6 Best Copy Trading Platforms in 2023

The array of parameters one eventually chooses depends on their own preferences. Amateur cryptocurrency investors need to carefully determine what is important to them for making a decision regarding crypto trading strategy. Are they left to fend for themselves, speculating about the prices and taking to stride the sharp ups and downs of the cryptocurrency industry? Thankfully, there are tools that help such traders explore the potential of the cryptocurrency industry, simplifying over-complex cryptocurrency trading by following expert traders. As soon as you start using this type of platform, you’ll be able to easily filter through trading results from experienced traders.

• It has over 20 million users around the world and it follows the rules of the FCA (UK), CySEC (Cyprus), and ASIC (Australia).
• It’s crucial to conduct thorough due diligence when selecting traders to copy, considering factors such as their long-term performance, risk management strategies, and consistency.
• You may not necessarily buy every investment he does or every investment he recommends.
• Copy trading is the act of following somebody else’s trades, and emulating their actions yourself.

A clean design and clear instructions can make your trading experience much better. One of the coolest features of eToro is its CopyTrader technology. You can find the investor you want to copy on the Copy Discover page, where you can search for the type of investor you are looking for. It is a good idea to test out and interact with the platform using a demo account before beginning copy trading for real. To comprehend the legal status of copy trading in the country one resides in before investing is as important as to establish that the dealer is regulated.

Can I make money with copy trading?

Many well-versed traders are very happy to provide this knowledge to the public as a way of giving back to the community that helped them gain their riches. Gone are the days of viewing trading as a zero-sum game where one must win and one must lose. While trading definitely involves wins and losses, those who win can always help those who lose by educating them. We’ve covered it throughout this tutorial, as it is impossible to explore what is copy trading in crypto without viewing its social elements, but this has only scratched the surface. 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.

• The efficiency of copy trading is invariably hooked to the skill level of the trader one is following.
• There are several factors to consider when choosing a copy trading broker.
• Performance fees can incentivize traders to perform better and align their interests with yours as an investor.
• With a brokerage, however, there is no “other person” – you come and exchange your crypto coins or fiat money with the platform in question, without the interference of any third party.
• In short, social trading will take considerable time, but you will become a better trader in return.
• Signal providers use various kinds of analysis to bring trades to their followers, sometimes even with a take profit target and stop loss.

So, if some issue arises, like fraud or being unable to exit trades, you can call customer support. You also need to check the performance history and statistics of the platform. 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.

Trading 101: What Is Copy Trading?

It can also be automated with the help of robots and expert advisors. Mirror trading typically takes less time and effort than social trading, especially when automated. Copy trading works by connecting an investor’s trading account to the account of the trader they wish to copy. Whenever the copied trader places a trade, the same trade is automatically replicated in the investor’s account. This allows the investor to mirror the trader’s strategy and benefit from their expertise.

Bybit currently supports up to 15 trading pairs, including BIT/USDT, ETH/USDT, XRP/USDT, and a number of other highly liquid pairs. You could potentially make money by copying another trader’s skills and experience. As a result, it is ideal for beginners because they do not need to fully comprehend the market. Instead, they can rely on the knowledge of other traders to make sound decisions. Well, in most cases it is legal the same as to hold and trade crypto assets. Our software allows you to monitor and copy trades of your preferred trader, all the execution is performed by your exchange (like Binance).

Trality’s Marketplace and index-tracking bots

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. I didn’t know there was a term for replicating someone’s trading actions in order to maximize profits especially if you are new to trading until now. Unlike many of its competitors, OKX has been dubbed a one-stop shop, due to the variety of services that it offers. User’s will be happy to know that OKX’s suite of products is bound to meet most of their needs.

• So buckle up to learn something new and start earning from trading even when you have no prior experience in trading.
• This usually happens automatically and without the requirement for any manual interventions.
• They offer you a wide range of crypto assets and eToro also supports stocks, commodities, currencies, and more.
• Coinmatics allows you to choose whether you want to copy automatically, or manually.

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). Since then, the number of cryptocurrencies supported by the platform has continued to grow.

Preparing the Copy Trading Software

This means that if your chosen trader generates positive returns, they will receive a portion of those profits as compensation. Performance fees can incentivize traders to perform better and align their interests with yours as an investor. Another crucial aspect is monitoring and evaluating the performance of the traders you are copying. Regularly review their strategies, performance metrics, and market conditions to identify any necessary adjustments or potential red flags. Maintaining an active role in managing your copy trading activities ensures that you stay informed and can adapt your strategy as needed. Now that we’ve explored the risks and rewards of copy trading in the crypto market, let’s delve deeper into optimizing the risk-reward ratio to make the most out of this investment strategy.

Just as businesses must know their customers, so too should you do your due diligence when picking a reputable trading platform. Copy trading should only be done through a trusted source, and we highlight one of the best crypto trading platforms below. Crypto copy trading is an easy way for beginners to get started with trading. You can do it through AI-based self-executing software and follow the right trader and platform to gain profits. Afterward, you can customize the trading procedure according to your funds and preferences.

Join our Work Crypto community on Telegram

Trading is risky and letting other people do it for you may do more harm than good. A third major risk category is liquidity risk, the risk that you are unable to close a trade at a reasonable price, because of insufficient buying or selling interest. This happens in markets with little interest, or outside of regular trading hours. This risk is often forgotten about when talking about copy trading risks but is still one to keep in the back of your head.

• This best forex copy trade service provider uses the MQL5 language, the automated trading software that runs on your computer and trades on behalf of you.
• 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.
• By following successful traders who have consistently achieved positive results, there is a possibility of earning significant returns on investment.
• 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 algorithms have been built and perfected to execute trades based on many different inputs, and process these inputs way faster than any human will ever be able to. Because of the algorithmic nature of trading, it also runs 24/7 and is not affected – by emotions. 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. Exchanging different viewpoints will generate insights that you will never find on your own.

FXTM Copy Trading

Other considerations include the fees you are paying to the trader and the copy trading platform. In essence, it allows you to follow other traders into their trades, and profit if they are successful – — usually at a fee. If you want a portfolio that matches the performance of investing pros, copy trading may help. In a nutshell, copy trading emulates a stock market expert’s trading activity.

• If you’re concerned about keeping fees low, then carefully consider the costs before trading.
• We will compare some of the best crypto copy trading platforms that you can use.
• Next, diversify your portfolio by copying multiple traders from different sectors within the cryptocurrency market.
• However, the process is manual and there are chances of the traders failing to implement it without mistakes, thus diminishing the probability of success.

Seasoned copy traders would compare the features of various platforms and go through their reviews before arriving at a decision. Basically, cryptocurrency copy trading is all about identifying skilled traders artificial intelligence 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.

What Users Think of Coinmatics?

For instance, eToro has a dedicated copy trading tool that is designed to be very user-friendly, making it perfect for absolute beginners. Not only this, but eToro’s copy trading tool is free to use as well. This, too, is a huge weight lifted off many newcomers’ shoulders, as the fear of losing money when starting out is something that looms over many people’s heads. They will perform well under the right conditions, but require a knowledge of market dynamics in order to be applied correctly.

• This functionality is planned to be released in the nearest future.
• This reduces the learning curve and provides an opportunity to participate in the crypto market without needing extensive knowledge or analysis.
• To learn about copy trading, one of the most important things to be informed about the actual process of copy trading.
• Setting the amount according to your risk appetite is advisable so that you can tolerate any potential losses.

This allows you to create your own trading strategy and automate it. Many people say that copy trading is a great way for beginners to get acquainted with the market. However, it requires skill to figure out which traders to copy, and which ones to ignore. Essentially, you already need to be a good trader yourself, before you would ever be able to really know which traders are solid, and which ones are not. There are hundreds, if not thousands of trading signal providers to choose from.

What Is Copy Trading?

You can choose from 340+ trading pairs and find the best traders to follow. 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.

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.