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.

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.

eToro Copy Trading feature

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.

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.

Conclusion: Best Crypto copy trading platforms

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.

• The best part; is everything is automated, and you will be acting like a hedge fund without the hassle of compliance and paper work.
• In terms of legal status, copy trading of cryptocurrencies is legit.
• Copy trading creates opportunity to leverage someone else’s investment knowledge and experience.
• Of course, the strategy might not be the best strategy for all investors, but these systems have worked for many retail investors.
• For example, if you invest conservatively then you’d copy someone with a conservative trading bent.

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.

Bitsgap Review 2023: The Right Crypto Trading Platform for You?

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.

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.

Supported Cryptocurrencies

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.

• It’s this uncompromising commitment to a transparent bot evaluation process that distinguishes Trality’s Marketplace from generic, black-box alternatives.
• It depends on many things, like how well the traders you follow do, how much money you invest, how much you pay in fees and commissions, and how the market moves.
• 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.
• If people weren’t making money from it, then people wouldn’t continue to do it.

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.

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

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.

• 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.
• You also pay the broker’s fees for spreads and commissions, which change depending on what you trade and what account you have.
• You can copy trade a forex, CFDs or stock trader, or follow a crypto trader along his journey.
• In this sense, copy trading can be a good idea for experienced traders looking to take a step back, but it is likely unwise for people just starting out.
• It has many features that help you make money with crypto, like earning interest, staking in launch pools, and prediction markets.
• Note that not all trading platforms are available for all regions.

You can track your copy trading performance on the Pionex mobile app or website. Well, you need to find software or a service that offers crypto copy trading. Then you need to choose which traders you want to follow and how much money you want to invest in each trade. We will compare some of the best crypto copy trading platforms that you can use. We will look at their features, fees, performance, and reputation. The platform currently supports over 16 cryptocurrencies in addition to stocks, commodities, and currency pairs.

What is the best crypto copy trading bot?

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 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.

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.

Trality’s Marketplace and index-tracking bots

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 featured 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.

• Finestel is an independent platform that connects pro-traders with investors.
• Finally, you relinquish control of your funds to the Master Trader.
• It takes the guesswork out of choosing where to invest your money.
• The platform does not charge any fees for copying or being copied.
• You need to learn about when you should follow one individual, and when you should switch things up and sync to somebody else.

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.

what is copy trading in crypto: Bottom line

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).

• Copy trading enables novice investors to enter the financial markets and make profitable trades by following experienced traders.
• Copy trading is a form of automated trading that allows investors to replicate the trades of another trader in real-time.
• Thankfully, there are tools that help such traders explore the potential of the cryptocurrency industry, simplifying over-complex cryptocurrency trading by following expert traders.
• On the other hand, the people who choose to follow you have made that decision on their own accord, and so it is their choice to expose themselves to your actions.
• The best way to grasp for yourself what is copy trading in crypto is to find one of these traders and start following them, as practice helps to cement ideas.

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.