What Is On-Chain Copy-Trading?

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The growing industry of decentralized finance (DeFi) is becoming more of a hot topic, as people look for options to not only jump into the sector, but also gain important knowledge from those in the industry. Networking our way into trading and opportunities can be intimidating, but the introduction of an all encompassing on-chain copy-trading platform could potentially offer an unparalleled opportunity for new and experienced traders — and all in between — to gain a new understanding of the field, gain exposure into new assets and deploy profitable trades.

What is Copy-Trading
Copy-trading is a form of portfolio management in which a trader can mimic another trader by copying their trades or entire portfolio by employing an automated service that proportionally replicates the transactions made by a leader in a user’s wallet or account. This permits any trader to emulate and learn from their peers that have proven track records. Copy trading was originally inspired from mirror trading¹, which is when algorithmic traders would copy each other’s algorithms that are intended for automated trading. Mirror trading blossomed into copy-trading and then into social trading, which is simply a group of people sharing research together, like with signal groups.

What is On-Chain Copy-Trading?
On-chain copy-trading is an automatic form of copy-trading that replicates another user’s on-chain transactions — transactions that were done on the blockchain. It enables users to not only input a wallet address and replicate all of its valid transactions in their own copy-trade wallet, but also to define those restrictions on their wallet instead of the protocol defining the restrictions.

Stay tuned as we continue to release knowledge base articles and Synchrony specific articles about our features, roadmap, partnerships, and community driven experiences.

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