MEXC Copy Trading: How It Works & Why It’s a Powerful Strategy

Ever wished you could trade like a pro - without lifting a finger? With the rise of social-trading and automation tools, you really can. Major exchanges such as Bybit and Binance now offer a full suite of hands-free trading options, and one of the most popular approaches to these tools these days is the MEXC copy-trading.

Even if you’re a complete beginner, this relatively new feature allows you to replicate the strategies of top-performing traders in real time. That means you’ll gain (or lose) the same percentage they do. And if you’re more strategic and experienced, you can also flip the roles and earn passive income by letting others copy your trades.

I’ll get into all of that and more to help you maximize your benefits with this innovative feature. So, let's start.

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What is MEXC Copy Trading?

As I said, MEXC copy trading is a feature that allows users to automatically copy the trades of other traders on the exchange. Instead of trying to keep up with endless news and changes within the market, you can let more experienced people do the heavy lifting while you basically just mirror their trades in real time.

It’s a simple concept: you pick a trader, allocate funds, and whenever they open or close a position, so do you. Your account follows theirs automatically. This is especially useful for newbies who want to earn by trading crypto but don't exactly know their way around yet.

Don’t get me wrong, I'm not saying that you cannot get the benefits of this feature if you are not a beginner. Maybe you just don’t want to be glued to charts all day, constantly building strategies to squeeze out a bit more profit. That’s pretty valid, too.

Now, if you are the trader in this equation, it’s also a sweet deal. You earn a percentage every time someone copies your strategy and makes a profit. So yeah, it’s a legit passive income opportunity if you’re good at what you do, and especially if people start lining up to follow your trades.

Now, let me clear the air on why you should choose MEXC copy trading when there are other exchanges that offer this exact same feature.

First off, MEXC has been in operation since 2018; thus, it has a pretty solid background with almost a decade of experience. Also, it's a centralized exchange, which means users are required to complete KYC (Know Your Customer) verification.

In simple terms: the people you’re copying are real, verified users - not some shady imposter hiding behind a fake username. This is particularly important because stranger danger is a real concern^[1] when it comes to copy trading platforms. Well, this also means that you need to verify your account before using the platform.

Another major advantage is that MEXC is famous for its high liquidity, allowing you to withdraw your funds quickly, typically within seconds. This really is a peace of mind in crypto, where timing can make all the difference.

And here’s something you don’t see every day: MEXC offers access to over 4,200 cryptocurrencies. That gives traders tons of room to diversify their strategies - and by extension, it gives you more opportunities to follow different types of traders.

📚 Read Further: Complete MEXC Review

It's important to highlight that on MEXC, copy trading currently focuses mainly on futures trading, allowing you to profit from both rising and falling markets. However, this comes with added risk, since leveraged products amplify both gains and losses.

Also note that all these features of MEXC are available both web and on mobile, thus, you can always check your account on the go.

How Does MEXC Copy Trading Work?

Now, let me walk you through exactly how MEXC copy trading works step by step, because it isn’t just about the technology running in the background. It’s also about understanding how to pick the right trader, what the numbers mean, and how to set it all up responsibly.

Finding The Right Traders To Copy

Once your MEXC account is set up and verified, you can find "Copy Trading" within the "Futures" menu. This is where you’ll see dozens of lead traders, each with detailed performance profiles. You can sort them by different metrics such as ROI, total PnL (Profit&Loss), win rate, number of followers, average holding time, and even maximum drawdown.

Here’s where many beginners trip up: they see a trader with a whopping +500% ROI in the last 7 days and think, “That’s the one!” but ROI only tells you percentage returns relative to the trader’s invested capital, which can sometimes be skewed by high leverage. On the other hand, PnL shows the actual cumulative gains or losses in money terms over a period.

So you need to pay attention to ROI and PnL, but also to drawdown, which shows how much their balance dropped from its highest point - basically, how deep things went when trades went wrong. It’s a clear clue about how much risk the trader is willing to take, and whether that lines up with what you’re comfortable with.

For example, a trader with an 80% ROI and only a 10% drawdown probably trades carefully and steadily. Someone with a 300% ROI but a 60% drawdown took huge risks that could easily wipe out followers during a rough patch.

Finally, check how many trades they’ve done. More than 50 trades usually means their numbers aren’t just from a lucky week, but show a real pattern.

Setting Your Copy Parameters

First, before copying a trader (or traders, as diversification is always a smart move), you’ll need to fund your Futures Copy Trading account. MEXC requires a minimum of just 0.01 USDT to start copying, but realistically, you’ll want more capital for trades to execute meaningfully.

Now that your account is funded and you’ve picked a trader, let’s talk about what really matters when it comes to copying them. This is where you explain to MEXC exactly how to handle trades on your behalf.

📚 Related: Copy Trading Methods & Ideas

Copy Trade Mode

At the very top, you’ll see a section called “Copy Trade Mode.” By default, this is usually set to Smart Ratio. If you click on it, a little dropdown appears, letting you also pick Fixed Amount or Fixed Ratio. Let me break them down so you can choose the one that suits you best.

• Smart Ratio: Automatically adjusts your position sizes based on how your capital compares to the trader’s. If they’re trading with $10,000 and you have $1,000, your trades will run at about 10% of theirs. This keeps your exposure balanced as either account grows or shrinks. It’s perfect if you want to follow their overall strategy without getting into the details.
• Fixed Amount: Sets each copied trade to a strict dollar value you choose, like $50 per trade, no matter what the trader does. Even if they suddenly scale up or down, your trades stay the same size. This is best if you want predictable, steady exposure and zero surprises.
• Fixed Ratio: Locks your trades to a constant percentage of the trader’s positions. If you set it at 25%, and the lead trader opens a $4,000 position, your account commits $1,000. This is ideal if you want to match their level of aggressiveness, but scaled comfortably to your own account size.

Allocation Amount

Next up, you’ll need to decide how much total money you want to commit to copying this trader. This is called your allocation amount. You’ll enter this in USDT, as MEXC uses USDT as the standard margin currency for these copy trades.

For example, if a professional trader initiates a $10,000 long position and the follower has configured their account to follow with $1,000, MEXC’s system automatically scales the position, executing a $1,000 long for the follower. This keeps exposure aligned with the follower’s risk profile.

While all PnL (profit and loss) from these trades accrue directly to the follower’s account, lead traders typically earn a portion of the profits as a performance fee, aligning their interests with their followers.

Since their earnings depend on the success of the trades they execute for the followers, lead traders need to try to manage risk prudently and maintain profitability.

Account Stop-Loss Limit

One of the smartest things you can do is set up an account loss limit. This acts like an emergency stop. You can set it as either a fixed USDT amount or as a percentage.

Let’s say you allocated 500 USDT. You could place a loss limit at 100 USDT (or 20%). If your copy trading account drops to 400 USDT, the system automatically stops copying new trades. This is extremely helpful because it protects you from a scenario where a trader hits a losing streak or the market does something crazy while you’re asleep.

📚 Related Reading: Stop-Loss Explained

Having this “seatbelt” means your overall account won’t get wiped out by one bad run.

More Settings for Fine-Tuning

If you tap the [More Settings] button, a bunch of advanced options will open up. These are powerful tools for tailoring risk even more closely to your personal style.

You can click on [Settings] on each one and change your risk controls, which pairs you want to include in your strategy, and more.

• Trader’s Liquidation Settings: This determines if your positions automatically close when the trader gets liquidated. Most people leave this on Follow to Close to stay synced.
• Futures for Copy Trade: Lets you see or filter exactly which futures pairs will be copied (BTCUSDT, ETHUSDT, etc.).
• Take-Profit Ratio: Automatically locks in profits by closing trades when gains reach a set level.
• Stop-Loss Ratio: Cuts losses on individual trades once they fall by a chosen amount.

• Maximum Ratio per Order: Caps how big each copied trade can get relative to your allocation.
• Margin Mode: Choose to follow the trader’s margin type (cross or isolated) or stick with your own preferred default.
• Margin Settings: Allows you to decide whether or not to adjust margin independently of the trader. Leaving it on Do Not Adjust Margin generally means you follow exactly.
• Leverage & Slippage: Here, you decide if you want to use the same leverage multiplier as your lead trader (most common) or set a custom leverage. Slippage controls how much price difference you’ll tolerate before a trade is rejected.

Monitoring & Managing Your Copy Trades

It’s smart to look beyond just your balance and dig into how your chosen trader is actually performing day by day. Sometimes a trader will subtly shift their approach - maybe they start taking much bigger positions or chasing short-term scalps instead of their usual swing trades.

Over time, it’s also wise to rebalance your copy trading portfolio. Say you started off copying three different traders equally, but after a month, one consistently outperforms while the others lag behind. You might adjust your allocations, giving more capital to the stronger performer and trimming back on the underperformers.

Don’t underestimate the mental side of this either. Seeing a trader hit a string of losses can be nerve-wracking, but sometimes that’s just part of their normal strategy. Before you bail out, look at their historical stats - do they typically bounce back after small losing streaks? A little perspective goes a long way toward keeping you from making an emotional decision that cuts off future earnings.

Locking in gains also reduces stress and gives you capital flexibility if new opportunities pop up.

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The Benefits and Risks of MEXC Copy Trading

MEXC copy trading app opens the door for many people to access the crypto market’s wild profit potential without needing to become full-time traders themselves. It’s genuinely a smart shortcut, but it’s also something you need to approach with a clear head. Let’s dig into both real advantages and risks so you’re not caught off guard.

Advantages of MEXC Copy Trading

Copy trading offers real peace of mind for several reasons: it’s far less time-consuming than traditional trading strategies, it gives you a way to earn passive income if you become a lead trader, and there’s more. Plus, there are unique advantages to using the MEXC copy trading app specifically.

Easy Access to Expert Strategies

The biggest benefit is obvious: you’re leveraging someone else’s skills. Instead of spending months or even years learning technical analysis, candlestick patterns, and risk management, you can ride along with a trader who’s already proven they know how to navigate the markets. It’s like hiring a personal chef instead of going to culinary school yourself.

This can come in handy in terms of time and stress as well. You see, the crypto market is highly volatile, and it's impossible to be updated all the time as prices can moon or dump while you’re asleep. Copy trading simply automates this for you, so you’re not glued to your phone at 3 AM watching Bitcoin swing 5% on a whim.

In addition to all that, you can also learn from the lead traders. When you copy someone, you see their trades live in your account. Over time, you notice what setups they like, how long they hold, and how they adjust to volatility. It’s a hands-on education, which is often better than watching 50 hours of YouTube.

Highly Customizable Risk Controls

Reliable platforms like MEXC give you plenty of ways to keep your capital safe. You can set an overall allocation limit (so you never put in more than you planned), a stop-loss on your entire copy balance, and even cap the size of individual trades.

And the best part? You don’t need to be chained to a computer to manage any of this. The MEXC copy trading app puts all these risk controls and settings right at your fingertips. The fact that it has by far one of the smoothest interfaces is just the cherry on top.

📚 Related: How to Use MEXC Exchange

Potential Passive Income

If you’ve got solid trading skills, you can sign up as a lead trader and let others copy you. Every time they profit, you earn a share, usually around 10% of their gains. This is true passive income, scaling up as more people follow you.

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The Less Talked-About Risks of Copy Trading

I accept that the benefits might outweigh the risks of MEXC copy trading, but you need to remember that it's still trading. This might sound obvious, but I cannot stress this enough: copy trading doesn’t eliminate the risks,^[1] it simply transfers them to someone else to navigate. Let's also talk about them so you can be more cautious.

Highly Volatile Market

No matter how experienced the trader you copy is, crypto markets are volatile by nature. Big macro events, regulations, or even a tweet from a major figure can send prices tumbling.

If your lead trader’s strategy hits a rough patch, your account takes the same losses.

📚 Read More: Volatility of Digital Currencies

Misleading Past Performances

This one is huge. Just because a trader has a sparkling +500% ROI on their profile doesn’t mean the future will look the same. Strategies can stop working when market conditions change. Always look at their long-term performance, maximum drawdowns, and the number of trades they’ve executed to see if their success is consistent or a one-off.

The Leverage Effect

Most copy trading on MEXC happens with futures contracts, which often use leverage. That means your $1,000 can control $5,000 or more of a position. Great if things go your way, devastating if not.

There’s also a weird psychology at play here. After a few winning days, it’s tempting to increase your allocation dramatically or switch to a trader who just posted crazy returns. This “performance chasing” is one of the top reasons people blow up accounts. Staying disciplined is key.

Slippage and Execution Delays

In fast markets, the lead trader’s order might fill slightly before yours. That means you could get a slightly worse price. Over many trades, this isn’t usually a huge problem, but it’s still part of the reality.

Tips for Enhancing Your MEXC Copy Trading Experience

Alright, so you’ve funded your account, picked a trader, and set up your parameters. Nice job - but don’t stop there.

Even though copy trading automates most of the heavy lifting, there’s still plenty you can do to protect your capital and stack the odds in your favor. Here are some hands-on tips that can make a huge difference over time.

Diversify Across Different Traders

I know, it really is tempting to go all-in on the trader with the flashiest +700% ROI. But markets change fast. Maybe their strategy works great in trending markets, but it crashes in sideways conditions. By splitting your allocation across 2-4 traders with different styles, you avoid putting all your eggs in one basket.

For example, you might copy one trader who focuses on low-leverage scalping, another who takes bigger swing trades on altcoins, and a third who mainly sticks to BTC/ETH. This way, no single bad streak ruins your overall performance.

Start Small and Scale Up

When trying out copy trading - especially with leverage on futures - start small. You might feel like you’re missing out if your initial allocation is just 100 USDT, but it’s far better to build confidence gradually.

If your MEXC copy trading gains grow around 30%, consider withdrawing at least a small amount to lock profits, then scale up on your next strategies. You may also consider staking to earn passive income from your gains.

📚 Learn More: MEXC Staking

Use Parameters Wisely

As we have already discussed, there are several risk controls provided by MEXC copy trading; use them. Don’t just look at a trader’s ROI and go with it.

From selecting a trader to copy their strategy in your own way, there is a long road. Most people just pick Smart Ratio or Fixed Amount and hit confirm. But the "More Settings" menu has critical options that let you cap individual trades, pick which futures pairs to follow, and decide on margin preferences. Spend five extra minutes tweaking these to match your risk comfort, and you’ll thank yourself later.

Watch for MEXC Promotions & Bonuses

MEXC often runs promotions that reward active copy traders, like fee rebates or USDT bonuses for hitting volume targets. Keeping an eye on these can quietly boost your returns.

The MEXC copy trading app usually highlights these promos right on the dashboard.

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Conclusions

When you look at any honest MEXC copy trading review, it’s clear this feature offers a practical way to grow your portfolio by leveraging the strategies of verified traders. The platform stands out for its transparent performance stats, intuitive interface, and a mobile app that makes managing your trades effortless wherever you are.

That said, MEXC isn’t the only game in town. Major exchanges like Binance and Bybit also offer copy trading options, so it’s wise to explore different platforms and see which one aligns best with your goals and comfort level.

Also, keep in mind that copy trading on MEXC primarily revolves around leveraged futures, meaning all the usual market risks still apply. Past returns don’t promise future success. But if you use it as one piece of a diversified strategy, set smart limits, and stay disciplined, copy trading can be a powerful tool for long-term growth.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. D. Kawai, K. Soska, B. Routledge, A. Zetlin-Jones, N. Christin: ‘Stranger Danger? Investor Behavior and Incentives on Cryptocurrency Copy-Trading Platforms’;

2. J. Apesteguia, J. Oechssler, S. Weidenholzer: ‘Copy Trading’.