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Copy trading has become very popular in recent years. It is automated copying of another trader’s operations, part of a broader concept of social trading—conceptual platforms similar to classical social networks, only on the crypto market. They allow the creation of a network of communication, experience exchange and analytics for multiple traders.
Copy trading is useful for novice traders who do not have many hours to analyze and study market trends. These platforms help beginners to enter the market with minimal experience without wasting time on preparation.
In addition, if you are still learning to control your emotions and mastering the basics of trading psychology, this is also your option. Trading and making investment decisions under the influence of emotions is very rarely profitable for market participants, and this is a chance to train your investment willpower and a sober, unemotional attitude to the volatile market of digital assets.
Also, the use of such platforms minimizes the number of traders’ actions. All processes are automated. Time expenditures are minimal. It is also possible to control the trading process and make changes to minimize losses.
A positive point is also the starting financial minimum required to get started with this type of platform. In fact, anyone is limited only by the entry threshold of the chosen platform, which very often starts at a hundred or two dollars.
Crypto copy & social trading platforms are quite popular among investors in digital assets, as the whole market is still at its developmental stage, and the influx of new inexperienced participants is quite high. This feature prevents the feeling of being lost among thousands of new assets and keeps new investors’ investment portfolios more likely.
We can highlight a few platforms that you should pay attention to if you want to do copy trading.
Phemex
Phemex is one of the fastest growing exchanges of 2022, including as an example of a crypto copy & social trading platform. It has been among the top global crypto exchanges, according to Forbes in just three years. It has managed to become a competitor to the most famous trading floors in the world.
Phemex was established in 2019 in Singapore. It offers a wide range of exchange instruments: spot trading in 293 assets, leveraged trading for passive income Phemex Earn, Saving and Launchpool. Training complex for beginners, a welcome bonus and a unique offer for crypto celebrity All-stars, Student Fund.
Phemex is also an example of a cryptocurrency copying and social trading platform. There are more than 60 portfolios of traders to copy trades, with monthly ROI (Return on Investment as the ratio of profit (or loss) to funds invested in the venture) ranging from a few percent to 380% per month.
Benefits of the platform:
- up-to-date development, trending areas for earning;
- range of solutions for crypto-investors;
- high rates of profitability;
- welcome bonus.
eToro
eToro is one of the first crypto social trading platforms. Not limited to cryptocurrencies, from the beginning, it offered copy trading features for the classic asset market, then added cryptocurrencies. Registered in Gibraltar, established in 2019, licensed in the same jurisdiction. Currently, it offers trading in more than 30 digital assets (including 17 tokenized fiat and commodity stablecoins) and more than 100 trading pairs.
It positions itself as a copy trading platform and a full-fledged community of enthusiasts who share their experience and make money. It offers 500+ traders to copy trades. The stated average annual profit is about 30.3%. Lots of explanatory and educational information for beginners, the ability to copy trades from one to a hundred traders at a time, minimum entry threshold of $200 for copy trading.
Benefits of the platform:
- a well-known place to trade with positive reviews;
- good information support for all actions;
- wide range of samples for copying.
Coinmatics
Coinmatics is a classic cryptocurrency copy and social trading platform, limited only to that functionality. Here you will find copy trading features for investors, traders, real trading bots and cryptocurrency indicators. There are two versions of use: no fee and paid. 22 packages of traders’ trades for copy trading, with profits ranging from minimal to over 450% over time.
Benefits of the platform:
- a specialized platform for social trading;
- smart terminal;
- trading bots.
Shrimpy
Shrimpy is a crypto bot for trading and complex management of your own portfolio. One of the features offered is copy & social trading.
Allows you to manage a set of wallet accounts and exchanges. There are proposals both for investors (copy trades) and for traders (become an expert and offer their history of transactions for copying).
There is an actual leader’s rating to select. Supports more than 30 exchanges and wallets, including Metamask, Coinbase, Huobi, Binance and others.
There are platform versions. The cost depends on the number of accounts connected and the rate of balance updates:
- Starter $15 per month;
- Professional $63 per month;
- Enterprise is $299 per month.
Benefits of the platform:
- a wide range of accounts to use;
- good crypto Portfolio management;
- automatic rebalancing of portfolios.
Gate.io
Gate.io is one of the first wave exchanges, opened in 2013, and registered in Hong Kong. There is an option of spot pricing, derivatives trading, and own token exchange Gate (GT).
Offers great, nearly 1,460 tokens and crypto to trade in 2,700+ trading pairs for spot trading and over 30 pairs for futures trading. High leverage for a spot in 10x increments and for futures in 100x increments. All of these assets are available for copying. Traders are paid a commission of 5% of the transaction amount for using the trades.
Benefits of the platform:
- “first” tier exchange;
- high supply of assets for copy trading;
- leverage for trading.
These are not all platforms, you can also try:
To Sum It Up
Copy trading is quite profitable in terms of using a trading strategy. You use the trading system of experienced market representatives whose returns are always higher than the average trader.
This is a great way for beginners to get started with the crypto market. It’s convenient because of the automation and mass adoption of the whole crypto industry.
