In the last few years, cryptocurrencies have thrilled the trading business and we have hundreds of exchanges in the market as of now. Every month, there is a new venture, claiming to be one of the best crypto copy trading platforms doing rounds across the internet.
However, since trading also comes in several forms, we will just stick with copy trading in this article. But, before exploring the popular platforms, let’s just understand the concept first.
What is Copy Trading?
As the name suggests, you ‘copy’ the trading habits and strategies of an experienced trader – it’s that simple.
So, if we talk about the working, please note that a copy trading platform has hundreds and thousands of traders onboard. While most of them struggle to earn more, a handful of experienced traders are already making thousands of dollars every month.
Copy-trading bridges up this gap by allowing everyone to view the strategy of successful traders and if you find them appealing, just link a portion of your wallet funds to that trader’s account and whenever he makes a trade, you will also receive a dividend depending upon the ratio and the rate.
So, let us now have a look at some of the best copy trading platforms in the industry.
They have earned a decent name when it comes to copy trading. Although eToro’s prime focus was Forex and ETFs, they have jumped into cryptocurrencies as well after realizing the scope and are doing pretty well in the field. The tools they offer (under CryptoPortfolios) are quite robust and some newbies have even copied their technology to establish themselves in the market. Please note that eToro also has investment committees, dedicated to managing your portfolios and reducing the overall risk.
A Huge Customer Base
Moreover, if you are curious about their potential in terms of copy trading, please note that eToro is used in more than 140 countries and nests millions of users. Therefore, there are plenty of traders enjoying decent profits and you could benefit from any of them.
Despite being a popular option, eToro facilitates only a handful of coins on the platform (e.g. Bitcoin Ethereum, Litecoin, Ripple, etc.) and it is one of the demotivating factors for those who are willing to diversify their portfolios.
|Excellent customer support||Difficult portfolio management system|
|No slippage||Plenty of unprofessional traders|
|Unlimited demo accounts||Fewer coins|
Don’t forget to read our eToro review here.
It is yet another copy trading platform with growing popularity in the EU and Japan (although foreigners can also use it).
The basic concept is the same but if you want to weight in the extensiveness of their operations, it is worth noticing that Zulutrade has more than 10K traders and apart from that, it also allows you to link up with an array of international brokers.
Meanwhile, there are plenty of filters on the dashboard that you can use to find the best broker. Just to clue you in, these filters include RoI, number of followers, total trading volume, etc. Moreover, you also get to see the net profits made by their followers (other copy traders). Hence, creating a platform with perfect opportunities for newbies and amateurs as well.
What’s Their Unique Selling Point?
Furthermore, the most appealing feature is that you can follow their profit share model. As the name suggests, it enables you to allocate a specific percentage of your profit for re-investment (this is carried out automatically). For instance, if you have made a $100 profit and you set the ratio of profit share model to 25%, then $25 will be invested back and associated with the same trader. Please be advised that the minimum initial deposit is $300 as of now (subjected to change).
On the other hand, the only major downside is that Zulutrade facilitates a limited number of cryptocurrencies, just like eToro.
|Affordable (low fee)||Plenty of unsuccessful traders|
|Variety of brokers||Difficult asset management system|
|Customers can review a trader directly||Minimum initial deposit is $300|
Initially, it started off as a regular crypto trading venture but with the passage of time, Covesting has added many features to make itself a comprehensive platform. It has been a popular choice among crypto traders when it comes to futuristic tools, fast execution time and algorithmic trading.
Multiple Roles Under 1 Account
Furthermore, as soon as your account is verified, you have the option to become a public trader or to follow a model trader and copy his trading strategy. If you are a newbie, it is highly recommended that you follow an experienced model trader instead of pouring in your money and taking a risk.
Do They Offer a Unique Tech Feature?
Covesting has a liquidity aggregator working at its core to ensure that there is no delay in buying and selling orders and both are executed simultaneously. As a result, both public traders and their followers can have their trades executed at the same rate and receive the dividend accordingly.
Since they aim to run the business on the win-win model, the total trading fee is kept at 30% and there are two situations to consider here. In case your model trader does not bring you any profit, you only have to pay a 2% fee. However, in case you get successful and receive a profit, then you have to pay a 28% fee.
A Couple of Considerations Before You Start
- At the time of allocating funds to a model trader’s account, you can only use the native token (COV)
- You can follow up to 20 traders at any given time
- A model trader can have unlimited followers (but they are considering a policy in order to avoid irrational situations where a model trader with only $100 in account builds up a following worth $500K)
|Good customer support||High fee (28% for successful trades)|
|User-friendly||Only native token is allowed for fund allocation|
|Tools are perfectly suitable for newbies||Traders can follow only 20 leaders|
Here comes one of the best crypto copy trading platforms, particularly when we talk about user privacy. Just like any competitive venture, CopyMe also provides a variety of filters that the potential followers can use in order to find the best trader (usually their success rate and previous performance matter the most). Another significant perk is that you can follow unlimited traders and lower the risk factor by benefiting from the trading strategies of several model traders.
Something To Keep In Mind…
Please note that before you start making trades, it is important to have a minimum threshold in your account. As far as the followers are concerned, their funds are allocated depending on the percentage set by the leader. For instance, if you are following ”Adam” (a model trader) and he has allocated a 25% position on BTC, CopyMe will automatically link 20% of your BTC holdings to Adam’s account and fund your wallet with dividends accordingly.
Moreover, as a follower, you have to pay a monthly subscription fee to the trader and they are authorized to charge the copy traders as much as they want (thus creating another earning stream).
|Follow unlimited traders||The leader must define a percentage before a follower allocates funds|
|Various filters to search for traders||Traders specify their own subscription rates|
|Robust security||Supports only 2 exchanges|
Even though Investy is relatively a smaller copy trading platform, it is one of the best options for all types of users (i.e. pro, advanced and beginners). As of yet, they only support a limited number of exchange accounts to keep things under the tab and offer the best experience in terms of security and reliability.
Please note that Investy automatically copies the strategies on these exchanges and then sends back the changes to the respective exchanges. As a result of this feasibility, you do not have to transfer your funds from any exchange to Investy as everything is happening with the help of API keys, without giving Investy any access to the real funds.
TradeBattles – Investy’s New Feature
In order to stir up the market, they have introduced another feature, called TradeBattles. It’s like a game where all traders can participate and the one with the maximum yield is declared the winner and bags up 50% of the total prize pool. The remaining 50% is divided among the participants depending upon their positions.
Investy takes the game to a whole new level by enabling the users to subscribe to different portfolios. As a result, notifications are displayed on their dashboards, showing that the portfolio for a particular trader is rebalanced and it is safe to follow him now.
Despite all these ‘big pros’, Investy charges you $29 if you want to invest more than 0.03BTCs in copy trading. However, there is a free plan as well if you want to play ‘low’ in the beginning.
|Suitable for all types of users||Entertain limited exchange account|
|No need to move funds from exchange to Investy||Exchange connections are not free|
|Earn by participating in competitions||–|
6. NAGA Trader
When it comes to stock trading, NAGA Trader enjoys a decent reputation. Recently, they have entered the crypto niche and offer a variety of features, including copy trading as well. Moreover, in order to facilitate their traders, NAGA also offers a wealth of charting tools, which enable the traders to make efficient decisions by considering all the information.
CYBO Robot – AI Based Auto Trader
Their one of the most futuristic solutions happens to be the CYBO robot and its primary task is to facilitate round the clock trading on AI-based algorithms. Please note that when you create a demo account, you also get to experience the power of this bot for free and if you feel comfortable, you can use it for real, implement your trading strategy in an automated environment and then build a massive following.
NAGA Trader nests all of the popular cryptocurrency pairs and has a very wide user base, thus giving the users a better option to select a strategy and be a part of one of the best crypto copy trading platforms.
|Makes use of AI algorithms||Relatively low site traffic (i.e. fewer members)|
|Allows 24/7 trading (with the help of a bot)||11 pairs only|
|Dummy tokens for practice||The web-based trading platform is very simple|
Basically, it happens to be portfolio management and an automated crypto trading tool. Over the years, Shrimpy has established a decent standing in the market with its robust and futuristic set of technology. For instance, it allows you to link as many exchanges as you want and there are several bots on the platform to make crypto trading a bliss for you.
The Combo of Rebalancing and Copy Trading To Boost Your Earnings
Although the copy trading and rebalancing options are standalone, when they are practiced together, the result could be several times more profitable than conventional copy trading. Moreover, Shrimpy also has a Social Portfolio feature which saves the users from making bad decisions when it comes to choosing the coins at the time of fund allocation. Basically, Shrimpy monitors the trading leaders who have performed best in the last couple of weeks and have cast a decent influence on the platform. Based on their strategies, the Social Portfolio shows the traders a percentage-wise breakdown of all the coins and allows them to select the top-performing digital assets.
A ‘Social’ Hub
Therefore, if we view it from a broader perspective, Shrimpy is more like a social networking site, enabling the users to earn by following different traders. Since the platform is gaining popularity, we can expect it to become quite data-rich in the near future.
Just find a suitable leader and start following him within a couple of clicks to copy their strategies and earn as they do.
How About Portfolio Diversification?
Please note that being one of the best crypto copy trading platforms, Shrimpy is particularly good for those traders who are looking to diversify their portfolio as it nests more than 700 cryptocurrencies (that’s massive) and enables you to connect 15+ exchanges.
Unlike some conventional platforms, Shrimpy takes good care of both, the followers and leaders. The followers are given a wealth of tools to analyze the market and search for the best strategies, but there is a fee associated with availing some of the advanced tools (roughly $9 per month). But don’t worry, even the freemium version contains a vast variety of tools.
Talking particularly about the leaders, they are rewarded for gaining every follower.
|Plenty of unique features||Users may get confused while selecting from a wealth of features|
|Connect unlimited exchanges||–|
|Automatic trading with bots||–|
This German copy trading platform has experienced a boost in its popularity in recent years, particularly because they made very precise choices when it comes to usability. Just to clue you in, their main USP is the remuneration of top traders which incentivizes them to trade with better strategies, remain in the competition and keep a low-risk profile. However, if we talk about their portfolio management system, it is pretty basic, but it is ideal for beginners who are just trying to find their way in the industry.
The leverage is also quite decent (i.e. 1:200) and it implies that if you have just $100, you can buy/invest up to $20000 worth of cryptocurrencies at Ayondo.
Moreover, just like ZuluTrade, they also have a variety or brokers on the platform and as a copy trader, your deposit fee would depend on the broker you partner with.
Despite all these features, Ayondo is not available in the US.
|Simple and intuitive||Not available in the US|
|High leverage||Very basic portfolio management|
|Rewards top traders||The demo account is for a limited time period|
It is among the best crypto copy trading platforms and the features are also quite decent, hence encouraging the newbies to step up their trading game as well.
For instance, Tradeo allows you to create a dummy account and test the whole system before actually pouring in your money. Apart from the fact that it protects your money, this feature also positions you to earn experience with dummy funds.
One of the major perks is that once a model trader creates a strategy and it goes live, he can also seek help from other professional traders on the platform to determine whether his strategy is viable or not. In short, it is a feedback collection system.
However, Tradeo has two major cons – it is not available in the US and offers a very short list of cryptocurrencies.
|Dummy funds for beginners||Not available in the US|
|Free deposits||Offers limited cryptocurrencies|
|Feedback system from experienced traders||Allows only one account type per user|
Therefore, since an array of established platforms have started offering copy trading services as well, we can imagine that the scope for this specific trading type is surging at an incredible pace. One of the best parts is that it can be combined with margin trading as well where users can grow their buying power with minimal principal investment from their wallet and increase the chances of becoming millionaires!
To sum it up, after reading this guide for the best crypto copy trading platforms, it becomes evident that you should always try to diversify your portfolio in order to minimize the risk. For doing that, it’s best to follow as many traders as possible (they must be successful and have a viable strategy) and invest in a number of cryptocurrencies rather than going for a single one.
P.S. Moreover, other than copy trading, if you want a generic review of the top cryptocurrency exchanges, please click here.