Crypto Social Trading
In this review, we present you important information regarding crypto social trading. We aimed to investigate this section of the cryptocurrencies market through crypto trading platforms that offer social trading including copy trading. It is essential to understand what is available as social trading offers invaluable products for proper crypto trade learning and passive trading. Covered platforms in this guide are eToro, Blockport, CoinDash, and Covesting.
What is Social Trading?
Social trading allows copying an investment strategy from an experienced trader and making a profit without having financial knowledge. It can be difficult to select the right way to invest, especially in a crypto market. Checking out other traders’ successful moves make that more manageable.
The only decision you have to make is to choose the right investor to copy their strategy. Social trading allows you an insight into their statistics, including performance, profit, and other relevant data. You can use that information to make the right call and start earning money today.
Social Trading VS Copy Trading
Copy trading is often associated with social trading. However, copy trading is just a part of social trading. Social trading includes
- Copy Trading
- Sharing Trading Ideas
- Sharing Trading Results
Beginners can benefit from accessing others’ investment information. On social trading platforms, you can take a look at what the people making a profit are doing and copy that strategy. That way you will increase your chances to have similar results.
Aside from copying strategies, you can also discuss with other users of that platform. That way you can exchange valuable information and come up with the best possible strategy to earn money. If you are a newbie, learning a thing or two from experienced traders will help you immensely.
eToro Social Crypto Trading
eToro is probably the best social trading platform and in addition they are a very early adaptor regarding crypto features. eToro’s history dates back to 2006 when they were established in Israel. Today, they also have their offices in the United Kingdom and Cyprus. With more than 8 million registered accounts, they are a trusted and reliable social trading platform. Read more about eToro in our eToro review.
Registering an account is free and simple. It requires basic personal info and a valid phone number. eToro provides you $100,000 in play money once you register, through an demo account seen below. That gives you the option to get to know the platform and see what strategies might work. There are no trading fees, but you can expect overnight, withdrawal, and inactivity charges.
CopyTrader and CopyFunds are two crucial tools eToro offers to social traders. CopyTrader enables you to copy moves of other investors. You can take a look at users’ performance and portfolio. Turning on this feature will automatically replicate the moves of the selected user in real time.
CopyFunds provides you with a possibility to choose to invest in a specific theme or portfolio. Each fund comes up with a strategy and you can invest if you like the idea. However, keep in mind that the minimum required investment is $5,000.
We have a deep analysis of eToro in our eToro review.
Blockport Social Trading
The crucial thing to consider is that Blockport is still in development. The work-in-progress tag means it is a bit risky to deal with this platform as it has not proven to be reliable. However, it focuses on social trading, which is why it is worth to keep an eye on it.
The idea of Blockport started in 2017. At this moment, it is available in 39 European countries, but the developers promise more to come soon. The good news is that they follow international laws, which makes security their top priority.
Registering an account is free, but you will have to verify your identity. The only fiat currency they support is Euro. After making a deposit, you can start buying and selling crypto coins. Trading fees are set at 0.30% if it is a crypto-to-crypto exchange and 0.5% if it is euro-to-crypto.
The authors implemented a Blockport token (BPT) hoping to raise capital to develop the exchange and finalize the project. You can use it to get favorable trading fees and other premium content. Social features include discussing strategies with other users and following veteran investors.
CoinDash Social Trading
CoinDash has recently launched its Blox portfolio management product. Registering an account takes a couple of seconds. All you need to enter is your e-mail address and password and you will automatically be taken to your dashboard.
From there, you can create as many portfolios as you want. You can add multiple wallet and exchange accounts into a single portfolio. At this point, you can choose between wallets for seven different cryptocurrencies, including Bitcoin, Ripple, and Ethereum. Five exchanges are supported, including Poloniex, Kraken, Bittrex, Coinbase, and Binance.
By following a simple setup, you can auto-sync all these accounts with your Blox app. The tool will automatically track all changes and enable you to watch over all markets simultaneously. The platform is free and available for PC, Android, and iOS. It also utilizes the CoinDash Token (CDT) that you can earn by using the tool and spend to get premium features.
At this moment, Blox does not support social trading. However, checking the roadmap reveals that checking out the stats of all traders and following other investors will soon become possible.
Covesting Social Trading
Covesting started in 2017 with an interesting idea. The European-based developers wanted to bring closer professional investors and newbies. They created a platform that will enable replicating strategies from successful traders to make a profit.
However, the idea was to stimulate skilled investors to come to Covesting. They achieved this by offering a success fee for each profitable trade. If someone copies your strategy and earns money off of it, they must pay you 18% of that revenue. You can check out the exchange’s page in a picture below.
Although the platform sounds perfect for veteran traders, beginners have to deal with high fees included for copy-trading. You have a default 2% charge just for following another investor, while the platform also takes 10% off your profits. On the plus side, you can use the Covesting Token (COV) to cut these fees in half.
Covesting is still in beta phase, but you can register to be among the first users to get access. The platform supports various crypto and fiat currencies. It offers advanced charts and high level of security. While copy-trading comes with high fees, the only charge for trading in the Covesting exchange is 0.02% for the takers.
Conclusion - Crypto Social Trading
In this crypto social trading, we uncovered that there are many opportunities of starters to take advantage of. Many platforms offer copy orders that can come quite handy if you are starting crypto trade for the first time. Many platforms are relatively new or in development, so we advise to keep smaller funds in them as a precaution.
If you are interested in reading more about Crypto Social Trading, read through our article talking about the Best Bitcoin Social Trading – updated March 2019.