sweat while still making a decent profit.
Old math new algorithms
The idea of copying the winning strategies is not new. Even the best corporate companies often ask for the best practices analysis to identify something applicable to their operational models. Of course, the idea of following the actions of successful people penetrated Wall Street, first in the form of a newsletter.
In 2005, the company named Tradency released an automated system Mirror Traders that for the first time allowed one group of users to share their trading strategies, and others to follow. It took a couple of years for "mirror trading" to gain traction and in the 2010s it was already a thing. Less experienced traders got closer to the few elites and trading became slightly more democratized.
For the next decade, researchers from all over the world were studying whether "the wisdom of the crowd" actually works for the traders. MIT researchers found that guided trading benefits the portfolio value. IBM researchers also agreed that algorithmic trading improved the likelihood of positive outcomes but shared that it is associated with slightly more modest outcomes. In other words, it works, and automated trading is less risky.
Penetrating blockchain world
Of course, democratization feels tight in arms to the centralized systems on Wall Street. And it naturally fits the decentralized world. Yet it took some years to find its place in the new crypto field. Various coins had to emerge to trade them, then exchanges had to become robust to support systematic trading and so on and so on.
In the crypto world, at first, there were apps that allowed you to connect to certain exchanges. And already in 2020, the first crypto exchange has introduced copy trading features within its ecosystem. Having all in one place adds to both convenience and security. In 2022, to add to the "safety first" narrative, the platform launched the Bitget Protection Fund to ensure that assets are safeguarded. In less than 3 years, Bitget provides an opportunity to follow more than 80,000 elite traders.
This presents a sustainable ecosystem where more experienced "elite" traders share with less experienced their wisdom and increase their returns, by charging up to 10% in the follower's revenue at Bitget. Less experienced users gain experience and contribute to the general sustainable growth of the ecosystem.
And the market voted following the "success brings success" principle: in 2022, the total transaction volume at Bitget tripled. In January 2023, gains from profitable trades already reached $ 300 million and Boston Consulting Group named Bitget among the top 3 derivative exchanges. In 2023 it remains the largest crypto trading platform that offers copy trading serving 8 million people in more than 100 countries around the globe.
From theory to practice
Copy trading saves money and gives experience to the industry but it is not all. It also saves time and effort for all types of traders. Detailed technical analysis can be both time-consuming and repetitive. Instead of producing the same actions again and again, it is possible to find an elite trader that follows the same principles.
In other words, there are two ways to use the platform: you can copy spot or futures trading by copying their orders in the corresponding markets or mimic a strategist that meets your expectations in terms of risk appetites.
To make the right decision, followers can examine the detailed portfolios and historical performance of the people to follow including PnL, win rate, and actual asset under management count. This level of transparency makes it impossible for free riders to join the club of elite traders. Here, numbers are to be proven, and success is to be earned.
To contribute to the transparency trend even more, in the fall of 2022, the platform launched the additional Insights platform where over 500 verified trading experts also share their market insights, contributing to smarter decisions and sustainable market growth. It is now even easier to identify winning strategies and orders.
Generally speaking, trading is risky but it is even more riskier with chaotic actions. In 2023, strategic rational acting takes less effort with technologies that automate copy trading. One can choose the underlying principles or follow the success track of a trader while the trading robots will do what they were born to do - perform algorithms and bring value.
