6 Best Copy Trading Platforms in 2023

There is no need to select “Enable Withdrawals” in API restrictions. This ensures that your balance remains under your total control. Moreover, our users are able to protect Coinmatics account with two-factor authentication. In 2014, eToro became the first trading platform to support cryptocurrencies when it added bitcoin (BTC) support. As a new investor looking to use the copy trading system, you should decide on your goal. For instance, you might copy someone who is more interested in hedge funds, commodities, etc.

• If you absolve yourself from your own trading, then you can easily sleep-walk into disaster.
• 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.
• Unlike many of its competitors, OKX has been dubbed a one-stop shop, due to the variety of services that it offers.
• You can track your copy trading performance on the Pionex mobile app or website.
• Systematic risk is a risk you cannot really protect yourself against; this risk is present in any market.

The best way to do this is to learn about the blindspots and limitations of the traders you are interested in. Even the best of traders will have their own knowledge gaps and mistakes. 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. 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. However, many newcomers tend to feel the most comfortable doing simple spot trading. Understanding what is copy trading in crypto, and best practices on how to copy trade crypto in 2023.

What is copy trading?

To become a copy trader, you need to have a trading account with a broker that offers copy trading services. Once you’ve found a trader you want to copy, you can connect your account to their account and start copying their trades. EToro is one of the best copy trading platforms, and it offers a wide range of assets (Forex, crypto, commodities, stocks, ETFs, and indices). The platform is based in Tel Aviv, and it was launched in 2007 by Ronen Assia (current CEO), David Ring, and Yoni Assia.

There is no easy answer to how much money you can make from copy trading. It depends on many things, like how well the traders you follow do, how much money you invest, how much you pay in fees and commissions, and how the market moves. The platform does not charge any fees for copying or being copied.

Which are the best copy trading platforms?

After you have found the trader to copy, everything else is automated. In addition to standard copy and social trading tools, Shrimpy has a rebalancing tool that allows you to automatically rebalance your portfolio according to your preferred risk/reward. Trading signals are messages alerting you to potential trading opportunities. Signal providers use various kinds of analysis to bring trades to their followers, sometimes even with a take profit target and stop loss. Signals are usually not copied automatically, but manually followed by the group members.

Though this software is automated, initially, you have to provide your input. Yes, crypto copy trading can be profitable, but it is not guaranteed. You have to choose a secure platform and a profitable trader to follow. They can help you trade automatically and make the most of market movements. Copy trading in cryptocurrency allows you to directly replicate the positions of another trader.

The Best Crypto Trading Bot ─ Increase Profits with Automated Trading

To start copy trading on Pionex, you need to follow some rules set by the traders you want to copy. Copy trading is a way of making money by following the trades of another principal trader who has trading knowledge and proven success rates. You will also not learn much by simply watching other people trade without attempting to trade yourself. You won’t learn much if you just watch other people trade without trying to trade yourself.

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. Many brokers now offer automated copy trading, along with many other features. When choosing the trades of other traders on the platform, you may filter those traders. They will have useful stats and insights about each investor, their profit/loss ratio for the last year, and their investment strategy.

What is the best crypto copy trading bot?

By using the feature, if you find a trader that has consistently generated high returns, then you could theoretically copy their strategy to achieve the same results. The main advantage of using copy trading is that it allows you to take advantage of another person’s investment experience – and knowledge. Without having someone guide you and give you trading tips, you would have to spend hours analyzing and deciding which stocks you should buy or sell. You would have to become an expert at fundamental and technical analysis and follow the market trends and price movements.

• The copy trading feature means that all trades opened and closed by the trader are replicated in the follower’s account.
• Finestel is an independent platform that connects pro-traders with investors.
• In terms of legal status, copy trading of cryptocurrencies is legit.
• Of course, the strategy might not be the best strategy for all investors, but these systems have worked for many retail investors.
• Finally, you relinquish control of your funds to the Master Trader.
• Copy trading creates opportunity to leverage someone else’s investment knowledge and experience.

It’s crucial to conduct thorough due diligence when selecting traders to copy, considering factors such as their long-term performance, risk management strategies, and consistency. When it comes to copy trading crypto, selecting a suitable copy trading broker is an essential first step. You want to find a platform that offers reliable and secure services, while also meeting your specific needs as an investor.

eToro Copy Trading feature

However, knowing that somebody else is having the very same successes as you can be elating and deeply positive to your well-being. You should now have a good overview of what is copy trading in crypto. This is a relatively simple process which is great for new traders to try out themselves, but it definitely comes with its own questions and concerns. Recognizing these concerns is all part of the process of grasping what is copy trading in crypto, but do not let them get too much in the way of your own activity.

• The biggest challenge is to find an experienced trader to follow, who focuses on the assets that you’re interested in.
• On the other hand, the people who choose to follow you have made that decision on their own accord, and so it is their choice to expose themselves to your actions.
• Copy trading is a form of automated trading that allows investors to replicate the trades of another trader in real-time.
• Another thing to look for is the social trading community on the platform.
• Copy trading enables novice investors to enter the financial markets and make profitable trades by following experienced traders.

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. In that case, you might choose to mirror Warren Buffett’s investment style.

Fees

Connect your account to the trader of your choice and sit back, waiting for results. Following that, the trading platform will automatically copy each move made by the chosen traders into your trading account. All software, no matter how well they are developed, might go wrong at any time and begin delivering unexpected outcomes. A trader needs to keep monitoring the cryptocurrency trading process and exit their position if they feel they are generating continual losses. To a large extent, the efficiency of the cryptocurrency trading process depends on the choice of the platform and expertise of the lead trader.

• 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.
• Note that not all trading platforms are available for all regions.
• It has many features that help you make money with crypto, like earning interest, staking in launch pools, and prediction markets.
• You can copy trade a forex, CFDs or stock trader, or follow a crypto trader along his journey.
• You can earn returns in your portfolio without having to invest hours researching the market.

Copy trading is one crypto trading strategy that allows you to build an automated mechanism for making trades. Essentially, you are copying the investment decisions of a seasoned trader through software. You can check their performance history, risk level, fees, and strategies. Then you can pick one or more traders to follow and copy their trades automatically on your BitMEX account.

Best Crypto Copy Trading Softwares (Cryptocurrency Social Trading)

Investors can rent profitable bots tailored to specific risk tolerances (low, medium, and high) and individual investment goals. A full suite of metrics is available, allowing investors to decide on a bot based on clear, quantifiable data. But there are things that you should bear in mind when considering copy trading and profitability.

• You need to learn about when you should follow one individual, and when you should switch things up and sync to somebody else.
• It takes the guesswork out of choosing where to invest your money.
• The platform does not charge any fees for copying or being copied.
• Copy trading could be the first step for one to become a proficient cryptocurrency investor.
• You also pay the broker’s fees for spreads and commissions, which change depending on what you trade and what account you have.

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. It has many features caution that help you make money with crypto, like earning interest, staking in launch pools, and prediction markets. It has many features for traders, like spot, margin, futures, options, staking, lending, savings, and more.

Copy Trading Features

Be careful of platforms with high fees that may eat up your profits over time. 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.

• It’s this uncompromising commitment to a transparent bot evaluation process that distinguishes Trality’s Marketplace from generic, black-box alternatives.
• Coinmatics copy trading service allows copying deals made by traders and trading bots, as well as receive signals from verified strategies.
• FXTM is a global network and has more than two million clients from 150 countries.
• If people weren’t making money from it, then people wouldn’t continue to do it.

However, it’s important to acknowledge that copy trading carries inherent risks. Investors should exercise caution due to the volatile – nature of cryptocurrencies themselves. While copy trading offers a chance at potential gains, losses are also possible.