Cryptocurrency Copy Trading Platform

This freedom from constant monitoring allows them to focus on other aspects of their lives while still being actively involved in the cryptocurrency market. However, too much transparency may lead to losses for the platform, as followers may be able to employ certain techniques to avoid paying following fees. Therefore, there is a need for information transparency (i.e., detailed versus aggregate trading performance) and the timed release of data (i.e., immediately or with a delay).

• To optimize the risk-reward ratio in copy trading, thorough research is necessary.
• Therefore, there is a need for information transparency (i.e., detailed versus aggregate trading performance) and the timed release of data (i.e., immediately or with a delay).
• Copy trading creates the impression of being a pioneering term; however, it has been around for a while.
• Another risk of using crypto copy trading apps is they may experience a system outage or cyberattack at any time.
• Investors should carefully consider the trader they want to copy and conduct thorough research before copying their trades.

By copying the trades of successful and experienced traders, beginners can effectively leverage their expertise and decision-making skills. This reduces the learning curve and provides an opportunity to participate in the crypto market without needing extensive knowledge or analysis. A copy trading platform is a financial trading platform that offers retail investors the option to follow and automatically copy the trades of more experienced traders. Meaning, that they will offer a social component to the trader community, where they can communicate and share investment ideas and strategies. On one hand, the rewards of copy trading lie in its potential for generating substantial profits. By following successful traders who have consistently achieved positive results, there is a possibility of earning significant returns on investment.

Systematic Risk

It helps Professional traders to monetize their skills by allowing others to copy their strategies. It’s essential to carefully consider the fee structure and weigh it against the potential returns you expect to make through copy trading. Remember that while low fees may seem attractive, it’s equally important to assess the quality of the platform and the performance of the traders available for copying. On the other hand, performance fees are calculated based on a percentage of your profits.

• You can also chat with them and learn from their tips and insights.
• Since the professional trader directs investment decisions, diversification and risk management can also be done.
• Phemex is a crypto exchange from Singapore that lets you trade over 272 crypto pairs with spot and contract trading.
• Temporary losses can and will happen, but you shouldn’t decide to unfollow a trader prematurely because of fear, doubt, or uncertainty.
• When copy trading, they are able to see the action of an experienced trader in real time, helping them to understand the nuances.

For rookie traders, learning how to buy and sell cryptocurrency could be perplexing. When copy trading, they are able to see the action of an experienced trader in real time, helping them to understand the nuances. They are able to learn, read the trading charts and gain the ability to respond to changing market conditions. Copy trading platforms allow investors to automatically copy the trades of expert traders, often with just a few clicks of a button. With so many options available, knowing which copy trading platform to choose can be difficult. This guide explores the six best copy trading platforms available in 2023.

Is Crypto Copy Trading Profitable?

Even after the software is set up, a trader could switch to another trader any time they want. They could pause any trade the software makes or could decide on their own about closing a position without waiting for the action of the lead trader. Track your transaction history and enable daily reports on the state of your portfolio from multiple cryptocurrency exchanges and wallets. Get information for arbitrage trading from various exchanges to find deals with the highest spread. Both manual mode and Telegram signals about the most profitable deals are available.

• BitMEX is a crypto trading platform that lets you trade Bitcoin and other cryptos with different products.
• Essentially, it enables individuals to copy the trading strategies of successful traders within the crypto market.
• Choose from a wide range of unique strategies submitted by carefully selected crypto traders with verified track records.
• EToro is one of the best copy trading platforms, and it offers a wide range of assets (Forex, crypto, commodities, stocks, ETFs, and indices).
• Traders can also make mistakes, experience market volatility, or engage in fraudulent activities.
• Crypto copy trading enables traders to replicate the trades of expert traders and get over the steep learning curve.

While there is no need to keep an eye on your copy investment because the trader you are copying is already doing that, you may choose to stop copying their investments. In short, social trading will take considerable time, but you will become a better trader in return. The return of social trading is not made in cash but will likely result in a better trading performance overall. Finally, copy trading allows you to get exposure to markets you are not familiar with yourself. In this, even a crypto trader can easily take advantage of the volatility in stocks or forex, without having to learn the ins and outs of the industry.

The Trality Wallet—perfect for trading crypto

That’s why you need a dependable and user-friendly copy trading platform that gives you a wide range of traders, instruments, and tools to help you succeed in your copy trading journey. Look for features like trailing stop-loss orders, which automatically change the stop-loss level as the trade goes in your favor. These tools help reduce potential losses and protect your capital when the market is unstable.

On the Trality Marketplace, you’ll have all of the requisite information at your fingertips, ensuring that you can copy trade with complete confidence. Bot Creators can now monetize their bots and earn passive income from investors around the world by having their bots listed on Trality’s Marketplace. Most importantly, bot algorithms remain completely private, meaning that each creator crypto trading education retains full IP rights. Wasay Ali is a versatile professional writer with global experience and a background in mechanical engineering and social science. He is adept at crafting news and informational content for the crypto space and has experience writing for other niches. He has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe.

Step 2. Select one trader to apply the copy trading strategy

EToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs. Of course, if times occur when you do not feel comfortable with copying anybody else, then simply disconnect from them all and take matters into your own hands. Copy trading is significantly more social than other types of trading, as it involves interacting more directly with other traders. It liberates you from the tedious process of continually analyzing price charts and following market trends.

The presented trading history is less than 5 complete years and may not suffice as basis for investment decisions. If you absolve yourself from your own trading, then you can easily sleep-walk into disaster. If you want to be efficient, then you need to learn how to copy trade crypto intuitively. You need to learn about when you should follow one individual, and when you should switch things up and sync to somebody else. Dedicated tools have made copy trading crypto more enticing, as there is less work to be done, and fewer screens and markets to individually monitor. When selecting a copy trading platform, check the spreads and transaction fees, which can often come as an unpleasant surprise for unsuspecting beginners.

Are all the top cryptocurrency exchanges based in the United States?

However, it’s important to consider the potential risks involved, such as blindly following the wrong trader or experiencing slippage. Ultimately, whether copy trading is right depends on your preferences and risk tolerance. It’s crucial to do your due diligence and research thoroughly – before engaging in copy trading. OKX Copy Trading aims to create a trading tool that is efficient, transparent, and profitable for OKX traders. In a single click, copy traders can explore new revenue streams, gain exposure, and engage with the larger trading community.

• This is actually why some people prefer to copy-trade crypto with people that they know on a personal level.
• As a result, it is ideal for beginners because they do not need to fully comprehend the market.
• The platform is based in Tel Aviv, and it was launched in 2007 by Ronen Assia (current CEO), David Ring, and Yoni Assia.
• It’s a type of social trading where investors can follow and copy the trades of more experienced traders.

The copy trading feature was added in 2010, and it established itself as the world’s leading social trading network. Yes, copy trading is legal, but each country may impose its own regulations. Note that not all trading platforms are available for all regions.

BingX: Best for copying global traders

If you’re concerned about keeping fees low, then carefully consider the costs before trading. The key is choosing a trader to follow whose investment style and goals align with yours. For example, if you invest conservatively then you’d copy someone with a conservative trading bent. Likewise, if you’re a growth investor then you shouldn’t match the trading activity of a value investor. PrimeXBT is a copy trading platform that allows traders of all experience levels; from experienced to novices alike.

• You must choose platforms that have transparent and competitive pricing, including reasonable transaction fees and withdrawal charges.
• The idea behind copy trading is to assess each trader’s profitability before selecting which signal provider you want to follow.
• While we are at it, you should know that Copy trading is also known as social trading or mirror trading.
• Furthermore, you can start this type of trading without having prior experience.
• In a single click, copy traders can explore new revenue streams, gain exposure, and engage with the larger trading community.

The copy trader program has a low entry barrier, as you only need to make your first deposit. Copy trading is safe, but if the trader opens a bad trade, your account will replicate that trade, and you might lose – your funds. The biggest challenge is to find an experienced trader to follow, who focuses on the assets that you’re interested in. Furthermore, you can always decide to stop copying the traders of others.

Best Crypto Copy Trading Platforms

Cryptocurrency trading is a complex skill requiring extensive knowledge of fundamental and technical analysis and the cryptocurrency ecosystem as a whole. Crypto copy trading enables traders to replicate the trades of expert traders and get over the steep learning curve. AvaTrade was tested and found to be excellent for copy trading, competitive on mobile, and in line with industry standards for pricing and research.

• You can also adjust your risk and exposure levels on the platform, so you’re not completely reliant on the activity of another trader.
• In some ways, this is true– it is simple to follow the trades of another as it relinquishes you of some of the decision-making processes.
• For instance, let’s say you’re interested in copy trading Bitcoin and Ethereum.
• For instance, choosing to be a copy trader on eToro means you receive an annual payment of 1.5% of the assets that people copy-traded when they followed you.
• By using the feature, if you find a trader that has consistently generated high returns, then you could theoretically copy their strategy to achieve the same results.

Systematic risk is a risk you cannot really protect yourself against; this risk is present in any market. The outbreak of the coronavirus, or the terrorist attacks of Sept. 11, 2001, are good examples of these events, which caused large losses for many traders. WunderTrading offers a platform for copy trading that supports Binance, FTX, Kraken, Bybit and many more exchanges. If you are looking for a single recommendation, I would suggest you start with PrimeXBT Covesting as it offers some great data and has a proven track record.

AvaSocial Copy Trading

For example, on eToro, you don’t pay extra for copy trading, but you still pay the normal fees for spreads and overnight fees. Again, on NAGA, you pay €0.99 for each trade you copy, and 5% of your profit if it is more than €10. You also pay the broker’s fees for spreads and commissions, which change depending on what you trade and what account you have. The trading fees for copy trading are not the same for every platform or broker. This does not include the fees you pay to the broker for spreads and commissions.

If you are syncing to somebody in the public eye, research them extensively. It also fits into the wider ethos around blockchain and cryptocurrency, where transparency is viewed in a positive light. Crypto has always been about pulling the curtain back and showing the world how to handle and manage money without hiding. Remember that some of the core elements of this industry surround the notion that the opaque nature of traditional finance makes it hard for individuals to partake. Both of these examples can be highly stressful for beginners and those who do not have a ton of cash to spare themselves. So, even if a well-regarded trader is doing this, it might not be smart for a beginner to follow them.