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

Before making financial investment decisions, do consult your financial advisor. Reading through various best crypto exchange reviews online, you’re bound to notice that one of the things that most of these exchanges have in common is that they are very simple to use. While some are more straightforward and beginner-friendly than others, you shouldn’t encounter any difficulties with either of the top-rated exchanges.

• Mirror trading is accomplished by manually executing trades in accordance with the chosen strategy.
• It’s also important to ensure that the broker is properly regulated, which provides an added layer of protection for your investments.
• 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.
• It liberates you from the tedious process of continually analyzing price charts and following market trends.
• The percentages will be calculated automatically so that every trade they make will be copied into your portfolio with the same percentage.

Crypto copy trading is a trading strategy that allows anyone to replicate the trades of experienced crypto investors. The copy trading feature means that all – trades opened and closed by the trader are replicated in the follower’s account. MetaTrader 5 offers desktop, web, and mobile versions of the platform.

What is Copy Trading in Crypto?

The obvious advantage of copy trading is that it frees up your time for other activities while also allowing you to benefit from the expertise of more experienced traders. You also give up control over your trading decisions, though some platforms allow you to set your own risk parameters and even choose which trades to execute. Copy trading is a form of automated trading that allows investors to replicate the trades of another trader in real-time.

• 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.
• Once you have chosen the right software, selecting and following a seasoned trader is often advisable.
• But there are things that you should bear in mind when considering copy trading and profitability.

Bybit makes it simple to find traders to copy, automatically open and close the same trades they do, and watch your crypto balance grow. To profit from their work, principal traders can allow others to copy their strategies and trades via the Bybit platform. In exchange, they receive 10% of the profits earned by each follower.

BingX Copy Trading

This feature also provides new revenue streams for lead traders. AvaTrade is a trusted global brand that is well-known for its extensive asset range for crypto, Forex, and CFD traders. After deciding on the trader you want to copy, simply click on the “Copy” button. You will have to set the details for the traders before the platform can start copy trading. It can be used to trade crypto, Forex, stocks, commodities, metals, and other financial markets.

• You can also decide how much money or what percentage of your portfolio you want to allocate for copy trading.
• Most importantly, bot algorithms remain completely private, meaning that each creator retains full IP rights.
• If you are syncing to a person you know, interview them and find out all you can about them.
• 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.

However, they do offer a future leaderboard and it may have this feature enabled soon. You can click on any name to see more stats about their profile. You can further click on any profile to see their detailed stats which include performance over time, their existing portfolio.

Risks of cryptocurrency copy trading

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• Once you have found the trader you wish to copy, simply click on copy and you would be asked to add the funds.
• 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.
• Just because someone has a good track record in the past doesn’t mean they will continue to perform well in the future.
• Copy trading in cryptocurrency allows you to directly replicate the positions of another trader.
• For rookie traders, learning how to buy and sell cryptocurrency could be perplexing.
• Following that, the trading platform will automatically copy each move made by the chosen traders into your trading account.

You can use it to automate your trading strategy, or you can copy the trades of expert traders or crypto bots that you find on their marketplace. Learn about the best crypto copy trading platforms that allow you to replicate the strategies of successful traders. 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.

How to Copy Crypto Trades: Step-by-Step Guide

This is perfect for somebody who is looking to maximize profits without worrying too much about what trading strategies or techniques are being used. With this in mind, copy trading can become a way of forming tighter social bonds with other new and budding traders, where each user learns from the other’s successes and mistakes. Receive updates in real time whenever changes are made to a bot Should a bot underperform, investors have the ability to unfollow it at any time and select another bot.

You just need to find a trader that you like and start copying them. The expert traders are called “Traders” and the people who copy them are called “Copiers”. When you choose an investor to copy, you can decide how much money to put stop loss into them. The percentages will be calculated automatically so that every trade they make will be copied into your portfolio with the same percentage. It is the most time-consuming and labor-intensive trading method on this list.

Risk Management Tools

As the cryptocurrency market maturing, we can expect more similar platforms. However, for now, these are the best social trading platforms you could use to copy trades from the top traders. Like eToro, PrimeXBT lets you trade Bitcoin, S&P 500, Gold, EURUSD, and 50+ assets.

The platform registers over 2 million trades every month and has a monthly trading volume that surpasses $70 billion. This makes AvaTrade one of the best copy trading platforms for traders interested in all financial markets, not just cryptocurrency. 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. Replicate the trading activities of financial experts and earn a passive income without spending time researching every investment you make.

Can I make money with copy trading?

It is understandable to hear about how to copy trade crypto and assume that it is an easy task, especially when it comes to using automated services in the crypto space. In some ways, this is true– it is simple to follow the trades of another as it relinquishes you of some of the decision-making processes. 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.

5% of the net earnings will be given to the initial strategy creator when the strategy closes. You can use the fund in your exchange wallet to deploy, and from here everything is automated. Once you have identified a top-performing trader, whose strategies you want to copy.

Trading 101: What Is Copy Trading?

In the case of the expert trader, he can gain followers, make a name for himself and also earn a commission for every successful trade from his followers. As for those copying his trades — if the trades are successful, they make a passive income. This allows you to automatically copy traders and replicate their financial trades.

• 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.
• Rather, the software just mimics what the expert trader is doing.
• The community-sharing of ideas is a great way to improve your trading, boost your performance and to learn new things from like minded people.
• WunderTrading offers a platform for copy trading that supports Binance, FTX, Kraken, Bybit and many more exchanges.

That said, many users believe that KuCoin is one of the simpler exchanges on the current market. A final major reason why people do this is that they – are able to leverage their influence on the markets. It is a huge factor to keep in mind, and having power like that is highly sought after.

AvaSocial Copy Trading

You can choose who to copy from a list of lead traders who have different performance indicators. You can also adjust your copy settings like maximum amount, take profit, stop-loss, and the number of positions. You can use Coinmatics with different exchanges, like Binance, BitMEX, Bitfine, and Bybit. You can also trade with different coins, like Bitcoin, Ethereum, Litecoin, Ripple, Cardano, Polkadot and more. And you can choose different types of trading, like spot, futures, and perpetual.

• Through copy trading, they can simply find a top-performing trader specializing in Bitcoin and automatically replicate their trades.
• 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.
• And since the crypto market is a volatile one, all bots are backtested in different market conditions such as bull, bear and sideways market regimes to ensure consistent returns.
• 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.
• Gate.io is a CEX that allows copy trading with high leverage, with over 1,400 cryptocurrencies listed on the platform.

Enhanced security and risk mitigation protocols mean that your funds are always safe and always yours. Explore whether Digital Surge Exchange is the next best thing for your crypto investment journey. Discover the ins and outs of this crypto exchange in our comprehensive guide. 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.