If you’re looking to dive into cryptocurrency trading but unsure of where to start, investing without proper knowledge can lead to significant financial losses. Take the time to learn, develop your understanding, and research how the market operates. How? Through crypto copy trading. It’s an innovative and trendy practice involving following more experienced traders. Let’s delve into this practice in more detail in the following article.
What is Copy Trading?
Copy trading is an increasingly common practice, especially among the more novice traders: following trades made by more experienced traders. It’s particularly useful for those in the learning phase, developing their knowledge, and aiming to enhance their skills with the guidance of more experienced traders.
Moreover, copy trading saves a considerable amount of time. Real-time information is available, trades are automated – the copy trader essentially needs to monitor market trends, results, and adjust their copy strategy based on performance. It can be a good idea to leave your trading decisions to the experts.
However, a word of caution: every operation performed is public. A successful move won’t go unnoticed for long. Additionally, this method implies a genuine reliance on both other traders and technology. In the event of technical issues, for example, placing orders may not be possible.
|Quick and easy registration
|Dependence on experienced traders
|Numerous available platforms
|Dependence on technology
|Significant time savings
|Open to all skill levels
|Automation of trades, operation possible 24/7
What is the Best Copy Trading Platform?
As with traditional stock markets, various platforms for copy trading platforms in the crypto market have emerged. Let’s explore some of them in the following sections.
eToro stands out as one of the main platforms for copy trading crypto. Functional and user-friendly, it allows quick registration and following trades executed by more experienced traders.
However, be prepared to unlock an initial capital, as eToro requires a minimum deposit of $200 USD before commencing copy trading. Despite this, the platform enables you to select traders based on specific criteria, ensuring collaboration with someone aligned with your needs, preferences, and goals.
- Number 1 copy trading platform
- Integrated social network for traders
- Trading cryptocurrency CFDs
Do we really need to introduce Binance? As the world’s leading cryptocurrency exchange, it offers numerous features, including copy trading. Binance’s significant advantage lies in its extensive selection of cryptocurrencies for copy trading – over 600, to be precise. The platform stays updated on market developments and can even provide recommendations on traders to follow.
Shrimpy differs from the platforms mentioned above. It is not an exchange but is directly connected to major exchanges such as Binance, Coinbase, and Kraken, allowing you to follow traders from various sources in one place.
Shrimpy offers two crypto copy trading plans – a free plan and a premium plan costing $19 per month. The premium plan includes copying trades and access to the trader’s portfolio. Performance and management fees may apply in rare cases, in addition to the $19.
Gate.io, as an exchange, offers copying trading. To participate, a minimum of 0.001 BTC must be determined. It’s a straightforward process – Gate.io is known for being a secure exchange with a wide range of tokens available for investors. Registration is quick and free, requiring you to unlock your funds to engage in copy trading.
BitYard is a certified and regulated crypto exchange in several countries, including Singapore, the USA, and Estonia. Its significant advantage is the low entry barrier – you can start copy trading with just $5.
The platform is comprehensive, with free and quick registration. After depositing funds into your wallet, clicking on the “Copy Trading” tab provides access to a list of traders categorized by statistics and performance, simplifying your selection process.
CryptoHopper operates as a copy trading platform with various bots. Many consider these bots among the most efficient in the market. They execute transactions on your behalf based on pre-provided information and instructions.
Subscription fees for CryptoHopper range from $19 to $99 per month (at $19, $49, and $99). The bots are compatible with Binance, Coinbase, and other exchanges. Ensure to check the compatibility list, as not all exchanges work with CryptoHopper. The responsive team stays updated on market trends, ensuring quality service.
3Commas is one of the most comprehensive copy trading platforms. It offers classic trading bots, BTC robots, and a large, open, and friendly community where both professional and novice traders can exchange ideas.
3Commas operates with a simple process – select your desired strategy, unlock funds, and launch trading; you need to do nothing further. While checking the partner platforms, you’ll likely find many that collaborate with 3Commas. Subscription fees apply, with a monthly cost of $14.50 after the initial three free days for “Pro” plan subscribers.
Covesting is a crypto copy trading tool from PrimeXBT, a reputable exchange offering trading on a wide range of assets, including S&P 500, gold, EURUSD, and over 50 other assets. Covesting allows copying traders on various supports.
To utilize Covesting and PrimeXBT features, register on the platform, deposit funds (preferably in BTC), and search for an experienced trader with favorable statistics to follow. Once the process begins, you only need to monitor the results.
Zignaly, established in 2018, is a crypto copy trading platform. It offers comprehensive features, allowing you to follow experienced traders using highly functional, easy-to-install, and efficient bots.
Zignaly also provides extensive data on partner traders. Investors can study trader profiles, review recent profits, analyze successful and unsuccessful moves, and determine if they have a following. However, note the high commissions of approximately 20% on each profit.
Launched in 2018, Coinmatics is a relatively recent copy trading platform. While it shares similar functionalities with other platforms, it partners exclusively with Binance. Therefore, you can “only” leverage this exchange, which remains the world’s largest.
Other Crypto Copy Trading Platforms
The ten platforms mentioned above are not the only ones available. Numerous others, such as CopyMe, Krill, TradeMate, TraderWagon, or Wunderbit, also offer functional tools at reasonable prices. Explore dedicated websites to find the platform that best suits your needs.