Crypto trading has grown in popularity in recent years, as have copy trading crypto software and crypto trading bots. This software is an excellent opportunity for crypto beginners to start making money without extensive knowledge and experience.
One of the best places to start your cryptocurrency investing career is on a social trading platform that allows you to invest in cryptocurrencies. In this article, we will discuss some of the best crypto social trading platforms for copy trading in 2022.
What is Crypto Copy Trading?
Crypto copy trading, also known as social trading, is the act of automatically copying another trader’s trades through special software. This is done through copy trading software that allows these traders to connect their trading accounts to the trading network. When a trader in charge of the network makes a trade, other trading accounts connected to the network automatically replicate that trade at a specific ratio set by each trader. Likewise, crypto copy trading refers to copying crypto trades executed by other traders.
Types of Crypto Copy Trading Software
Crypto copy trading software plays an important role in automating the trading process, making it easy for novice crypto traders to profit without having to conduct in-depth market analysis and take huge risks. But not just one type of copy-trading crypto software. Here are the three main types:
Crypto exchange’s Software
This type of cryptocurrency copying software is offered by specialised cryptocurrency exchanges that support multiple cryptocurrencies and cryptocurrency pairs. This allows beginners to benefit from price increases in cryptocurrencies while replicating trades executed by more experienced traders.
Copy Trading Bots
This type of software is often created by third-party companies and can be integrated with certain cryptocurrency exchanges. This software has trading bots that execute trades automatically based on specific instructions. You can also have a crypto copy trading feature to copy another trader’s trades. This software can be free or paid for.
Crypto Broker Software
This type of crypto trading software is offered by cryptocurrency-enabled online brokers and has benefits similar to Crypto exchange software.
Best Crypto Social Trading Platforms to Copy Trade in 2022
Here is a list of the best crypto social trading platforms for copy trading in 2022:
eToro Copy Trader is a social trading software developed by popular online broker eToro to help beginners earn more by copying trades executed by more experienced traders. The popular online broker, eToro, is also regulated by three main regulations: CySEC in Europe, FCA in the UK and ASIC in Australia.
Copy Trader software is completely free to use, you will not pay any fees for copying other traders, but you must have at least $200 in your eToro account to start trading with this broker.
eToro Copy Trading is considered the best copy trading platform as it has one of the largest social trading networks for generating passive income. It is known for its low barriers to entry, favourable trading conditions, excellent functionality and simplicity. It also features one of the most advanced methods of selecting traders to copy.
PrimeXBT is a cryptocurrency exchange that allows its users to trade multiple cryptocurrencies, including Bitcoin, Litecoin, Ethereum, Tether and more. All crypto assets can be bought and sold in US dollars. Although PrimeXBT is not regulated by any regulatory body, it protects users by storing funds in cold wallets and using other security methods like 2FA (two-factor authentication), regular security checks, comprehensive risk assessments, etc.
The broker has developed its own trading terminal called PrimeXBT, which has a built-in copy trading feature for copy trading. PrimeXBT terminals are known for their high-speed operation and advanced functionality.
You can get a decent amount of information that can be used to select traders to copy, such as total profit, profit for the day, number of days they were active, number of followers, their follower equity and performance charts.
There is a fee for using PrimeXBT’s copy trading software, which is only charged if the trader you are copying is profitable. The trader you copy always gets 20% of the profit they make for each follower, which encourages them to trade as successfully as possible. The broker then takes between 5% and 20% of the profits made by copying other traders, depending on the amount you allocate to the copy traders.
Gate.io is a cryptocurrency exchange operating since 2013 and is licensed and registered in the Cayman Islands. It uses KYC type verification, the author’s data encryption protocol, and only cryptocurrency cold storage is available. All these security measures prove that Gate.io is interested in protecting its users’ funds, and it can be considered safe.
Although crypto copy trading software is relatively new, coming out in January 2022, it is already a very popular piece of software. There are tons of great cryptocurrency traders whose trades you can copy on Gate.io. The best of these traders are classified into different categories, such as the biggest winners or the most copied traders, to make it easier for other traders to choose who to copy according to their preferences.
Each trader has a detailed profile that contains information about their rate of return, return amount, the total number of trades they placed, the history of all the trades they have placed, the number of traders who copy them, the total amount of money they invested, and their total return.
Overall, this is great software, and you should enjoy using it, but you need to know that the traders you copy keep 5% of the profits they make for you.
3Commas is a cryptocurrency trading bot builder that helps you increase your profits while reducing losses and risks. This program allows you to make money with minimal effort. It allows you to create strategies by combining more than 20 trading indicators. With 3Commas, you can buy and sell coins in the same window, trade 24 hours a day and replicate the settings of other bots.
Its copy trading software allows you to copy trades executed by trading robots created by other traders. This means you can use crypto trading bots created by other traders. You can also look at a lot of useful information about the bot before you decide to copy it.
3Commas has a free plan with limited features and three paid plans ranging from $29 to $99 per month. Each plan has a three-day free trial period.
Coinmatics is an easy-to-use and advanced copy trading and analysis tool launched in 2018. While their focus is on copy trading, they offer a choice of over 200 strategies, including spot and futures and connect traders and investors to their trade execution services through their automated copying.
Although relatively user-friendly, Coinmatics also offers useful analytical tools for professional traders. As an investor interested in copy trading, you have to open an account, connect your API key, choose your preferred trading strategy and track its performance. As a professional trader, you can open an account, connect your API key and set the commission rate for copy trades. Additionally, thanks to the referral program, both types of users have the potential to earn additional profits by inviting friends to join the platform.
Coinmatics offers three billing plans: Free, Premium and Premium Reference. Additionally, the platform earns a 5% commission on profits from traders, while investors only pay for strategy subscriptions. Some trading strategies are free.
As cryptocurrency social trading grows in popularity, it is important to remember that most retailers (over 70%) tend to lose money. As such, seeking expert help will not always produce the expected results, and you should be aware of the risks. Even experts can be wrong.
However, if you are willing to take risks, expect some losses to learn. If you want to gain a foothold, trading on a cryptocurrency social trading platform is a good place to start, especially if you understand the risks.