When volatility is low and the market sentiment is neutral, copy trading may be the best bet for retail traders. Social trading platforms have been around for a while, however, they are even more relevant now.
Consider this – Finance Illustrated recently released a list of the top traders on the social trading platform, eToro. These traders have everything from crypto to tech stocks and retail giants in their portfolio. Unlike a conventional 80/20 portfolio, however, these traders have allocated up to 5% of their funds to top cryptocurrencies like Bitcoin, Ethereum, and Binance Coin.
In fact, almost 30% of the top traders’ portfolios have allocations distributed across Bitcoin and these two altcoins.
Let’s check out a few examples, shall we?
FundManagerZech is among the top-13 traders on the platform and has 17k followers. In the aforementioned portfolio, the fund manager has invested 5.22% of his funds in Binance Coin and 2.32% in Ethereum. Ethereum, with a PNL of 171%, is the biggest contributor to his ROI and a portfolio with a mix of tech stocks and Ethereum is profitable 73% of the time, based on data from eToro.