What is copy trading and how does it work?

Copy trading is a feature that lets you automatically replicate trades made by experienced traders. When you enable copy trading, your account mirrors the positions of a selected trader in real-time. If they buy Bitcoin, your account buys Bitcoin proportionally based on your account size. Most platforms charge a performance fee (typically 5-30%) when your copied trades are profitable. Copy trading reduces the need for personal market analysis but carries risks: you inherit the selected trader's losses too, past performance doesn't guarantee future results, and liquidations can occur on leveraged positions. It's suitable for beginners seeking guidance, though you should research traders' track records before copying.