Added: 21.12.2020
Edited: 05.01.2023

Copy Trading - Risks, Benefits & The Best Platforms [Safetrading 2023 Guide]

Copy trading is best method for newcomers that has become very popular in recent years. It allows both experienced and novice traders to engage in trading on the cryptocurrency market, allowing newbies to copy the trades of experienced traders with a proven track record and to make money.
I suppose that there were some moments when you wanted to start cryptocurrency trading but every time you have been stopped by the fact that you have no experience.
Am I right?
I know this feeling - I was also such a newcomer who didn’t know what to do, and I was scammed because of the absence of good advice. My first thoughts were "How to start crypto trading with low risks," "What strategies can I use to succeed?" and even "What is Forex and how does it work?"
Today you can easily find great sources of trading info - crypto signals. In this article, we are going to show you the proven method of trading using the knowledge of experienced crypto traders.
Let’s go!

What Is Copy Trading?

copy trading usa

Copy trading is a type of trading where you select a trusted trader and copy his investment.
Actually, our favorite crypto signals can be a part of cope trading as well. There is the only “but” - you never know if the trader invested in the signal he gave you. That is why, it is very important to use only channels approved by Safetrading, and you will be sure everything is fair.
Anyway, today we will focus on mirror trading that is organized with the help of automated platforms.
The process of copy trading Forex or crypto is absolutely simple, so we will not devote half of the article to its description.
Shortly speaking, copy trading works like this:
You register on a platform that supports social trading (it can be either a separate platform or some crypto trading bots), and pay for a subscription to this platform. Then you look for a trader or traders that suit you, subscribe to their signals, define your settings (number of transactions per day, percentage of investment in each trade, and so on), and, in fact, start trading.
The process itself looks very simple but it has some pitfalls that we are going to discuss later.
For now, let's not talk about the bad - let's see what benefits copy trading can bring to you.
Maybe it would be better to trade on your own?

Copy Trading | Benefits

People choose every type of trading relying on its advantages. Of course, you should never forget about risks but still some of them may be possible to avoid.
Let’s start from beneficial features you can have while trading based on other traders’ predictions.

Low initial requirements in knowledge and experience, as well as in start-up capital.

Is copy trading a good idea?

Firstly, since copy trading is best automated method, it takes up a little time: you can simultaneously trade and learn the basics of the market, talk to the trader whose signals you are copying.
Then, even if the trader you choose to copy can invest $1 million, it won’t mean that you also need to fund your account with that amount.
It works like this:
The trader post the signals to buy, let’s say, ADA/USDT and he invests 1% of his capital (0,01*$1,000,000 = $10,000), but, one more time, it doesn’t mean you need to invest $10,000 as well.
Your platform will invest 1% of your capital. Let’s assume you have $5,000 invested. In the signals to buy ADA/USDT $50 will be invested.
The conclusion is the following:
You don’t need to invest a lot. Even if you have only $500, and want to give it a try - no problem.
You will not get high profits quickly in the case you invest less than, I think, $5,000.

Full control over deals.

copy trading benefits

You can select the number of deals, direct or reverse copying, time ranges for copying, as well as disable copying at any stage and bring deals to closing on your own.
Here I want to remind you of the next thing:
Even if you find the experienced trader to copy his signals, you will better not trade blindly. Check your portfolio from time to time (the more often, the better).
It will give you not only the opportunity to learn something but to see the decrease in your profit at a right time - until you lose all the money.
People are people - even the most experienced trader can have a bad period.
The ability to copy signals of several traders at the same time.
mirror trading benefits

This feature is very useful and profitable because:
  1. You have an opportunity to compare different strategies and to see which one is more profitable.
  2. You have an opportunity to receive a bigger amount of trades to copy.
  3. The more trades you have, the more profit you may get.

All the above-mentioned benefits are true if your trader is really experienced or know how to calculate cryprocurrency profit. That is why, I suppose, it will be fair to warn you about the risks of social trading as well.

Copy Trading | Risks

In 95% you can’t be sure the trader is really experienced.
copy trading risks

When you visit Safetrading, you always know that the “approved” trader is the trader we checked and we are sure his signals are profitable.
But when you visit any other platforms or bots, you have only statistics that are shown by the trader himself. You can’t know - maybe he was just lucky to earn the profit because the market was completely bullish.
And when an expert claims to have many years of trading experience, you have no other proofs than his words.
There are absolutely no traders that don’t lose.
That is why if the trader claims he has no losses, you will better avoid him.

Slow processing of deals.

mirror trading risks

The thing is that the platform may be a bit slow, and this will affect your profits.
The trader posted the signal to buy DASH/USDT at the entry price of 87.05.
You entered the deal.
Because the processing of the deal is slow, the platform buys DASH/USDT at the price of 87.85, and this will make your profit lower than it was expected.
The lower speed is, the lower your profits will be.

You need to provide your API Key.

API key sharing - risk

This is understandable - the platform will manage your exchange account.
This moment can be risky only if you set the possibility to withdraw your money.
There are many cases when people gave their API Key to unknown bots or “account managers”, and the money was lost then.
I suppose that was all.
Risks are present in every type of trading, and here everything depends on your accuracy and attention.

The Best Copy Trading Platforms

the best copy trading platforms

According to my research, there are many platforms that offer copy trading features. Among them are:
  1. 3Commas
  2. Kryll
  3. Coinmatics
  4. eToro
  5. Shrimpy
  6. Trade-Mate
  7. Tradelize
  8. Wunderbit
  9. Zignaly
  10. Cryptohopper

1. 3Commas

3Commas is one of the best copy trading brokers offering crypto trading services for beginners and professional users.
3Commas has a simple and intuitive interface that allows clients to get instant access to detailed information on trading results, as well as future predictions of the price of a crypto asset. Read the full review here.
Exchanges: Bittrex, Bitmex.
Price: Up to $49/month
Overall score by Safetrading team: 4.9

2. Kryll

Kryll is one of the top popular Forex copy trading platforms for online traders. The forex copy trading service offers beginners and pro clients several powerful tools to create and test their own trading strategies.
Currently, the company is actively promoting such a service as copy trading and has gained incredible popularity due to the unique "What you see is what you buy" concept.
The forex copy trading service is excellent for those users who want to make money buying and selling crypto assets without staying in front of a monitor screen. Copy-trading by Kryll is a great opportunity to follow the strategies of experienced investors and make money.
Exchanges: Binance, Kraken, Bittrex.
Price: Up to $10/month (depends on holding strategy you choose)
Overall score by Safetrading team: 4.8

3. Coinmatics

Coinmatics is one of the most advanced copy trading platforms. The company has focused all its attention on improving the functionality and effectiveness of its service.
The best copy trading platform has gained particular popularity among novice users due to its high accuracy and ability to perform trading operations in automatic mode.
The copy trading platform's clients are beginners and professional traders who prefer to make money trading crypto assets 24/7.
Exchanges: Binance
Price: 5% of our traders' profit
Overall score by Safetrading team: 4.7

4. eToro

eToro is one of the most efficient сopy trading platforms. Today, eToro offers its clients to trade without leverage. In other words, you can buy and sell crypto assets automatically using your own capital only.
eToro is an excellent option for inexperienced investors who do not have the time and opportunity to learn the basics of crypto trading and still want to make money with profitable financial instruments.
Exchanges: Binance, Kraken, Bittrex.
Price: min. $200
Overall score by Safetrading team: 4.7

5. Shrimpy

Shrimpy is intuitive and one of the most promising copy trading systems that offer highly effective services for newbies and seasoned clients.
Besides the option to automatically manage crypto assets, users can also take advantage of automatic portfolio management and crypto-assets balancing services.
Shrimpy is excellent for newcomers who want to make money on crypto-assets but do not have a fundamental knowledge of trading strategies, investment instruments, or market mechanisms. Read the full review here.
Exchanges: Coinbase Pro, Binance, Kraken, Bittrex, KuCoin, Poloniex, Gemini, BiBox, Huobi, Huobi Global, HitBTC, BitMart, Bitstamp, and OKEX.
Price: Up to $99/month
Overall score by Safetrading team: 4.7

6. Trade-Mate

Trade-Mate is an entirely new approach to copy trading. Unlike other copy trading platforms, the brand offers its clients an innovative ecosystem that allows users to follow the signals of experienced and trustworthy analysts and earn profits day and night.
A client can independently choose the most suitable channels with crypto signals, taking into account detailed statistics and a trading strategy. It all depends on your goals and objectives.
Exchanges: BitMEX, Binance, and Poloniex.
Price: $29- $79/month
Overall score by Safetrading team: 4.6

7. Tradelize

Tradelize is one of the best copy trading brokers. The service is great for pro investors looking to scale their investment in crypto assets. The brand was founded by experienced traders with over 50 years of experience in co-trading.
Copy-trading software by Tradelize has established itself as a reliable service that perfectly adapts to various market changes. Tradelize offers its clients only the most profitable and fully automated copy trading tools.
Exchanges: Bitfinex, Binance, Bittrex, BitMEX, HitBtc, Huobi, Kraken and OKEx.
Price: Up to $399/month
Overall score by Safetrading team: 4.5

8. Wunderbit

Wunderbit is an automated crypto asset trading service. Users can follow the copy trading on cryptocurrencies signals and predictions of skilled traders and have a whole host of valuable functions at their disposal.
Wunderbit offers two of the most popular types of copy trading accounts: "Trader" or "Investor." Depending on the chosen model, you can choose a passive or active type of earnings.
Exchanges: Bybit, Binance, Binance Futures, Deribit, FTX.
Price: Up to $44.95/month
Overall score by Safetrading team: 4.5

9. Zignaly

Zignaly is a new and, at the same time, very powerful trading tool that has appeared in the crypto arena relatively recently.
Today, the top-level copy trading service allows traders to automate most of the routine processes associated with crypto trading and make money from buying and selling crypto assets 24/7.
Notably, the platform also enables clients to combine proprietary trading strategies with those of professional investors.
Exchanges: Binance, KuCoin.
Price: $15/month
Overall score by Safetrading team: 4.5

10. Cryptohopper

Many of you have probably heard of Cryptohopper as one of the most profitable cryptocurrency trading bots.
More importantly, Cryptohopper is also one of the most efficient copy trading services to maximize profits without trading crypto assets by yourself.
Unlike other crypto copy trading robots, Cryptohopper uses algorithms that consider the market situation and price fluctuations throughout the day for maximum efficiency.
Exchanges: Bittrex.
Price: $19- $99/month
Overall score by Safetrading team: 4.5
As you may see, this list contains some of the approved bots we list on Safetrading.
And yes, we can guarantee that the bots like 3Commas, Zignaly, Shrimpy, and Cryptohopper have good and useful functions, the processing of deals is fast, etc.
We can’t guarantee that the traders THEY list for you to copy their trades are legit and copy trading is best in case you work with them.
What should you do if you want to copy trade with any of these bots?
The best advice I can give to you is to look for a trader that is approved by Safetrading.
For example:
  1. 3Commas, Zignaly, and Shrimpy work with… no one of our approved traders.
  2. Cryptohopper works with Fat Pig Signals and All In One Crypto App.

What is about other copy trading platforms?
Among the other ones, I can talk only about eToro copy trading. I know it is a well-known broker, and Safetrading reviewed its activity, by the way.
That is why I suppose (attention - suppose but not sure) that its copy trading stocks or crypto feature can be good and fair to use. Of course, everything depends on the traders they work with.
Coinmatics, Trade-Mate, and Tradelize - sorry guys, I can’t tell you are good. It is not because I am bad but just because these tools were not reviewed, and for me, the safety of my users is the highest motive.

Conclusions: Is Copy Trading Profitable?

In this article, I gathered all the important details about copy trading.
Now you know that the most important thing is your attention. That is why let’s sum up the most important moments:
  1. Use only approved platforms AND approved copy traders.
  2. Check your API settings before you share it.
  3. Remember: every trader loses - even with the most innovative short selling bitcoin strategies.<
  4. Always check your portfolio even if all the trades are copied automatically.

Copy trading is best solution for both novice traders and those who simply do not have enough time to actively trade.
It is also an opportunity to take a closer look at the trading strategies of experienced traders and borrow from them a number of effective techniques.
We recommend this method but want to remind you one more time:
Be attentive while choosing the copy trading app!
See you :)