Everything You Need to Know About Crypto Copy Trading

Nowadays copy trading is one of the most popular features for traders (according to the research in BeInCrypto Trading Community) and many exchanges offer such functionality to their users. Replicate the trading activities of financial experts and earn a passive income without spending time researching every investment you make. Copy trading is copying the trading strategies or trades of someone else. Usually, it is experienced traders who are constantly generating more profit than losses. While we are at it, you should know that Copy trading is also known as social trading or mirror 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 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.

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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.

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.

Trading 101: What Is Copy Trading?

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. best apps for crypto trading However, copy trading, like any other strategy, has drawbacks and risks. Finally, you relinquish control of your funds to the Master Trader.

• 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.
• AvaTrade is one of the best forex copy trading platform based in Ireland and regulated in Europe by the Central Bank of Ireland.
• You can also adjust your risk and exposure levels on the platform, so you’re not completely reliant on the activity of another trader.
• BingX’s copy trading system also supports DeFi, NFT, indices, commodities, forex, and Layer 2.
• Copy trading works by connecting an investor’s trading account to the account of the trader they wish to copy.

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.

Can you copy trade on exchanges that do not have a dedicated dashboard for it?

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.

• 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.
• In addition to copy trading tools, eToro allows for community discussion, which helps traders to learn from the traders they copy.
• Knowing the risks and reward potential can help you decide whether copy trading is a strategy you should adopt.
• Regularly review their strategies, performance metrics, and market conditions to identify any necessary adjustments or potential red flags.
• It can also be automated with the help of robots and expert advisors.

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.

What is a copy trading platform?

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.

• Do note that there is a feature called “Stop copying” which is similar to “Stop Loss” feature, and helps you save yourself when things go south.
• You should also look at what you want to do with your portfolio.
• For example, on eToro, you don’t pay extra for copy trading, but you still pay the normal fees for spreads and overnight fees.
• Then you need to choose which traders you want to follow and how much money you want to invest in each trade.
• Mirror trading still allows you to benefit from the expertise and knowledge of another investor.
• If you are more risk-averse than the trader you are following, you can limit the risk per trade.

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.

what is copy trading in crypto: Bottom line

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.

• To become a copy trader, you need to have a trading account with a broker that offers copy trading services.
• You can filter them by different criteria, like an exchange, coin, profit, risk score, followers, etc.
• You can start out copying top traders at FXTM with a minimum deposit as low as $100.
• You can choose from more than 1000 assets, like real stocks, commodities, forex, indices, ETFs, and cryptocurrencies.
• To begin copy trading, you must first choose a reliable and trusted copy trading app.
• This allows the investor to mirror the trader’s strategy and benefit from their expertise.

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.

How To Successfully Copy Trade

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.

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.

Is Copy Trading Crypto Good for Beginners?

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.

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.

Mirror Trading vs Copy Trading

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.

• Past performance is not always indicative of future results, and blindly following a trader’s every move can lead to losses.
• First, your success hinges on which investor’s movements you follow.
• In social trading, traders exchange ideas in a community, to benefit all members of the community, whereas copy trading is more transactional and automatically copies the trades of others.
• The platform currently supports over 16 cryptocurrencies in addition to stocks, commodities, and currency pairs.
• This way of manual copy trading is available for purchase as well, with many “influencers” acting as paid signal providers, usually in private Discord groups.

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.