The thing about the copy trading platform is that it is vast, which means that there are many different ways that you can invest your assets and make sure that you have a stake in the pie.
Suppose you are relatively new to the cryptocurrency world. In that case, you probably don’t know all the terms and phrases, and you probably want to learn them so that you can use them to your advantage and find the best cryptocurrency trading strategy for your needs.
Today we’re going to talk about copy trading and why you might want to use this method, as well as take a look at the best cryptocurrency copy trading platforms and apps in 2022. There are the following copy trade platforms.
FXTM is home to over 2,000,000 traders and offers excellent execution statistics confirmed by Big Four accountants PricewaterhouseCoopers Limited (PwC). The commission-based cost structure remains one of the most trader-friendly of any broker. A loyalty program with a maximum of $10,000 allows active traders to further reduce costs. FXTM Invest takes care of copy trading, and FXTM has a dedicated guide on maximising returns. Education is a core aspect of FXTM and was awarded as the Best Education Provider 2020. It also provides quality research and expands its portfolio of products and services.
- Excellent environment and transparency of commission-based forex prices
- Enhanced MT4/MT5 trading platforms plus proprietary mobile trading apps
- Quality market research and educational content for beginning traders
- Own copy trading platform, low minimum deposit and high leverage
- Limited choice of cryptocurrencies and commodities
2. BlackBull Markets
BlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker that offers raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and provide maximum leverage on some forex currency pairs of up to 500 to 1. In addition to its global headquarters in New Zealand, BlackBull Markets also has offices in New York and Malaysia. BlackBull Markets offers a relatively narrow range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, oil, natural gas and six major stock indices. This should be sufficient for traders with more focused strategies that do not require broad diversification.
BlackBull Markets Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-level pricing for retailers through custom price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage up to 1:500
- Limited deposit options
Eightcap Pros & Cons
- Low minimum deposit and high leverage up to 1:500
- Competitive cost structure
- Excellent technological infrastructure and an experienced management team
- Daily research and quality educational content
- Limited leverage in some areas
How to reduce the risks when using the eTro CopyTrading
Even the best traders can make bad trading decisions. Therefore, eTro CopyTrading still comes with a risk. Here are some ways to lower your risks when using eTro CopyTrader:
- Diversify your portfolio. The more you diversify, the more the risks of your investments will be spread. You can learn more about this in our CopyPortfolio section.
- Always stay up to date with your copied positions. Just because you’re copying an experienced trader doesn’t mean you’ll give them all the investment cards.Make sure to regularly check his profile to stay up to date with his trading strategies.
- Take note of the risk score of the trader you are copying. The risk score assigned to each copied trader ranges from 1 to 10, with number 10 representing the highest risk, while number 1 is a shallow risk.These high-risk scores are based on your trading activities. Remember that a high profit can also imply high risk.
So you can start with someone with a risk score of 5 and work from there as you become more familiar with eToro’s CopyTrader feature.