Social copy trading platforms for crypto investors. What are they, you might wonder.
Social trading, especially copy trading has gained lots of popularity among the traditional financial markets and is now becoming a norm within cryptocurrency investors. It offers a lifeline for the less experienced investors/traders and enables them to make profits even without a lot of knowledge about the markets.
How does copy trading work?
The way copy trading works is you simply let someone else trade for you, by directly copying the exact same trades they make.
By copying other traders, a cryptocurrency investor can create a real-time trading portfolio that follows exactly what more experienced crypto traders do on their trading portfolios.
This way inexperienced investors can automatically copy the trading signals and manage real trading portfolios while also generating passive crypto income.
Can you make money from copy trading?
Copying more experienced traders can absolutely make you a significant amount of money passively, however, it’s up to the user to do proper research of who exactly are they copying.
And this also means you must define your risk tolerance beforehand, and understand losing some money is a business expense, and no profits can be made without some losses.
What is the best social copy trading platform?
Although social copy trading is a great way for less experienced crypto investors to make money, one will have to do due diligence in choosing the best social copy trading platform from the large variety of social copy trading platforms found online.
Below is a list of the best social copy trading platforms for crypto investors in 2020:
PrimeXBT is an advanced Bitcoin-focus broker offering immediate access to Bitcoin-based No KYC accounts that can be used to trade both cryptocurrencies and traditional markets.
The platform has it all from industry-leading technology, fast execution speed, professional trading interface to multiple order types, instant deposits, and secure cold storage wallets with fair fees of 0.05% per trade.
The account creation is completely anonymous and with 100x leverage, the possibilities to maximize your gains are quite literally endless.
On top of just being one of the most advanced Bitcoin trading platforms, with just a click of a button, PrimeXBT also gives users access to Covesting social copy trading features, allowing both followers and trades to earn additional income.
Depending on the copy trading volume, followers earn between 60% and 75% of profits, while the platform takes a fee of 20% to 5%, and the manager profits 20% no matter what conditions.
To get started with copying other successful traders takes you no more than 40 seconds, and all that is requires account registering is your email address. Once you’ve got your account set up and funded with Bitcoin, you can straight away ready to trade, and copy other traders.
eToro exchange is specially made for social trading, and today it stands as one of the most popular and easiest ways to get started with copy trading for beginners due to its user-friendly platform.
The exchange has a proprietary web trading platform where crypto investors can trade in multiple languages, it operates in over 140+ countries, and is regulated by the FCA, ASIC, CFTC, and MIFID-ESMA. This means it is also officially available in The United States, The United Kingdom, and Australia.
eToro not only allows you to fund your account in multiple currencies, and payment methods, but it also allows you to purchase cryptocurrencies with Paypal and other solutions.
And as of today, eToro currently supports over 16 cryptocurrencies including Bitcoin Ethereum, Litecoin, Dash, XRP, and more.
For novice copy traders, eToro is a wonderful choice as it allows you to get started quickly and easily, and to copy the best eToro traders, in real-time, simply by choosing other professional traders from the market place.
To get started, all you have you have to do is to create an account, and fund your trading portfolio with a minimum amount of $200 and choose the traders you want to follow from the marketplace. Once you have chosen traders to follow, your buy and sell orders will then be placed simultaneously on your personal account.
eToro will automatically also feature traders for you and has a social trading app on mobile which you can use to keep track of your copy trading portfolio and results.
ZuluTrade is another great and popular social copy trading platform for cryptocurrency investors, and by popularity, it is second only to eToro.
However, ZuluTrade has a slightly different approach to copy trading. Instead of being the exchange itself, the platform supports a wide variety of brokers, throughout Europe, offshore, and the United States that crypto investors can use for copy trading by connecting through the ZuluTrade platform.
ZuluTrade, therefore, works more of a signal service provider connecting the brokers together and giving users free access to choose and interact with thousands of other professional traders. Traders on the platform then can create profiles, leave trading statements, and notes about their approach to analysis and risk management strategies.
Through the platform, users can access various trading instruments, from forex, stocks ETFs, commodities, to a variety of cryptocurrencies, including Bitcoin, Ethereum, XRP, and Litecoin.
Overall comparing to eToro, The ZuluTrade platform is way more professional, and advanced offering far more options and features for trades to customize their signal approach, with highly advanced system portfolio management. The cost for all this of course means it’s quite a bit less user friendly.
That being said, to get started investing with ZuluTrade, cryptocurrency investors can start with a demo account. Otherwise, they should deposit a minimum of $300 into their real trading portfolio.
Zignaly is one of the most advanced social copy trading platforms that is specifically focused on cryptocurrencies and crypto investors.
Zignaly offers a web trading interface that gives investors the ability to create trading portfolios by connecting different crypto exchanges through API keys. Currently, this works only with Binance and KuCoin, but more exchanges are coming soon.
After first connecting exchanges with API keys, the way copy trading works here is that the trader from whom the copier is copying from controls everything that takes place on his trading account as well as that of the copier’s account. The copier only needs to set the maximum funds that they are are willing to commit in copy trading.
And not only can traders use Zignaly for copy trading but it is also set up with much more capable and advanced features such as trading bots and smart trading terminals.
Setting up your automated copy trading is also an extremely easy process. You just need a Zignaly account, connect your exchange with API keys, and choose the best traders from the marketplace.
All in all, Zignaly is an amazing platform for copying other traders and can definitely remove the stress generated by highly volatile markets like cryptocurrencies tend to be.
Wunderbit is another advanced cryptocurrency focused social copy trading platform.
Wunderbit comes with its own built-in crypto exchange for purchasing Bitcoin and other cryptocurrencies. And with a sophisticated web trading platform where crypto investors can copy trades from experienced cryptocurrency traders or trade by themselves by creating automated trading bots or by using smart trading terminals.
The trading platform allows access to trading and investing into a variety of cryptocurrencies seamlessly, as it can be connected with several large crypto exchanges, such as Binance, FTX, and Bybit using API keys.
Investors can also easily find and copy the best crypto traders, because of the transparent track records, and easy to use marketplace.
To get started with Wunderbit social trading, you first need to register investor’s account and connect your exchange API keys to Wunderbit from where you can then deposit funds and start copying other traders.
Aluna.Social is a relatively new multi-exchange cryptocurrency social trading terminal.
It then combines that trading platform with integrated social networking features to enable intuitive social copy trading experience.
In addition to copying trades the usual way, copy traders can also counter copy trades, meaning taking the opposite side of any single trade.
Aluna.Social is also putting a higher degree of focus on the user’s social communications by enabling intelligent public information sharing where users can give insights about the markets while building their trading expertise.
The platform also has its own native ALN token system that the platform is trying to use to enable gamification of social trading.
To get started copying professionals with Aluna.Social, you simply head on to the website, and create an account, connect your choice of an exchange through the API process.
BitForex is an established and popular cryptocurrency trading exchange.
The exchange has its own social trading platform that provides a place where the less-experienced traders can copy trades from more experienced traders.
On top of just copy trading, Bitforex is actually quite large and established Bitcoin perpetual and spot trading exchange offering a large variety of cryptocurrencies to trade with.
On Bitforex social trading platform users can find recognized traders and their trading strategies, allowing them to make more accurate decisions on who to subscribe and whos signals to follow.
To get started with BitForex is pretty straightforward, you just create a Bitforex account, and then deposit funds to your social trading platform, from where you can choose who you want to copy trade.
Should you use social copy trading platforms?
Whether you are new to the world of cryptocurrency trading or not, it doesn’t really take long to understand just how complex and daunting these fluctuations on markets can be.
With social copy trading crypto investors especially newbies can get huge relief from the stress of constant monitoring of the cryptocurrency markets.
And not only that social copy trading can actually teach valuable lessons over time, as copiers observe how professionals traders trade their money, they can also become more successful and start generating real profits across different exchanges on their own.
These are just a few reasons why social copy trading is a great habit to begin looking into, and obviously, there is more to it, such as the fact that by being away from the markets, you cannot feel the FOMO or panic when the price of Bitcoin tanks.
Copying other traders, also means that your money never sleeps and is working for you 24/7.
And of course, getting started with social copy trading with cryptocurrencies has actually never been easier.
All you have to do to get started is:
- Choose a social copy trading platform, and register an account.
- Connect your Binance account through API keys (unless eToro, ZuluTrade, or Bitforex).
- Pick the most successful trader from the marketplace and follow him.
That’s it, social copy trading will now generate you passively more Bitcoin.
Although it’s really that simple, remember losses are an inevitable part of trading.
Social copy trading is becoming increasingly more popular among the crypto investors who want to start generating passive crypto income over time.
For newbies especially just starting out with their trading journey, it’s no wonder why the copy trading looks so attractive. Everything is automatic, trading works on the background, and takes care of itself, with buy and sell orders running 24/7.
And the same can be applied to the professional trader as well, if you simply don’t have the time to watch charts, it only makes sense to let someone else trade for you, and copy what they do.
That being said, we would still recommend you to gain the knowledge yourself, this way you don’t have to trust anyone else with your trading, and you will learn something no one can take away from you.
To learn everything about trading, and how the markets works, read:
Here’s some other additional articles that you might find interesting:
- Best Automated Smart Bitcoin Trading Bots!
- Best Cryptocurrency Charts For Technical Analysis!
- Best Crypto Trading Apps | Bitcoin On The Go (Listicle!)