What Is Copy Trading and Should You Do It?

You don’t want to lose your money or your personal data to hackers or scammers. So look for platforms that have strong security features and good reviews from other users. The lead trader decides how much they want to charge for their profit-sharing fee, which can be from 5% to 40%.

• WunderTrading offers a platform for copy trading that supports Binance, FTX, Kraken, Bybit and many more exchanges.
• This can sometimes work, but remember that we are all fallible, and even the best traders can do a poor job of reading the room.
• While observing and practicing others’ investment strategies, you comprehend them easily.
• Rather, the software just mimics what the expert trader is doing.
• The community-sharing of ideas is a great way to improve your trading, boost your performance and to learn new things from like minded people.

Naga is a copy trading platform that automatically copies your trade. It helps you to discover other investor’s stats on the leader board and select who to copy to get the highest profit in your trade. The fee structure imposed by your chosen copy trading broker plays a significant role in determining your overall profits. While it’s tempting to focus solely on finding brokers with low fees, it’s crucial to understand how different fee structures can impact your investment results. In many ways, this feeling of elation and connectivity, coupled with the following of trusted individuals is the answer to the question of what is copy trading in crypto!

Trality’s Marketplace and index-tracking bots

This one of the best social trading platforms uses the MQL5 language, the automated trading software that mostly runs on your computer and trades for you. Furthermore, copy trading saves time and effort for busy individuals who may not have the luxury of dedicating hours to market research and managing their own trades. Instead of spending countless hours monitoring charts and analyzing trends, they can entrust their investments to skilled traders through copy trading platforms like eToro.

• It makes for a more horizontal experience, where those who know the most help those who are just starting out.
• Gate.io is a CEX that allows copy trading with high leverage, with over 1,400 cryptocurrencies listed on the platform.
• Not only should you make sure that the traders you copy have a solid risk management system, but you should also limit your risk per trade you copy.
• And since the crypto market is a volatile one, all bots are backtested in different market conditions such as bull, bear and sideways market regimes to ensure consistent returns.
• Regular monitoring of lead traders’ actions backed by behind-the-scenes learning may help amateur traders to hone their cryptocurrency investing skills and evolve as expert traders themselves.
• Through copy trading, they can simply find a top-performing trader specializing in Bitcoin and automatically replicate their trades.

It also frequently necessitates some level of knowledge, so it is better suited to more experienced traders. However, new traders can benefit from the experience of their more experienced peers. You can also adjust your risk and exposure immediate edge levels on the platform, so you’re not completely reliant on the activity of another trader. The platform brings together experienced principal traders and new traders to create a win-win cryptocurrency trading experience for all.

ommas Review 2023: The Best Crypto Trading Bot for Beginners?

There is definitely a social side to copy trading, but never let it get in the way of the financial and economic side. Part of the process of learning what is copy trading in crypto is learning when to pause it and simply observe the actions of others, rather than replicate them. It can be hard to figure out when to do this, but a general rule would be that if you are getting too nervous it might make sense to take a break and go about trading on your own.

• 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.
• Most importantly, bot algorithms remain completely private, meaning that each creator retains full IP rights.
• 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.
• If you are syncing to a person you know, interview them and find out all you can about them.

Additionally, for individuals new to cryptocurrency, it offers an opportunity to learn from experienced traders and gain valuable insights into market trends and strategies. Many people who learn how to copy trade crypto choose to use a service or tool that automatically replicates the trades of more experienced or successful traders. These exchanges allow users to connect their accounts to those of more experienced traders and automatically emulate their trades. The platform offers over 150 crypto assets, has over 3 million global users, and is one of the few derivatives platforms that offer an automatic copy trading system. New crypto investors can easily follow and copy the trading strategies of successful traders.

Pros and Cons of Copy Trading

In this Trading 101 article, we take a deep dive into copy trading, its risks and benefits – and how to use copy trading to your advantage. Here, most important point to note is that everything is proportionate. Therefore you can invest whatever amount you like depending on the broker rules. The Trality Wallet—enjoy all of the benefits and functionality of your Binance account while being able to deposit, withdraw and manage your funds all in one place.

• For rookie traders, learning how to buy and sell cryptocurrency could be perplexing.
• Following that, the trading platform will automatically copy each move made by the chosen traders into your trading account.
• Copy trading in cryptocurrency allows you to directly replicate the positions of another trader.
• However, it is important to note that past performance is not necessarily an indicator of future success, and caution should be exercised when relying on influencers or top traders.
• Just because someone has a good track record in the past doesn’t mean they will continue to perform well in the future.

Copy trading, however, greatly simplifies crypto investing, making it an excellent way for non-professional traders to add crypto assets to their investment portfolios. Copy trading is a form of trading where investors automatically replicate the trades of other traders they choose to follow. So, newbie investors can follow the trades of experienced and successful traders and use their investment strategies without needing extensive knowledge or experience in financial markets. Firstly, it allows individuals with limited knowledge or experience in cryptocurrency trading to gain exposure and potentially profit from the market.

Supported Cryptocurrencies

It’s never been easier to trade like a real professional trader – get started in just a few steps. After you become the Follower of a Principal Trader, the copying and execution of trades are automatic. All Principal Traders go through a strict audit to ensure outstanding performance and stable earnings. Bybit aims to provide a secure and transparent trading environment. It remains customer-focused and strives to offer the best user experience.

However, all of these completely depend on your country that you are living in. AvaTrade is one of the best forex copy trading platform based in Ireland and regulated in Europe by the Central Bank of Ireland. They are one of only a few top forex brokers to offer fixed spread forex trading. Avatrade provides – an extensive range of copy trading and social platforms for you to choose from. It’s important to note that while copy trading can offer practical benefits, it is not devoid of risks. Past performance is not always indicative of future results, and blindly following a trader’s every move can lead to losses.

Cryptohopper: Best Automated Copy Trading Platform

But if your goal is to beat the market, an index strategy might be more appropriate. After you start your investment, you will have the same traders in your portfolio as the trader that you just copied. No matter if you choose to copy trade, trade yourself, or join a social trading community, we wish you – the best of luck in your journey. These days, many different platforms offer copy trading services and the concept has become indispensable in trading. Contrary to many platforms, CopyMe allows you to copy trade multiple traders at once. Diversification in trading is a known way to minimize your risk.

• The percentages will be calculated automatically so that every trade they make will be copied into your portfolio with the same percentage.
• It’s also important to ensure that the broker is properly regulated, which provides an added layer of protection for your investments.
• Mirror trading is accomplished by manually executing trades in accordance with the chosen strategy.

Please pay attention that your country of residence may prohibit your participation in copy trading or holding crypto assets, then it will be illegal personally for you. So, we advise checking with your local regulator if you are eligible to hold crypto assets, trade them, or use copy trading facilities. Currently, it’s not allowed to configure auto trading bots at our platform. This functionality is planned to be released in the nearest future. But you can share your bot based trading strategy at Coinmatics right now.

Bybit: Overall best crypto copy trading platform

Say trader you’re following buys 100 shares of a particular stock. If they allocate 5% of their portfolio to a specific stock sector, you’d do the same. Copy trading in the crypto market offers several practical benefits that can be advantageous for beginners and experienced investors alike. Lastly, pay attention to the fees charged by the copy trading broker. Some platforms may have higher fees compared to others, so it’s important to consider how these fees might impact your overall profits.

• You don’t want to lose your money or your personal data to hackers or scammers.
• So, newbie investors can follow the trades of experienced and successful traders and use their investment strategies without needing extensive knowledge or experience in financial markets.
• So, if some issue arises, like fraud or being unable to exit trades, you can call customer support.

To begin copy trading, users must first locate a copy trading platform. If you are pleased with the trader’s performance, you can increase the amount of money you gave them. When looking for a trader, choosing one in the age of social media is challenging. A Flood of information from all sorts of sources, reliable and unreliable, makes the task steeper. It is important to do adequate research when selecting a trader rather than just going through a person’s profile. Copy trading creates the impression of being a pioneering term; however, it has been around for a while.

Gate.io: Best for social trading and community engagement

This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. We were looking for a place to support our strategy, and be able to share it, and we found it. The performances are excellent, the interface very intuitive and fast. Definitely something I’ll be watching closely as the platform is developing well, the base idea is great, and the system is efficient too. Before engaging in any type of financial investment, you should clearly define your financial goals.

After all, trading platforms generally offer educational content that helps you grow as a trader. Crypto copy trading is similar to social trading or mirror trading. It can be done manually or automatically, but automatic is better. With crypto copy trading, you use software that copies the trades of expert traders automatically. Algorithms of the trading platforms are designed to automatically copy the trade of the lead investors. However, one is in total control of trading and can overrule the software anytime.

Is copying cryptocurrency trades legal?

Based on our research, we recommend using Bybit and eToro social trading platforms. If you are new to crypto trading, you may not be familiar with the volatility and nature of the crypto market. In this case, copying other professional traders can help you make some profits and earn some money. When you follow the rules, you can copy the trades of your chosen experienced traders. You can also change some settings of the bot, such as the stop-loss percentage, take-profit percentage, and leverage ratio.

• This copy trading platform also offers the FXTM Invest service for a minimum deposit of $100.
• You can also do other things like spot trading, futures trading, options trading, and more.
• Know this, and learn what they are, so that you can back away from them when you foresee a situation that they might not be great at.
• On their page, you will see all the details of your copy investment.
• You can copy trend-following traders or choose to focus on range-bound environments.
• In copy trading, you don’t have to learn anything or spend hours looking at charts.

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. Letting someone else worry about the execution allows you to focus on other things and prevents you from making emotional decisions during volatility.