How to Copy Other Crypto Traders on Various Exchanges Using Shrimpy
Are you a beginner crypto user seeking investment success? You are not alone; thousands of new investors try to find ways of investing in crypto but fear losing their wealth.
Primarily, the processes of investing in either crypto or fiat can take up lots of time and resources. Even investors with great financial experience make losses for months when trying new classes of investments. So as a beginner, how can you protect yourself while gaining expertise in crypto? Social Trading!
Social trading, commonly referred to as copy trading, is a new trading style where the investor copies investment strategies from experienced and best-performing investors. Trading has never been easier.
Among the platforms providing this excellent investment opportunity is Shrimpy. Launched in 2018, the Shrimpy trading bot provides comprehensive copy trading and portfolio management services at affordable subscription fees. Let’s dig deep into how we can start social trading using the Shrimpy platform.
How to Create an Account and Connect Your Exchange
Creating the Shrimpy account is simple. Navigate to the sign-up option and fill in the details required. Choose the subscription of your choice.
After creating your account for the first time, you see a button with the words ‘link an exchange’. Currently, Shrimpy supports around 15 exchanges like Bittrex, Binance, Binance US, Bittrex global, Kucoin, Coinbase Pro, Poloniex, Kraken, Bibox, Gemini, Huobi, HitBTC, Bitmart, OKEx, and Bitfinex.
Fill in all the required details like the API keys and API secret.
Once you are done linking your exchange, every service on the platform will become accessible. On the homepage, there are several icons, including a dashboard, automation, trading, social, history, and backtest.
If you have investments in multiple exchange platforms, you can repeat the processes below each of the exchanges. Shrimpy supports connections to multiple exchanges and the creation of multiple portfolios.
Build Your Portfolio
Navigate to the dashboard, and a new screen opens, giving you a blue button dubbed ‘manage portfolio.’ Here it would be best if you created the portfolio which you want to use for copy trading.
Click the ‘manage portfolio’ option and;
- If you are an experienced trader, you will see all the portfolios you have in your account.
- If you are a beginner, you will only see a blue button dubbed to create a portfolio.
Click the create a portfolio icon and start a new portfolio linked to your exchange account. After setting up your portfolio, it’s easy to follow the market leaders and learn through social trading.
Beginning the Copy Trading Process
The copy trading option is under the social section. Here you will see the prevailing leaders across all the supported exchanges. You have to filter the leaders to show those from your exchange.
Next to the search box, there is a drop-down box, which lists all the exchanges. In this case, we will be using Kucoin. Once you press KuCoin, the display will only show leaders from the KuCoin exchange.
Let’s consider INDEXIT, for instance, a trader ranking high among the leaders in the market. Browse through the INDEXIT box to open the entire trading screen of this leader.
Currently, INDEXIT is doing very well, making a 5% increase in his/her balance. The INDEXIT trader presently has seven followers. Browsing through the individual market leaders also shows you the number of portfolios they manage, their assets, and other details on their profile.
INDEXIT has one portfolio with multiple currencies therein.
Next to the portfolio section is Journal. Here, the trader shares their investing experiences and may even give tips on what to do and what not to do. INDEXIT’s journal section is dormant, but other leaders are very active.
There is also the history section on the leader’s dashboard. The leader’s trading history is displayed on this page, showing the amounts bought, sold, and the portfolio’s asset ratio. This history section helps understand the various changes made to this portfolio over time.
Follow the Trader
After much analysis of the traders, choose the one who identifies best with your needs. Since we’ve been using INDEXIT in the illustration, let’s see how we can follow this leader.
There is a small blue button dubbed ‘follow trader on the right side of the interface.’ A new box automatically pops-up requesting you to select the portfolio you want the trader to manage. In the illustration, we have a single portfolio; thus, we need to select it and go to the next step.
Set the Stop-Follow Value
A stop-follow value is a threshold you set for your portfolio, protecting your wealth from plummeting completely. If the portfolio falls below the threshold at some point, your account automatically unfollows the leader and converts your assets to your currency of choice, most preferably USD or USDT.
Press the red button dubbed ‘start’ to start following the leader. Immediately the rebalance starts, and your assets are converted to the leader’s allocation.
Upon completing the process, any changes in the leader’s portfolio affect your portfolio; thus, you will get the same benefits as the leader.
Shrimpy’s social trading options are among the best ways for beginner crypto traders to enjoy the benefits of crypto without making tough decisions about their portfolio. The idea of copy trading is to make sure the processes are autonomous and easy for the followers.
As shown above, the process is simple and involves a few straightforward steps. The first step is to sign up for the service and link your exchange platform. Second, you need to check out the leaders, their portfolio performances, and trading history.
Please choose the best-suited trader and follow their strategy. The stop-follow feature is key to ensuring you do not lose your wealth in a short period. For beginner investors, copy trading is the best way to ensure you earn while learning how to tread in crypto.