Copy Trading Crypto

Contributor Image
Written By
Contributor Image
Written By
Christian Harris
Christian is a seasoned journalist with decades of experience. He transitioned from tech journalism to finance to follow his interest in investing. He has been trading stocks, futures, forex, and cryptocurrencies for more than 5 years, becoming an eToro Popular Investor. With hands-on expertise across various assets, he offers valuable trading insights.
Contributor Image
Edited By
Contributor Image
Edited By
James Barra
James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks. James authors, edits and fact-checks content for a series of investing websites.
Updated

From understanding how it works to selecting the best platforms, this guide demystifies the process of copy trading crypto, empowering both novice and experienced traders to replicate the strategies of successful traders in the digital currency space.

Best Crypto Copy Trading Platforms

These are the highest-rated platforms that offer copy trading on cryptocurrencies based on our reviews:

#1 - eToro USA

Why We Chose eToro USA

You can mirror the positions and strategies of up to 100 other traders with the market-leading eToro US copy trading service. Unlike many competitors, eToro gives you more control over your portfolio, allowing you to stop or pause a copied trade at any time. Pricing is also fairly competitive, with only $1 required to copy a position. eToro copy trading is for crypto only.

"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."

- DayTrading Review Team
  • Instruments: Stocks, Options, ETFs, Crypto
  • Regulator: SEC, FINRA
  • Platforms: eToro Trading Platform & CopyTrader
  • Min. Deposit: $10
  • Min. Trade: $10

About eToro USA

eToro is a social investing platform that offers short-term and long-term trading on stocks, ETFs, options and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.

Pros

  • eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
  • Investors can access Smart Portfolios for a more hands-off approach, covering a range of sectors and markets such as renewable energy and artificial intelligence
  • The $10 minimum deposit and straightforward account opening process means beginners can get started quickly

Cons

  • There's no MetaTrader 4 platform integration for traders who are accustomed to using third-party charting tools
  • There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
  • The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools

#2 - DNA Markets

Why We Chose DNA Markets

DNA Markets offers Signal Start, a user-friendly copy trading solution. The tool is easy to use and new traders enjoy the first 3 months subscription-free. On the negative side, it lacks the social trading features you get with more comprehensive apps like eToro.

"DNA Markets is an excellent choice for short-term traders familiar with the MetaTrader platforms. The smooth sign-up process also makes it easy to get started while the $100 minimum deposit is accessible. That said, DNA Markets trails the top brokers in education, research and mobile trading. "

- DayTrading Review Team
  • Instruments: CFDs, Forex, Indices, Commodities, Stocks, Crypto
  • Regulator: ASIC
  • Platforms: MT4, MT5
  • Min. Deposit: $100
  • Min. Trade: 0.01 Lots
  • Leverage: 1:500

About DNA Markets

DNA Markets is a forex and CFD broker established in 2020. The broker operates two entities in Australia and the offshore jurisdiction, St Vincent and the Grenadines. Traders can access 250+ markets, with a Standard account for beginners and a Raw account for experienced traders. The reliable MetaTrader 4 and MetaTrader 5 platforms are available, alongside Signal Start.

Pros

  • Convenient account funding with 7 base currencies, a $100 deposit and a wide range of payment methods
  • Low trading fees with spreads from 0.0 pips in the Raw account and zero non-trading fees
  • 24/5 customer support with response times of <2 minutes during testing

Cons

  • Although it continues to strengthen its client base and reputation DNA Markets lacks the track record of top brokers like Vantage
  • Despite access to MT4 and MT5, there is no proprietary trading app
  • There are limited educational and research tools, reducing its appeal to beginners

#3 - Pocket Option

Why We Chose Pocket Option

Pocket Option hosts a user-friendly social trading service. Available in the platform, you can use the ‘Top Ranked Trades’ leaderboard, among others, to find traders to follow. The social trading solution is also available 24/7 and has active community chats. Tip: check the number of trades made and profit generated over several months rather than comparing providers over a few days.

"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."

- DayTrading Review Team
  • Instruments: Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos
  • Regulator: MISA
  • Platforms: Web, MT4, MT5
  • Min. Deposit: $50
  • Min. Trade: $1

About Pocket Option

Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.

Pros

  • The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
  • Extremely fast and smooth sign-up process that takes less than 2 minutes
  • Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks

Cons

  • The MISA is a weak regulator with limited investor protection for retail traders
  • Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
  • You need to deposit $1000 to access the extended list of 250+ assets, otherwise just 130+ assets are available

#4 - IQCent

Why We Chose IQCent

A copy trading service is pre-integrated into the broker’s web platform, where you can follow and replicate the trades of up to 10 established investors. Where it shines is its ease of use - you simply decide how much you want to invest and hit 'copy'. On the downside, the pool of master traders is narrow and you get limited data on past performance, making it less reliable.

"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "

- DayTrading Review Team
  • Instruments: Binary Options, CFDs, Forex, Indices, Commodities, Crypto
  • Regulator: IFMRRC
  • Platforms: Online Platform, TradingView
  • Min. Deposit: $250
  • Min. Trade: $0.01
  • Leverage: 1:500

About IQCent

IQCent is an offshore binary options and CFD broker based in the Marshall Islands. The brand continues to offer a range of unique account types with bonuses and perks, including payout boosts, TradeBacks and free rollovers. With 100+ assets, around-the-clock trading and 98% payouts, the firm is popular with aspiring short-term traders.

Pros

  • The broker offers up to 98% payouts on binary options, which is more than alternatives like Pocket Option, only offering up to 92%
  • IQCent is one of the few binary options brokers that also offers a copy trading service for hands-off traders
  • There's an accessible $0.01 minimum stake for new day traders with a small budget

Cons

  • The market analysis is very basic with limited technical summaries and insights from analysts
  • IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month
  • The broker is not overseen by a respected regulator, though this is common among binary options firms

#5 - Videforex

Why We Chose Videforex

Videforex offers an integrated copy trading service where users can automatically or manually replicate the positions of other traders. Simply choose a trader and asset class and specify the investment amount.

"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."

- DayTrading Review Team
  • Instruments: Binary Options, CFDs, Forex, Indices, Commodities, Crypto
  • Platforms: TradingView
  • Min. Deposit: $250
  • Min. Trade: $0.01
  • Leverage: 1:500

About Videforex

Launched in 2017, Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.

Pros

  • Videforex allows you to enter positions with just ¢0.01
  • You can easily mirror the trades of experienced investors with low fees
  • Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, which is in line with competing brands like IQCent

Cons

  • US clients aren’t accepted due to legal restrictions
  • No MetaTrader 4 integration
  • The broker isn’t overseen by a trusted regulatory agency

How To Choose The Best Crypto Copy Trading Platforms

Choosing the best crypto copy trading service requires careful consideration of various factors to ensure a reliable and effective experience:

  • Research & Due Diligence: Consider the platform’s reputation, user reviews, and historical performance. Verify the legitimacy of the service, checking for licenses and compliance with regulations. eToro stands out as a multi-regulated and widely embraced social trading platform. I’ve personally used eToro’s copy trading service for years and can vouch for its legitimacy.
  • User Interface & Experience: Assess the overall trading experience of the platform. A user-friendly interface can make it easier for you to navigate, monitor your trades, and make informed decisions. Bybit provides a distinctive copy trading feature, allowing you to participate as either a trader to be copied or an investor seeking to replicate the strategies of others. This platform creates a fun social trading atmosphere.
  • Fees & Costs: Understand the fee structure of the crypto copy trading service. Different platforms may charge subscription fees, performance fees, or spreads. Evaluate how these fees may impact your overall returns and choose a platform that aligns with your goals. Vantage keeps things simple for copy traders, appealing to beginners especially by charging no additional fees beyond the crypto spread.
  • Traders’ Track Record: Evaluate the track records of the signal providers available. Examine their historical performance, risk management strategies, and consistency. Diversify your investments by selecting crypto traders with proven success in different market conditions. eToro excels here, providing you with diverse filters to locate crypto traders, complete with detailed performance information.
  • Risk Management: Assess the risk management features offered by the platform. Look for tools that allow you to set stop-loss limits, allocate capital easily, and manage the overall risk exposure of your crypto copy trading portfolio. These are all features available at Pepperstone.
  • Customer Support: Consider the quality of customer support provided by the platform. Quick and responsive support can be crucial in addressing any issues or concerns you may have during your crypto copy trading journey. AvaTrade is a great option if you want reliable support that is available 24/5 with fast response times based on our tests.
  • Community & Social Features: Some platforms offer social features that allow you to interact and share insights, which can be a great tool for beginners in particular. eToro stands out here as one of the largest social investment networks with millions of users globally, providing helpful insights into crypto market trends.
💡
Tip: Don’t add any funds without fully understanding the features offered by the crypto copy trading platform, including its user interface, ease of navigation, fee structure, and any other costs associated with using the platform.

How To Avoid Dodgy Crypto Copy Trading Platforms

There are many legitimate and trustworthy brokers in the cryptocurrency market, but due to the decentralized and relatively new nature of the industry, there have been instances of scams.

Always prioritize security and due diligence and watch out for these warning signs that we’ve collated following our own experiences in this space:

  • Unclear Fee Structure: Be wary of platforms with unclear or exorbitant fee structures. Legitimate crypto copy trading services are transparent about their fees, including subscription fees, performance fees, and any other costs associated with using their platform.
  • Guaranteed Profits: Be cautious of crypto platforms that promise guaranteed profits. Trading, including copy trading, always involves risks, and there are no guarantees of consistent or high returns.
  • Poorly Designed Platform: A poorly designed or unprofessional-looking platform may suggest a lack of commitment to providing a reliable service. Legitimate crypto copy trading platforms invest in user-friendly interfaces and robust security measures.
  • Limited Information on Traders: If a platform provides limited information about the crypto traders available for copy trading, it raises concerns. Reliable platforms offer detailed profiles of their crypto copy traders, including their trading strategies, risk management practices, and historical performance.
  • Absence of Customer Support: Lack of responsive and accessible customer support is a warning sign. Legitimate platforms prioritize customer service to address user inquiries and concerns promptly.
  • Unsolicited Contact: Be cautious of unsolicited contact, especially if it involves aggressive marketing tactics. Credible platforms do not typically resort to unsolicited messages or pressure tactics to attract users.

How To Copy Trade Crypto

Copy trading cryptocurrency involves automatically replicating the strategies of experienced traders, allowing you to mirror their trades and potentially profit from their expertise in this volatile market.

Here’s how you can get started with this hands-off trading strategy in five steps:

  1. Open a trading account
  2. Select a crypto trader to copy
  3. Allocate your investment capital
  4. Start copy trading crypto
  5. Monitor your portfolio

Open A Trading Account

Begin by selecting a reputable crypto copy trading broker following our guidance above.

Opening an account typically involves a straightforward registration process, where you’ll provide some personal details and, often, verify your identity.

You’ll also need to fund your account. Options for depositing funds often include bank transfers, credit cards, e-wallets like PayPal, and sometimes even direct cryptocurrency deposits.

The initial deposit requirement can vary significantly, from as low as $10 to several hundred dollars, depending on the platform you choose.

Select A Crypto Trader To Copy

Identify experienced crypto traders whose strategies align with your investment goals and risk tolerance.

Platforms usually offer detailed profiles of each trader, including their performance history, risk level, and the cryptocurrencies they trade.

eToro, for instance, clearly displays helpful metrics like returns over extended periods, the number of followers, and assigns a useful risk score.

Table of crypto portfolios you can copy on eToro
eToro – Cryptocurrency Signal Providers

Allocate Your Investment Capital

Deciding how much of your capital to allocate to each trader is crucial. Rather than putting all your funds behind one trader, it’s advisable to distribute your capital among several, assigning a percentage of your portfolio to each based on their risk profile and performance.

For instance, you might allocate a larger portion to a trader with a consistent track record in Bitcoin and Ethereum, while dedicating a smaller fraction to someone with a riskier approach, potentially involving newer, more volatile tokens.

Start Copy Trading Crypto

With your chosen traders and allocations set, the platform automatically executes trades on your behalf based on the activity of the crypto traders you’re copying.

There’s no need for further action from you to execute trades, as the system handles this process.

Monitor Your Portfolio

It’s sensible to monitor the performance of your crypto copy trading activities. This includes reviewing the success of the traders you are copying and staying informed on broader market trends, especially given the volatile nature of cryptocurrencies.

Should a trader’s strategy no longer align with your objectives, or if they start underperforming, consider reallocating your funds to other crypto traders. Conversely, if a trader consistently outperforms, you might want to increase your investment with them.

Copy trading cryptos on eToro
eToro – Platform for Copy Trading Cryptocurrency

Bottom Line

Successfully copy trading in the crypto market requires a blend of careful research, risk management, and a discerning choice of platforms and traders.

With these elements in place, you can navigate the complexities of the crypto landscape and potentially leverage the expertise of successful traders to optimize your trading strategies.

Just make sure you understand the legal and regulatory landscape in your country before adding funds to a platform.

FAQ

The legality of copy trading in the crypto space varies by jurisdiction, so you should familiarize yourself with the regulations in your respective country.

While copy trading itself is generally legal, the platforms facilitating such services may need to adhere to specific financial regulations.

Does Copy Trading Crypto Work?

Copy trading in the crypto market can be effective if you are seeking exposure to the strategies of successful traders without actively managing your portfolios.

However, success depends on various factors, including the skill and performance of the chosen traders, market conditions, and the reliability of the copy trading platform.

Can You Lose All Your Money Copy Trading Crypto?

Yes, there is a risk of losing all your money when engaging in copy trading in the crypto market. The value of cryptocurrencies can be highly volatile, and market conditions can change rapidly. If the traders you are copying incur significant losses, those losses will be reflected in your own investment.

Make sure you carefully consider your risk tolerance, diversify your investments, and thoroughly research the traders and platforms you choose for copy trading to minimize the potential for significant losses.