Crypto Copy Trading

5 Best Crypto Copy Trading Groups On Telegram

When it comes to cryptocurrencies, Telegram is the holy grail. The social media platform serves as the heartbeat of the crypto community where you will find news, gossip, project updates, FOMO, FUD, charts and bots. Telegram offers its users the ability to create groups where they can interact with members of their communities. Some of the popular groups belong to the crypto community and are focused on offering crypto copy trading signals to their users.

Crypto copy trading signals represent a set of instructions that are sent out from a signal provider to users of the group advising them on what cryptocurrency coin to buy, the price they are to buy at, the price they will sell at and most importantly if things don’t go as planned, where they should set their stop loss at. These signals represent well-researched trade ideas that the provider believes have a high probability of offering a return.

A typical trading signal comprises of:

  • What cryptocurrency to buy – there are over 5,500 coins according to coinmarketcap.com and all of them are tradeable on various platforms. So, the signal provider will either tip you to by BTC, ETH, ADA, etc.
  • The price you should buy at – this will be a close range of a given price let’s say buy BTC at around $9,000-$9,100.
  • The price you should sell at – This will also be a specific range, let’s say sell BTC at $9,400 – $9,500 to achieve a profit.
  • Finally, there is a stop loss – in case things go south. This target helps you exit your position to mitigate losses.

By offering a range, signal providers ensure traders have plenty of scope especially as they try to achieve the correct buy price and sell price. Therefore, by subscribing to the right signal provider, you are likely to make profits more times than losses.

How To Receive Crypto Copy Trading Signals

Telegram remains the most efficient way to receive crypto copy trading signals. Even though the app shares a few similarities with the likes of WhatsApp, Telegram boasts some unique features like bot functionality that set it apart.

These bots can be programmed to handle messages automatically. As a user, you can interact with these bots to issue a command message in a group that allows users to place trades automatically without having to get on a cryptocurrency exchange. All a user needs to do is have all the correct permissions in place and this allows them to place trades by clicking a button on Telegram.

You can also receive crypto copy trading signals via email but this requires one to constantly keep checking their inbox otherwise they are going to miss on important signals that are time conscious.  Based on many advantages, a large majority of crypto trading signal providers reside on Telegram. The structuring of the groups is easy and the ability to use the help of bots to deliver messages makes the platform more appealing.

Typical Telegram groups look like this:

  • Free Groups – these types of groups are free to join thus contain all non-paying individuals who maybe have an interest in joining premium groups. They contain a large number of people and showcase the amount of returns paying members make therefore offering a reason why members of the free channel should join the paid groups.
  • Premium Groups – if you feel you can trust the signal provider, then you can decide to sign up to the premium groups where you receive exchange specific crypto copy trading signals. It’s here the signal provider must demonstrate their value to you by sending trading signals that generate healthy returns.

Pros of Crypto Copy Trading Groups

  • No need to conduct research by yourself
  • They can be very profitable
  • They offer a great learning opportunity

Now that we have gone over the various aspects of what crypto signals are made of, let’s take a look at the top five crypto copy trading groups on Telegram.

1. MYC Signals(@MYC Signals)

This group is focused on providing Bitcoin signals on the Binance Futures and BitMEX/Bybit crypto exchanges. With over 5,000 members, this channel also provides educational content on trading cryptocurrencies to its members. In the group, you can expect to see at least 5+ posts a day. The channel was launched on Mycryptopeda.com which happens to be a well-respected crypto publication and specializes in high-quality BTC signals.

To get started with the group, you need to follow the steps below:

  • Download the Telegram app if you don’t have it and reach out to the group’s admin by sending a message to @BisMYC. You can also join the free group at MYC Signals. For those that prefer email, you can get in touch by sending an email to con[email protected] and the MYC team will direct you on what you need to do to get set up.
  • Pay either through crypto or using a card to join one or both premium channels on offer i.e., MYC BitMex/Bybit Signals VIP or MYC Binance Futures Signals VIP.
  • After becoming a premium member, the MYC team will help you get set up and you will start receiving signals. The channel offers 24/7 customer service and the team is always available to help.

2. Verified Crypto Traders

This group comprises a remote team that is spread across several nations around the globe even though it’s based in the Netherlands. The admins of the channel are well organized and punctual. The group offers trading signals for Binance and BitMEX. The channel is quite diversified, offering several services through different groups including verified crypto news through a dedicated section with the hottest and most important news within the crypto space.

There is a private chat for paid subscribers where members get to ask admins any questions they may have concerning trading and crucially, there is an automatic trading bot that helps users to reduce losses in trading operations. VCT remains one of the top channels that regularly provide accurate crypto trading signals. After checking member reviews, we found them quite positive with many individuals grateful to be part of the channel.

3. 4C Trading

This group was formed on June 15, 2019, when two experienced providers; Crypto Addicts and CryptoMedics merged to birth a channel with a variety of services. 4C Trading consists of 15 experienced experts in trading, analysis and other fields like marketing who have years of experience when it comes to creating crypto copy trading signals.

The group offers a trade room where users can interact with professional traders, get mentorship and gain access to learning materials. There is a Telegram integrated smart bot that can be activated to execute orders on your behalf. Then there are crypto copy trading signals with a high accuracy designed to make users profits. The group boasts 7,200 members.

4. Mike Crypto Signals

This is one of the most trusted crypto signal groups on Telegram with over 3,000 members. It’s focused on issuing signals mainly for Bittrex and Binance users with at least 2-3 crypto copy trading signals per day. As the name suggests this is a one-man show run by a very technical trader. This group exclusively offers altcoin signals. However, we have to mention it’s not the most active channel around but it’s worth following given the consistency and accuracy of its signals. 

 5. Whaletank

This group consists of twelve European and Israeli based traders dedicated to offering the best crypto copy trading signals that can be found on Telegram. The channel offers excellent communication where members can consult with the expert traders if they have any questions on any issues. Also, it’s possible to consult with the administration if you have any organizational questions. This group provides Binance and BitMEX trading signals putting out at least 2-3 signals per day.

Now that we are done looking at the top five copy trading groups on Telegram lets run over different trading strategies to understand how they work. 

Crypto Copy Trading Strategies

Spot Trading

Spot trading involves the purchase and immediate delivery of the asset itself. This is the most common way to get exposure to on an asset class and it’s less risky compared to leverage trading, so it’s the preferred method of trading for many novice traders.

For example, if you decide to buy BTC worth $2,000 and let’s say the price of 1 BTC is going for $10,000, you will get 0.2 BTC in your wallet. If the price of 1 BTC rises to $12,000, your 0.2 BTC will now be worth $2400. So, if you decide to sell the BTC you will have made a return of $400. The important thing to note about spot trading is that you can only bet the price of the asset you have purchased will go up which is also known as going long.

The problem comes if let’s say Bitcoin enters a period of decline or (bear market). This makes it difficult to go long without incurring losses.

Leverage Trading

This trading strategy is the opposite of spot trading and instead of directly buying and selling an asset, the trader buys and sells a representation of the asset in the form of a futures contract, or to be more specific, a perpetual contract.

In simple terms, perpetual contracts are an agreement to buy and sell an asset at a predetermined price at a specified time in the future. They are special in that they don’t have an expiry date thus can be held for an indefinite amount of time.

So, it’s important to understand that when you are buying and selling contracts on an exchange that allows you to do so, you are not directly buying or selling the asset itself, but instead, a representation of the asset in the form of a contract.

Also, unlike spot trading where one can only go long, leverage trading allows the trader to bet whether the price of the asset will go down, also known as going short.

Leverage trading has several advantages but the key ones include being able to short the price of an asset and the ability to use leverage.

Going Long

This trading strategy involves speculating that the price of an asset will increase in the future. It can be summarized as follows; buying an asset at a specific price, when the price of the asset increases, you sell the asset at its new price thereby making your profit.

Going Short

This trading strategy involves speculating that the price of the asset will decrease in the future. It involves borrowing an asset from a willing lender. The asset is sold immediately at the market price and after its price declines, the trader repurchases the asset again however, this time at a lower cost and pays the lender. Imagine borrowing 1 BTC from a lender which you immediately sell at the market price of $10,000. Let’s assume the price of BTC falls to $7,000. You repurchase the 1 BTC and return it to the person that loaned it to you. In the process you will have made $3,000 in profit minus the involved trading fees.

Leverage

To amplify the returns one can get through trades, advanced traders prefer to use leverage. Utilized well this trading tool can be incredibly lucrative. Leverage allows one to trade as if they have larger amounts of capital than they actually have. Let’s say you have $1,000 in capital and would like to buy 1 BTC with the market price of $10,000, normally this isn’t possible but with leverage it’s possible.

This means you will have to leverage your capital at a ratio of 1:10, with the $1,000 acting as your margin. The amount you have as your margin will be used to cover any potential losses but on the bright side, now you are able to trade as if you own $10,000. Some platforms will offer leverage from as little as 5x up to 125x. What you need to understand is that the higher the leverage you use, the higher the risk since the liquidation price, the price at which you lose your entire account balance, becomes tighter. However, higher leverage means you stand to make significant amounts of money if you trade well therefore, this calls for a balance between risk and reward.

Two Types Of Leverage That Exist

There are two types of leverage you must be aware of; i.e., isolated leverage and cross leverage. Isolated leverage represents the initial capital needed to open a position. The advantage of this type of leverage is that you know the exact amount you are risking. This strategy has the potential to limit the amount of losses since you only stand to lose the amount you have used in the trade itself. Examples of isolated leverage include leverage ratios such as 1:5 or 1:10 etc. These ratios require a certain amount of margin to open the position in the first place. Most new traders will find themselves using isolated leverage. The strategy is less risky and should be used by individuals who are new to the leverage concept.

On the other hand, cross leverage is a tool that allows one to open a trade using their entire account balance. It can be risky and should be used by individuals who understand what they are doing.

Exchanges That Allow Leverage Trading

To utilize the crypto copy trading signals on the groups we went through above, you need access to an exchange that allows you to use leverage trading. There are quite a few good ones available; however, the two most prominent include BitMEX and Binance.

BitMEX

BitMEX has been around for a while now and has a solid reputation within the cryptocurrency space. On this platform you trade contracts instead of buying and selling the actual asset. Contracts here are denominated in various digital assets like BTC.

Perpetual contracts represent the most popular/traded contracts on BitMEX. They are a type of futures contracts which are agreements to buy or sell a certain asset at a specified time in the future. Perpetual contracts on BitMEX are quite special since they lack an expiry date. This means they can be traded or held for an indefinite amount of time.

Perpetual contracts represent a type of derivative instrument meaning that they derive their value from something else, in this case it’s a cryptocurrency that acts as the underlying asset underpinning the perpetual contract on the exchange.

BitMEX offers contracts for several assets including; Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Bitcoin Cash (BCH), and Litecoin (LTC).

Getting Started On BitMEX

1. Visit the official website bitmex.com and click on “Register” on the top bar on the far right. Enter a valid email address, a strong password, your official names and check the terms and conditions box below before clicking on register.

BitMEX Register

2. A verification link will be sent to your inbox so go there and click “Verify My Email” and you will be redirected to the dashboard.

3. On the top left click on the drop down menu where your email appears to access account security. On the left you will have a feature named security centre which you should click on to activate a two factor authentication (2FA). Scan the QR code provided using the Google Authenticator and enter the code that appears on your phone once the account is added.  

4. The next step is depositing funds into your account. This can be done by clicking on the “Account” feature on the top bar and choosing the Deposit option.

Binance Futures

On this platform, you will be able to enter leveraged long and short positions. The trading interface is quite standard and allows one to choose which contract they would like to trade. There are several options available with BTCUSDT being one of the most popular contracts traded on the exchange. As we have mentioned above, here you can trade using leverage and the default is 20x but can go as high as 125x. On the exchange, traders have the option of choosing between cross and isolated margin.

Also, on the interface, you will be able to monitor your trading activity by checking the status of any live trades you might be in. There is also more useful information in this section including margin balance, entry price and mark price. Most importantly, you can place your orders here by entering either long or short positions.

The process of getting started on Binance is quite similar to that of BitMEX and we recommend you just follow the steps we listed above but on binance.com.

Conclusion

To recap what we just went through, crypto copy trading signals can be a lucrative way of generating steady returns for anyone that aspires to generate some extra income without having to do much work. But, it should be noted that with crypto like with anything in life there are no guarantees. However, before subscribing to paid groups for signals it does help to educate yourself on various aspects of trading like spot trading and leverage. It’s also important to understand how various exchanges work therefore once you receive your signals, you can place your trades smoothly without error.



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