16 Best Crypto Copy Trading Platforms in 2023

A particularly big one is that you can receive payment from it, depending on the service you use. For instance, choosing to be a copy trader on eToro means you receive an annual payment of 1.5% of the assets that people copy-traded when they followed you. Depending on how many people follow you and how much they put in, that could be a huge amount of passive income.

• You can also follow and copy the best traders on NAGA with their “auto copy” feature, which shows you their strategies and results.
• Amateur cryptocurrency investors need to carefully determine what is important to them for making a decision regarding crypto trading strategy.
• With this strategy, instead of replicating an investor’s movements trade for trade, you’re mirroring their overall investment style.
• You won’t learn much if you just watch other people trade without trying to trade yourself.
• They offer features such as portfolio management, smart trade, social trading, and more.
• For instance, let’s say you’re interested in copy trading Bitcoin and Ethereum.

It involves careful consideration of various elements to ensure long-term success and minimize potential risks. When it comes to copy trading in the cryptocurrency market, optimizing the risk-reward ratio is a critical factor to consider. The risk-reward ratio refers to the potential reward in relation to the level of risk taken.

Cryptohopper: Best Automated Copy Trading Platform

After deciding on the trader you want to copy, simply click on the “Copy” button. You will have to set the details for the traders before the platform can start copy trading. It can be used to trade crypto, Forex, stocks, commodities, metals, and other financial markets.

• The most important takeaway is that copy trading can happen even on exchanges that do not have the tools built in.
• Recognizing these concerns is all part of the process of grasping what is copy trading in crypto, but do not let them get too much in the way of your own activity.
• Yes, copy trading is legal, but each country may impose its own regulations.

Since the professional trader directs investment decisions, diversification and risk management can also be done. Many traders who seek to replicate the trades of other traders are primarily interested in their trading performance, not in the markets they trade. Of course, you may choose to follow traders who focus on crypto trading. Many companies – realised the business opportunity and started to build automatic copy trading services, where users could automatically copy the traders of other successful investors. Whether or not copy trading is profitable mostly depends on the trader you are copying. Copy trading is a trading strategy that allows traders to copy the trades of other traders.

Copy trading simplifies crypto investing

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. The platform registers over 2 million trades every month and has a monthly trading volume that surpasses $70 billion. This makes AvaTrade one of the best copy trading platforms for traders interested in all financial markets, not just cryptocurrency.

• Likewise, if you’re a growth investor then you shouldn’t match the trading activity of a value investor.
• Trading signals are messages alerting you to potential trading opportunities.
• And like many others, you are just a beginner in crypto trading.
• For example, Pionex is one the best low fees copy trading platforms.
• If you want a portfolio that matches the performance of investing pros, copy trading may help.

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. Zignaly differs from the rest because of its profit-sharing feature.

What is copy trading on eToro?

So, you should always check the legal status of crypto copy trading in your country before using any platform or service. Look for platforms that give you detailed historical performance data, such as win rates, average returns, and maximum drawdowns. Honest and accurate statistics will help you make smart decisions when choosing professional traders to copy and avoid scams.

• If they allocate 5% of their portfolio to a specific stock sector, you’d do the same.
• You can also see more about each trading strategy, like the trades they made, the profit and loss, the fees, and the minimum amount you need to copy.
• To optimize the risk-reward ratio in copy trading, thorough research is necessary.
• If you are syncing to a person you know, interview them and find out all you can about them.

There are two major ways in which copy trading can be a social activity. The point here is that you should go out of your way to locate a trader who operates in a way that you are comfortable with. Others don’t like it because it can be viewed as unethical when handling assets from smaller organizations, such as when hedge funders shorted GameStop’s GME shares. The crypto space has only existed for a handful of years, and so everybody is still trying to grasp how it functions in terms of technical analysis.

Features

The platform’s excellent analytics and crypto social trading network mean that you don’t have to navigate the crypto space alone. There are models that you can use to build your strategies, but you also have the option to copy the strategies of other traders through the copy trading feature. And when investing in any assets, it’s important to manage your expectations and control your emotions.

• Another risk of using crypto copy trading apps is they may experience a system outage or cyberattack at any time.
• Crypto asset investing is highly volatile and unregulated in some EU countries.
• And, you need to pay your principal trader for copying their traders.
• The platform does not charge any fees for copying or being copied.
• It has many features for traders, like spot, margin, futures, options, staking, lending, savings, and more.

At least with crypto, everybody is aware of their fallibility, leading to more caution. You can also monitor the results copy trades – are generating for you. Observing the progress will also enable you to understand how to backtest the crypto trading strategies.

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• New crypto investors can easily follow and copy the trading strategies of successful traders.
• While copy trading allows a trader to view the actions of lead traders, they don’t get to see the work behind the scenes that led them to make those moves.
• Some countries may also limit or ban certain kinds of crypto assets or activities.
• Copy trading can also help you get familiar with new strategies, as paying attention to the trades you copy might show you new tricks to use in your own analysis.
• The first way is that copy trading can function as a niche form of social media, where you are essentially communicating with other traders by following their actions.

You’ll also want to choose a good trader with a solid and transparent track record of success over an extended period of time. Your aim is to identify a pro copy trader by their long-term successes, and all of the bots offered on Trality’s Marketplace have been extensively vetted by our experts. The Trality Wallet provides a seamless integration between the world’s most trusted exchange and the world’s best crypto trading canada bots—full flexibility without API keys. Trade directly on Trality without having to connect your exchange’s API key. With the Trality Wallet, you no longer have to manually configure and manage API keys from an exchange account in order to connect to Trality. While everyone knows that wallets are used for storing funds, the Trality Wallet excels as a trading wallet, offering additional ease-of-use and convenience.

What is a copy trading platform?

For example, the markets are constantly evolving, which may result in the algorithm running on outdated assumptions. When this happens, the algorithm will take trades that no longer work in the current environment, quickly blowing up your entire trading account. 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. Back before social media platforms, some traders ran newsletters where they discussed their trading ideas. Followers could then manually join on to the trade or decide against it.

• If one is able to choose a trade-worthy platform and the right trader to copy, it might turn out into a profitable long-term trading approach.
• For example, if seek more alternative investments, you may copy someone who focuses on hedge funds, commodities or FOREX.
• When it comes to copy trading in the cryptocurrency market, optimizing the risk-reward ratio is a critical factor to consider.
• PrimeXBT also has its own in-built copy-trading tools, where it even ranks different traders and bots, so that you can see how much money they have made during a certain period of time.

It is still essential to stay updated with market trends, news, and developments in the cryptocurrency industry. This knowledge will allow you to make educated decisions and engage proactively in managing your investments. Answering these questions will help guide your decision-making process when selecting traders to copy. 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.

List of Top Crypto Copy Trading Platforms and Apps

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. 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. Another way of increasing your chances of success is by copying multiple successful traders with different trading systems. After all, diversification makes you less dependent on market conditions.

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. Crypto copy trading is a trading strategy that allows anyone to replicate the trades of experienced crypto investors. The copy trading feature means that all trades opened and closed by the trader are replicated in the follower’s account.

Crypto Copy Trading Platforms

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.

Then you can pick one or more traders to follow and copy their trades automatically on your BitMEX account. Cryptohopper is a platform that lets you use different features and tools to trade cryptocurrencies. For example, you can copy other traders, use automated trading bots, analyze the market, and use advanced tools like backtesting, market-making, and arbitrage.