It supports more than 350 crypto assets with a trading fee of 0.1% per trade. Bybit is a platform where you can follow the best crypto traders in the world and copy their strategies automatically. You can also share your own trades and earn money from your followers if you are a good trader. However, modern providers of copy trading services enable the process to be completely automated. In this case, all you have to do is decide which trader (or traders) to follow and how much of your account capital to allocate to that trader. 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.

It can be an extremely effective and profitable way to trade, especially for newbies. Here’s how you can start your journey with crypto copy trading apps. You must choose platforms that have transparent and competitive pricing, including reasonable transaction fees and withdrawal charges.

What is a copy trading platform?

Trend-following strategies are designed to work well in directional markets with low noise. Since you will be relying completely on another person, it may not give you the analytical knowledge needed to excel at trading. Besides, the settings panel of the copy trading app will give you complete control over your assets, even though they are self-executing.

If you are more risk-averse than the trader you are following, you can limit the risk per trade. Finestel is one of those crypto copy trading – software that you always wanted it to be existed. Finestel is an independent platform that connects pro-traders with investors.

Cryptohopper: Best Automated Copy Trading 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. This concludes our write-up on copy trading — its risks, benefits and history as well as strategies to use in copy trading. There are reasons to use copy trading, and reasons to stick to trading on your own. Gate.io is a CEX that immediate edge allows copy trading with high leverage, with over 1,400 cryptocurrencies listed on the platform. No matter the trading signal provider you want to follow, it is important to research them well, just like you would research a trader to copy. Hovering over any profile would give you more details about the traders, and this is useful to understand the trading style of a specific trader.

• Following that, the trading platform will automatically copy each move made by the chosen traders into your trading account.
• User’s will be happy to know that OKX’s suite of products is bound to meet most of their needs.
• Once you have found the trader you wish to copy, simply click on copy and you would be asked to add the funds.
• But there are things that you should bear in mind when considering copy trading and profitability.

It is the most critical part of copying trades, as your profits depend on it. For this reason, the trader should have the skill to handle cryptocurrency investments. You’re basically looking for traders will a long-term record of profit. But some platforms may offer free trials or discounts for new users or referrals. Some platforms may also have low fees for certain assets or markets.

Trading Convenience

First, your success hinges on which investor’s movements you follow. No investor is perfect when it comes to knowing when to buy or sell or where to invest. Just like any other investment, you can also make money or lose money from copy trading.

• This copy trading platform also offers the FXTM Invest service for a minimum deposit of $100.
• On their page, you will see all the details of your copy investment.
• 3Commas is one of the best platforms for automated crypto trading.
• You can copy trend-following traders or choose to focus on range-bound environments.
• Once you have chosen the right software, selecting and following a seasoned trader is often advisable.

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. The exchange platform (i.e. Binance) acts as a middleman – it connects you (your offer or request) with that other person (the seller or the buyer). 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. When considering cryptocurrency exchange rankings, though, both of these types of businesses (exchanges and brokerages) are usually just thrown under the umbrella term – exchange.

Best Crypto Copy Trading Platforms

Copy trading is the act of following the trading habits 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.

• You can also decide how much money or what percentage of your portfolio you want to allocate for copy trading.
• The percentages will be calculated automatically so that every trade they make will be copied into your portfolio with the same percentage.
• Mirror trading is accomplished by manually executing trades in accordance with the chosen strategy.
• 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.

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.

AvaSocial Copy Trading

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. In three simple steps, users can create, fund, and start automatically trading crypto with trading bots—all in one place. All bots on the Trality Marketplace must pass a rigorous screening process by our Bot Selection Committee, which consists of industry experts with decades of collective experience. Key metrics used when selecting bots for the Marketplace include risk-adjusted return, minimum trading activity, and time under water. 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.

77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is one big conundrum that comes up with the topic of what is copy trading in crypto.

Successful Crypto Trading Performance on Autopilot

Check online reviews and ratings to get insights into their track record and customer satisfaction. It’s also important to ensure that the broker is properly regulated, which provides an added layer of protection for your – investments. For example, Binance is based in Tokyo, Japan, while Bittrex is located in Liechtenstein. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

• In copy trading, you don’t have to learn anything or spend hours looking at charts.
• Copy trading can also have a negative impact on an investor’s psychological well-being.
• 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.

Depending on your level of investment, though, these fees can quickly eat away at your bottom line, turning profits into losses if you’re not careful. However, copy trading, like any other strategy, has drawbacks and risks. Finally, you relinquish control of your funds to the Master Trader. On these platforms, seasoned traders suggest which crypto assets they should buy or sell.

Copy Trading vs Social Trading vs Mirror Trading

Depending on the crypto copy trading platform that you’ve chosen, you should have access to a full range of statistics and metrics. Within social trading, however, there is something called the “transparency-revenue conundrum.” Trading platforms have to work out a delicate balance when it comes to transparency. 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.

• Some of the popular bots are Grid Trading Bot, DCA Bot, Rebalancing Bot, and Leveraged Grid Bot.
• Copy trading allows investors to diversify by spreading their investments across multiple traders with different strategies, asset allocations, and risk tolerance levels.
• 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.

This is equal parts exciting and scary, but just remember that even when you copy-trade crypto, you are still the one in charge. If you want to disconnect yourself from somebody else, you can easily do that at any time, and reconnect with them in the future, too. After a standard KYC process, simply add funds to the Trality Wallet using a preferred funding method, whether by credit card, bank transfer, Apple Pay, or Google Pay. The first step involved in crypto copy trading is arguably the most important. Choosing the best copy trading platform can often mean the difference between short- and long-term success and dashed hopes. After all, social trading has continued to surge in popularity and with good reason.

What Is Copy Trading?

Honest and accurate statistics will help you make smart decisions when choosing professional traders to copy and avoid scams. You can trade both spot and futures contracts of various cryptocurrencies, such as Bitcoin, Ethereum, Tether, Binance Coin, and many more. You don’t have to pay any service fee for copying trades, only a small open order fee of 0.045%. There are more than 60,000 traders and 11,000 bots to choose from, and you can see how they perform before following them. You can also decide how much money or what percentage of your portfolio you want to allocate for copy trading. You can discover, track, and select the most skilled traders through Phemex’s copy trading portal.

• 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.
• 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.
• Just because someone has a good track record in the past doesn’t mean they will continue to perform well in the future.
• One might question how they will be able to get insights into the performance of various traders.

Factoring in all aspects of cryptocurrency copy trading is important before investing. When one decides to go for crypto copy trading, the first step is to identify the right trader. The efficiency of copy trading is invariably hooked to the skill level of the trader one is following. When you become a follower, you can open and close trading positions automatically, get access to their trading history and earn more from your crypto without any prior knowledge. 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. The copy trading crypto feature allows all Bybit users to follow experienced traders and realize similar gains while only contributing 10% of their profits to Principal Traders as commission.