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.

• Note that not all trading platforms are available for all regions.
• Copy trading could be the first step for one to become a proficient cryptocurrency investor.
• The platform does not charge any fees for copying or being copied.
• In this sense, copy trading can be a good idea for experienced traders looking to take a step back, but it is likely unwise for people just starting out.
• You also pay the broker’s fees for spreads and commissions, which change depending on what you trade and what account you have.

If people weren’t making money from it, then people wouldn’t continue to do it. Besides, it allows you to jumpstart your trading journey as a beginner, potentially gaining profits and generating a passive income without participating in trades directly. Some of the best crypto copy trading bots are 3Commas, Cryptohopper, and WunderTrading.

Market Risk

77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether immediate edge 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.

• The best part; is everything is automated, and you will be acting like a hedge fund without the hassle of compliance and paper work.
• Coinmatics copy trading service allows copying deals made by traders and trading bots, as well as receive signals from verified strategies.
• Copy trading creates opportunity to leverage someone else’s investment knowledge and experience.
• FXTM is a global network and has more than two million clients from 150 countries.

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

Once you have found the trader you wish to copy, simply click on copy and you would be asked to add the funds. Gate.io is a well known crypto exchange that allows users from USA as well. You can join as an investor (to copy other trades) or you can join as a trader, so that others can copy your trades and you can make money. Think of this as running your own hedge fund, and everything is automated. 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.

• You would have to become an expert at fundamental and technical analysis and follow the market trends and price movements.
• It has many features that help you make money with crypto, like earning interest, staking in launch pools, and prediction markets.
• This is one big conundrum that comes up with the topic of what is copy trading in crypto.
• You can earn returns in your portfolio without having to invest hours researching the market.
• 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.

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.

# Meta Trader 5

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.

For example, it is entirely possible to copy trade on Binance, Kraken, and KuCoin. 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. However, don’t worry if you are not a programmer, because services exist which let you harness these APIs yourself without ever writing a line of code.

The Best Crypto Copy Trading Platform—The Trality Marketplace

The idea behind copy trading is to assess each trader’s profitability before selecting which signal provider you want to follow. Copy-trading allows copying positions of another trader, and lately, it has become more popular. 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.

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.

The Trality Wallet—perfect for trading crypto

The biggest drawback of this trading method is that you need to constantly monitor the market’s flow and decide on individual trade trends. 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.

• After that, the copy trading software will be ready to make crypto trades on your behalf.
• Copy trading is a form of automated trading that allows investors to replicate the trades of another trader in real-time.
• Thankfully, there are tools that help such traders explore the potential of the cryptocurrency industry, simplifying over-complex cryptocurrency trading by following expert traders.
• Copy trading does not cost extra, but you may have to pay some fees to the exchange you use.
• 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.

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.

Features

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 – 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.

• Systematic risk is a risk you cannot really protect yourself against; this risk is present in any market.
• While there is no need to keep an eye on your copy investment because the trader you are copying is already doing that, you may choose to stop copying their investments.
• A Flood of information from all sorts of sources, reliable and unreliable, makes the task steeper.
• 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!

Phemex is a well-known exchange from Singapore that offers a copy-trading feature. The biggest drawback of this trading method is that you have to mirror everything. To learn about copy trading, one of the most important things to be informed about the actual process of copy trading.

Service

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.

• There are reasons to use copy trading, and reasons to stick to trading on your own.
• Well, there you have it—the ultimate guide to copy trading crypto.
• In line with the Trust Project guidelines, the educational content on this website is offered in good faith and for general information purposes only.
• One of the beautiful aspects of copy trading is that traders are incentivized to be successful, otherwise few people would continue to copy them—one hand washes the other.

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.

How much can you make from copy trading?

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.

• It takes the guesswork out of choosing where to invest your money.
• In terms of legal status, copy trading of cryptocurrencies is legit.
• Finally, you relinquish control of your funds to the Master Trader.
• Of course, the strategy might not be the best strategy for all investors, but these systems have worked for many retail investors.
• You need to learn about when you should follow one individual, and when you should switch things up and sync to somebody else.

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.