6 Best Copy Trading Platforms in 2023

Copy trading should only be done through a trusted source, and we highlight one of the best crypto trading platforms below. Crypto copy trading is an easy way for beginners to get started with trading. You can do it through AI-based self-executing software and follow the right trader and platform to gain profits. Afterward, you can customize the trading procedure according to your funds and preferences. 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.

• Ultimately, whether copy trading is right depends on your preferences and risk tolerance.
• You can look for platforms that have multiple support channels, such as live chat, email, or phone support.
• In addition, you do not necessarily have to learn all the strategies and be proficient with market technicalities.
• Nowadays copy trading is one of the most popular features for traders (according to the research in BeInCrypto Trading Community) and many exchanges offer such functionality to their users.
• A third major risk category is liquidity risk, the risk that you are unable to close a trade at a reasonable price, because of insufficient buying or selling interest.

It’s important to note that while copy trading can offer practical benefits, it is not devoid of risks. Past performance is not always indicative of future results, and blindly following a trader’s every move – can lead to losses. 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.

Best Copy Trading Platforms in 2023

After filtering and selecting the trader that focuses on your preferred assets, you may check out more detailed stats on their profile. You may see how many are already following and copying their positions. 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 can also see their profiles, stats, risk scores, and trading history.
• You should be able to find your way around and make trades without any hassle.
• Now that we understand the importance of optimizing the risk-reward ratio, let’s focus on another crucial aspect – building a copy trading investment strategy.
• We were looking for a place to support our strategy, and be able to share it, and we found it.

Some of the best crypto copy trading bots are 3Commas, Cryptohopper, and WunderTrading. Remember, crypto markets are very risky and unpredictable, and even the best traders can lose money or make mistakes. You should be ready for ups and downs and have a plan to manage your risk. Another thing to consider is the copy trading features of the platform. Look for features that let you choose different traders to copy, change copy ratios, and set stop-loss limits. You don’t want to lose your money or your personal data to hackers or scammers.

Final Thoughts on Crypto Copy Trading

Though it might take some time, it is a fluent ride later as the process is automated. The software could usually be set up to invest the same amount site or the percentage as the trader being emulated. The lead traders themselves are paid a small fee for allowing their trades to be copied.

• 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.
• Any action taken by the reader based on this information is strictly at their own risk.
• One of the main factors behind learning how to copy trade crypto is directly tied to learning how other well-versed traders undergo their business, and monitoring their behaviors yourself.
• You can trade both spot and futures contracts of various cryptocurrencies, such as Bitcoin, Ethereum, Tether, Binance Coin, and many more.

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.

Is copying cryptocurrency trades legal?

But what exactly is involved in the actual process of crypto copy trading? As a crypto investor, you can copy the trades of experienced investors automatically by renting their trading bots. So, when you as an investor rent a trading bot made by an expert trader, you are effectively copying their trading strategy.

• He is a dedicated volunteer and enjoys reading, writing, poetry, and going to the gym.
• The top traders can get commissions from their copiers based on their monthly profits.
• You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
• Naga is a copy trading platform that automatically copies your trade.
• Copy trading enables novice investors to enter the financial markets and make profitable trades by following experienced traders.
• It involves careful consideration of various elements to ensure long-term success and minimize potential risks.

It remains customer-focused and strives to offer the best user experience. In line with the Trust Project guidelines, the educational content on this website is offered in good faith and for general information purposes only. BeInCrypto prioritizes providing high-quality information, taking the time to research and create informative content for readers. While partners may reward the company with commissions for placements in articles, these commissions do not influence the unbiased, honest, and helpful content creation process. Any action taken by the reader based on this information is strictly at their own risk.

Coinmatics

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. Multi-strategy bots utilize different trading styles depending on the market conditions. They can be considered a multi-tool, rather than specifically requiring certain market conditions. Copy trading provides an excellent entry point into the world of crypto trading, whether you’re a complete beginner or someone with a bit of experience. Sure, success is a wonderful thing, especially when you’re piggybacking off of someone who has done the heavy lifting for you.

• This activity can be achieved via many exchanges, such as eToro, Binance, KuCoin, and Kraken.
• As the cryptocurrency market maturing, we can expect more similar platforms.
• You can also trade with high leverage, up to 100x for some coins.
• Coinmatics copy trading service allows copying deals made by traders and trading bots, as well as receive signals from verified strategies.

Choosing the best copy trading platform can often mean the difference between short- and long-term success and dashed hopes. After all, social trading has continued to surge in popularity and with good reason. If people weren’t making money from it, then people wouldn’t continue to do it. Besides, it allows you to jumpstart your trading journey as a beginner, potentially gaining profits and generating a passive income without participating in trades directly.

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This steep learning curve and the option for automation make the process of following and replicating traders easier and more convenient, which naturally makes it more appealing. 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. Another aspect of its learning curve comes from the very simple fact that we are all still learning about how these markets actually operate. That being said, brokers such as the aforementioned eToro mitigate these issues and concerns, to an extent. In this case, investors trade the relative value with the expectation that the prices will return to a long-term average. These bots will have a smooth PnL when traded under the right conditions.

• The main advantage of using copy trading is that it allows you to take advantage of another person’s investment experience and knowledge.
• Afterward, you can customize the trading procedure according to your funds and preferences.
• If you want to disconnect yourself from somebody else, you can easily do that at any time, and reconnect with them in the future, too.

Choose from a wide range of unique strategies submitted by carefully selected crypto traders with verified track records. Copy trading can also have a negative impact on an investor’s psychological well-being. The fear of missing out (FOMO) can drive investors to make impulsive decisions based on the success of others. Additionally, having no control over your own trading decisions may cause anxiety and stress for some.

Risks of cryptocurrency copy trading

Achieving a well-diversified portfolio is crucial in mitigating risks and maximizing returns. Copy trading allows investors to diversify by spreading their investments across multiple traders with different strategies, asset allocations, and risk tolerance levels. Another crucial consideration is the range of cryptocurrencies available for copying trades. Look for a broker that offers a diverse selection of cryptocurrencies, as this will give you more options for building your portfolio. Depending on the crypto copy trading platform that you’ve chosen, you should have access to a full range of statistics and metrics.

• Bybit is a platform where you can follow the best crypto traders in the world and copy their strategies automatically.
• 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.
• Besides, the settings panel of the copy trading app will give you complete control over your assets, even though they are self-executing.
• While trading definitely involves wins and losses, those who win can always help those who lose by educating them.
• Copy trading is a trading strategy that allows traders to copy the trades of other traders.
• This analysis will help you gauge whether their approach aligns with your goals and risk appetite, enabling you to make informed decisions.

But if you perform copy trading with good knowledge and proper research, you can definitely make some money. You can look for platforms that have multiple support channels, such as live chat, email, or phone support. Fast and helpful customer service can help you solve any problems or questions you may have.

OKX Copy Trading

You would want to choose a broker that not only supports these popular cryptocurrencies but also provides access to other promising coins in the market. Now that we understand the importance of optimizing the risk-reward ratio, let’s focus on another crucial aspect – building a copy trading investment strategy. BitDegree Learning Hub aims to uncover, simplify & share Web3 & cryptocurrency education with the masses. Join millions, easily discover and understand cryptocurrencies, price charts, top crypto exchanges & wallets in one place.

Brokerage platforms are submitted to much stricter regulations than crypto exchanges, offering crypto trading features. Yes, even new investors can use copy trading because it is a passive system. This means that you can leave the difficult work of selecting investments to others. It’s possible to earn returns on your portfolio without spending hours researching the market.

Is copying cryptocurrency trades legal

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading – CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

• Ideally, copy traders put together a “portfolio” of different traders to copy, so that they will always have a few successful ones running.
• Our platform only needs deal-making access to do our social trading operations.
• The feeling of syncing your trades up with somebody else and then watching both of you succeed makes trading more intimate and connective.
• It is the sharing of trading activities with others, either those you know or those who are well-known.
• So, by using the service of your copy trader, you will gain or lose proportionately.

In terms of legal status, copy trading of cryptocurrencies is legit. However, it comes with its own risks and limitations, just like any investment. One of the obvious risks is that while copying trades, you may also lose some as it’s part of trading. Copying trades is also a great way to familiarize yourself with cryptocurrency trading quickly. While observing and practicing others’ investment strategies, you comprehend them easily.