Copy Trading:
Concept: Allows you to automatically copy the trades of professional traders.
Advantages:
Suitable for beginners: Enables beginners to benefit from the expertise of professional traders without the need for deep market knowledge.
Saves time: Does not require significant effort or time from you.
Disadvantages:
Dependence on others: Your profits depend on the performance of the trader you are copying.
Fees: There may be fees for the copy trading service.
Which is better for beginners?
Spot Trading is the best for beginners overall.
Reasons:
Simplicity: Easy to understand and implement.
Lower risks: No leverage, which limits potential losses of the invested capital.
No liquidation risk: You cannot lose all your money in a single trade due to a margin call.
Building a foundation: Helps you understand the basics of the market and price movements before moving on to more complex trading types.
Tips for beginners:
Start with small amounts: Do not invest more than you can afford to lose.
Learn the basics: Understand technical analysis and fundamental analysis.
Use Stop-Loss orders: To protect your capital.
Do not use leverage initially.
Be patient: Trading requires time to learn and gain experience.
Take advantage of educational resources: Binance offers the Binance Academy, which provides excellent explanations and educational articles.