You can also follow and copy the best traders on NAGA with their “auto copy” feature, which shows you their strategies and results. WunderTrading is a service that works on the cloud and connects to many crypto exchanges, such as Binance, Bybit, OKX, and others. You can use it to automate your trading strategy, or you can copy the trades of expert traders or crypto bots that you find on their marketplace. Learn about the best crypto copy trading platforms that allow you to replicate the strategies of successful traders.

• Copy trading apps run on autopilot and cover all those things by copying the trader you are following.
• Mirror trading is the practice of replicating the strategies of a group of traders.
• This one of the best social trading platforms uses the MQL5 language, the automated trading software that mostly runs on your computer and trades for you.
• 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.

Thus, the system works to the advantage of expert traders as well as those following them. I’ve been using coinmatics copy trading platform for just over 2 months. What I love about the platform is that trades are performed right from my own binance account. Additionally, it’s crucial to be aware of the risks of slippage and the potential impact on one’s psychological well-being. By understanding the risks and taking necessary precautions, investors can use copy trading as a valuable tool to enhance their trading performance.

How to Get Started Copy Trading Crypto

Dedicated tools have made copy trading crypto more enticing, as there is less work to be done, and fewer screens and markets to individually monitor. When selecting a copy trading platform, check the spreads and transaction fees, which can often come as an unpleasant surprise for unsuspecting beginners. On the Trality Marketplace, you’ll have all of the requisite information at your fingertips, ensuring that you can copy trade with complete confidence. Bot Creators can now monetize their bots and earn passive income from investors around the world by having their bots listed on Trality’s Marketplace.

• Maintaining an active role in managing your copy trading activities ensures that you stay informed and can adapt your strategy as needed.
• A full suite of metrics is available, allowing investors to decide on a bot based on clear, quantifiable data.
• In conclusion, copy trading crypto provides practical benefits such as access to the expertise of experienced traders, diversification opportunities, and time-saving convenience.
• And if you are an experienced trader, you can earn up to 20% of all profits earned by your followers.
• This means that if your chosen trader generates positive returns, they will receive a portion of those profits as compensation.
• While it’s tempting to focus solely on finding brokers with low fees, it’s crucial to understand how different fee structures can impact your investment results.

Once you have chosen the right software, selecting and following a seasoned trader is often advisable. 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.

What is cryptocurrency copy trading

In the world of cryptocurrency, copy trading crypto has emerged as an innovative and increasingly popular investment strategy. This approach allows novice investors to capitalize on the expertise of seasoned traders by automatically replicating their trades in real-time. Essentially, it enables individuals to copy the trading strategies of successful traders within the crypto market.

• Additionally, it’s crucial to be aware of the risks of slippage and the potential impact on one’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.
• So far, our discussion on what is copy trading in crypto has touched on the act of automating your copy trading habits, but let’s delve further into it now.
• He is known for his ability to create high-quality, engaging, and compelling articles that resonate with readers.

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.

Copy Trading Features

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.

Most new crypto investors have no idea where to start and how to pick the best assets for investments. But luckily, the most popular trading platforms offer multiple features to help you on your investment journey. PrimeXBT is a crypto copy trading platforms that also offers stocks, forex and commodities trading, allowing crypto traders to explore other financial markets. If you are a pro-trader, you can offer your service via these social trading platforms and earn a profit when people copying your trades make a profit.

What Is Copy Trading?

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 practice 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.

• Traders can leave it totally to the software or watch the portfolio selection of their peers themselves and take trading actions based on their investment goals.
• In many ways, this feeling of elation and connectivity, coupled with the following of trusted individuals is the answer to the question of what is copy trading in crypto!
• Firstly, it allows individuals with limited knowledge or experience in cryptocurrency trading to gain exposure and potentially profit from the market.
• You can also set a limit on how much you are willing to lose and stop following whenever you want.

You can also change some settings of the bot, such as the stop-loss percentage, take-profit percentage, and leverage ratio. You can track your copy trading performance on the Pionex mobile app or website. Well, you need to find software or a service that offers crypto copy trading. Then you need to choose which traders you want to follow and how much money you want to invest in each trade. We will compare some of the best crypto copy trading platforms that you can use. We will look at their features, fees, performance, and reputation.

How to Copy Crypto Trades: Step-by-Step Guide

You should be able to find your way around and make trades without any hassle. 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.

• Some of the best crypto copy trading bots are 3Commas, Cryptohopper, and WunderTrading.
• Back before social media platforms, some traders ran newsletters where they discussed their trading ideas.
• It is a huge factor to keep in mind, and having power like that is highly sought after.

Copy trading is one of the simplest ways to benefit from another trader’s expertise. It also means that you retain complete control over the outcome. Cryptocurrency investors can also choose more than one lead trader to diversify their portfolio. However, one needs to determine the chunk of funds they want to allocate to each lead manager.

Market Risk

OKX Copy Trading aims to create a trading tool that is efficient, transparent, and profitable for OKX traders. In a single click, copy traders can explore new revenue streams, gain exposure, and engage with the larger trading community. This feature also provides new revenue streams for lead traders. AvaTrade is a trusted global brand that is well-known for its extensive asset range for crypto, Forex, and CFD traders.

• This union helps you to enjoy the power of social trading directly inside the PrimeXBT exchange.
• 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.
• You can trade with perpetual swaps, futures contracts, options, and more.
• Additionally, having no control over your own trading decisions may cause anxiety and stress for some.

You can follow multiple traders who use different mechanisms and invest in varying assets. It allows you to implement it in your portfolio for better gains. Furthermore, it is crucial to understand crypto market sentiment and its working so that you can build a strategy accordingly. Also, you should be able to identify bull and bear flags and review the trader’s performance during both markets to recognize their strategies.

Unexpected crypto volatility and copy trading

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. Many of these providers will advertise high win rates on social media or try to lure you in using advertisements on YouTube. Not only should – you make sure that the traders you copy have a solid risk management system, but you should also limit your risk per trade you copy. For example, you could choose to only allocate 3% of your funds to a certain trader or use a stop loss when the trader goes more than 20% into drawdown. At the time of writing this resource, Binance does not offer the social trading feature.

• If you find a trader who aligns with your own trading beliefs, you will feel much more comfortable going forward and copy-trading crypto with them.
• With so many options available, knowing which copy trading platform to choose can be difficult.
• Just like any other investment, you can also make money or lose money from copy trading.
• You can click on any name to see more stats about their profile.
• This copy trading platform allows you to open 100 currency or stock charts at a time, and the 21 timeframes enable comprehensive and detailed analysis of even minor price movements.

The platform does not charge any fees for copying or being copied. The top traders can get commissions from their copiers based on their monthly profits. Phemex is a crypto exchange from Singapore that lets you trade over 272 crypto pairs with spot and contract trading.

Mirror Trading vs Copy Trading

EToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs. Of course, if times occur when you do not feel comfortable with copying anybody else, then simply disconnect from them all and take matters into – your own hands. Copy trading is significantly more social than other types of trading, as it involves interacting more directly with other traders. It liberates you from the tedious process of continually analyzing price charts and following market trends.

• This might sound strange, as in many ways you are not making most of the granular decisions, but rather another party is.
• And given the levels of complexity and time involved, why should they be?
• 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.

So look for platforms that have strong security features and good reviews from other users. The lead trader decides how much they want to charge for their profit-sharing fee, which can be from 5% to 40%. You can see the profit-sharing fee before you start copying someone and you can stop copying anytime you want. BitMEX is a crypto trading platform that lets you trade Bitcoin and other cryptos with different products. You can trade with perpetual swaps, futures contracts, options, and more. You can also trade with high leverage, up to 100x for some coins.