6 Best Crypto Copy Trading Softwares Cryptocurrency Social Trading

The idea behind copy trading is to assess each trader’s profitability before selecting which signal provider you want to follow. Copy-trading allows copying positions of another trader, and lately, it has become more popular. There are many traders who create ‘People-Based’ portfolios to invest in other investors instead of trading themselves. This is – an international ECN broker who is also very active, particularly in Asian and African markets. This is one of the best copy trading platform, which helps you filter brokers based on minimum Deposit to start forex trading, mobile support, etc. ZuluTrade also allows login via Facebook, convenient for those who regularly log in to check their account.

• Or they may be a big fan of shorting, which is where an investor borrows an asset and sells it with the expectation that the price will drop.
• You also have full control over your trades and can edit or close them anytime.
• And if you are an experienced trader, you can earn up to 20% of all profits earned by your followers.
• It can be used to trade crypto, Forex, stocks, commodities, metals, and other financial markets.
• Look for platforms that give you detailed historical performance data, such as win rates, average returns, and maximum drawdowns.

Some individuals argue that blindly following others’ trades through copy trading eliminates personal responsibility and involvement in decision-making processes. They believe that having control over trades empowers individuals with valuable lessons and experiences that can lead to better long-term outcomes. In layman’s terms, a cryptocurrency exchange is a place where you meet and exchange cryptocurrencies with another person. The exchange platform (i.e. Binance) acts as a middleman – it connects you (your offer or request) with that other person (the seller or the buyer). With a brokerage, however, there is no “other person” – you come and exchange your crypto coins or fiat money with the platform in question, without the interference of any third party. When considering cryptocurrency exchange rankings, though, both of these types of businesses (exchanges and brokerages) are usually just thrown under the umbrella term – exchange.

Step 4. Close the investments at any time

Simply click on “Copy trading” and allocate a fund that you wish to delegate for Copy trading. When you are copy-trading crypto, you should always remember to vet and seriously consider the people you sync to; no matter how famous or how well you think you know them. If you are syncing to a person you know, interview them and find out all you can about them.

• This might sound strange, as in many ways you are not making most of the granular decisions, but rather another party is.
• You can spectate top traders’ trades and copy their trades automatically.
• Copy trading is a concept that is applied in all financial markets.
• Other considerations include the fees you are paying to the trader and the copy trading platform.
• At the time of writing this resource, Binance does not offer the social trading feature.
• Our platform only needs deal-making access to do our social trading operations.

Do note that there is a feature called “Stop copying” which is similar to “Stop Loss” feature, and helps you save yourself when things go south.

Pros and cons of copy trading

This can be done manually, where you track another entity’s actions on your own, or automatically with the help of a dedicated platform or a bot. It is a strategy that allows investors to copy the trades of experienced and successful forex investors and implement the same trades, in almost real time, in their own accounts. Mirror trading was initially only available to institutional clients but has since been made available to retail investors through various means. Since its inception in the mid- to late-2000s, mirror trading has inspired other similar strategies, such as copy trading and social trading. EToro’s crypto copy trading platform is both unique and functional, with some of the industry’s most innovative social trading features.

• However, it’s important to acknowledge that copy trading carries inherent risks.
• The main advantage of using copy trading is that it allows you to take advantage of another person’s investment experience and knowledge.
• You will have to set the details for the traders before the platform can start copy trading.
• Since you will be relying completely on another person, it may not give you the analytical knowledge needed to excel at trading.

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. You should be able to find your way around and make trades without any hassle.

Mirror Trading

This makes it simple to find the best fit for your trading style and risk tolerance. Overall PrimeXBT Covesting platform is one of the top social trading platforms out there, and something you as a beginner might like to start with. Covesting is a social trading platform that is not directly integrated with PrimeXBT which is another upcoming exchange. This union helps you to enjoy the power of social trading directly inside the PrimeXBT exchange.

Scrutinize the performance history of traders you are interested in copying, analyzing factors such as their trading strategies, risk management techniques, and overall track record. This analysis will help you gauge whether their approach aligns with your goals and risk appetite, enabling you to make informed decisions. Copy trading is the act of following somebody else’s trades, and emulating their actions yourself. It is revolutionary because it brings a social aspect to the world of trading, whilst also helping newcomers learn the ropes and get more accustomed to making their own trading decisions.

Crypto Copy Trading Platforms

In addition to copy trading tools, eToro allows for community discussion, which helps traders to learn from the traders they copy. You can copy trend-following traders or choose to focus on range-bound environments. Ideally, copy traders put together a “portfolio” of different traders to copy, so that they will always have a few successful ones running.

• Copy trading in the crypto market offers several practical benefits that can be advantageous for beginners and experienced investors alike.
• Even after the software is set up, a trader could switch to another trader any time they want.
• Diversification and risk management are also done for since the pro trader is the one directing investment decisions.
• This can be done manually, where you track another entity’s actions on your own, or automatically with the help of a dedicated platform or a bot.

Phemex is a well-known exchange from Singapore that offers a copy-trading feature. The biggest drawback of this trading method is that you have – to mirror everything. To learn about copy trading, one of the most important things to be informed about the actual process of copy trading.

Trality’s Marketplace and intraday bots

Once you have found the trader you wish to copy, simply click on copy and you would be asked to add the funds. Gate.io is a well known crypto exchange that allows users from USA as well. You can join as an investor (to copy other trades) or you can join as a trader, so that others can copy your trades and you can make money. Think of this as running your own hedge fund, and everything is automated. Selecting the best copy trading platform is not as easy as you may think. You need to consider many factors while selecting your copy trading software in India , USA or other countries.

• But you’d base your investing decisions on the same principles he follows.
• It has millions of users from all over the world, a fast trading engine that executes trades smoothly, and a high level of security that protects your funds.
• This makes many people favour mirror trading over copy trading, as all human error is removed from the equation.
• A trader needs to keep monitoring the cryptocurrency trading process and exit their position if they feel they are generating continual losses.
• For example, on eToro, you don’t pay extra for copy trading, but you still pay the normal fees for spreads and overnight fees.

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.

ommas: Best copy trading platform with trading bots

The biggest drawback of this trading method is that you need to constantly monitor the market’s flow and decide on individual trade trends. 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 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.

• So look for platforms that have strong security features and good reviews from other users.
• While trading definitely involves wins and losses, those who win can always help those who lose by educating them.
• This makes Bybit one of the top trading platforms and the best copy trading for beginners if you’re focusing entirely on the crypto market.
• And when investing in any assets, it’s important to manage your expectations and control your emotions.

If people weren’t making money from it, then people wouldn’t continue to do it. Besides, it allows you to jumpstart your trading journey as a beginner, potentially gaining profits and generating a passive income without participating in trades directly. Some of the best crypto copy trading bots are 3Commas, Cryptohopper, and WunderTrading.

eToro: Best Ethereum Social Trading App

However, one needs to determine the chunk of funds they want to allocate to each lead manager. Worry less, Coinmatics got you covered with their what is leverage in crypto trading unique copy trading. Coinmatics connects a part of your portfolio with the portfolio of your desired trader in a usable graphical form.

• In order to display traders’ performance in a more comprehensive way, BingX traders can now enrich their homepage by accessing another exchange’s API.
• The fee structure imposed by your chosen copy trading broker plays a significant role in determining your overall profits.
• Are they left to fend for themselves, speculating about the prices and taking to stride the sharp ups and downs of the cryptocurrency industry?
• The lead trader decides how much they want to charge for their profit-sharing fee, which can be from 5% to 40%.
• It is a strategy that allows investors to copy the trades of experienced and successful forex investors and implement the same trades, in almost real time, in their own accounts.

We see a growing popularity in copy trading, which would not be happening if people were losing money. Nevertheless, copy trading — without a proper approach — can cost you dearly. Once you have found a trader that you wish to copy, click on follow and enter the amount you want to start with copy trading. The trading history presented is less than 5 complete years and may not suffice as a basis for an investment decision. Here you will see all the pro-traders, and you can pick a trader to copy based on their performance and statistics.

What is Copy Trading in Crypto? Methods and Ideas in 2023

For example, you should assign your preferred amount for investment. It can be the same as the trader you are following or a percentage of it. Setting the amount according to your risk appetite is advisable so that you can tolerate any potential losses. To begin copy trading, you must first choose a reliable and trusted copy trading app.

• Plenty of regulations have been framed for copy trading, so one can regard copy trading as a legitimate trading method if they are using an authorized service.
• What happens when the trader that you’re following encounters a flash crash, a sideways market, or even a bear market?
• At least with crypto, everybody is aware of their fallibility, leading to more caution.
• And, you need to pay your principal trader for copying their traders.
• This guide explores the six best copy trading platforms available in 2023.

For example, it is entirely possible to copy trade on Binance, Kraken, and KuCoin. This is because each of these exchanges have a trading API (or application programming interface) that allows you to write code that lets you follow other traders. However, don’t worry if you are not a programmer, because services exist which let you harness these APIs yourself without ever writing a line of code.