With the current macro environment causing global markets – especially cryptocurrencies like Bitcoin, Ethereum, and altcoins – to experience panic-inducing volatility, copy trading is increasingly growing in popularity. Investors and traders know there is a once-in-a-lifetime opportunity in front of them, yet often struggle to navigate the explosive price movements, so they turn to alternatives where others can steer the turbulent ship for them.
Copy trading creates a potentially profitable scenario where less experienced or skilled investors and traders can copy the trades of those who do exhibit the survival skills necessary for today. Because the copy trading experience differs wildly on a platform-by-platform basis, we have singled out two of the top copy trading platforms today and placed them head-to-head for a new 2022 comparison.
Read on to learn which platform offers the best copy trading experience in 2022: PrimeXBT or eToro.
What Is Copy Trading?
Copy trading is an interesting concept that has evolved over time, growing from the fact that less experienced traders or investors often look toward more experienced and knowledgeable people for strategies or insights. Since the emergence of social media, this idea blossomed into serious demand and an innovative way for the trading community to interact.
Copy trading is unlike social trading, where the unskilled must attempt to interpret the charts or signals of influencers or analysts and put the strategies to work in markets. This leads to losses due to a lack of risk management skills or lack of understanding overall. Plus, can you really trust that the pseudonymous crypto influencer on Twitter you got the signal from isn’t trading against you?
With copy trading, the software connects the follower’s account with the trader they want to copy. The system then autonomously copies each trade, booking profit or losing capital when the followed traders do. The trader being followed earns a portion of the follower’s earnings, while followers can sit back, relax, and let the trader do the hard work for them.
PrimeXBT Vs. eToro: The 2022 Copy Trading Comparison
Copy trading has since become an essential feature for each of these two top trading platforms, with the community aspect of each brand’s service helping the companies to grow rapidly. Both are clearly innovators in their respective market niche, but which service should you try first if you have to choose?
PrimeXBT is a pioneer in the copy trading space, having launched the first working instance of a copy trading solution for the crypto industry back in 2020 in partnership with licensed and regulated European fintech developer Covesting. The Covesting copy trading module separates users into strategy managers and followers.
eToro is a popular investment platform focusing primarily on traditional markets, yet recently adding crypto to their CopyTrader offering. CopyTrader is a more social-first platform, where traders must apply to be picked out of the platform’s “Popular Investor Program.” The rest of the users can only access the part of the platform that lets them copy these popular investors.
PrimeXBT does offer a community for discussion and sharing ideas and strategies – even news articles – in the Covesting Telegram channel. However, the Covesting copy trading module filters out the unnecessary noise from the actual trading experience. Followers must rely on pure performance data to inform them on which strategies to follow.
With eToro, the social-forward feeds too often distract from the primary focus of copy trading, and that is to make money. eToro tends to be a popularity contest, where the loudest users receive the most followers. Of course, there are plenty of skilled traders among the bunch, but it makes it a lot more challenging to know who is legitimate and who is using the platform as their personal soapbox.
PrimeXBT is an all-inclusive platform letting anyone who wants to open up a strategy manager account or follower account do so. Although this means an unskilled strategy manager could create an account, the system’s ranking system would automatically filter this new trader to the bottom of the list unless they began to grow their ROI. The leaderboards keep traders honest and trying their best.
Because eToro works on an application basis, the audience is severely limited, and the options followers have in front of them are as well. All legends have to start somewhere, and because eToro is only hand-picking the most popular traders around, the next Paul Tudor Jones could be turned away mistakenly. What a waste of potential!
PrimeXBT lets the best of the best stand out with fully transparent performance metrics for all strategies. Followers can also follow multiple strategies at once and use stop-loss or take profit tools to manage risk and secure profit. PrimeXBT also has integrated the COV utility token, which gives both strategy managers and followers additional savings or benefits with a COV token membership activated.
eToro also provides stop-loss tools and ways to pause the copy trading until you are ready to resume. eToro’s solution takes the slight edge in visual presentation, and both platforms are proven reliable and trustworthy.
Head-To-Head: Which Copy Trading Platform Is The Best?
When putting PrimeXBT and eToro copy trading solutions head-to-head, the deciding factors are the community and the results. The PrimeXBT community produces results, and the results speak for themselves. If you search the internet for sensational stories of success related to eToro copy trading and then do the same for PrimeXBT and the Covesting copy trading module, one platform will appear in news headlines where traders made a fortune while the other platform is nowhere to be found.
PrimeXBT strategy managers have a proven 90,000% ROI to boast about, while eToro traders are posting two-digit returns in contrast. eToro’s popularity-driven model limits the platform’s potential, as well as the earnings potential of its users. Skilled traders who haven’t yet made a name for themselves cannot get a chance to shine with eToro, and followers miss out on a potential winner. With PrimeXBT, everyone can get involved, and the system filters out losers naturally.
If you are tired of mounting losses due to market volatility, consider trying one of these copy trading platforms in the future and let another trader do the hard work for you.