Cryptocurrency popularity peaked in 2024, and Trump’s victory in the US election is considered one of the major reasons. With more sophisticated and friendly trading opportunities awaiting, the number of investors in the crypto platform tends to rise only.
The rise in popularity of crypto coins has increased the number of beginners or inexperienced traders who need help understanding the trading pattern, which has raised the importance of crypto copy trading platforms.
What is Crypto Copy Trading?
Crypto copy trading is a method where new and inexperienced investors mimic the trading patterns of experienced and popular traders. By utilizing a copy trading strategy, newbies can copy the trading strategies of successful traders, helping them gain more knowledge on crypto trade and build their own strategies later. Crypto copy trading is also known as mirror trading or social trading.
There are many crypto copy trading platforms available where new investors can make a trade without the need to constantly monitor the market by themselves.
Top Crypto Copy Trading Platforms in 2024
1. Binance
Binance is one of the leading crypto copy trading platforms offering a wide collection of digital assets and a user-friendly interface, allowing a seamless trade for both experienced and novice investors. The diverse trading strategies and market opportunities provide traders with ways to enhance their profit.
Merits of the Binance platform
- A large number of digital assets.
- Worldwide acceptance.
- High liquidity.
Demerits of the Binance platform
- Transaction fees for small trades are relatively high.
- Location-based restrictions on certain digital assets.
- Accounts of copy traders are not internally vetted.
2. Bybit
Bybit is a popular crypto copy trading platform that serves investors with a unique opportunity to trade, users can either copy other people’s trading patterns or get access to get copied. There are a large number of experienced traders available on the platform, allowing new investors to choose a strategy from a large collection of traders.
Merits of the Bybit Platform
- User-friendly interface, allowing seamless interaction.
- A large number of trading strategies are available.
- Personalization and fund allocation features are available.
- Investors are provided with online assistance for clearing doubts.
Demerits of Bybit platform
- Trade is restricted for US citizens.
- Integrated with a single exchange, restricting access to a large collection of assets.
- Accumulation of fees over time.
3. eToro
eToro is a popular copy trading platform that allows new investors to mimic the trading strategy of successful traders in real-time. With a large number of trading strategies available, users can filter them based on risk level, efficiency, and trading pattern to apply them to an individual’s trade.
Merits of the eToro platform
- Users can interact with successful traders through chat.
- Intuitive design, providing seamless interaction to beginners.
- Diversification of assets.
- Reduced risk.
Demerits of the eToro platform
- Spreads on the platform are relatively high.
- In addition to the withdrawal fee, the inactivity fee is also included after 12 months of inactivity.
- Availability is restricted in some countries.
4. Coinbase
The Coinbase platform offers beginners and experienced traders an intuitive interface to interact with. The platform offers robust security features and supports a large number of crypto assets. The learning tools provided by the platform allow new investors to learn the fundamentals of crypto trade and also copy the trading strategies of successful traders. The learners who complete the education modules are rewarded with crypto tokens.
Merits of Coinbase
- A User-friendly interface makes trading easy for beginners.
- Wide range of strategies and educational resources for understanding crypto fundamentals.
- Supports a large number of crypto assets.
- Offers passive income generation opportunities.
Demerits of Coinbase
- Transaction fees are high compared to other copy trading platforms.
- Inefficient customer service.
- The platform holds the user’s private keys, which means the platform has complete access to the investor’s assets.
5. Phemex
Phemex is an innovative crypto copy trade platform that provides a comprehensive leaderboard depicting the list of top traders based on win rate, profits, and successful trading approach, allowing investors to choose the trading strategy easily and accordingly. Users can follow multiple trading approaches at a time. The intuitive interface offered by the platform makes crypto trading easy for newbies.
Merits of Phemex
- Comprehensive leaderboard of successful traders, allowing investors to choose the best strategies easily.
- User-friendly interface.
- Competitive trading fees.
- Availability of trading bots.
Demerits of Phemex
- Mainly focus on derivatives trading.
- Copy trading feature is newly introduced in Phemex, making the number of experienced traders available less compared to other established platforms.
- The minimum withdrawal amount is mandatory.
- Withdrawal charges are included.
Final Thoughts
Copy trading platforms are a ray of hope for new crypto investors, allowing them to follow the strategies of well-known and successful traders enhancing their chances of increasing their profits. However, the platform includes transaction fees, withdrawal fees, and spreads putting investors in a dilemma of whether to opt for copy trading platforms or other cost-effective exchange sites.