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 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.

  • The percentages will be calculated automatically so that every trade they make will be copied into your portfolio with the same percentage.
  • For example, some countries may need platforms to get licenses or follow anti-money laundering and tax laws.
  • In this, even a crypto trader can easily take advantage of the volatility in stocks or forex, without having to learn the ins and outs of the industry.
  • You can also decide how much money or what percentage of your portfolio you want to allocate for copy trading.
  • Mirror trading is accomplished by manually executing trades in accordance with the chosen strategy.

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.

Best Crypto Social Trading platforms to use for Profit:

You may not necessarily buy every investment he does or every investment he recommends. But you’d base your investing decisions on the same principles he follows. You should also look at what you want to do with your portfolio.

  • The copy trading platform automatically opens the trades on your account when a trader you follow opens them.
  • The performances are excellent, the interface very intuitive and fast.
  • Copying is free of charge, but you will still pay the 1% spreads and transaction fees.
  • While copy trading offers a chance at potential gains, losses are also possible.
  • You don’t want to lose your money or your personal data to hackers or scammers.
  • It can be the same as the trader you are following or a percentage of it.

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.

OKX Copy Trading

This is where you buy coins or tokens at the market price and your trade is dealt with on the spot, rather than at a future date. For instance, simply buying $100 worth of Bitcoin at market rate. It is what – most people think of when they think of trading– it is simple and straightforward. There are highly experienced traders who predominantly spot trade, so you could always seek one of these people out.

  • User’s will be happy to know that OKX’s suite of products is bound to meet most of their needs.
  • Pro-traders can share there trades from Binance or other supported exchanges (automatically using API), and investor can automatically copy those trade to make money.
  • Copy trading in cryptocurrency allows you to directly replicate the positions of another trader.
  • Once you have found the trader you wish to copy, simply click on copy and you would be asked to add the funds.
  • Following that, the trading platform will automatically copy each move made by the chosen traders into your trading account.
  • 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.

MoonXBT is known for its incredible speed of execution, according to its team. If you did not know about this, odds are you would have already stopped copying the trend-following system before a trend shows up. But if you did your homework, you would be at ease, waiting for the next trending move to show up. Once everything checks out, simply move ahead and deposit funds. You can deposit funds on eToro via various methods, including PayPal.

Gate.io: Best for social trading and community engagement

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.

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.

How does Crypto Copy Trading Work?

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. Knowing the risks and reward potential can help you decide whether copy trading is a strategy you should adopt. Next, diversify your portfolio by copying multiple traders from different sectors within the cryptocurrency market. This spreads the risk and reduces the impact of any single trader’s performance on your overall investment.

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.

what is copy trading in crypto: Bottom line

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.

  • It makes for a more horizontal experience, where those who know the most help those who are just starting out.
  • Through copy trading, they can simply find a top-performing trader specializing in Bitcoin and automatically replicate their trades.
  • 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.
  • Most importantly, bot algorithms remain completely private, meaning that each creator retains full IP rights.

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.

Reviewing The Best Crypto Copy Trading Platforms in 2023

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. Copy trading is like having your own personal crypto mentor, guiding you through the ups and downs of the market.

  • It liberates you from the tedious process of continually analyzing price charts and following market trends.
  • It’s also important to ensure that the broker is properly regulated, which provides an added layer of protection for your investments.
  • Just because someone has a good track record in the past doesn’t mean they will continue to perform well in the future.
  • Investors should always conduct due diligence and thoroughly research a trader’s track record, strategy, and risk management practices before deciding to copy their trades.
  • For rookie traders, learning how to buy and sell cryptocurrency could be perplexing.

You can sort them by risk level, performance, portfolio composition, and more. You can also see their profiles, stats, risk scores, and trading history. It – has millions of users from all over the world, a fast trading engine that executes trades smoothly, and a high level of security that protects your funds.

What is copy 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.

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.

Is copy trading legal?

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. You’re basically looking for crypto trading broker traders will a long-term record of profit. But some platforms may offer free trials or discounts for new users or referrals. Some platforms may also have low fees for certain assets or markets.

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.