Overview of Copy-Trading Services on Crypto Market
Copy-trading, also known as mirror or social trading, is a service that allows a trader (follower) to monitor strategies of other successful traders (master).
Due to the fact this type of trading is becoming increasingly more popular, we decided to make a short overview of such platforms.
In terms of fees, eToro looks the most interesting – 0.75% – 2.9%. It also is a highly regulated broker (FCA, CySEC and ASIC). Some cons could be inactivity fees and no crypto deposits.
From another side, Shrimpy allows connecting to all your crypto exchange accounts to automate copy trading strategies. API trading removes the risks of depositing assets to the broker’s balance, and also prevents the possibility of a price squeeze inside the broker.
Naga is another regulated social trading platform, that back in 2017 launched its NGC token and raised over $50 million on ICO. Despite being a crypto-friendly company, the platform allows users to trade only 12 cryptocurrencies and has a high minimum deposit.
The last platform, ZuluTrade, is licensed in the European Union and Japan. However, the absence of the ability to trade 24/7, a burdensome minimum deposit, and only 5 supported crypto assets make ZuluTrade less attractive for crypto-traders.
At the same time, BitMax is the 1st exchange that offers a copy-trading service.
The main BitMax benefits for followers are:
- the absence of a minimum deposit;
- direct liquidity from its own exchange;
- automated order placement for copy instructions;
- low-latency processing.
The main benefits for master traders are:
- VIP fee discount;
- trading commissions from referrals;
- monthly reward pool;
- the ability to set a custom price for the follower subscription.
Each platform has its own pros and cons and will take some time to choose which one is suitable. You should be really careful in your choice of the platform, depending on how much control you want to have over the operations.