Copy Trading Crypto A Beginner’s Guide to Investing in Cryptocurrency

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.

• The best part about copy trading on PrimeXBT is that you only pay a fee when your trader makes a profit.
• A particularly big one is that you can receive payment from it, depending on the service you use.
• Instead, you apply a strategy that’s been successful for them to your own portfolio.
• Some of the popular bots are Grid Trading Bot, DCA Bot, Rebalancing Bot, and Leveraged Grid Bot.
• Professional copy traders will require a commission payment for their services, and quite rightly so!
• You simply set the parameters (such as your preferred leverage) for your copy orders after selecting a principal trader to copy.

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.

How Does Crypto Copy Trading Work?

So, by using the service of your copy trader, you will gain or lose proportionately. However, you need to remember when selecting the traders to copy, you should know your trader’s position sizes they usually open, as this can impact your investment. This usually happens automatically and without the requirement for any manual interventions. This copy trading platform also offers the FXTM Invest service for a minimum deposit of $100. For instance, let’s say you’re interested in copy trading Bitcoin and Ethereum.

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.

Is crypto copy trading good for beginners?

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.

• The best platforms for copy trading are eToro, AvaTrade, Bybit, and BingX.
• 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.
• Are they left to fend for themselves, speculating about the prices and taking to stride the sharp ups and downs of the cryptocurrency industry?
• 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.

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 transfer 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.

# Meta Trader 5

Because of the algorithmic nature of trading, it also runs 24/7 and is not affected by emotions. 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. Exchanging different viewpoints will generate insights that you will never find on your own.

The presented trading history is less than 5 complete years and may not suffice as basis for investment decisions. If you absolve yourself from your own trading, then you can easily sleep-walk into disaster. If you want to be efficient, then you need to learn how to copy trade crypto intuitively. You need to learn about when you should follow one individual, and when you should switch things up and sync to somebody else.

Successful Crypto Trading Performance on Autopilot

Though this software is automated, initially, you have to provide your input. Yes, crypto copy trading can be profitable, but it is not guaranteed. You have to choose a secure platform and a profitable trader to follow. They can help you trade automatically and make the most of market movements. Copy trading in cryptocurrency allows you to directly replicate the positions of another trader.

• Learn what this pocket-friendly mini-investing app has to offer for new Australian investors.
• Copy trading is one of the best ways to automate your investment strategy.
• But you need to be careful about who you follow, how much you pay in fees and commissions, and how the market changes.

You can use their free plan if you trade for less than $1000 per month, or you can upgrade to their pro plan for $29 per month and get unlimited trading volume and all features. Copy trading does not cost extra, but you may have to pay some fees to the exchange you use. The best part about copy trading on PrimeXBT is that you only pay a fee when your trader makes a profit. The fee is 20% of the profit and it is taken from your account automatically. Some of the popular bots are Grid Trading Bot, DCA Bot, Rebalancing Bot, and Leveraged Grid Bot. To start copy trading on Pionex, you need to follow some rules set by the traders you want to copy.

Gate.io: Best for social trading and community engagement

The best part; is everything is automated, and you will be acting like a hedge fund without the hassle of compliance and paper work. In conclusion, copy trading crypto provides practical benefits such as access to the expertise of experienced traders, diversification opportunities, and time-saving convenience. However, it should be approached with caution and complemented by proper research and risk management. By leveraging the advantages of copy trading while remaining informed and discerning, investors can potentially enhance their cryptocurrency investment journey. You can choose from more than 1000 assets, like real stocks, commodities, forex, indices, ETFs, and cryptocurrencies.

• Cryptocurrency trading is a complex skill requiring extensive knowledge of fundamental and technical analysis and the cryptocurrency ecosystem as a whole.
• A good master trader to follow should be active, have consistent results, have a large number of followers, and have been trading on the platform for at least a few months.
• Definitely something I'll be watching closely as the platform is developing well, the base idea is great, and the system is efficient too.
• Of course, you may choose to follow traders who focus on crypto trading.

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.

Social Trading Community

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. Other considerations include the fees you are paying to the trader and the copy trading platform. In essence, it allows you to follow other traders into their trades, and profit if they are successful — usually at a fee.

• Other investors can then use this to decide which traders to follow and copy.
• The expert traders are called “Traders” and the people who copy them are called “Copiers”.
• There are also exciting forex contests and trade-enhancing bonuses.
• EToro’s crypto copy trading platform is both unique and functional, with some of the industry’s most innovative social trading features.

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. Once you have found the trader you wish to copy, simply click on copy and you would be asked to add the funds.

Can I make money with copy trading?

Both the expert trader and the follower trader benefit from the copy trading feature. 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 be done manually, where you track another entity’s actions on your own, or automatically with the help of a dedicated platform or a bot. It is a strategy that allows investors to copy the trades of experienced and successful forex investors and implement the same trades, in almost real time, in their own accounts. Mirror trading was initially only available to institutional clients but has since been made available to retail investors through various means.

Best Crypto Trading Bots in 2023 (Compared) – Top Options

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.

• 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.
• Note that not all trading platforms are available for all regions.
• Coinmatics connects a part of your portfolio with the portfolio of your desired trader in a usable graphical form.
• It would be useless to learn about what is copy trading in crypto if you never learned how to do it efficiently and effectively.
• Think of this as running your own hedge fund, and everything is automated.

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.