Copy trading has long been an essential tool for people who wish to earn money trading in cryptocurrency but lack the necessary knowledge. Or the trader has experience but lacks the time to monitor the situation on the cryptocurrency market, look at charts, and use technical analysis tools to predict which way the market will go.
Let us remind you what copy trading is. It is a copying of deals made by skilled traders. For example, if a specialist does copy trading on Binance and buys 10 DOT tokens, you will do the same. If the DOT price goes up, and he sells them, the transaction will be duplicated on your trading platform as well.
In turn, traders on the platform benefit from expanding their subscribers. In addition, it allows them to earn passive income in the form of commission from each follower.
Thanks to the popularity of copy trading, there are a lot of copy trading services, which allow copying trades of experienced specialists. Anyone who wants to know how to copy trade crypto can register at such a platform and choose a professional trader to earn high income.
Platforms for copy trading
As it is possible to understand from the name, this is the special software in which, besides the majority of functions, the possibility of copy deals is realized. Such software work according to the scheme: a user registers on the platform, connects his trading account through an API and copies deals of the chosen trader.
Platform is a software or a website, so the question may arise – what is the difference between a platform and an exchange, because I can trade cryptocurrency on both of them? Actually, the answer to this question is quite simple. An exchange is a place where you can buy and sell cryptocurrency. It acts as an intermediary between the seller and the buyer and guarantees the honesty and legality of their transactions. The platform, as we mentioned above, is an intermediary between the exchange and the users, providing them extended functionality.
Based on the foregoing, there is another question – why do we need a platform, if there are stock exchanges? The answer is also quite simple. For example, you want to work simultaneously on multiple exchanges, but you do not feel comfortable switching between software or browser tabs. To solve this problem, you can connect all three accounts from your exchanges through API to one platform, and work from one place. Here’s another example – you want to start copy trading Kucoin, but you don’t like the interface of the Kucoin exchange. So to connect an account from that exchange to your trading platform will be ideal.
Choose the platform you need to consciously and carefully. It has to fit your trading style, your market and your goals, and it has to be comfortable, reliable and safe for you to do any transactions like copy trading Binance futures or whatever.
What should be the best platforms for copy trading?
So, you are going to choose platforms on which you plan to start copy trading crypto. What parameters should be used to choose it, and what exactly should you pay attention to?
We will list the parameters in order of importance, from most to least.
Security and legality. It does not matter how convenient the platforms will be or how cheap they services are. None of this will matter if it does not have a security system that will reliably protect against hacking and losing your money. For example, the WunderTrading uses world-class anti-money laundering procedures, as well as the latest generation hardware designed to keep you safe from losing money or unpleasant meetings with scammers.
Reliability. We decided to put this parameter second in importance, because your income depends on the reliability of the exchange – as in the first case. In other words, the work of the trading platforms should not be interrupted for a second, because the speed of transactions in some cases is critical.
Usability. How comfortable you are with the platforms affects how many fewer mistakes you will make and how much more money you will earn. Imagine that you need to make a quick decision, but the necessary button is not at hand, or it is located in such a place that it is almost impossible to notice it immediately. While you are looking for that button, the deal can close, and you will lose money.
The number of exchanges to connect. If you want to trade on several exchanges, it is important that the platforms you choose support each of them. This will definitely be mentioned on the platform’s website, so read this information before you make your choice.
These are the main parameters to look for if you want to choose the best platform. We advise you to work with several copy trading platforms before you make your choice, so you can get a feel for how convenient, reliable and safe an exchange is. Especially for this purpose, many platforms provide a demo mode.