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Success in trading comes after days of hard work.

For a newbie, trading is difficult, and leveraging the knowledge and experience of more seasoned investors is not always possible.

Copy trading allows you to automatically replicate the trades of expert traders.

What Is Cryptocurrency Copy Trading?

In Simple terms copy trading allows you to automatically copy the trades of other successful traders.

This eliminates the need to develop your potentially risky trading strategies, while still allowing you to capitalize on crypto market opportunities.

This is also useful for learning the strategies applied by experts during different market conditions.

How Copy Trading Works?

In typical copy trading, you copy other traders. To do this, you have to choose both the software and the trader you wish to copy.

Once software connects the trader, whenever the copied trader executes a trade, whether it be buying Bitcoin, selling Ethereum, going long or short on an altcoin, or trading crypto derivatives like futures contracts or options, the same trades are automatically opened in your account proportional to the amount of capital you have deposited.

Who Can Benefit From Copy Trading Crypto?

• Copy trading is beneficial to new crypto investors who lack technical skills and confidence for trading.

• Copy trading is also beneficial if you want to know the top trader decisions and moves who have proven the track record over months and years.

• It is a shortcut, avoiding having to go through a difficult learning curve and costly mistakes when starting out.

• Experienced traders use copy trading to automate and scale their portfolios efficiently.

• By allocating a portion of your portfolio to copy trade, you can stay invested in the market without constantly monitoring charts and prices.

Best Platforms for Crypto Copy Trading.

Etoro.

Etoro is a social trading and multi asset investment company offering crypto copy trading.

Etoro has a long list of crypto and traditional assets available for trading.

They also let you copy trade cryptos by listing some of the successful traders on the platform.

You can find the copy trading option under the discover section, crypto option.

Etoro gives you many filters to choose who you want to copy based on the performance, like return, risk score, how many follow them, weekly trading, etc.

It’s recommended to choose an experienced trader with a lower risk score.

Binance.

Binance is a popular and the largest crypto exchange globally.

They have the copy trading option, which includes more than 150 traders.

You can choose the desired copy trader by applying the filters.

Filters like, you can copy only PnL, choose the months active, ROI, Sharpe ratio, etc.

ByBit.

ByBit is a popular crypto exchange offering copy trading.

To copy trade, ByBit has different categories of traders listed based on ROI, Draw-down, and Top performance. Balanced traders even allow the copying of new emerging traders.

The platform shows detailed descriptions of the trader and the previous trade track record. Which helps you make a decision.

Gate.io.

Gate.io is one of the oldest exchanges, operating since 2013.

Copy trading option given by the gate.io with the more than 200 traders listed.

To choose among the 200+ traders, Gate.io provides comprehensive information about the trader, like ROI, Profit, etc.

Additionally, 5% of the net earnings will be given to the initial strategy creator when the strategy closes.

Coinmatics.

Coinmatics is a platform solely focusing on crypto copy trading, aiming to connect investors with traders.

Although the platform isn’t widely known, it offers useful features like connecting telegram accounts for signals, setting tickers, an analytics dashboard with Twitter Analytics Chart, Margin Positions Amount, Margin Positions Quantity, Fear and Greed Index, BTC Social Volume, and more.

While many features are available for free with limited usage, Coinmatics charges $15 to $35 per month for additional features.

Phemex.

Phemex is a crypto exchange focused on crypto derivative contract trading.

You can copy trade on the platform with more than 400+ traders available.

Phemex has the leaderboard ranking the best trader to copy and offers all the analytics needed to copy a trader, like ROI, overall and monthly P&L, the number of followers a trader has, and more.

Cryptohopper.

Cryptohopper is not a platform for copying traders but rather a trading bot platform where you can create your crypto trading bots using various strategies.

You can create bots for trading in crypto, and Cryptohopper also has a copy bot feature, allowing you to copy the top-performing bots.

Another way you can copy trade is by following signals. Subscribe to signalers, which send a signal to your Hopper. Check their performance reports and only subscribe to the best.

Finestel.

Finestel is a copy trading platform that allows traders to trade only API keys to connect to the platform.

Investors can follow traders and make profits, and traders can set up performance fees to earn extra money from trading.

These are the platforms where you can engage in copy trading, but before diving in, remember these cautions.

Cautions When Crypto Copy Trading.

• Past performance does not guarantee future returns. A trader who has been profitable for years can still make bad trades.
• You are trusting others with your capital. Avoid overexposure to any one trader, and be diligent in trader vetting.
• Fees for profit-sharing or platform subscriptions can eat into net returns, so factor them in when evaluating.
• Technical issues with exchanges or platforms can cause slippage on entries and exits. System risks are inherent.

Conclusion.

Copy trading is the best option for those who are beginners and do not have any interest in learning to do trading.

Also, for platforms, by letting profitable members of the community shoulder some of the analysis, copy trading crypto can enhance returns while streamlining the investment process.

Before engaging in copy trading, have a caution in mind. Overall, if utilized properly, copy trading remains an attractive option for gaining crypto market exposure compared to the complexities of active trading.