What is Crypto Mirror Trading? How to get Started with the Best Mirror Trading Platforms & Strategies
In the past decade, cryptocurrency has become one of the most popular investments, with people from all over the world buying and selling digital assets. However, for many people, the process of buying and selling cryptocurrencies can be confusing and daunting.
Enter crypto mirror trading. Crypto mirror trading is a type of investing where you copy the trades of more experienced and successful investors.
If you’re looking to get started in the world of cryptocurrency mirror trading, then this article is for you. Here, I’ll give you a rundown of what crypto mirror trading is, how it works, and some of the best platforms and strategies to get started with. So, whether you’re a beginner or an experienced trader, read on to find out everything you need to know about crypto mirror trading.
What is Crypto Mirror Trading?
Crypto Mirror Trading is a process of copying the trades of another trader in real-time. This means that when the trader you are copying makes a trade, so do you. Crypto Mirror Trading is a great way to get started with trading cryptocurrencies without having to do all the research yourself. All you need to do is find a good trader to copy, and then let the mirroring software do the rest. It’s yet another technological advance that adds more flexibility on your trading options.
What is the Advantage of Crypto Mirror Trading?
There are several benefits to mirror trading with cryptocurrency and some of that benefits are the following:
1. It Can Help You to Trade More Effectively
Crypto mirror trading is a great way to trade more effectively. By using this method, you can mimic the trades of successful investors and traders. This can help you to make better decisions about when to buy and sell cryptocurrencies. Mirror trading can be an advantage for inexperienced traders, as it can help them to learn from the more experienced trader’s success. It also generally has lower fees than traditional brokerages.
2. It Can Help You to Learn from Other Traders
When you mirror trade, you’re copying the trades of another, more experienced trader. This gives you the opportunity to learn from their mistakes, and also to benefit from their successes. Mirror trading also allows you to trade in the same market conditions as the experienced trader, without having to risk your own money.
3. It Can Help You to Find New Opportunities
If you’re looking for new opportunities in the cryptocurrency world, mirror trading may be for you. It can help you to diversify your portfolio. It can also help you to get involved in new markets without having to do all the research yourself. And, if you find a good trader to follow, it can be a great way to make money.
There are some things to keep in mind before you start mirror trading, though. Make sure you understand the risks involved and that you have a plan for how much money you’re willing to lose.
4. It Can Help You to Stay Up-to-Date with the Latest Information
When you mirror trade, you are following the trades of professional traders. This means that you can stay up-to-date with the latest information without having to monitor the markets yourself. All you need to do is follow the rules and stay disciplined. By doing this, you can take advantage of small movements in the market and make a profit.
5. It Can Help You to Manage Your Risk
Mirror trading is a strategy that eliminates the risk of losing money due to inexperience. Crypto mirror trading is a low-effort and cost-effective way to trade. Covestor charges between .5% and 2% of assets per year, which is lower than the average 1.21% annual expense ratio for mutual funds. Mirror trading removes emotion from the equation and allows for a more experienced trader to manage risk. With mirror trading, traders don’t have to worry about emotional trading that can lead to losses. By using a broker that offers crypto mirror trading, fees are typically kept lower than when trading traditional stocks. Mirror trading removes stress from forex trading, making it easier for new investors.
What is the Downside of Crypto Mirror Trading?
When it comes to trading cryptocurrencies, mirror trading has become a popular option for many investors. However, there are some disadvantages to using this method that potential investors should be aware of.
Not Reliable
This trading method has only been around for 20 years, and due to the short performance history, it is difficult to determine whether it has been successful. Meaning, investors have no idea how these alleged experts will fare in a severe bear market because the great majority of performance records begin after 2009, when the bull run started.
Difficulty to Find the Reliable Trader
One of the biggest problems with crypto mirror trading is that it can be very difficult to find reliable and trustworthy information sources. This is because the cryptocurrency market is still relatively new and unregulated, which means that there is a lot of false information out there.
Quite Risky
Another downside to mirror trading is that it can be quite risky. This is because you are essentially putting your trust in another person or entity when you trade cryptocurrencies this way. If they make a bad call, you could lose a lot of money.
Different Trading Style
The company whose trades you are mirroring may change their style, which may not align with your specific trading style.
What are the Best Crypto Mirror Trading Platforms?
The world of cryptocurrency is filled with a lot of speculation. Many people are wondering what the best crypto mirror trading platforms are. Here are a few that stand out:
1. eToro
eToro is a social investing and trading platform that allows users to trade a variety of financial instruments, including stocks, ETFs, indices, commodities, and cryptocurrencies.
Users can copy the trades of other successful traders on the eToro platform, or choose to invest in a managed portfolio. eToro also offers an Islamic account option for users who wish to trade in accordance with Sharia law.
With over 10 million registered users, eToro is one of the largest online trading platforms in the world.
Pros
- Free trading of stocks and ETFs
- Simple account creation
- Trading online
Cons
- Excessive non-trade fees
- Only one base currency per account
- Customer service needs to be enhanced
2. Avatrade
AvaTrade is a copy trading platform that allows users to trade in a variety of financial markets, including forex, CFDs, and cryptocurrencies. The platform is one of the most popular in the industry, with over 200,000 registered users from all over the world.
AvaTrade was founded in 2006 by Emmanual Marmer and Negev Nosatzki and has since grown to become one of the leading online brokerages. The company is headquartered in Dublin, Ireland, and has offices in 14 countries around the world.
The company offers a variety of features and services that make it an attractive option for both novice and experienced traders. These include a wide range of tradable assets, competitive spreads and commissions, advanced trading tools, 24/7 customer support, and much more.
Pros
- Quick and simple account opening
- Free alternatives for deposits and withdrawals
- Great research resources
Cons
- Offer limited to CFDs, FX, and cryptocurrencies
- Exorbitant late fees
- Normal forex commissions
3. Primexbt
If you’re new to the online trading world, or even if you’re a seasoned veteran, you may have heard of PrimeXBT. PrimeXBT is a bitcoin-based, margin trading platform that offers access to global markets including forex, commodities, stock indices, and cryptocurrencies.
What makes PrimeXBT unique is its Copy Trading feature. Copy Trading allows users to copy the trades of other successful traders on the platform in real time. This means that even beginner traders can tap into the expertise of more experienced traders and start making profitable trades from day one.
Whether you’re just getting started in online trading or you’re looking for a new platform to try out, PrimeXBT is definitely worth checking out.
Pros
- Both traditional assets and cryptocurrencies are available for margin trading.
- Provides leverage of up to 100x and 1:100.
- Both novice and seasoned traders can use PrimeXBT’s outstanding trading platform.
Cons
- Only CFD trading, not spot trading, is offered by PrimeXBT.
4. Naga
Naga is a copy crypto trading platform that allows users to copy the trades of other successful traders. This way, even novice traders can make profits by following the lead of more experienced investors. The platform also provides tools and resources to help users make informed decisions about their investments. The Naga platform has been live since 2017, and has helped many people make money from cryptocurrencies.
Pros
- Licensed broker offering strong deposit security
- The deposit is free.
- Fantastic customer service
- Simple demo signup procedure
Cons
- There are no copy-trading features on the Demo account.
- Broad spreads
- Extra trading commissions
- Charged withdrawal fees
5. Bingx
Bingx is a copy crypto trading platform that allows users to trade cryptocurrencies. The platform provides a user-friendly interface and is designed for both new and experienced traders. Bingx offers a variety of features, including a market analysis tool, a social media platform, and a mobile app.
Pros
- a copy-trading facility that allows novices to view and duplicate other users’ trades.
- a low-cost cryptocurrency trading platform with maximum commissions of 0.2%.
- Markets for leveraged margin and derivatives (up to 125x).
- 24/7 live chat assistance.
Cons
- No support for trading in fiat currencies (third-party purchases only)
- Limited details on security precautions and cold storage for assets.
- Only USDT trading pairings are available for crypto-to-crypto transfers.
What are the Best Mirror Trading Strategies?
When it comes to mirror trading, there are a few different strategies that you can use in order to be successful. Below, we will go over some of the best mirror trading strategies that you should consider using.
One of the best mirror trading strategies is known as trend following. With this strategy, you will look for mirrors that have been consistent with their direction over a period of time. Once you find a mirror that is trending in a particular direction, you will then follow that same direction.
Another great strategy is called contrarian trading. This involves taking the opposite position of what the majority of other mirrors are doing. For example, if most mirrors are selling a particular currency, you would then look to buy that currency.
Lastly, another great strategy is called fundamental analysis. Fundamental analysis is based on the economic fundamentals of a country. It attempts to determine whether or not the currency is over or under-valued and then tries to take advantage of that information.
How Can I Get started With Crypto Mirror Trading?
Step 1: Define your mirror Trading Strategy
When engaging in mirror trading, it is important to first define your strategy. This includes deciding which market you want to trade in as well as how experienced you want your trader to be. It is also crucial to have a strategy that allows for learning and mistakes; after all, hard times are necessary for beginners to improve their skills. The goal of mirror trading is ultimately to make money while learning as much as possible.
Step 2: Find a Reputable Mirror Trading Platform
When it comes to finding a reputable mirror trading platform, there are a few things you need to keep in mind. First and foremost, you want to make sure that the platform is regulated by a financial authority. This will ensure that the platform is following all of the necessary rules and regulations. Secondly, you want to look for a platform that has been around for a while and has a good track record. Finally, you want to make sure that the fees associated with the platform are reasonable.
If you keep these things in mind, you should be able to find a reputable mirror trading platform without too much trouble. Just make sure to do your research and take your time before making any final decisions.
Step 3: Start Mirror Trading on the Platform
To start mirror trading on the platform, you will need to register with a broker that offers this service. Once you have registered, you can log in to the web trader or download a trading platform from the broker’s website.
It is important to find a provider with strong customer support, fast withdrawals, 2FA security and positive customer reviews. You should also choose a strategy and risk appetite before starting mirror trading.
When selecting a trader to mirror, it is important to be selective in order to avoid conflicts of interest. You should look for a trader with a history of success and low drawdowns over a long period of time.
Once you have selected a trader, your account will automatically mirror the timing of the selected trader’s buying and selling activities. The performance of your account will “mirror” that of the professional trader.
Step 4: Monitor Your Positions and Adjust Your Strategy as Needed
When you are mirror trading, it is important to monitor your positions and adjust your strategy as needed. You can do this by using a template to help you get started and by backtesting your strategies. Additionally, you should make sure that you have funds in your quote currency so that your Hopper can buy positions.
Frequently Asked Questions
