Most Crypto Traders Fail, But A More Balanced New copy trading model Can Change That

Revolutionizing New Copy Trading Model: for Profitable Trades

Crypto social media memes are littered with claims that “90% of all new traders fail”, and it’s a widely held belief that this is true, more or less. While it’s hard to find any verifiable scientific research that demonstrates this is the case, there are plenty of statistics that suggest it’s likely to be true. 

Quite a few can be pulled from here, where Tradeciety reveals that 80% of all day traders – including both crypto and TradFi – quit doing it within their first two years. Another telling stat from that source shows that among all day traders, 40% only trade for one month before throwing in the towel. Within three years, just 13% are continuing to trade, and after five years, it drops to just 7%. 

It’s clear that trading is hard, and the huge number of dropouts would be very unlikely if it were the case that trading is an easy way to make money. 

The fact is, most new traders almost certainly do lose money, and that can very quickly cause them to lose interest. Once they realize that trading is not only NOT a way to get rich quick, but also not a replacement for a full-time job, they generally move on to something else. 

Inexperience Is Costly

So what’s the reason for this overwhelming failure to make any money from trading? Well, the likelihood is that most traders simply don’t make good trading decisions. They cannot accurately read charts and pick out signals, and their trades aren’t based on solid research and time-tested trading methods. Rather, most people’s trades tend to be based on emotions, or they’re simply doing it blind, or perhaps only looking to keep themselves entertained. 

Most traders don’t realize that full-time trading is a profession that takes a lot of time, effort and skill that must be developed through years of experience. The lack of experience, the inability to understand how financial markets work, and the overeagerness of many new traders is what causes them to find out very quickly that they’re not cut out for doing it as a full-time job. 

Education Hasn’t Made A Difference

These days there are a lot of new trading platforms around and many of them have emerged to target the enthusiasm for crypto, which is a highly volatile asset that can make or break people’s fortunes in the blink of an eye. The good news for traders is that many of these platforms are well aware of just how hard it is to consistently trade at a profit for any decent length of time. 

To make up for their user’s lack of experience, many of these platforms have made a commendable effort to educate them, with various tutorials and video tips, basics on the popular crypto assets and other kinds of advice. 

Some platforms also enable users to take part in “paper trading”, where they can play with fake money in order to gain practice, without fear of losing their real, hard-earned cash. But these efforts don’t seem to have made much difference in boosting the overall number of successful traders out there. We can only speculate as to why. Perhaps some users are simply too busy to take the time to sit and educate themselves about the underlying assets they trade, or they’re simply too eager to get started, or maybe they find that trading real money is a very different experience from using pretend money, with all of the added pressure and risk that comes with it. 

Copy Trading Often Fails

New copy trading model emerged in recent years as what sounded like the perfect solution for everyone. It’s a means through which inexperienced traders can copy the trades of more profitable traders, instantly, in real-time. The idea is that you find a good, professional trader with a history of making profitable trades, and you pay a small fee (usually per trade) to copy every move that trader makes, in real time, in your own portfolio. With copy trading, you don’t need any skill or knowledge at all – you simply have to find someone else you can trust to continue making profits. 

However, many traders have found that even with copy trading, they’re still unable to make any real profits due to the razor-thin margins that most traders exist on. They might make a profit sometimes, but the fees they have to pay – which are deducted no matter if the trade is profitable or not, is like a hefty tax on whatever earnings they might expect to make from copying traders. 

The problem is that the copy trading model is one-sided. Experienced traders find themselves under less pressure, safe in the knowledge that if they make a bad trade they’ll still get paid the fees they earn from copiers. This creates an imbalance, in which the traders still make a small profit, but their followers are the ones paying for it. 

Can A New Model Make The Difference? 

What’s needed then is a new model for copy trading that puts the onus on traders to perform more consistently, and that’s the basic thesis behind a new platform called Mosaic Alpha, which gives new traders a way to copy the investing strategies of more experienced investors. 

With Mosaic Alpha, professional traders are free to create curated token baskets, which they invest in themselves alongside other, less experienced users. In this way, the more experienced investors can share their expertise and carefully crafted trading strategies. However, the difference is that they’ll only earn their fees if the basket proves to be profitable. 

That’s because the performance fee is entirely conditional on if the token basket they create helps other traders to be successful. 

Mosaic Alpha provides tools to ensure that basket management is an effortless task, giving traders more time to refine their trading strategies. The platform even handles communications with their followers, so they don’t have to waste time keeping each one up to date on whatever strategic moves they decide to make. 

With the Mosaic Alpha platform, professional traders have a way to showcase their skills and gain real credibility among a wide, global audience, boosting their own earnings potential. It enables the professionals to provide a valuable service to like-minded folks who also want to bolster their investment portfolios and acts as a great advertising window to find even more followers with an engaged community that’s willing to trust the insights they share. 

All of this occurs on a decentralized platform that’s in-line with crypto’s ideals and values of non-government interference, no censorship and financial freedom for everyone.  

Future Prospects

With Mosaic Alpha, experienced traders can access a platform that will enable them to cash in on their crypto knowledge and build a reliable revenue stream based on either referral fees or profit sharing, depending on what model works best for them. 

At the end of the day, for copy trading to really work, what it needs is a platform that prioritizes its user’s success. Such a platform entails clear communication, so users understand the investments and trades being made and make more informed decisions on when and where to risk their money.