Bybit Smart Copy Mode – The Simple Way of Securing Copy Trading Profits

Crypto trading is one of the lucrative ways of making money online. However, many shy away from the cryptocurrency market due to the complex technical analysis required to place successful trades.

Thanks to technology, trading has been simplified, making it possible for novice traders to make profits as well.

Crypto exchange Bybit recently introduced its copy trading feature, which comes with a functionality known as Smart Copy Mode. Keep reading this article to learn more about it.

Exploring Bybit Smart Copy Mode

Bybit’s Smart Copy Mode is a functionality that lets users with little to zero trading experience gain profits from the digital currency market. It was introduced at the beginning of the year. To start using it to copy the trades of Master Traders, you need to make an investment of 50 USDT or more. After doing so, press “Copy Now” to begin your copy trading journey.

Bybit Smart Copy Mode Key Features

There are two major features available on the Smart Copy Mode that help users minimize their trading risks. They include:

Copy Position by Ratio

This feature lets followers manage their risks effectively. Here is an example to help you better understand: Let’s say the Master Trader you follow is holding 10 ETH in their Bybit account but takes a buy position with just 1 ETH. In conventional copy trading, if you have 1 ETH in your account, you will copy that trade using the whole 1 ETH. This puts your entire holding at risk.

But with Bybit’s Smart Copy Mode, you can set a ratio to determine the amount you wish to risk in a particular copy trade. In the example above, if you put your ratio at 20%, then only 0.2 ETH will be used to enter the trade.

Bybit CopyGuard

This feature is meant to minimize losses. Bybit understands that not all trades opened by Master Traders will be successful. So, to protect followers from incurring massive losses, the crypto exchange introduced its CopyGuard. If you turn this functionality on, your trades will get optimized. What this means is that you will only copy trades when an optimal price is attained.

Which is Better, Advanced Copy Mode or Smart Copy Mode?

Other than Smart Copy Mode, Bybit offers another feature for copy trading called Advanced Copy Mode. Here are their key differences:

Setting up: It takes only a few simple steps to start using the Smart Copy Mode. Advanced Copy Mode, on the other hand, requires a follower to set up numerous parameters manually before they can begin copying trades.

Copy by Ratio: When you set a ratio using Smart Copy Trade, it will be applied to all trades. However, with Advanced Copy Mode, you must manually calculate a ratio for each trade.

Leverage: If you are using Smart Copy Mode and you follow a Master Trader who trades on margin, your leverage settings will automatically mirror theirs. As for Advanced Copy Mode, you are required to set your own leverage levels. This may pose an overleveraging risk, which could put you in huge losses.

From this comparison, novice traders are recommended to opt for Bybit’s Smart Copy Mode, while experienced traders can select the Advanced Copy Mode.

With all said, the Bybit copy trading platform has made it easy for users to make profits from trading. However, copy trading carries the same risk as any other trading strategy. So you are advised to risk what you don’t mind losing.