Copy Trading In Crypto: Is It Profitable?

Crypto copy trading has emerged as a popular method for newcomers, along with busy investors. To get a preview of more experienced trading decisions, before participating in the crypto markets. It allows you to automatically mirror the trades of experienced traders, on various platforms. Essentially outsourcing trading decisions to “experts.” However, is this strategy profitable and what risks come with it?

This article takes a neutral dive into crypto copy trading on major platforms, including; Bybit, Binance, Phemex & eToro. Focusing solely on cryptocurrency trading (no stocks or forex). We’ll explore how copy trading works on these platforms and factors that impact success. We will also cover the key advantages and challenges, to help you weigh the pros and cons realistically.

How Does Copy Trading Work?

Generally there are two options when copy trading in crypto, manually or automatically. When copy trading automatically. You allocate funds to mirror the trades of a more experienced trader, often called a “Master” or “Popular Investor”. When they open or close a position, your account does the same, typically in proportion to your investment. This allows even beginners to trade like pros, by following someone else’s strategy in real time.

The concept began in forex and stock markets but has become popular in crypto. Most platforms such as Binance, Bybit or Phemex. Allow you to browse a leaderboard showing stats like ROI and win rate. You can also view risk metrics to help you choose who to follow. Other apps such as Cryptohopper or Wundertrading, connect via API and automate the process for you. Many operate on a profit-sharing model. That means your leader only earns if you do, which aligns incentives on both sides. ^{(1, 2)}

Key Platforms & Features

Not all copy trading platforms are created equal. Some are built for beginners while others for degens. Additionally, a few manage to strike a decent balance between usability, data transparency and trader flexibility. If you’re thinking of testing the waters. Understanding the strengths and blind spots of each platform, can save you a lot of time and money. Here’s a quick look at four of the most widely used names in crypto copy trading, along with what you need to know about them.

Bybit

Bybit has emerged as one of the most prominent platforms for copy trading crypto futures. With up to 100× leverage and a clean data-rich interface. Bybit is popular among both seasoned traders and those looking to follow them. You can choose how much you want to risk per trade, or just sync directly with the “master’s” strategy. The leaderboard and trader metrics are solid, however U.S. users are locked out. Moreover, there’s a standard trading fee plus a percentage cut to the trader you’re copying.

Binance

As the world’s largest crypto exchange, Binance brings volume, variety and visibility. Their copy trading covers both spot and futures, with tons of lead traders to choose from and detailed filters (ROI, risk, win rate, etc.). The catch? There’s no vetting process. Anyone can become a lead trader, which puts the pressure on followers to do the filtering. Still, it’s one of the most active environments if you know what to look for, and what to avoid.

Phemex

Known for its social trading experience. Phemex offers detailed analytics, and even lets you define specific criteria for which trades to copy. It’s one of the few platforms that lets users shape their own risk profile, before blindly following someone. While the interface is intuitive and full-featured, the platform isn’t US friendly and might tack on withdrawal or usage fees.

eToro

Arguably the most beginner-friendly option, eToro brings regulation, community and transparency into the mix. You’re not just copying numbers, you get to see who these traders are, how they think, plus what their long-term results look like. On the downside, fees are a little higher and leverage is more limited. That said, for cautious or newer traders. The structure and oversight offer peace of mind that’s missing from some of the more aggressive exchanges. ⁽³⁾

Profitability & Risk Factors

Crypto copy trading can be profitable but not without risk, and definitely not without awareness. Whether or not you make money depends largely on who you copy and how they trade. It also largely depends on how much attention you’re actually paying.

In strong markets, experienced traders can deliver gains you can mirror in your account. In choppy or bear conditions, even seasoned pros can struggle. Unfortunately, usually when they struggle, so do you. Profitability is possible, although there are no guarantees. Some users have reported solid returns, by carefully filtering who they follow. Others have watched their portfolio shrink, after chasing top-ranked traders, who turned out to be over-leveraged and lucky.

The risk is amplified on platforms that support futures trading with high leverage. When a trader uses 50x or 100x leverage, both wins and losses hit hard. A trader may look like a genius with a 500% return. Although, not until you see they once dropped 80% in a day. That kind of volatility shouldn’t be ignored.

Fees can also chip away at your profits. Most platforms charge per trade, while many take a percentage cut of any gains. Over time, this can add up. Especially with strategies that rely on frequent small wins. Subscription based services also add another layer of cost.

Copy trading isn’t really passive. It’s also not really a shortcut. You need to diversify, monitor performance and stay ready to pivot. The better you understand that, the more likely you are to use this tool instead of being used by it. ^{(4, 5)}

Advantages of Copy Trading

While copy trading isn’t without its risks, it continues to attract a growing number of users for one simple reason. When used wisely, it offers access to opportunities that many traders wouldn’t, or couldn’t create on their own. Whether you’re new to the space or just tired of staring at charts all day, the appeal is real. Below are some of the most practical advantages, that explain why people turn to copy trading in the first place.

Easy Access for Beginners

Copy trading lowers the barrier to entry. Even if you’ve never made a trade in your life. You can fund an account, choose a trader with a solid track record, then start mirroring their activity with just a few clicks. Platforms such as eToro and Bybit, have streamlined the experience so much. Where beginners don’t really need to understand technical analysis, or market timing to get involved. It doesn’t guarantee success, although it opens the door for people who otherwise wouldn’t walk through it.

Reduced Emotional Trading

One of the biggest pitfalls in trading is emotion. Whether its panic selling, FOMO buying, or holding on too long / round tripping. Copy trading can take you out of that cycle. Since you’re following someone else’s strategy, ideally one that’s based on logic and experience. As a result, you’re less likely to be swayed by impulse or fear. This hands-off approach can lead to steadier results, especially for those prone to overreacting in volatile markets.

Diversification of Strategies

Instead of betting on a single trader or coin. Copy trading allows you to spread your exposure across multiple traders with different styles. From scalpers, swing traders, algorithmic strategies (eg. scripted bot trading) and more. This kind of built-in diversification, helps reduce the damage when one approach underperforms.

Access to Advanced Strategies

Copy trading also gives you exposure to techniques you might not use on your own. These techniques include derivatives trading, grid strategies or automated bots. You’re tapping into systems developed by experienced traders, without needing to build or fully understand them yourself. ^{(1, 6)}

Our Experience

In our experience with manual copy trading. We signed up to a platform that sends regular email updates, from a few well-known influencers. These updates include detailed breakdowns of trades that the influencers are making, pretty much in real time. Some of these trades have led to significant gains (Virtual/Bitboy). Others? Not so much.

As a result, we’ve learned to be more cautious. We take the time to research every trade before deciding to mirror it. Just because someone with a significant following makes a sudden move / trade, doesn’t mean it’s a smart one to copy right away.

For example, If you pay close attention. You’ll notice some influencers will sometimes openly admit, they’re not confident in certain assets. Saying things like, “I’m not great at trading XYZ.” That’s usually a sign to watch, not follow.

Manual copy trading can work, but only if you’re not blindly following every trade. Read between the lines. Do your own homework. Most importantly, trust what you see / research and not just who says it.

Final Thoughts

The short version? Results are mixed. Some users report decent gains by carefully picking stable, low-risk traders. Others get wrecked chasing high ROI leaders. The type who end up gambling with leverage, and losing nearly everything in one bad trade.

The main takeaway, is that copy trading only works if you treat it seriously. The people who do best are the ones who research trader history, look at risk metrics and diversify across multiple accounts. The ones who follow blindly, usually don’t last as long.

Community advice tends to echo the same themes. Start small, don’t assume anything and definitely don’t treat it like a shortcut. If you’re going to use it, use it wisely. Although if you’re not sure, maybe just watch for a while.

For those trading on Solana looking to track wallets and manually copy traders. Have a look at our review on Axiom Trade, and how it might be a valuable asset to add to your trading bot collection.

For those trading on other chains. CoinStats is an excellent way to track your own portfolio. It also allows you to add top trader wallets to a watchlist, for mirroring or shadowing later.

Page Last Reviewed / Updated: 22-May-2025