To reduce risks, users can first use a demo account for copy trading. Using key indicators like the trader’s account assets, cumulative P&L, 30D profit rate, maximum drawdown, etc., users can study the strategies while making a profit. Factoring in all aspects – of cryptocurrency copy trading is important before investing. When one decides to go for crypto copy trading, the first step is to identify the right trader. The efficiency of copy trading is invariably hooked to the skill level of the trader one is following.

• After all, diversification makes you less dependent on market conditions.
• They offer you a wide range of crypto assets and eToro also supports stocks, commodities, currencies, and more.
• However, for now, these are the best social trading platforms you could use to copy trades from the top traders.

You can start out copying top traders at FXTM with a minimum deposit as low as $100. ZuluTrade supports over 40 forex brokers, one of which being their integrated solution (AAAFx). It allows investors best strategy for crypto trading with existing brokerage accounts to link a new account via their existing broker easily. First and foremost, you should look for a broker that has a good reputation in the industry.

Copy trading crypto provides data transparency

Worry less, Coinmatics got you covered with their unique copy trading. Coinmatics connects a part of your portfolio with the portfolio of your desired trader in a usable graphical form. Once you copy a trader, all of their opened trades are automatically copied to your account.

• Furthermore, you can start this type of trading without having prior experience.
• This is perfect for somebody who is looking to maximize profits without worrying too much about what trading strategies or techniques are being used.
• We will look at their features, fees, performance, and reputation.
• In three simple steps, users can create, fund, and start automatically trading crypto with trading bots—all in one place.

Another thing to look for is the social trading community on the platform. Talking to other traders can give you valuable insights and improve your trading skills. These features give you more control and help you adjust your copy trading strategy to your risk level and goals. You can choose from hundreds of traders who trade different coins and strategies, and see their profiles, comments, and track records. You can also chat with them and learn from their tips and insights.

Risks and Rewards of Copy Trading in Crypto Market

The platform currently supports over 16 cryptocurrencies in addition to stocks, commodities, and currency pairs. Bybit makes it simple to find traders to copy, automatically open and close the same trades they do, and watch your crypto balance grow. To profit from their work, principal traders can allow others to copy their strategies and trades via the Bybit platform. In exchange, they receive 10% of the profits earned by each follower. BingX is a copy trading platform with over 1 million users within 100+ regions, BingX provides over 300 cryptos ranging from Bitcoin, Ethereum, Dogecoin, Safemoon, Solana, etc.

• The software will then track the trades of those traders and copy them into your account.
• This, too, is a huge weight lifted off many newcomers’ shoulders, as the fear of losing money when starting out is something that looms over many people’s heads.
• Following that, the trading platform will automatically copy each move made by the chosen traders into your trading account.

It is to find all required information on typical copy trading software as traders willingly consent to give member traders access to their trading moves. One can examine the track record of various lead traders on the dashboard and select the one that fits in with the parameters of their choice. Investors should carefully consider the trader they want to copy and conduct thorough research before copying their trades. It’s also essential to manage risk by setting stop-loss orders and monitoring one’s portfolio regularly. The best platforms for copy trading are eToro, AvaTrade, Bybit, and BingX.

Risks of Crypto Social Trading Explained

Within social trading, however, there is something called the “transparency-revenue conundrum.” Trading platforms have to work out a delicate balance when it comes to transparency. While it takes more time and effort than other types of trading, the advantage of social trading is that it allows you to learn how to trade and understand markets. It also gives a trader complete freedom to mix and match different strategies and trading styles, not requiring them to blindly follow other traders and their strategies. Copy trading could be the first step for one to become a proficient cryptocurrency investor.

After you have set up your account, you can go to the “Marketplace” on 3Commas and find traders that you want to copy. You can filter them by different criteria, like an exchange, coin, profit, risk score, followers, etc. In copy trading, you don’t have to learn anything or spend hours looking at charts.

Crypto Copy Trading Platforms

For beginner traders, it is a good tool to generate trading income, but they must be sure the person you are copying knows what they are doing. For other traders, copy trading is a great way to stay active in a market when they don’t have the time to commit to trading themselves. What I really like here is, if you know anyone of your good friend who is pro in trading, you can ask him/her to create an account on Finestel and let you copy this trade. They can also setup a performance fees which will help them to make extra money from the trading.

They will perform well under the right conditions, but require a knowledge of market dynamics in order to be applied correctly. Trend-following strategies are designed to work well in directional markets with low noise. Since you will be relying completely on another person, it may not give you the analytical knowledge needed to excel at trading. Besides, the settings panel of the copy trading app will give you complete control over your assets, even though they are self-executing. So, if you feel that a trading move is not right, you can opt-out anytime. They offer you a wide range of crypto assets and eToro also supports stocks, commodities, currencies, and more.

Best Copy Trading Platforms in 2023

This is where you buy coins or tokens at the market price and your trade is dealt with on the spot, rather than at a future date. For instance, simply buying $100 worth of Bitcoin at market rate. It is what most people think of when they think of trading– it is simple and straightforward. There are highly experienced traders who predominantly spot trade, so you could always seek one of these people out. XT Futures copy trading allows you to replicate real time trades of top cryptocurrency investors with one click.

Basically, cryptocurrency copy trading is all about identifying skilled traders and re-executing their moves literally. A trader doesn’t have to spend time picking market trends or learning complex trading methods. Rather, the software just mimics what the expert trader is doing. To become a copy trader, you need to have a trading account with a broker that offers copy trading services.

Must-Have Tools for Successful Crypto Trading (+Expert Picks)

These tools help reduce potential losses and protect your capital when the market is unstable. If you’re new to crypto copy trading, you need a platform that has a simple and attractive interface. BingX lets you follow and copy the best traders in the crypto space, who know how to make money even when the market is down. The fees for copy trading on Gate.io are the same as the normal trading fees for spot and futures markets, which depend on your VIP level and trading volume.

• Trend-following strategies are designed to work well in directional markets with low noise.
• This enables one to buy and sell crypto assets to earn profits without putting in a lot of time for researching or gaining proficiency in crypto trading.
• Investors should carefully consider the trader they want to copy and conduct thorough research before copying their trades.
• There is no need to select “Enable Withdrawals” in API restrictions.
• Professional traders are adept at this complex, painstaking work, which requires years of experience and expertise as well as an in-depth understanding of markets.

The most important takeaway is that copy trading can happen even on exchanges that do not have the tools built in. This is great news as it means you can freely choose whatever exchange you are most comfortable with, and that you enjoy trading on the most. For instance, eToro has a dedicated copy trading tool that is designed to be very user-friendly, making it perfect for absolute beginners. Not only this, but eToro’s copy trading tool is free to use as well. This, too, is a huge weight lifted off many newcomers’ shoulders, as the fear of losing money when starting out is something that looms over many people’s heads.

Discover The Best 10 Passive Income Ideas For Achieving Financial Freedom In 2023

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. Reading through various best crypto exchange reviews online, you’re bound to notice that one of the things that most of these exchanges have in common is that they are very simple to use. – While some are more straightforward and beginner-friendly than others, you shouldn’t encounter any difficulties with either of the top-rated exchanges. That said, many users believe that KuCoin is one of the simpler exchanges on the current market. A final major reason why people do this is that they are able to leverage their influence on the markets.

• PrimeXBT is a copy trading platform that allows traders of all experience levels; from experienced to novices alike.
• On the other hand, performance fees are calculated based on a percentage of your profits.
• Trading is risky and letting other people do it for you may do more harm than good.
• FXTM is a global network and has more than two million clients from 150 countries.

It offers all these features of a regular crypto exchange and seamless crypto derivatives trading. It is an all-encompassing platform that can meet all your trading needs. Copy trading is one of the best ways to automate your investment strategy. This eliminates the guesswork and the lack of experience that’s needed when choosing how to invest your hard-earned money. Of course, the strategy might not be the best strategy for all investors, but these systems have worked for many retail investors. With this strategy, instead of replicating an investor’s movements trade for trade, you’re mirroring their overall investment style.

Risk Management Tools

You can show off your trading strategies and attract more followers and copiers. Earn 10% of the profits from each copier, plus an extra 2% from OKX. You can see your balance, profit, loss, open positions, closed positions, etc.

• The trading history presented is less than 5 complete years and may not suffice as a basis for an investment decision.
• Diversification and risk management are also done for since the pro trader is the one directing investment decisions.
• Phemex is a well-known exchange from Singapore that offers a copy-trading feature.

The expert traders are called “Traders” and the people who copy them are called “Copiers”. When you choose an investor to copy, you can decide how much money to put into them. The percentages will be calculated automatically so that every trade they make will be copied into your portfolio with the same percentage.