One of the best tools for beginners wondering how to start trading crypto without doing their own research is copy trading. This allows investors to freely replicate the trading strategies of successful crypto investors. eToro stands out as the overall best platform for copy trading in the market.
eToro not only provides fully automated copy trading but also supports numerous cryptocurrencies, stocks, ETFs, forex, and more. After opening an account, eToro users can choose from thousands of registered traders participating in the copy trading program.
How eToro Copy Trading Works
To help with decision-making, eToro provides extensive information on each trader, including average holding time, preferred assets and cryptocurrencies, risk profile, maximum drawdown, and most importantly, monthly profit and loss records since joining the platform. With a minimum investment of just $200, users can start copy trading by selecting their preferred traders.
Investors with limited budgets will find eToro’s copy trading feature particularly appealing because trades are replicated proportionally to the size of their investment. For example, if a trader allocates 5% of their portfolio to open a long position in ETH/USD and the eToro user invests $200, the trade will be copied at $10. While traders must pay eToro’s fees, there are no additional charges for using the copy trading tool.
Overall, eToro is a suitable choice for those looking to automate their trading by following and replicating the strategies of professional traders.