Copy Trading Crypto A Beginner’s Guide to Investing in Cryptocurrency

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 countries 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.

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.

Copy Trading vs Mirror Trading and Social Trading

It is especially beneficial for new traders because it allows them to participate in markets without prior knowledge while also learning from professional traders. Copy trading is the act of following the trading habits and behaviors of other traders. Oftentimes, people do this by following more experienced traders, or even by following the actions of trading bots. In other words, copy trading is simply copying the trades of others.

• Manual copying can be accomplished by making the same trades as the chosen trader.
• But luckily, the most popular trading platforms offer multiple features to help you on your investment journey.
• But different countries may have different rules and requirements for crypto copy trading platforms and users.
• This gives traders a familiar, sophisticated trading interface they can use immediately.
• So, when you as an investor rent a trading bot made by an expert trader, you are effectively copying their trading strategy.
• Copy trading is a way of making money by following the trades of another principal trader who has trading knowledge and proven success rates.

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. Be careful of platforms with high fees that may eat up your profits over time.

What is Copy Trading in Crypto? How to do Copy Trading

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.

• To begin copy trading, you must first choose a reliable and trusted copy trading app.
• To become a copy trader, you need to have a trading account with a broker that offers copy trading services.
• You can start out copying top traders at FXTM with a minimum deposit as low as $100.
• You can choose from more than 1000 assets, like real stocks, commodities, forex, indices, ETFs, and cryptocurrencies.
• You can filter them by different criteria, like an exchange, coin, profit, risk score, followers, etc.
• This allows the investor to mirror the trader’s strategy and benefit from their expertise.

You can also see the details of each trade that you copied, like the entry price, exit price, amount, fee, etc. Decide how much capital you want to allot to each – trader you follow. Since you’re just getting started, you can start small and add more money to the trader later if you’re happy with how they’re doing.

Can I make money with copy trading?

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.

• It takes the guesswork out of choosing where to invest your money.
• You could say that the essence of learning what is copy trading in crypto is learning how to study other people and learning which people align with you on the trading floor.
• Zignaly differs from the rest because of its profit-sharing feature.
• So, we advise checking with your local regulator if you are eligible to hold crypto assets, trade them, or use copy trading facilities.
• Based on our research, we recommend using Bybit and eToro social trading platforms.
• Choose your favorite, seasoned trader/s and software, and then customize its settings.

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.

What Is Copy Trading and Should You Do It?

Following that, the trading platform will automatically copy each move made by the chosen traders into your trading account. All software, no matter how well they are developed, might go wrong at any time and begin delivering unexpected outcomes. A trader needs to keep monitoring the cryptocurrency trading process and exit their position if they feel they are generating continual losses. To a large extent, the efficiency of the cryptocurrency trading process depends on the choice of the platform and expertise of the lead trader. Selecting the right software is as important as choosing the right cryptocurrency trader. Once the trader zeroes in on the software, the next step is to set it up.

These are important for evaluating how well the traders on the platform are doing. Check what kind of cryptocurrencies you can trade on the platform. It’s better to have more options and not depend on one coin only. Look for platforms that have popular coins like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and others.

The Pros And Cons Of Subscription Services For Clothing: Is it Worth The Investment?

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.

• It’s one of the most effective trading strategy for individuals who don’t necessarily have the time to trade independently.
• It is a part of social trading, where a copy trading platform automatically copies trades taken by the trader you are following.
• Another reason is that your social status and creditability can skyrocket by helping people copy trade.
• It will use the same parameters like buying price, selling price, stop loss, leverage, etc.
• Copy or social trading is based on following profitable traders.

This kind of social trading is ideal for investors who are beginners and good in picking the top traders. Copy trading could also be expensive if you’re paying commissions for frequent trades. If you’re using a copy trading platform to manage your portfolio for you, then you may also pay management or administrative fees to the platform. 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.

How to Choose the Best Crypto Copy Trading Platform: Our Methodology

Letting someone else worry about the execution allows you to focus on other things and prevents you from making emotional decisions during volatility. MoonXBT is known for its incredible speed of execution, according to its team. If you did not know about this, odds are you would have already stopped copying the trend-following system before a trend shows up. But if you did your homework, you would be at ease, waiting for the next trending move to show up.

• You should also look at what you want to do with your portfolio.
• 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.
• Then you need to choose which traders you want to follow and how much money you want to invest in each trade.

While some of the best things in life might be free, profitable trading bots are not one of them. And given the levels of complexity and time involved, why should they be? Professional copy traders will require a commission payment for their services, and quite rightly so!

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3Commas is one of the best platforms for automated crypto trading. It has many features that make trading easier and more profitable. For instance, if the trader the copy trading software is following invests $100 to buy coin A, the software will also spend $100 on the same cryptocurrency. The tool not only helps amateur traders to use the expertise of – other traders but also helps them learn the skill of making smart investment decisions. Cryptocurrency copy trading is an automated strategy that lets one copy an experienced trader’s trading methods. 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.

• Copy trading works by connecting an investor’s trading account to the account of the trader they wish to copy.
• BingX’s copy trading system also supports DeFi, NFT, indices, commodities, forex, and Layer 2.
• AvaTrade is one of the best forex copy trading platform based in Ireland and regulated in Europe by the Central Bank of Ireland.
• You can also adjust your risk and exposure levels on the platform, so you’re not completely reliant on the activity of another trader.
• Once you have identified a top-performing trader, whose strategies you want to copy.

You can also enjoy the advantages of OKX’s exchange, such as high liquidity, low spreads, and various trading tools. To copy trade on Binance, you need another app that works with Binance copy trading. Some examples of apps that work with Binance are Coinmatics, WunderTrading, 3Commas, Cryptohopper, etc. You can access it on Bybit’s website or mobile app with the name “Top Master Traders”. You can also do other things like spot trading, futures trading, options trading, and more. Moreover, copy trading allows you to cut out the emotions of trading.

Phemex: Best Crypto Exchange for Copy Trading

You choose the amount you want to invest and simply replicate everything they do in real-time. As a result, when the trader makes a trade, your account will also make the same trade. Copy trading can offer many benefits, but it’s important to consider the potential risks involved. Investors should always conduct due diligence and thoroughly research a trader’s track record, strategy, and risk management practices before deciding to copy their trades. Four years later, in 2018, the platform added support for ether (ETH) and ripple (XRP).

• This way of manual copy trading is available for purchase as well, with many “influencers” acting as paid signal providers, usually in private Discord groups.
• Moreover, our users are able to protect Coinmatics account with two-factor authentication.
• Past performance is not always indicative of future results, and blindly following a trader’s every move can lead to losses.
• First, your success hinges on which investor’s movements you follow.
• In social trading, traders exchange ideas in a community, to benefit all members of the community, whereas copy trading is more transactional and automatically copies the trades of others.

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). Crypto copy trading is an easy way to follow the strategies of experienced traders, diversify your portfolio, and potentially boost your profits. But it also has some challenges, such as finding trustworthy and compatible traders to follow, controlling your risk level, and keeping up with market changes. BingX aims to empower even new investors with the knowledge needed for making the right investments.