Cryptocurrency Copy Trading Platform

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.

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.

Final Thoughts on Crypto Copy 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 earn 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.

• One of the coolest features of eToro is its CopyTrader technology.
• Similarly, when copy trading crypto, take advantage of the power, consistency, and reliability of crypto trading bots.
• Another crucial aspect is monitoring and evaluating the performance of the traders you are copying.
• 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.
• If you think that another FTX can’t or won’t happen, then think again.

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).

How does crypto copy trading work

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.

• This feature also provides new revenue streams for lead traders.
• In this case, copying other professional traders can help you make some profits and earn some money.
• Multi-strategy bots utilize different trading styles depending on the market conditions.
• 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.
• Get information for arbitrage trading from various exchanges to find deals with the highest spread.
• 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.

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.

What is cryptocurrency copy trading

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.

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.

Trality’s Marketplace and trend-following strategies

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.

• 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”.
• Learn how to use Coinbase crypto exchange referral codes for exclusive benefits and offers.
• After deciding on the trader you want to copy, simply click on the “Copy” button.
• It is understandable to hear about how to copy trade crypto and assume that it is an easy task, especially when it comes to using automated services in the crypto space.
• 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.

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!

Everything You Need to Know About Crypto Copy Trading

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.

• The performances are excellent, the interface very intuitive and fast.
• This type of trading provides less flexibility than social trading, as you are expected to follow the strategy blindly.
• It is what most people think of when they think of trading– it is simple and straightforward.

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.

Is copy trading legal?

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.

• Copying trades is also a great way to familiarize yourself with cryptocurrency trading quickly.
• Another thing to look for is the social trading community on the platform.
• 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.
• You can choose who to copy from a list of lead traders who have different performance indicators.

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.

Best Crypto Trading Bots in 2023 (Compared) – Top Options

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.

• A final major reason why people do this is that they are able to leverage their influence on the markets.
• 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.
• So, you should always check the legal status of crypto copy trading in your country before using any platform or service.
• Furthermore, you can always decide to stop copying the traders of others.

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.

How to Automatically Copy Trade Crypto

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.

• Meaning, that they will offer a social component to the trader community, where they can communicate and share investment ideas and strategies.
• You just need to put some assets in your exchange account, find a good trader on a crypto copy trading platform, and let the software do the rest.
• Therefore, assessing a trader’s strategy, risk management practices, and overall performance is essential before deciding to copy their trades.
• You would want to choose a broker that not only supports these popular cryptocurrencies but also provides access to other promising coins in the market.

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.