On-Chain Copy Trading

Definition ∞ On-chain copy trading allows users to automatically replicate the trades of other successful traders directly on a blockchain. This process is executed through smart contracts, ensuring transparency and immutability of trading signals and execution. It eliminates the need for centralized intermediaries, providing a verifiable record of all copied transactions. The system empowers individuals to follow expert strategies without relinquishing custody of their assets.
Context ∞ On-chain copy trading is a significant trend in crypto news, particularly within the decentralized finance and social trading sectors. Its appeal lies in democratizing access to profitable trading strategies while maintaining the security and transparency of blockchain. A key discussion involves the selection criteria for reputable traders and the risks associated with automated strategy replication. Future developments will likely focus on advanced risk management tools and improved analytics for evaluating trader performance within these decentralized systems.