6 Best Copy Trading Platforms in 2023

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.

• Finally, if you are serious about trading, copy trading should be nothing more than a starting point (i.e., a pacesetter).
• 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.
• Though it might take some time, it is a fluent ride later as the process is automated.
• Once you have chosen the right software, selecting and following a seasoned trader is often advisable.
• You can also share your own trades and earn money from your followers if you are a good trader.

I didn’t know there was a term for replicating someone’s trading actions in order to maximize profits especially if you are new to trading until now. Unlike many of its competitors, OKX has been dubbed a one-stop shop, due to the variety of services that it offers. User’s will be happy to know that OKX’s suite of products is bound to meet most of their needs. In addition to spot trading and derivatives, the global platform offers bridges, cloud services, mining, loans, and copy trading. On their page, you will see all the details of your copy investment. As always, it is important to do your own research before investing your hard earned money; never invest more than you can afford to lose.

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The process of copy trading is usually done automatically, with the platform executing trades on behalf of the investor, based on the trades of the chosen trader. 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. This makes many people favour mirror trading over copy trading, as all human error is removed from the equation.

• To a large extent, the efficiency of the cryptocurrency trading process depends on the choice of the platform and expertise of the lead trader.
• BYDFi is a cryptocurrency derivatives exchange that offers a copy trading feature, that let you make the most out of contract trading.
• When it comes to copy trading crypto, selecting a suitable copy trading broker is an essential first step.

Then you can pick one or more traders to follow and copy their trades automatically on your BitMEX account. Cryptohopper is a platform that lets you use different features and tools to trade cryptocurrencies. For example, you can copy other traders, use automated trading bots, analyze the market, and use advanced tools like backtesting, market-making, and arbitrage.

Is copy trading legal?

Copy trading in the crypto market presents both opportunities and challenges for investors. Understanding the risks and rewards is crucial for making informed decisions when venturing into this realm. You could say that the essence of learning what is copy trading in crypto is learning how to study other people and learning which people align with you on the trading floor. There is definitely a social side to copy trading, but never let it get in the way of the financial and economic side. Part of the process of learning what is copy trading in crypto is learning when to pause it and simply observe the actions of others, rather than replicate them. It can be hard to figure out when to do this, but a general rule would be that if you are getting too nervous it might make sense to take a break and go about trading on your own.

You can also decide how much capital you wish to use for these trades and the total risk per trade. For instance, if a trader opens an order to buy gold at 5% of his trading account size, that same trade will appear in your trading account. 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.

Finestel – Copy trading platform

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 ai trading crypto 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.

• Understanding the risks and rewards is crucial for making informed decisions when venturing into this realm.
• These algorithms have been built and perfected to execute trades based on many different inputs, and process these inputs way faster than any human will ever be able to.
• You will have to set the details for the traders before the platform can start copy trading.
• Automation provides a special peace of mind in knowing that your actions and decisions will be synced up even when you are asleep or busy yourself.

It supports more than 20 cryptocurrencies, like Bitcoin, Ethereum, Ripple, Litecoin, Cardano, Dogecoin, and more. You can deposit and withdraw your money using different methods, like credit cards, bank transfers, e-wallets, and crypto wallets. To do copy trading on BitMEX, you need to use another service that connects to BitMEX with an API. Some of the services that you can use are Zignaly, AIVIA, and WunderTrading.

What is the benefit of 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.

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.

What is a copy trading platform?

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.

• 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.
• Look for features that let you choose different traders to copy, change copy ratios, and set stop-loss limits.
• Yes, crypto copy trading can be profitable, but it is not guaranteed.
• Check online reviews and ratings to get insights into their track record and customer satisfaction.
• Understanding what is copy trading in crypto, and best practices on how to copy trade crypto in 2023.

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.

Best Copy Trading Platform: Top Picks

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.

• Another crucial consideration is the range of cryptocurrencies available for copying trades.
• When you are copy-trading crypto, you should always remember to vet and seriously consider the people you sync to; no matter how famous or how well you think you know them.
• They believe that having control over trades empowers individuals with valuable lessons and experiences that can lead to better long-term outcomes.
• No matter the trading signal provider you want to follow, it is important to research them well, just like you would research a trader to copy.
• You also need to have an account on one of the 16+ exchanges that 3Commas supports, like Binance, Coinbase, or Kraken.

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. Naga is a copy trading platform that automatically copies your trade. 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.

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Taking an active role is key in avoiding unnecessary risks and maximizing potential rewards. However, it is important to note that past performance is not necessarily an indicator of future success, and caution should be exercised when relying on influencers or top traders. As with any investment decision, careful research and due diligence should be taken before making any trades. The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice.

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.

What Is Copy Trading and Should You Do It?

These rules may include the investment amount, the threshold for several copiers, and a fee charge. To use copy trading on 3Commas, you need to have a subscription plan that includes this feature. You also need to have an account on one of the 16+ exchanges that 3Commas supports, like Binance, Coinbase, or Kraken. To begin copy trading, users must first locate a copy trading platform. If you are pleased with the trader’s performance, you can increase the amount of money you gave them. When looking for a trader, choosing one in the age of social media is challenging.

• As a new investor looking to use the copy trading system, you should decide on your goal.
• 77% of retail investor accounts lose money when trading CFDs with this provider.
• As always, it is important to do your own research before investing your hard earned money; never invest more than you can afford to lose.

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 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.