Copytrading watches a wallet and mirrors its trades into yours. The appeal is obvious: someone else does the research, you get the same positions. The reality is more complicated, and it is worth understanding before you point money at it.
What it can do
- Execute the same trades as a chosen wallet, sized to a limit you set.
- React faster than you can watch a chart manually.
- Give you exposure to a strategy you don't have time to run yourself.
What it cannot do
You will always be behind. Your copy transaction lands after theirs, which on a fast-moving memecoin can mean a materially worse entry — the move you are copying is often the move that caused the price change.
You are also copying the exits, and exits are where the wallet you are following makes its money. If they sell into your buy, the strategy you are mirroring is you.
And a wallet that has performed well recently is not evidence of skill. In a market with thousands of tokens, some wallets are lucky in a way indistinguishable from good.
Status
Copytrading is not live yet. When it ships it will have a per-trade cap, a total exposure limit, and a hard stop, because a mirroring tool without those is a way to lose a wallet quickly.