Copy Trading Crypto A Beginner’s Guide to Investing in Cryptocurrency

This is where you buy coins or tokens at the market price and your trade is dealt with on the spot, rather than at a future date. For instance, simply buying $100 worth of Bitcoin at market rate. It is what most people think of when they think of trading– it is simple and straightforward. There are highly experienced traders who predominantly spot trade, so you could always seek one of these people out. XT Futures copy trading allows you to replicate real time trades of top cryptocurrency investors with one click.

• You may not necessarily buy every investment he does or every investment he recommends.
• You’ll also want to choose a good trader with a solid and transparent track record of success over an extended period of time.
• Performance fees can incentivize traders to perform better and align their interests with yours as an investor.
• Both manual mode and Telegram signals about the most profitable deals are available.

It is to find all required information on typical copy trading software as traders willingly consent to give member traders access to their trading moves. One can examine the track record of various lead traders on the dashboard and select the one that fits in with the parameters of their choice. Investors – should carefully consider the trader they want to copy and conduct thorough research before copying their trades. It’s also essential to manage risk by setting stop-loss orders and monitoring one’s portfolio regularly. The best platforms for copy trading are eToro, AvaTrade, Bybit, and BingX.

ommas: Best copy trading platform with trading bots

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.

• Copy trading is copying the trading strategies or trades of someone else.
• You could potentially make money by copying another trader’s skills and experience.
• The outbreak of the coronavirus, or the terrorist attacks of Sept. 11, 2001, are good examples of these events, which caused large losses for many traders.
• 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.
• So, you should always check the legal status of crypto copy trading in your country before using any platform or service.

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.

Copy Trading Features

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.

• They then buy the same number of the asset back at a lower price, return the shares to the lender, and profit from the rest.
• Achieving a well-diversified portfolio is crucial in mitigating risks and maximizing returns.
• The above-discussed apps and software are top among all copy trading platforms available in the crypto market.

You can start out copying top traders at FXTM with a minimum deposit as low as $100. ZuluTrade supports over 40 forex brokers, one of which being their integrated solution (AAAFx). It allows investors with existing brokerage accounts to link a new account via their existing broker easily. First and foremost, you should look for a broker that has a good reputation in the industry.

Step 4. Close the investments at any time

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.

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.

Bitsgap Review 2023: The Right Crypto Trading Platform for You?

To reduce risks, users can first use a demo account for copy trading. Using key indicators like the trader’s account assets, cumulative P&L, 30D profit rate, maximum drawdown, etc., users can study the strategies while making a profit. 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.

• PrimeXBT is a crypto copy trading platforms that also offers stocks, forex and commodities trading, allowing crypto traders to explore other financial markets.
• Remember, crypto markets are very risky and unpredictable, and even the best traders can lose money or make mistakes.
• It’s also essential to manage risk by setting stop-loss orders and monitoring one’s portfolio regularly.
• On the other hand, if your goal is to match the performance of the market rather than beat it, you might lean toward a professional investor who prefers an index strategy.

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.

Diving Into the Social Side

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.

• It also gives a trader complete freedom to mix and match different strategies and trading styles, not requiring them to blindly follow other traders and their strategies.
• If you are new to crypto trading, you may not be familiar with the volatility and nature of the crypto market.
• He is an INFJ-A personality type dedicated to positively impacting the world.
• It is what most people think of when they think of trading– it is simple and straightforward.
• The performances are excellent, the interface very intuitive and fast.

BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor. Reading through various best crypto exchange reviews online, you’re bound to notice that one of the things that most of these exchanges have in common is that they are very simple to use. While some are more straightforward and beginner-friendly than others, you shouldn’t encounter any difficulties with either of the top-rated exchanges. That said, many users believe that KuCoin is one of the simpler exchanges on the current market. A final major reason why people do this is that they are able to leverage their influence on the markets.

Preparing the Copy Trading Software

These tools help reduce potential losses and protect your capital when the market is unstable. If you’re new to crypto copy trading, you need a platform that has a simple and attractive interface. BingX lets you follow and copy the best traders specific in the crypto space, who know how to make money even when the market is down. The fees for copy trading on Gate.io are the same as the normal trading fees for spot and futures markets, which depend on your VIP level and trading volume.

• Basically, cryptocurrency copy trading is all about identifying skilled traders and re-executing their moves literally.
• You don’t have to worry about your funds being stolen because the platform only uses API keys that cannot withdraw money.
• You have to choose a secure platform and a profitable trader to follow.
• These tools help reduce potential losses and protect your capital when the market is unstable.
• This broker platform is able to meet your needs, regardless of whether you are a forex trader newbie or an experienced trader.

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.

Risk Management Tools

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!

• 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.
• A final major reason why people do this is that they are able to leverage their influence on the markets.
• Multi-strategy bots utilize different trading styles depending on the market conditions.
• 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.
• 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.

Worry less, Coinmatics got you covered with their unique copy trading. Coinmatics connects a part of your portfolio with the portfolio of your desired trader in a usable graphical form. Once you copy a trader, all of their opened trades are automatically copied to your account.

Best Crypto Copy Trading Platforms

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.

• For this reason, it is easy to assume that your success comes almost entirely from another person.
• You can choose who to copy from a list of lead traders who have different performance indicators.
• 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 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).