What is Copy Trading in Crypto? How to do Copy Trading

You can see your balance, profit, loss, open positions, closed positions, etc. You can also see the details of each trade that you copied, like the entry price, exit price, amount, fee, etc. Decide how much capital you want to allot to each trader you follow.

• To do copy trading on BitMEX, you need to use another service that connects to BitMEX with an API.
• This is why it is important to understand the fundamentals of what is copy trading in crypto as well as understand the conceptual elements.
• He has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe.
• Followers could then manually join on to the trade or decide against it.
• That’s why you need a dependable and user-friendly copy trading platform that gives you a wide range of traders, instruments, and tools to help you succeed in your copy trading journey.
• Understanding what is copy trading in crypto, and best practices on how to copy trade crypto in 2023.

Crypto asset investing is highly volatile and unregulated in some EU countries. Another reason is that your social status and creditability can skyrocket by helping people copy trade. For people who want to become a well-respected trader, this is great. The most important takeaway is that copy trading can happen even on exchanges that do not have the tools built in. This is great news as it means you can freely choose whatever exchange you are most comfortable with, and that you enjoy trading on the most.

What is copy trading?

Mirror trading still allows you to benefit from the expertise and knowledge of another investor. Instead, you apply a strategy that’s been successful for them to your own portfolio. Yes, copy trading is legal in most countries, provided that the broker itself is properly regulated. When investing in the financial markets using a regulated-broker and legalizes your account and the traders carried within them.

• This broker platform is able to meet your needs, regardless of whether you are a forex trader newbie or an experienced trader.
• Portfolio diversification is another plus point of copying trades.
• It will copy the trader’s orders on your account as soon as they happen.
• Look for platforms that have popular coins like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and others.
• This knowledge will allow you to make educated decisions and engage proactively in managing your investments.

It also gives a trader complete freedom to mix and match different strategies and trading styles, not requiring them to blindly follow other traders and their strategies. Copy trading could be the first step for one to become a proficient cryptocurrency investor. Regular monitoring of lead traders’ actions backed by behind-the-scenes learning may help amateur traders to hone their cryptocurrency investing skills and evolve as expert traders themselves. There are so many crypto copy trading platforms that picking the right one could be quite demanding for an amateur trader having little knowledge about the domain. A trader failing to make a well thought out decision might result in them losing hundreds or thousands of dollars.

Is crypto copy trading good for beginners?

Imagine, what if you could open the same traders as professional investors. The first company who released such feature on the crypto market was eToro who still delivers the iconic experience in copy and social trading. 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.

By following and copying the trades of successful traders, investors can benefit from their expertise and potentially earn profits. However, it’s important to remember that there are no guarantees in trading, and losses are also possible. And like many others, you are just a beginner in crypto trading.

What Is Copy Trading and Should You Do It?

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. Consider putting your settings, like stop-loss, take-profit, and maximum amount. With the feed feature, traders can now post – their speculations on future trends and insights, thus encouraging interactions between copy traders. BingX’s copy trading system also supports DeFi, NFT, indices, commodities, forex, and Layer 2. In order to display traders’ performance in a more comprehensive way, BingX traders can now enrich their homepage by accessing another exchange’s API.

• Having that personal connection with somebody means that you might understand their limitations better than when you copy trade from somebody who you only have a parasocial relationship with.
• Mirror trading was initially only available to institutional clients but has since been made available to retail investors through various means.
• In other words, it’s trading in financial markets with other people around the globe doing the trading for you.
• OKX Copy Trading aims to create a trading tool that is efficient, transparent, and profitable for OKX traders.
• I’ve been using coinmatics copy trading platform for just over 2 months.

It has over 20 million users around the world and it follows the rules of the FCA (UK), CySEC (Cyprus), and ASIC (Australia). Check and analyze their performance, provide risk level, and trading history before you copy them. If you want to copy the trades of other traders, you can sign up as a copy trader on OKX.

AvaSocial Copy Trading

For beginner traders, it is a good tool to generate trading income, but they must be sure the person you are copying knows what they are doing. For other traders, copy trading is a great way to stay active in a market when they don’t have the time to commit to trading themselves. What I really like here is, if you know anyone of your good friend who is pro in trading, you can ask him/her to create an account on Finestel and let you copy this trade. They can also setup a performance fees which will help them to make extra money from the trading.

• The most important takeaway is that copy trading can happen even on exchanges that do not have the tools built in.
• By copying the trades of successful and experienced traders, beginners can effectively leverage their expertise and decision-making skills.
• There is no need to select “Enable Withdrawals” in API restrictions.
• For instance, imagine a novice investor who is interested in investing in Bitcoin but lacks an understanding of technical analysis or market trends.

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. 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.

Trality’s Marketplace and index-tracking bots

Of course, if shorting and dealing with futures is your cup of tea, then, by all means, follow a trader who does this. Or they may be a big fan of shorting, which is where an investor borrows an asset and sells it with the expectation that the price will drop. They then buy the same number of the asset back at a lower price, return the shares to the lender, and profit from the rest. Since it’s powered by Binance, the Trality Wallet is built on the industry’s safest and most secure custodial wallet infrastructure. Any and all funds deposited into the Trality Wallet are backed by Binance.

• Also, it is not necessary to work out entire investment strategies independently.
• The platform’s excellent analytics and crypto social trading network mean that you don’t have to navigate the crypto space alone.
• Mirror trading is the practice of replicating the strategies of a group of traders.
• Here, most important point to note is that everything is proportionate.
• For this reason, it is easy to assume that your success comes almost entirely from another person.

XT Futures copy trading allows you to replicate real time trades of top cryptocurrency investors with one click. You’ll also want to choose a good trader with a solid and transparent track record of success over an extended period of time. Your aim is to identify a pro copy trader by their long-term successes, and all of the bots – offered on Trality’s Marketplace have been extensively vetted by our experts. The Trality Wallet provides a seamless integration between the world’s most trusted exchange and the world’s best crypto trading bots—full flexibility without API keys. Trade directly on Trality without having to connect your exchange’s API key.

Risks of Crypto Social Trading Explained

But generally, it involves choosing an experienced trader and following their decisions. The above-discussed apps and software are top among all copy trading platforms available in the crypto market. That’s why you should compare different platforms and brokers before you choose one to copy trade with. 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.

BYDFi offers a demo mode that allows you to make practice trades using real market statistics. Now there is no end to the number of platforms that offer copy trading (social trading), but like always I will make your search easier by suggesting only the best copy trading platforms. So buckle up to learn something new and start earning from trading even when you have no prior experience in trading. You’re leaving the hard work of choosing investments up to someone else. You can earn returns in your portfolio without having to invest hours researching the market. Diversification and risk management are also done for since the pro trader is the one directing investment decisions.

What is the best free copy trading app?

And when investing in any assets, it’s important to manage your expectations and control your emotions. Temporary losses can and will happen, but you shouldn’t decide to unfollow a trader prematurely because of fear, doubt, or uncertainty. Similarly, when copy trading crypto, take advantage of the power, consistency, and reliability of crypto trading bots. While you stand to profit by copying the trades of a successful trader, you’ll also sustain losses when the trader’s bot encounters a losing streak. In terms of legal status, copy trading of cryptocurrencies is legit.

• Others don’t like it because it can be viewed as unethical when handling assets from smaller organizations, such as when hedge funders shorted GameStop’s GME shares.
• To copy trade on Binance, you need another app that works with Binance copy trading.
• Within social trading, however, there is something called the “transparency-revenue conundrum.” Trading platforms have to work out a delicate balance when it comes to transparency.
• In this case, copying other professional traders can help you make some profits and earn some money.

Zignaly differs from the rest because of its profit-sharing feature. With this tool, you can copy trades and only pay trading fees when profits are made. This minimizes your costs, while maximizing your profits, according to the project. There are many different copy trading platforms available, for different kinds of markets.

The Ultimate Guide to Copy Trading Crypto (

What should you know if you are planning to broadcast your own trades for others to copy? For starters, bear in mind that by opening yourself up to copy traders, you may feel a new level of responsibility for those following you. 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. This is why it is important to understand the fundamentals of what is copy trading in crypto as well as understand the conceptual elements. A particularly big one is that you can receive payment from it, depending on the service you use.

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.