For those new to the world of digital currencies, being able to lean on others when entering the trading arena is a huge benefit. Akin to legacy “copy trading,” where a novice forex trader will copy experienced traders’ plays, mutual or social crypto trading is a support system that millions find beneficial. It too comes with the copy trading option at most reputable venues.
Mutual trading is a little more than simply copying other traders, although that remains a prime benefit of social trading. Also a process of support and shared learning, it is usually dominated by a collegial attitude among traders. A few really popular social trading platforms or networks rule online, and the best not only allow traders to copy others, they also facilitate access to free signals and the ability to set up auto-trading to a greater or lesser extent.
Most digital exchanges have a thriving community surrounding them, and these supporting groups can also prove an invaluable source for new traders to glean tips, intel and copy trades by others. Especially the decentralized exchanges facilitate this kind of mutual sharing.
A trader might be interested in many digital assets, which often makes it unmanageable to participate in several communities in order to glean good intel and experience.
Social trading platforms bring the benefits of community, copy trading and even margin trading down to a single source. Traders save time on technical and fundamental analysis through mutual trading – and can also spread their risks by following several different traders.
Tradeo has been around for a good while. Much as it was a mutual forex trading venue before, it remains a mutual trading venue for forex, shares, commodities, indices, and now cryptocurrencies. Signals are free and real-time on Tradeo, and the site has a sterling reputation as a genuinely helpful resource and activity space for traders.
Traders can copy other traders from anywhere in the world. Importantly for cautious newcomers, traders on the platform can be viewed in terms of their following and volume or profit metrics. Users trade bitcoin and other virtual currencies, and are able to see how many others are following their trader, and what they’ve made for their efforts overall.
The site is intuitive and welcoming, while also containing essential technical tools and insights from the constant community dialogue. Traders can tweak copied trades to the extent they wish, and also access daily technical analysis posts on the platform.
Recent histories are smartly laid out for traders to make informed decisions before picking a direction to trade on any given digital asset. Market information and mutual support abounds, and many who seek the facility of a social trading venue joined a long time ago and never left, such are the comprehensive benefits of the site for users.
Any newcomer to the cryptosphere is likely to encounter the eToro name, a rising social platform that has now become the world’s largest social trading brokerage. Stocks, indices, forex, ETFs, commodities and cryptocurrencies are all traded here, and users can copy the trades of literally millions of pro traders. The platform has tended to attract diversified traders – those who wish to trade crypto with other assets too.
Entries can also be modest on eToro. A user copying a successful trader who enters a trade, can themselves enter with as little as $1 wagered on the trade. Traders can in fact participate on the platform with as little as $50, but $100 is required to copy others.
Novices can glean exposure to various assets they wouldn’t normally encounter by utilizing eToro, as opposed to the typical route of setting up personal accounts with traditional brokerages. For example, the almost universal minimum requirement to fund a trading account is pegged at $250.
Through eToro, that trader can allocate perhaps $100 of their kitty to following a popular and successful trader. This way, for example, ether trades can be opened in the novice’s account, and in allocating the $100, they can enter ethereum trades with as little at $1 – something not so easily accomplished with so little capital elsewhere.
Professional traders can earn commission based on their following, further quantified through their signaled trading level and total assets under management. Such traders also glean spread rebates, regular monthly payments and other benefits that validate their participation too. The site is intuitive, and after funding their account, new traders simply opt for “Copy People” onsite, and follow a few steps only to get right up in there, behind pro traders on their trades.
Users can also align to other traders based on their risk appetite. A pro trader’s portfolio instruments, following and other trade statistics are all available for easy appraisal. Most reassuringly for many newcomers, users can also run demo accounts until they feel ready to take the plunge into live trading.
eToro also runs the CopyFunds platform, a different model that asks a minimum $5000 investment in a moderate, managed spread of the top cryptocurrencies.
The EU/Japan registered ZuluTrade is another mutual trading platform with some 50 brokers connected to the site from all around the world. The site sports a current 100,000 or more traders that others can follow. Auto-trading is big on the platform, and users are also able to copy the trades of seasoned traders. Users can also open a Profit Sharing account, which shares benefits to all parties.
Users can vet traders to follow based on listed volumes and ROI, as well as earnings for those following that particular trader – a very useful metric. There is also great detail given over by experienced, followed traders that allows users to further investigate trades or trading as a practice. All pro traders have a marked rating, visible to site users.
Pro traders followed on the site are allocated 0.5 pips per traded lot generated from their signals. Here, the minimum deposit is broker-dependent, but averages around $250.
Covesting has grown in popularity as a somewhat different digital exchange. The platform is simply presented and geared towards mutual crypto trading, while also accepting fiat deposits in USD, GBP and EUR. Although not unique as a Covesting feature, the site has become known for allowing capable traders to earn commission through others copying their trades.
Pro traders tie into the native currency – the COV token – and are paid in COV when others follow their trades. There is a copy trading fee that is taken from a user’s account when they enter a copy trade alongside a pro trader. Under the maker-taker model, market makers are levied a 0.15 percent fee, while market takers on the platform pay 0.2 percent.
The platform is also social in the sense of allowing users to suggest coins for listing, and has generated much user loyalty by being a digital exchange with a difference.
The CopyMe platform lets users copy pro crypto traders in real time, on autopilot. Much like other sites, CopyMe allows users to allocate funds to following various traders, emulating their moves at low capital risk to the following trader.
Upon signing up, users will peruse pro traders and vet then according to certain metrics, before allocating a percentage of their holdings to automatically copy those traders’ moves. A followed pro trader allocating, for example, 10 percent of his account holdings to a trade, will trigger 10 percent of the following user’s holdings to place in a copy trade.
While the “copy success rate” is often given out as “100 percent,” it remains unclear what this refers to. The site is intuitive and user-friendly for newcomers. Although a simple offer, many value the narrowing down of the entry point in the model, while pointing to the same technical analysis and input at play in the background, such as is encountered elsewhere.
6. Naga Trader
The Hamburg-based fintech concern NAGA Group AG was established in 2015. The mutual trading platform supports any ERC20 token trading, and the site disseminates news events that influence traders’ decisions more visibly than other platforms.
New users can avail themselves of a demo account loaded with 2, 500 demo credits and familiarize themselves with site protocols and benefits before going live. The site AI also intuitively assists users in managing their portfolios by highlighting relevant data.
The platform boasts the NAGA Wallet facility and also sports a native currency called NAGA. Utilizing the token, users can deposit into SwipeStox markets. Gamers also access the blockchain project Switex, a market for virtual goods.
A far more nuanced portal of trading, transacting and merchandise, the Swipestock facility is where users get to copy pro traders’ activities. Copied traders earn on the site, although users will have to connect their Swipestox account to an external broker in order to trade with fiats. Most users, however, are there for crypto trading.