For example, Bob and Alice invest in $10,000 in cryptocurrencies. Alice decides to invest $100 between 10 different currencies, while Bob decides to go all in on a single fund. Alice is running the risk that if the market turns heavy and if the project she invested in takes a heavy hit, she could suffer heavy losses. Bob, on the other hand, has spread his risk and stands a better chance of losing less overall depending on whether he invested wisely or not. This can also work when the market rises.
After you have settled on a trader or traders you can determine how much of your portfolio to allocate to each trader (optional)? Typically, this is in the form of a percentage of your balance. If you have a balance of $1,000 to invest, you could allocate 10% of your portfolio to copy trade one trader and 10 percent to another. This is another example of diversification and helps to grow your capital and build a balanced portfolio. After finalizing your investments, the trades will automatically start happening. Of course, you can always modify traders or add more funds if they are doing well.
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