“Maximum revenue can be obtained by investors when they join different social groups, which allows them to compare information obtained from multiple networks. In the world of social media, as in real life, the winner is the one who balances between different groups most skillfully.” – FINANCIAL TIMES
While the stock market is already filled with various PAMM-systems and other kinds of copy trading. The cryptocurrency market is just beginning to develop in this area.
Today we want to analyze cryptocurrency platforms that you can follow signals or entrust your funds to traders to manage and how not to lose funds.
We will start with perhaps the most famous social trading platform – eToro, which has launched functionality for the cryptocurrency market recently.
How does it work on eToro?
Trading on eToro takes place under CFD contracts, i.e. actually not cryptocurrency coins, but contracts for the difference in their prices are traded.
After registering on the site, we go to the Copy Traders tab where we see 60 different traders with top-level trading statistics.
By clicking copy, we can select the amount of funds we want to follow with the trader, then you will buy and sell assets. But first we need to replenish the eToro account, it is worth noting that there are no fees on deposit but there is a flat $25 withdrawal fee on funds from the platform.
How to choose a trader on eToro?
To study the trader more closely, we need to go to the trader’s page. It is worth noting that on eToro, the personal page of traders there are interesting, may lack comprehensive statistics. For example, we see the coins that he traded often and the amount of the results of the transaction or how long he uses the platform, but we do not get information about each transaction, entry levels, whether he used stop loss and so on.
How much does it cost on eToro?
The fees for withdrawal on eToro are fixed and the amount is a flat $25.
Also, the fee is charged separately for the transfer of positions on CFD contracts through the night/weekend.
On eToro there is a lack of classical transaction fees, the platform has spreads that users need to pay for the purchase or sale of an asset. On some instruments, the spread reaches 3 percent or higher.
eToro services may not suit HODLers at times, as on the platform, there is a fee “for inaction”. In the absence of any action on the account within 4 months, you will be charged $10 per month.
Traders who are followed receive a fixed income, as well as 2% of the turnover of all ”following” funds, regardless of the level of profitability.
How does it work on trade-mate.io?
Trade-mate.io platform carries out trading through 3 cryptocurrency exchanges: BitMEX, Binance, and Poloniex. All transactions are made through tAPI, which means that all users’ funds are on the exchanges themselves.
After registering on the site and going to the Auto trade tab, we see a list of traders that we can follow. There are about 40 of them.
Here we can judge them by the following statistics:
- deposit growth
- profit – the sum of positive and negative trades
- number of signals
- average profit
- percentage of successful trades
- the speed of closing trades
By clicking on the “Auto trade” slider, the platform allows us to choose the amount we want to follow the trader’s trades цшер, and also ask whether to take profits into account in further trading.
How to choose a trader on trade-mate.io?
To learn a trader’s strategy and his trades we need to click on his channel and here’s what we see:
We are given all the trading statistics for the selected period or for all time. Here, for example, is one of the traders:
Each of the trades can be thoroughly studied by seeing the entry points into the position, the stop loss level, as well as take profits. You can contact traders mainly through Telegram.
It should be noted that each trader has an account on the exchange, which means that he does not just give signals, but also trades like the users who follow him.
How much does it cost on trade-mate.io?
The service charges $15 per month. Also, each trader charges a certain % of the profit that he receives, the average on the platform is around 20%.
The trader receives income once every 14 days, according to the results of his work, if he creates a loss he will have to “work it out” before receiving the next payments.
Pros and cons of eToro and trade-mate.io:
Some of the major eToro advantages are:
- fame of the company and its popularity among traders
- the ability of traders to maintain their blog, where they can communicate with users
- the lack of fees on the income from social trading
- traders post their photos, which increases the degree of confidence in them
Cons of eToro:
- jurisdiction of the company is very limited, it does not work in the US
- fee for withdrawal of funds
- the small number of trading pairs – only 15 cryptocurrencies are available
Pros of Trade-mate.io:
- possibility to study full traders’ statistics
- no fees on the trading terminal for independent trading
- no fees for deposit and withdrawal of funds
- trading real coins at the exchange rate
- it works all over the world because it is not an exchange
- more than 400 cryptocurrencies for trading and futures are available
- in addition to traders, there are also trading bots
Cons of Trade-mate.io:
- to use the platform, you must first register on BitMEX or Binance, Poloniex
- there are fewer traders than on eToro
- there are no other markets except the crypto
Disclaimer: This a paid post, and should not be treated as news/advice.