6 Best Crypto Copy Trading Softwares Cryptocurrency Social Trading

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. It’s essential to thoroughly research and analyze the performance history and risk profile of traders before copying their trades. You can also find copy traders from certain services which use the APIs from other trading platforms, and help connect newcomers to those who are giving away their trading habits. 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.

PrimeXBT also has its own in-built copy-trading tools, where it even ranks different traders and bots, so that you can see how much money they have made during a certain period of time. This is perfect for somebody who is looking to maximize profits without worrying too much about what trading strategies or techniques are being used. With this in mind, copy trading can become a way of forming tighter social bonds with other new and budding traders, where each user – learns from the other’s successes and mistakes. Receive updates in real time whenever changes are made to a bot Should a bot underperform, investors have the ability to unfollow it at any time and select another bot. With just a few taps in the Marketplace’s mobile app, investors can easily leverage the expertise of professionals by renting the most trusted bots on the market. These apps work on trained models and can imitate others’ investment strategies.

What is copy trading?

If one is able to choose a trade-worthy platform and the right trader to copy, it might turn out into a profitable long-term trading approach. For rookie traders, learning how to – buy and sell cryptocurrency could be perplexing. When copy trading, they are able to see the action of an experienced trader in real time, helping them to understand the nuances.

• Observing the progress will also enable you to understand how to backtest the crypto trading strategies.
• But if you perform copy trading with good knowledge and proper research, you can definitely make some money.
• You can also monitor the results copy trades are generating for you.
• However, it is not necessarily a bad thing, as sometimes, too much data can cloud judgment and lead to a false sense of security.

WunderTrading offers a platform for copy trading that supports Binance, FTX, Kraken, Bybit and many more exchanges. If you are looking for a single recommendation, I would suggest you start with PrimeXBT Covesting as it offers some great data and has a proven track record. EToro is also quite popular, which you can explore along with PrimeXBT. There are a few important things to keep in mind before you get started with this strategy. 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.

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They have access to segregated accounts at top banks, secure deposits, withdrawals, competitive leverage, and tight spreads. You can trade over 250 instruments and have access to a range money of optimized accounts and platforms. There are also exciting forex contests and trade-enhancing bonuses. BingX is a leader in the industry with no deposit fees and the lowest fees.

Finally, if you are serious about trading, copy trading should be nothing more than a starting point (i.e., a pacesetter). You should begin trading after gaining some market knowledge and accumulating some capital. Social trading is the practice of traders sharing their ideas and plans through social media, forums, and other channels. Each trader should decide which strategy to employ or devise their own based on the ideas shared by other traders.

Fees

Besides copy trading, WunderTrading also offers other tools such as smart trading, pairs trading, DCA bot, and crypto portfolio tracker. You don’t have to worry about your funds being stolen because the platform only uses API keys that cannot withdraw money. You also have full control over your trades and can edit or close them anytime.

• This freedom from constant monitoring allows them to focus on other aspects of their lives while still being actively involved in the cryptocurrency market.
• Of course, if shorting and dealing with futures is your cup of tea, then, by all means, follow a trader who does this.
• This can sometimes work, but remember that we are all fallible, and even the best traders can do a poor job of reading the room.
• Scrutinize the performance history of traders you are interested in copying, analyzing factors such as their trading strategies, risk management techniques, and overall track record.

BYDFi is a cryptocurrency derivatives exchange that offers a copy trading feature, that let you make the most out of contract trading. The platform offers a copy trading module, in which you can browse through the list of top-performing traders, and copy the strategy that resonates with you. BYDFi offers a demo mode that allows you to make practice trades using real market statistics.

Phemex: Best Crypto Exchange for Copy Trading

Also, check the reviews about the copy trading platform to gauge its performance. Certification from the regulators like FCA, SEC, ESMA, or others ensures the platform’s credibility. Learn what this pocket-friendly mini-investing app has to offer for new Australian investors. Learn how to use Coinbase crypto exchange referral codes for exclusive benefits and offers. But you need to be careful about who you follow, how much you pay in fees and commissions, and how the market changes. Always follow risk management techniques like stop-loss, target points, and investing 5-10% of your investment capital.

• Another significant advantage of copy trading crypto is the potential for diversification.
• Gate.io is a well known crypto exchange that allows users from USA as well.
• While copy trading offers a chance at potential gains, losses are also possible.
• EToro is a platform where you can trade and invest in various kinds of financial instruments, including cryptocurrencies.
• The platform brings together experienced principal traders and new traders to create a win-win cryptocurrency trading experience for all.

The simple fact is that most people don’t have the requisite skills and experience, which is why most people aren’t professional traders. Copy trading, however, greatly simplifies crypto investing, making it an excellent way for non-professional traders to add crypto assets to their investment portfolios. Copy trading is a form of trading where investors automatically replicate the trades of other traders they choose to follow. So, newbie investors can follow the trades of experienced and successful traders and use their investment strategies without needing extensive knowledge or experience in financial markets. Firstly, it allows individuals with limited knowledge or experience in cryptocurrency trading to gain exposure and potentially profit from the market. By copying the trades of successful and experienced traders, beginners can effectively leverage their expertise and decision-making skills.

List of Top Crypto Copy Trading Platforms and Apps

Since then, the number of cryptocurrencies supported by the platform has continued to grow. EToro strives to improve its crypto trading services and also offers a crypto wallet to traders that wish to own the underlying asset. Copy trading is just one way to automate your investment strategy. It takes the guesswork out of choosing where to invest your money.

• You should now have a good overview of what is copy trading in crypto.
• It can be used to trade crypto, Forex, stocks, commodities, metals, and other financial markets.
• As a result, when the trader makes a trade, your account will also make the same trade.
• This is possible because the vast majority of exchanges, such as Binance, Kraken, and KuCoin, all have APIs that allow you to follow the actions of others through the use of code.
• If you are syncing to somebody in the public eye, research them extensively.
• The best way to do this is to learn about the blindspots and limitations of the traders you are interested in.

What happens when the trader that you’re following encounters a flash crash, a sideways market, or even a bear market? If you think that another FTX can’t or won’t happen, then think again. It is also expensive, as some platforms may charge premium rates. And, if you pick an inexperienced trader, you will have to bear the losses along with the platform charges.

What is the best free copy trading app?

Copy trading can also help you get familiar with new strategies, as paying attention to the trades you copy might show you new tricks to use in your own analysis. Coinmatics allows you to choose whether you want to copy automatically, or manually. This flexibility allows you to keep greater control over your risk, and makes it one place to get started if you’re not sure about copy trading just yet. We see a growing popularity in copy trading, which would not be happening if people were losing money. Nevertheless, copy trading — without a proper approach — can cost you dearly. Once you have found a trader that you wish to copy, click on follow and enter the amount you want to start with copy trading.

• There are highly experienced traders who predominantly spot trade, so you could always seek one of these people out.
• You can use their free plan if you trade for less than $1000 per month, or you can upgrade to their pro plan for $29 per month and get unlimited trading volume and all features.
• Rather than following a specific trader, mirror traders imitate a strategy that could be created and used by any number of traders.
• Since then, the number of cryptocurrencies supported by the platform has continued to grow.

He is known for his ability to create high-quality, engaging, and compelling articles that resonate with readers. 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.

Is Copy Trading Crypto Good for Beginners?

If you are new to crypto trading, you may not be familiar with the volatility and nature of the crypto market. In this case, copying other professional traders can help you make some profits and earn some money. When you follow the rules, you can copy the trades of your chosen experienced traders.

When you find a trader that you like, you can click on the “Follow” button and choose how much money you want to invest in them. You can also set a limit on how much you are willing to lose and stop following whenever you want. You can track your copy trading results and performance on the platform. You can also see more about each trading strategy, like the trades they made, the profit and loss, the fees, and the minimum amount you need to copy.

Step 4. Close the investments at any time

Also, some crypto copy trading apps allow you to choose multiple traders. They offer features such as portfolio management, smart trade, social trading, and more. They also support a wide range of cryptocurrencies and exchanges for your convenience. Check for platforms that have forums, chat rooms, or social media integration, where you can connect and learn from experienced traders. To start copy trading on PrimeXBT covesting, you can go to the copy trading section and look for traders to follow. Now, sort them by different criteria, such as performance, risk level, followers, profit share, and more.

• After all, social trading has continued to surge in popularity and with good reason.
• You would have to become an expert at fundamental and technical analysis and follow the market trends and price movements.
• Copy trading is a special type of trading activity that involves copying trades from other traders.
• Each investor should carefully research the offerings of the available platforms, as some may offer support for other cryptos.

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