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 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.

• Learn how to use Coinbase crypto exchange referral codes for exclusive benefits and offers.
• Followers could then manually join on to the trade or decide against it.
• So, even if a well-regarded trader is doing this, it might not be smart for a beginner to follow them.

Since then, the number of cryptocurrencies supported by the platform has continued to grow. EToro strives to improve its crypto trading services and also offers a crypto wallet to traders that wish to own the underlying asset. Copy trading is just one way to automate your investment strategy. It takes the guesswork out of choosing where to invest your money.

Copy trading can boost crypto portfolios

They have access to segregated accounts at top banks, secure deposits, withdrawals, competitive leverage, and tight spreads. You can trade over 250 instruments and have access to a range – of optimized accounts and platforms. There are also exciting forex contests and trade-enhancing bonuses. BingX is a leader in the industry with no deposit fees and the lowest fees.

• This happens in markets with little interest, or outside of regular trading hours.
• This makes Bybit one of the top trading platforms and the best copy trading for beginners if you’re focusing entirely on the crypto market.
• Some platforms may have higher fees compared to others, so it’s important to consider how these fees might impact your overall profits.
• While their performance may seem enticing, it’s crucial to assess whether you’re comfortable with the level of risk they are taking.
• Here’s what copy trading is, how it works and what you can expect from it.

Also, some crypto copy trading apps allow you to choose multiple traders. They offer features such as portfolio management, smart trade, social trading, and more. They also support a wide range of cryptocurrencies and exchanges for your convenience. Check for platforms that have forums, chat rooms, or social media integration, where you can connect and learn from experienced traders. To start copy trading on PrimeXBT covesting, you can go to the copy trading section and look for traders to follow. Now, sort them by different criteria, such as performance, risk level, followers, profit share, and more.

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

Selecting the best copy trading platform is not as easy as you may think. You need to consider many factors while selecting your copy trading software in India , USA or other countries. The biggest drawback of this trading method is that you need to constantly monitor the market’s flow and decide on individual trade trends.

• In copy trading, you don’t have to learn anything or spend hours looking at charts.
• You can choose who to copy from a list of lead traders who have different performance indicators.
• In this case, copying other professional traders can help you make some profits and earn some money.
• This feature also provides new revenue streams for lead traders.

However, it’s important to acknowledge that copy trading carries inherent risks. Investors should exercise caution due to the volatile nature of cryptocurrencies themselves. While copy trading offers a chance at potential gains, losses are also possible. It’s essential to thoroughly research and analyze the performance history and risk profile of traders before copying their trades. You can also find copy traders from certain services which use the APIs from other trading platforms, and help connect newcomers to those who are giving away their trading habits. 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.

Buy Crypto

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. EToro is also quite popular, which you can explore along with PrimeXBT. There are a few important things to keep in mind before you get started with this strategy. 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.

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. This is perfect for somebody who is looking to maximize profits without worrying too much about what trading strategies or techniques are being used. With this in mind, copy trading can become a way of forming tighter social bonds with other new and budding traders, where each user learns from the other’s successes and mistakes. Receive updates in real time whenever changes are made to a bot Should a bot underperform, investors have the ability to unfollow it at any time and select another bot. With just a few taps in the Marketplace’s mobile app, investors can easily leverage the expertise of professionals by renting the most trusted bots on the market. These apps work on trained models and can imitate others’ investment strategies.

Top Cryptocurrencies

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. Coinmatics allows you to choose whether you want to copy automatically, or manually. This flexibility allows you to keep greater control over your risk, and makes it one place to get started if what is the best crypto trading platform you’re not sure about copy trading just yet. We see a growing popularity in copy trading, which would not be happening if people were losing money. Nevertheless, copy trading — without a proper approach — can cost you dearly. Once you have found a trader that you wish to copy, click on follow and enter the amount you want to start with copy trading.

• If you think that another FTX can’t or won’t happen, then think again.
• This is because each of these exchanges have a trading API (or application programming interface) that allows you to write code that lets you follow other traders.
• Well, in most cases it is legal the same as to hold and trade crypto assets.
• Another crucial aspect is monitoring and evaluating the performance of the traders you are copying.
• Similarly, when copy trading crypto, take advantage of the power, consistency, and reliability of crypto trading bots.
• 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.

Besides copy trading, WunderTrading also offers other tools such as smart trading, pairs trading, DCA bot, and crypto portfolio tracker. You don’t have to worry about your funds being stolen because the platform only uses API keys that cannot withdraw money. You also have full control over your trades and can edit or close them anytime.

Pros and cons of copy trading

These rules may include the investment amount, the threshold for several copiers, and a fee charge. To use copy trading on 3Commas, you need to have a subscription plan that includes this feature. You also need to have an account on one of the 16+ exchanges that 3Commas supports, like Binance, Coinbase, or Kraken. 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.

• However, one needs to determine the chunk of funds they want to allocate to each lead manager.
• You could potentially make money by copying another trader’s skills and experience.
• Connect your account to the trader of your choice and sit back, waiting for results.
• Furthermore, you can always decide to stop copying the traders of others.

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.

Pros and Cons of Copy Trading

Also, check the reviews about the copy trading platform to gauge its performance. Certification from the regulators like FCA, SEC, ESMA, or others ensures the platform’s credibility. Learn what this pocket-friendly mini-investing app has to offer for new Australian investors. Learn how to use Coinbase crypto exchange referral codes for exclusive benefits and offers. But you need to be careful about who you follow, how much you pay in fees and commissions, and how the market changes. Always follow risk management techniques like stop-loss, target points, and investing 5-10% of your investment capital.

• One of the coolest features of eToro is its CopyTrader technology.
• Copying trades is also a great way to familiarize yourself with cryptocurrency trading quickly.
• It makes for a more horizontal experience, where those who know the most help those who are just starting out.
• 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.

The simple fact is that most people don’t have the requisite skills and experience, which is why most people aren’t professional traders. 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. By copying the trades of successful and experienced traders, beginners can effectively leverage their expertise and decision-making skills.

Bybit Copy Trading

There are many traders who create ‘People-Based’ portfolios to invest in other investors instead of trading themselves. This is an international ECN broker who is also very active, particularly in Asian and African markets. This is one of the best copy trading platform, which helps you filter brokers based on minimum Deposit to start forex trading, mobile support, etc. ZuluTrade also allows login via Facebook, convenient for those who regularly log in to check their account. 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.

• 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.
• MetaTrader 5 offers desktop, web, and mobile versions of the platform.
• Therefore, assessing a trader’s strategy, risk management practices, and overall performance is essential before deciding to copy their trades.
• Sure, success is a wonderful thing, especially when you’re piggybacking off of someone who has done the heavy lifting for you.
• When this happens, the algorithm will take trades that no longer work in the current environment, quickly blowing up your entire trading account.

The process of copy trading is usually done automatically, with the platform executing trades on behalf of the investor, based on the trades of the chosen trader. By using the feature, if you find a trader that has consistently generated high returns, then you could theoretically copy their strategy to achieve the same results. The main advantage of using copy trading is that it allows you to take advantage of another person’s investment experience and knowledge. Without having someone guide you and give you trading tips, you would have to spend hours analyzing and deciding which stocks you should buy or sell. You would have to become an expert at fundamental and technical analysis and follow the market trends and price movements. This makes many people favour mirror trading over copy trading, as all human error is removed from the equation.

Can I make money with copy trading?

What happens when the trader that you’re following encounters a flash crash, a sideways market, or even a bear market? If you think that another FTX can’t or won’t happen, then think again. It is also expensive, as some platforms may charge premium rates. And, if you pick an inexperienced trader, you will have to bear the losses along with the platform charges.

• In this case, investors trade the relative value with the expectation that the prices will return to a long-term average.
• Some examples of apps that work with Binance are Coinmatics, WunderTrading, 3Commas, Cryptohopper, etc.
• This allows you to create your own trading strategy and automate it.
• Copy traders exist on a range of platforms, including eToro, Binance, Kraken, and KuCoin.
• After deciding on the trader you want to copy, simply click on the “Copy” button.

He is known for his ability to create high-quality, engaging, and compelling articles that resonate with readers. For example, you should assign your preferred amount for investment. It can be the same as the trader you are following or a percentage of it. Setting the amount according to your risk appetite is advisable so that you can tolerate any potential losses. To begin copy trading, you must first choose a reliable and trusted copy trading app.