A surprising amount of newcomers to the crypto industry prefer using social trading tools as an introduction to this exotic financial market. Despite being mainstream since 2018, the cryptocurrency ecosystem is still foreign to a lot of aspiring and experienced investors. It is true that copying market orders placed by experienced users of crypto is a good idea for those who have no prior experience of the blockchain industry.
In 2023, the landscape of the crypto copy trading sector of the automation industry is quite rich and offers a wide range of interesting solutions that may spark the curiosity of any investor with or without experience in the crypto ecosystem.
Identifying the best copy trading platform for crypto
What is a crypto copy trading platform? There are several types of platforms offering their copy trading services to the general public. Each has its own advantages and downsides.
- Brokerage companies. Many Forex brokers expanded their product lineups with cryptocurrency derivatives and even spot trading. Since many had the copy trading functionality already in place, it was a smooth transaction for their existing clients who wanted to try their luck in the crypto market. Some brokers operate in gray zones and may not even give access to the “real” market. Many also limit their retail clients to only a handful of derivatives.
- Centralized exchanges. These often provide a wide range of services acting as all-in-one destinations for retail traders. Some CEX platforms offer margin accounts, spot trading, futures, options, and other financial instruments. It is not a rare occasion to see an exchange also having automation features and copy trading services available to all clients. The biggest downside of using these copy trading products is that you will be limited to the selection of traders and financial instruments available exclusively on the platform.
- Automation vendors. Companies like CryptoHopper or WunderTrading offer their clients an opportunity to use copy trading bots for any exchange they like and often have expansive catalogs of partnered retail traders qualified to be featured as experienced managers that clients can follow. For example, WunderTrading has a special marketplace where you can pick a trader that works on any affiliated CEX platform while sorting them by profitability, risk style, and other metrics.
It may seem quite challenging to pick the right place to start, but the vast majority of people prefer using automation providers for their versatility, flexibility, and the ability to connect to many centralized exchanges that have API.
How to pick a good crypto copy trading platform?
While every single app or website is different, some qualities that separate chaff from wheat can be identified and used to gage the quality and usefulness of a copy trading platform. Here are some things to keep in mind when making a choice:
- User interface and experience. While some people believe that UX/UI is not as important as the architecture of the application and its utility, we argue that the interface often defines how well an app can be used by average users. If navigation and controls confuse you, building a cohesive copy trading system will be a challenge.
- Flexibility and versatility of products. It is great to have an excellent copy trading bot at hand. However, it is even more important to have access to a rich variety of other complementary or relevant products. For example, WunderTrading offers its clients not only a diverse marketplace for social trading, but also preset DCA and GRID bots, customizable scripts, and more.
- Pricing. The biggest advantage that many brokers and centralized exchanges have over automation vendors is that their copy trading functionality often comes for free with the exception of fees and rewards for retail traders whose actions you copy. Price must be considered when making a choice. It is often a good idea to take a trial period or start with a lower tier paid plan to test the waters before jumping in.
- Compatibility within the industry. Many contemporary CEX platforms have application-specific interfaces (API) allowing third-party service providers to directly connect to their backend functionality to place orders bypassing the user interface. An automation platform that you choose must be able to connect to as many exchanges and brokers as possible without compromising the quality of the service.
Other things to consider are the variety of preset solutions, back-testing functionality, brand recognition, and client support. Most industry leaders usually excel at all these metrics and offer a good customer experience. While mirror trading is something that can be implemented with relative ease by many automation vendors, only a handful of companies truly deserve your attention.
The list of the best copy trading platforms for crypto
We decided to put together a list of several companies that you may find quite appealing thanks to their rich catalogs of features and high-quality products. These are discussed in no particular order and offer great experience to their users!
eToro — one of the undisputed leaders
Some call this platform the social network for traders as it offers a wide range of social trading features creating a vibrant community that often discusses the latest trends in the market. It gamified the experience for both users and providers in the marketplace by offering unique rewards and discounts to regulars.
eToro is famous for its availability in many regions and outstanding customer support. However, it limits the available functionality to copy trading specifically and offers little in terms of other financial products and tools. You will also be limited to instruments featured on their platform. With a sizeable selection of 300+ different stocks, cryptocurrencies, and derivatives, it should not be a problem.
Advantages:
- The company has a strong focus on social trading.
- Users are encouraged to share their results and discuss new ideas.
- You can trade over 300 different assets on the platform.
3Commas — expensive, excellent, and elaborate
With its expansive catalog of products and tools that can be easily accessed by users who choose “Pro” and “Advanced” subscription plans, 3Commas offers a great experience to people interested in algorithmic trading on multiple platforms and social elements in their automated systems.
The company is known for its excellence in the technology department, but it can use some improvements in its interface. Many users say that they feel overwhelmed with the complexity of the dashboard and often fail to create something functional due to the excessive sophistication of the platform and its navigation.
Advantages:
- Offers a wide range of automation products on top of copy trading.
- Has a strong technological foundation offering outstanding performance.
- Never leaves its customers hanging when they need assistance.
Shrimpy — portfolio management with a hint of social trading
The main product of this platform its social system and portfolio management tools allowing users to use their crypto index or utilize many analytical instruments at their disposal. The pricing may feel intimidating, but many users believe that the combined utility of copy trading and portfolio management is a good enough proposition for the price.
You can use its portfolio balancing feature to stick to specific risk style and profitability goals. The software will gradually change the composition of your portfolio based on the current market situation. It is a nice feature but can be dangerous to use by inexperienced users.
Advantages:
- A very simple interface that does not overwhelm you with features.
- The portfolio management tool works surprisingly well.
- Some crypto bots can be used for free.
WunderTrading — an all-around great platform for copy trading
The selection of qualified retail traders to follow includes experienced investors working on multiple platforms such as Binance, OKX, Kraken, and many more. You can also sort them by profitability, risk level, name, and other metrics. To start copying their actions, you need to only click “follow” next to their screen names.
WunderTrading also offers a rich variety of preset solutions like DCA, GRID, and arbitrage bots. If you plan to use automation in your investment practices, it is a good idea to pick this platform and focus on exploring its flexible toolkit. The pricing is also surprisingly low.
Advantages:
- Has a diverse and easy-to-navigate social trading marketplace.
- Allows users to build sophisticated automated trading systems.
- Offers a nice selection of preset bots like DCA and GRID.
The main takeaway
When it comes to picking the best crypt copy trading platform, you should never go for new platforms as they often employ shady practices or outright scam people. Use only trustworthy companies offering flexible products while giving you a large selection of experienced traders to follow!