Copy trading is a method of income based on replicating the operations of other traders. CScalp has compiled a selection of crypto copy trading platforms and exchanges that offer the best tools on the market to implement this popular strategy.
Key Points on Cryptocurrency Copy Trading
Copy trading involves replicating the operations of other traders. While copy trading existed in Forex and the stock markets, it gained more prominence on cryptocurrency exchanges. With the emergence of dedicated copy trading platforms and tools, this method of income generation has become more accessible.
In most cases, you only need to create an account on a copy trading platform and subscribe to a trader (or multiple traders) to start copying operations automatically or manually. Users can set parameters such as budget, expected profit, and other trading aspects. You can also monitor your portfolio and adjust copying settings as needed.
Copy trading is conditionally safe, depending on the platform that offers it. Most services operate through API keys and do not require users to grant withdrawal permissions. Some platforms operate through internal accounts and proprietary cryptocurrency wallets. When choosing a service, it is advisable to carefully study its partners, reviews, and social channels to get an overall picture of the platform's security.
Copy Trading Exchanges
Binance allows users to select and copy existing trades through the "Trading" => "Trading Strategies" tab. Copy trading on Binance is available on both Spot and futures markets.
Users can select and filter strategies based on the market, trade duration, popularity, ROI (return on investment), as well as token class (DeFi, NFT, gaming tokens). It is possible to create custom strategies and view global statistics for all strategies on the exchange. The statistics are collected automatically, and the data is updated every hour. Binance does not guarantee the results mentioned in the strategy description.
BitGet offers the tracking and copying of other traders' transactions. To initiate trade copying on BitGet, users may occasionally need to queue up, as a trader's available "slots" for copying may be fully occupied.
Comprehensive statistics are available for each trader on BitGet, including profitability, a description of trading style, risk profile, type (long-term/short-term), and other parameters. When configuring trade copying, users can define risk management parameters such as Stop-Loss, Take-Profit, and more.
Bybit also offers copy trading features. To initiate copy trading on this platform, you need to go to the “Derivatives” => “Copy Trading” tab. The copy trading capabilities on the exchange are standard: users can search and filter traders based on various parameters and copy their trades with just a few clicks.
Traders receive 10 percent of the subscriber's profit. In addition to copy trading, Bybit also provides trading bots – automated trading strategies that allow users to profit from volatility.
Pionex is a cryptocurrency exchange that aggregates liquidity from Binance and Huobi Global. The platform is designed for active traders and is known for its wide range of cryptocurrency trading bots.
The exchange does not provide standard tools for copy trading or social functions. Instead, users can utilize 16 trading bots. Each bot has its strategies, risks, and profitability. Pionex trading bots can be manually configured or run based on pre-set strategies.
Pionex can be considered a semi-passive source of income. While the bots perform the main tasks, users need to choose the cryptocurrencies of interest and monitor the market to avoid sudden losses. The trading commission on Pionex is 0.05% per transaction.
KuCoin offers a set of fully-featured trading bots. Users can configure them on their own or launch fully prepared strategies. Unlike Pionex, KuCoin's bots allow users to discover and copy strategies initiated by other platform users.
Copying trades from other traders on KuCoin is available in the bot menu, where algorithms can be sorted by type, profitability percentage, and other parameters. It's important to note that all parameters available in the search are not tracked in real time, but are based on historical data. Copying strategies occur with a delay from a previously completed successful trade. Therefore, the result of the trade may differ from the result indicated in the bot.
Copy Trading Platforms
eToro is one of the largest platforms for trading various assets. In addition to 59 cryptocurrencies, it offers trading in indices, stocks, commodities (oil, gas, coal), and precious metals. On eToro, users can comment on and like trades, as well as exchange messages with other users.
For copy trading, eToro provides a pool of verified expert traders. Users can copy trades from up to 100 traders simultaneously, with the option to choose between copying the entire portfolio or specific positions. Copy trading on eToro can be tested in a demo mode where the platform provides a virtual balance of $100,000.
The service operates through its own eToro Wallet. To engage in copy trading, you need to open an account with a minimum balance of $10. The minimum investment size is $200, while the maximum is $2,000,000.
Read more: eToro Copy Trading: How Does It Work?
Similar to Pionex, the Coinmatics is geared towards copying ready-made trading strategies. To get started, users need to connect their Coinmatics account to a cryptocurrency exchange via API.
No fees are charged to the user by Coinmatics for the first $2,500 in profit from copying trades. After reaching this threshold, you will need to select one of the subscription plans. One drawback of the service is the absence of social functionality.
Shrimpy operates in the cloud and offers a comprehensive range of tools for social trading and copy trading. Users can engage in conversations, discover, and copy the trades of other traders. A unique feature of Shrimpy is the ability to split individual connected accounts into several virtual portfolios.
The platform supports 20 cryptocurrency exchanges. It is compatible with 13 cryptocurrency wallets, such as MetaMask, 1INCH Wallet, and more. Shrimpy does not charge fees to users copying trades; fees are only paid by traders who profit from their subscribers' activities.
NAGA is a service designed to work with various assets, including cryptocurrencies. To use NAGA, you need to undergo the KYC procedure and make an initial deposit of at least 10 euros. For cryptocurrency copy trading, a minimum investment of 250 euros is required.
Similar to eToro, NAGA allows users to select a suitable trader based on various indicators, such as profits and losses, the number of positions, and monthly percentage returns. NAGA enables users to search for other platform users and communicate with them.
NAGA has relatively high fees. The service charges a commission of 0.99 euros for each trade placed by the selected investor on behalf of the user. If a position closes with a profit of more than 10 euros, the commission is 5 percent. No commission is charged for profits of less than 10 euros.
Tiger.Trade Copy is a project by the TigerTrade terminal team, which offers a full-fledged mobile application designed for copy trading. It operates on the Binance Smart Chain (BSC) and currently supports copying only on Binance.
The platform selects traders based on several criteria: a minimum of 3 years of active trading with annual volumes exceeding $10 million and profitability of at least 20 percent. Expert traders are prohibited from using scalping or HFT strategies. Each trader has a detailed social profile showcasing their trading strategies, along with links to their channels and social networks.
Tiger.Trade Copy charges commissions for subscribing to each copied trader, averaging $25 per month. The platform uses a native token called TIGR for in-app payments.
AIVIA is a copy trading platform that works with the BitMEX and Binance exchanges. It stands out for its detailed analysis of pro-traders' profiles. According to information on the project's website, new strategies undergo verification by the platform's team. AIVIA's portfolio can be diversified by allocating it to multiple traders (requiring multiple accounts on exchanges).
Users can request collateral from traders to cover potential losses. The collateral amount is determined by the percentage of the portfolio's maximum drawdown. Withdrawal of funds from AIVIA is only available after fixing a profit in an open trade.
The Best Copy Trading Platforms – Conclusion
Copy trading is a relatively new method of earning money in the cryptocurrency market, which can become a convenient tool for users to generate profits. However, several important points should be taken into account. Firstly, most specialized copy trading platforms charge commissions ranging from 20-30% of the profit from each trade. Secondly, no service guarantees profits, and the responsibility for the results of copy trading lies entirely with the user.
Additionally, some services provide more transparent information about their traders, while others are less transparent. Therefore, when choosing a copy trading platform, special attention should be given to the transparency of the service's operation.
To enhance your trading strategies, the CScalp team has developed several tools that will be of great assistance to you. For example, our free trading course is ideal for beginners. If you wish to learn from the experience of other traders, find live streams featuring their best strategies on our YouTube channel.