Today, we will explore the concept of copy trading, also known as social or mirror trading, in which individuals follow the trades of other successful traders. We will review the top copy trade apps and platforms in the crypto, forex, and stock markets, analyzing their features and capabilities. So, whether you call it to copy trading, social trading, or mirror trading, the essence remains the same – following the strategies of experienced traders to potentially achieve similar success.
Why Copy Trading?
Trading is a challenging skill that requires constant effort to master. Unfortunately, not everyone has the capacity or resources to become a skilled trader on their own. A viable solution is to copy the strategies of successful traders, who will benefit when you profit as well. This arrangement creates a win-win situation for both parties, as the trader you follow is also working for their own benefit. In other words, incentives are structured in a way that aligns the interests of both parties.
What makes copy trading so popular among new traders?
Copy trading is popular among newbie traders for several reasons.
1- It allows them to learn from more experienced traders without having to invest as much time and effort into researching and analyzing the markets.
2- It provides an opportunity to profit from the success of other traders without having to fully understand the underlying market dynamics.
3- Copy trading can help new traders build confidence in their trading abilities as they see their account balance grow alongside that of the trader they are copying.
1- Cryptohopper Mirror trading
Cryptohopper mirror trading allows you to fully or partially copy expert traders by subscribing to signalers who send out trading signals for your bot to automatically trade on.
Our marketplace allows you to easily assess the performance of different signalers. You can also use the stop-loss feature to protect against significant losses and the trailing stop-loss to sell at the optimal moment.
Preconfigured hoppers called templates to offer an easier setup option. For more control, try using strategies, which are packages of algorithms that scan the markets for you. You can test the performance of these strategies in the current market by backtesting them.
To set up a copy trading bot, first, create a hopper and connect it to your exchange account. Then, go to the marketplace and search for a signaler whose performance and signals align with your desired exchange, base pair, and coins.
Some signalers also offer their own templates for optimal configuration. Make sure you have sufficient funds in your base currency, as your hopper will use this to buy assets.
You can also try out different templates and strategies to find the best fit for your trading goals. Remember to backtest your strategies to ensure they perform well in the current market.
Pros
- Easily deployable pre-set rules make it beginner-friendly
- Backtesting allows for strategy testing before deployment
- Supports numerous top exchanges, such as Binance, Coinbase Pro, and Kraken
- Copy trading enables beginners to trade like experienced traders
Cons
- A monthly subscription may impact the potential profits of smaller accounts.
- It is worth noting that Cryptohopper does not hold any of your crypto assets, and there is no mention of government regulation.
2- 3Commas
3commas was in second place on our list however it seems to be as safe as should be 3Commas API leak victims demand refunds and apology for ‘gaslighting’
Yuriy Sorokin, Egor Razumovsky, and Mikhail Goryunov founded 3Commas in 2017 as a non-custodial trade automation platform for the cryptocurrency market. Based in Tallinn, Estonia, the platform serves over 220,000 active users worldwide, providing access to a range of services including portfolio tracking, smart, paper, and social trading, as well as a cryptocurrency wallet with support for over 45 blockchains.
3Commas offers several key features, including smart trading tools that allow users to trade across multiple exchanges, manage multiple positions, and access advanced order types like “Take Profit,” “multiple Take Profit Targets,” and “Trailing Take Profit.” The platform also offers an API feature that allows users to monitor and manage their assets on over 18 crypto exchanges.
For those looking to test their trading strategies, 3Commas offers a virtual trading account, known as paper trading, which provides access to historical data and real-time price action within a controlled environment. Additionally, the platform offers educational resources for beginner traders, including guides, tutorials, and blog posts with tips and tricks to improve their skills. Finally, 3Commas allows users to track and replicate other traders’ positions and portfolios through its social trading feature, which includes a crypto signals service.
Pros
- 3Commas supports over 18 major cryptocurrency exchanges
- It offers discounted annual subscriptions and a range of features for both manual and automated trading
- The service is accessible globally and has an intuitive user interface on all platforms, including mobile devices
- There is minimal KYC requirement to use the service
- 3Commas offers a trading academy for non-experts and beginners to improve their skills
- It also has a paper trading account for backtesting trading strategies
Cons
- 3Commas is not cost-effective for small-volume traders
- Beginners and casual traders may not utilize all available features
- No desktop application is available
3- eToro Copy Trading
eToro is a leading social trading platform for forex and stocks and now supports over 16 cryptocurrencies as well. Its advanced features, such as the ability to copy other traders’ actions with adjustable risk levels, make it a unique platform for investing. eToro claims an average yearly profit of +29.1% for its copy traders in 2019.
In terms of security, eToro is fully regulated by the FCA and CySec and has industry-leading protocols in place to protect your funds. However, there are some downsides to consider, including inactivity fees, slow customer support, and a complicated verification process for new users. Additionally, there are currently no options for crypto deposits and a fee for withdrawing funds.
Overall, eToro offers a wide range of instruments and is a reputable, regulated company. However, it is important to note that it charges for spreads and has a fee for withdrawals. Some users may also find the platform complicated to navigate and encounter unprofessional traders.
4- Shirimpy
Shrimpy is a cloud-based cryptocurrency trading platform that offers a range of features, including portfolio configuration, automatic rebalancing, and social and insights tools.
It supports a wide variety of exchanges, including Binance, BitFinex, Coinbase Pro, and Kraken, among others. In terms of security, ShrimpyApp utilizes API key encryption, two-factor authentication, and fully secured HTTPS protocol with SSL.
The platform has a number of pros, including a large number of supported exchanges, automatic rebalancing, and a referral program.
In terms of pricing, ShrimpyApp has a monthly membership fee, with a free Hodler subscription that allows users to create a portfolio and connect to their exchange account. The Professional pack includes all features, including custom index builder, rebalancing, backtesting, social trading, and insights. Overall, ShrimpyApp appears to be a reliable and secure platform for cryptocurrency trading.
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