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FNDZ: everything you need to know about copy trading on the blockchain

FNDZ is a blockchain-based copy trading platform that integrates the social aspect by allowing experienced and novice traders to interact and share trading ideas.

fndz crypto trading platform dashboard view
Image: KnowTechie

The trading journey is not easy, and most beginner traders encounter many problems while trading. New traders are prone to making a lot of mistakes such as over-trading and poor risk management.

The FNDZ project has come up with a way to help new traders overcome the hurdles of trading and make consistent profits by piggybacking on the shoulders of experienced traders who are willing to share their expertise and knowledge through a forum provided by FNDZ.

This article looks at the FNDZ project and its solutions to the cryptocurrency trading landscape.

What Is FNDZ?

FNDZ is a blockchain-based copy trading platform that integrates the social aspect by allowing experienced and novice traders to interact and share trading ideas.

The FNDZ platform works in that new traders join the platform and choose from numerous digital asset vaults. They then make deposits and begin trading by copying the trades of top-performing traders.

FNDZ was created to be an open and transparent platform that will help millions of traders automatically copy the trades of experts and monitor their market positions in real-time.

The project’s goals are to allow small traders to benefit from the experience of professionals, whilst maintaining full control over their assets.

Additionally, the project aims to give professional traders a way to monetize their knowledge and trading skills. FNDZ receives a management fee and a performance fee from experienced traders. 

FNDZ is in the process of becoming a decentralized autonomous organization (DAO). When it achieves the status, FNDZ will be able to run on its own, and the FNDZ token will be the native governance token of the DAO, which will give the community powers to create, vote on and pass proposals that will direct the future of the project.

What Is Copy Trading?

fndz trading crypto platform dashboard view
Image: KnowTechie

As a reader, when you make consecutive losses, it can feel like the market is against you. However, some professional traders consistently make profits and have extensive knowledge of the market. They know the market loopholes and pitfalls to avoid.

With the advent of the internet, socializing was raised to a whole new level. People from different parts of the world and thousands of miles away could interact over the internet as if they were next-door neighbors.

This level of socializing can be used to better new traders who do not understand the markets and are prone to making mistakes. Experienced traders have been in the market for a long time, making all the mistakes and learning from them.

Hence, walking with such people is bound to be beneficial for beginner traders. However, this experience and expertise are not for free. Experienced traders are willing to provide the expertise and allow the younger traders to trade with them at a fee.

FNDZ provides a platform where the new trader and the professional trader meet. Copy trading is a practice where an inexperienced trader can copy positions or the trading activity of an experienced trader in real-time.

The experienced trader then charges a certain fee to the novice trader who copies their strategy. The fee charged is shared between the experienced trader and the platform that has provided the forum, in this case, FNDZ.

Copy trading is a popular practice in traditional finance that has always been used by beginners as a means of learning on their way to becoming experts.

How to Copy Trade On FNDZ

FNDZ platform is powered by the blockchain, and therefore it is a decentralized application. Therefore, to join the FNDZ platform, you need to have a cryptocurrency wallet that is web 3.0-compatible.

The best wallet to use with the FNDZ platform is the Metamask wallet. When you create a MetaMask account, you can log into the MetaMask wallet and connect to the FNDZ platform. After that, you will find an experienced trader on the platform to copy.

The platform utilizes decentralized finance (DeFi) infrastructure to give users a highly secure and fully automated trading platform. The FNDZ token has various utility features that allow the trader to create and manage vaults.

Beginner traders can then deposit digital assets into these vaults, and the Vault owners use the digital assets that the copy traders have deposited to carry out trades.

You must create a vault before you can trade on the FNDZ platform. The process of creating a vault is straightforward.

  1. Connect your wallet to the FNDZ platform by clicking on the ‘Connect Wallet’ button that appears on the top right-hand corner of the FNDZ web page.
  2. Follow the subsequent instructions and agree to the terms and conditions. 
  3. Choose the appropriate network on the wallet and connect to it. It is important to note that the FNDZ platform is built on top of the BSC network. 
  4. Once your wallet is connected, a message will show up asking whether you want to create a vault. Click on ‘Create Vault’ to open the vault creation tool. 
  5. Choose a name for your vault and the base denomination. Note that the Binance USD (BUSD) is the main denomination on the BSC network, on which FNDZ is built. 
  6. Configure your vault by setting management and performance fees, whitelisting addresses for deposits, setting the withdrawal window and time locks, and reviewing the vault settings. 
  7. You can create and manage multiple vaults to copy several trading experts at the same time.
  8. Click on the ‘Trade’ tab to see the vault manager’s trading interface. On the trading interface, there are buttons for buying and selling and graphs for studying the price movements.
  9. Select the asset you wish to trade by clicking on the button containing the abbreviation for the asset, for example, ‘ETH.’

All trades on the FNDZ decentralized application (dApp) are executed via Paraswap, a leading decentralized exchange (DEX) aggregator used for best-price execution. FNDZ chose Paraswap since it simplifies the exchange of ERC20 and BEP20 tokens.

Additionally, it eases the process of comparing prices and optimizing token swaps on the platform. Fees on Paraswap are also lower, and execution speeds are high depending on the chain. Hence, traders can comfortably concentrate on trading without getting distracted by high gas fees or stuck transactions.

FNDZ runs on the BSC network currently, but in the future, it will expand to other chains as well. Depending on the chain, different assets will be available for trading on the platform. The user will incur different transaction costs according to the state of the blockchain the user has chosen to trade on.

Conclusion

FNDZ will turn the lives of many crypto traders around for the better. Blowing a trading account can be the most devastating experience, especially when it was still early in the trading journey.

As time goes on, FNDZ will be a major hub for social trading, and when it becomes a DAO, the community will drive the project to even greater heights. The future of FNDZ is bright.

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Chris has been blogging since the early days of the internet. He primarily focuses on topics related to tech, business, marketing, and pretty much anything else that revolves around tech. When he's not writing, you can find him noodling around on a guitar or cooking up a mean storm for friends and family.

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