The Best Cryptocurrency Social Trading Platforms
Trading cryptocurrencies requires extensive knowledge and expertise. You need to have the right combination of skills to read charts, understand and analyze trends, read whitepapers and analyze reports. Current events and news also have a big part to play in influencing market trends so investors also need to keep an eye on industry news and events happening throughout the crypto industry. Unfortunately, many new traders in the market lack the expertise to gauge the markets and have a higher chance of losing their hard-earned money to scams or poor trading strategies. This is where the concept of ‘Social Trading’ comes to the rescue.
What is social trading?
Social trading is the concept of bringing a social element to trading. While this can take many forms, the most popular is connecting traders who share different strategies and follow the actions of other traders on the same platform.
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In this article, we will discuss the best cryptocurrency social trading platforms available today. Based on the chart above, we can see the top 3 social trading services are eToro, ZuluTrade, and Shrimpy. These trading platforms sustain 13.1M, 577K, and 316k monthly visits respectively.
1. eToro
eToro is a well-known platform which facilitates copy trading. It features some of the best social trading tools you can get in the market. Their platform is best known for trading in Forex & ETFs but with the recent developments in cryptocurrency trading, they have jumped into this market as well.
The cryptocurrencies supported on eToro are limited, which makes it difficult to construct a diversified crypto portfolio strategy. The Platform only supports Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, and Ripple. With over a million users in more than 140 different countries, eToro offers a strong social investing platform.
Social investing on the eToro platform was launched last year with the name CopyPortfolios™. With this feature, eToro offers investors with tools to get their hands on investment committees which professionally manage portfolios, and also connect with top investors who have extensive market knowledge.
Instead of reading extensive news articles and spending too much time on technical analysis users can simply follow the Popular Investor Dashboard, to explore and discover the best strategies to follow. eToro is free to use and join, but there is rollover and withdraw fees for traders.
Sign up here.
2. Zulutrade
Zulutrade offers a social trading platform and network that connects thousands of traders (also called ‘signal providers’) together. Zulutrade is licensed in Japan and the European Union. The largest downside of this platform is the very limited selection of cryptocurrencies. At this time, the platform only supports BTC, LTC, ETH, BCH, and XRP.
Using this platform users can copy traders and their strategies. It allows users to follow more than 10,000 traders and connects them with 50 well-known brokers worldwide. Users can follow top traders by searching them through different filters like the number of people who are following them, their ROI, the total volume traded, etc. Users can also see the profits their followers have gained. For early-stage investors who don’t know where to start, they can simply follow and copy the strategies of other traders on the platform.
There is also a profit share model on this platform. The profit share model allows users to share their profit and perform auto-trades. The trader is paid only when the prediction made results in earning a profit for the follower. The minimum 1st deposit to start trading on the platform is $300.
Sign up here.
3. Shrimpy
Shrimpy is the leading portfolio management and automated crypto trading platform in the market. With a long list of unique features, the platform is one of the only options in this list which provides a comprehensive portfolio management solution. Shrimpy offers bots that provide automated trading across countless exchanges, simplifying the way you manage your portfolio. Among Shrimpy’s best offerings are its rebalancing tools, backtesting suite and Social Portfolios feature which offers investors a wide breadth of options to optimize their trading strategies and portfolio management.
A key area where early-stage crypto traders suffer is deciding which assets to add in their portfolios and choosing their allocation percentages. Shrimpy solves this by offering a great Social Portfolio feature where users can follow the best performing portfolio strategies. The Social Portfolio section gives a percentage-wise breakdown of allocations for each digital asset in the top-performing portfolios made by influential traders who are known as ‘Leaders’ on the Shrimpy platform.
Users can view thousands of strategies and portfolios on the social section of the dashboard which presents an opportunity for them to follow allocation strategies of their favorite Leaders in a similar fashion to following someone on social media. With a single click, users can implement the same strategy as a top-performing trader on the platform and gain the perks of that strategy. One of the best aspects of this platform is the wide support for cryptocurrencies. Shrimpy supports almost 700 different cryptocurrencies across 16 different exchanges. This makes it the most extensive Social Portfolio tool in the market.
Shrimpy’s Social Portfolio feature incentivizes both Leaders and Followers, since followers gain insights into great portfolio strategies and can multiply their trading profits easily, they get access by paying a small monthly fee of $8.99/month (there are plenty of features in the free version as well including earning money as a Leader, automated trading bots, portfolio management, exchange account monitoring, and the Social Leaderboard). On the other hand, the platform will pay Leaders for every follower they gain and retain which creates an incentive for leaders to grow their following.
Sign up here.
4. NAGA Trader
NAGA Trader is known for its stock trading, but has recently ventured into the crypto market by supporting a few crypto assets. It provides a number of features which make trading convenient. It empowers users with features like charting tools, owning a wallet which supports multiple cryptocurrencies and offers a limited number of crypto assets.
Their AI-powered robot CYBO helps users to trade 24/7. It is a crypto trading bot that trades in place of the user by working on the user-specified instructions. When a beginner creates a new account they are also offered demo tokens to get them comfortable using the platform and trading environment.
The trading platform claims a large community of over 500,000 members, although this would be difficult to believe based on their relatively low site traffic. Beginners can follow experienced traders and copy their trading tactics while the traders get profit on the predictions they provide. Users can choose from 11 cryptocurrency pairs BTC/USD, BTC/EUR, BCH/USD, DSH/USD, ETH/EUR, ETH/USD, and pairs for Litecoin, Iota, NEO, and Ripple.
Sign up here.
5. Covesting
For an experienced investor, Covesting can prove to be a useful platform. Unlike others, Covesting started off as a cryptocurrency trading platform. It is a popular platform and offers advanced charting tools, algorithmic trading, and fast execution times. Individuals can use these tools to make trading decisions. Users start trading on this platform by using either cryptocurrency or fiat money but can only trade in cryptocurrency.
Over the last 6 months, Covesting has experienced a sharp decline in user activity as their business was hit exceptionally hard by the crypto bear market. This has greatly reduced their pool of experts who can help beginners on the platform.
There is an incentive model in place where the advanced traders get paid for the expertise they offer to the beginners. These rewards are released once the trade is successfully executed to generate profit.
A list of professional traders can be explored by their strategy type and trading history. There is also a review section where users can write reviews about successful trades earned through copying influential traders which act as a great reference for new followers.
The platform allows you to trade with Tether, Bitcoin, Ethereum, Bitcoin Cash, EOS, Basic Attention Token, Ripple, Litecoin, Dash, NEO, ZeroX, and other smaller cap coins. The currency pairs are only available for Tether, Bitcoin, and Ethereum.
Sign up here.
6. Investy
Investy is a small social trading platform suited for beginners, advanced and pro users. Beginners can start trading on the platform by simply copying the experienced traders, who earn by the followers who subscribe to them. This is what makes it suitable for all kinds of traders (from beginners to advanced traders).
Investy’s platform allows users to connect a limited number of exchange accounts which are used to automatically copy the strategies and propagate the changes to the exchange. Users don’t need to deposit funds on the Investy platform. Investy synchronizes with the exchange account via API keys without direct access to funds.
The platform also features TradeBattles which is a contest between traders, participants can trade with different levels of training, where the winner is decided on the maximum yield during the competition, the winner gets to take 50% of the prize pool, while the remaining is distributed between the remaining positions.
The platform also allows users to subscribe to selected trader’s portfolios and receive signals when its rebalanced. Investy charges users for its exchange connection feature which has a tiered pricing model which starts from $29 for a Starter package going upwards to Ultimate which costs $99.
Sign up here.
7. Tradeo
Tradeo is a lesser-known trading platform designed for all kinds of traders. Even if you’re a beginner, you can easily learn to trade in no time. It provides convenient social trading tools which facilitate copy trading, autopilot, and information on expert traders. Unfortunately, the platform is restricted to a small number of countries outside the United States.
Strictly speaking, it is not really a crypto trading platform. In fact, they only support a small number of cryptocurrencies at all. Instead, it allows users to exchange CFDs on cryptocurrencies. CFDs can be done on tokens like BTC/EUR, BTC/USD, DSH/USD, ETH/USD, LTC/USD, and XRP/USD.
It’s easy to get started by creating a new account, users get access to a demo virtual currency account to help them get familiar with all trading rules. Once they are confident, they can deposit money into their accounts, and start using social trading tools.
These social trading tools allow users to imitate the trading styles and tactics of experienced traders, also there is a feature where users can ask what other users have to say about their techniques.
Finally, users can alter their techniques according to their own preferences. Users can follow professional traders by seeing the followers they have gained over time and how much they have helped those followers to earn a profit.
Sign up here.
8. CopyMe
CopyMe is a platform that lets investors meet with traders. Individuals can copy the advice and the trading strategies provided by experienced traders. Copying traders can help investors manage their portfolios in a better way.
Users can find a trader by looking at their success rate and past performance. Then, follow the trader that meets their trading needs. There is no cap on following traders, users can follow as many traders as they want while the system handles their trading queries.
It’s essential to have enough tokens in your account to make trades. And before users can start following trader techniques, they have to allocate the percentage at which they would like to make the trades.
The copying mechanism works in percentages if a copier is following a trader 100%, who has allocated a 10% position on a certain XYZ coin then the CopyMe copier will automatically adjust a 10% position of that same coin into the copier’s account. Users have to pay monthly subscription charges to the traders (each trader specifies their own rate) for the techniques that they provide.
CopyMe currently only supports Bittrex and Binance exchanges. Since they have been around for some time, concerns have been raised that they may no longer be working on the platform. You don’t have to be concerned about the platform’s security, as the company claims it takes the security and privacy of their users very seriously.
Sign up here.
Conclusion
Among the many tools available to cryptocurrency traders today, social trading has a lot of benefits. It provides early-stage investors access to market data in real-time and gets them connected to expert traders. Instead of following the advice of a single trader, users get a bird’s eye view of successful trades from many experienced traders on the platform. They get to compare their strategy with pros out there and see how well they can perform. There is also an element of transparency involved as successful traders openly share success scores, and the trade history is also easily accessible to all traders who can easily rate and review them based on their experience in following strategies.
In the end, we encourage newcomers to consider the option of social trading in the cryptocurrency market, because the collective knowledge base grows through mutual-sharing and community learning which benefits the overall market and establishes trust among traders.
Build your own Crypto Social Trading Platform
Want to build your own trading platform like the ones mentioned above? Shrimpy actually lets developers build crypto trading applications with the Universal Crypto Exchange Trading APIs. These APIs integrate with all the top exchanges to simplify the way you integrate trading, data collection, user management, and strategy automation.
Get started today with Shrimpy’s Crypto Trading API.
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