If you are starting out in cryptocurrency trading, one of the alternatives that you will find is the copy trading. In this article I am going to show you how you can do it and how a Spanish automated trading platform, Zignaly, does it, so let’s get to it.
1. What is Zignaly?
Zignaly is one of the best-known cryptocurrency trading platforms focused on copy trading in its early days. I say in its beginnings because it is going to be much more than this.
It has been gaining popularity among cryptocurrency traders because it does not charge a monthly fee. With Zignaly you can do algorithmic trading, applying systems and executing orders automatically. Although you can also perform manual trading I will not focus on it in this article.
2. How does Zignaly work? How do I start trading?
Once you deposit funds (I’ll tell you how to do it later) it’s super easy.
In the “Main Panel” option you will be shown four tabs where you can see the open and closed positions, the available balance and how your portfolio is made up, the statistics of your account and the traders you are following and copying.
Then we have the optionProfit Sharing«, which is where the chicha is. By clicking on this option, you will be shown the tab “Marketplace”, where you can see all the available traders. You can filter the results by type of cryptocurrency, by the market to operate (Spot or Futures) and by profitability period.
If you select a trader and click on “View Trader” you can review all the details of their profile. In this new window you will have four tabs: Profile, Statistics, Positions and Wall.
In the tab “Profile“You will find all your information, your social networks, your operating strategy, which cryptocurrencies you operate, the risk of your strategy…
I recommend that you review strategies that are described in detail and have an active profile. I would not pay a profit commission greater than 30%. In the «Profit Sharing» modality you do not pay a fixed amount, only for profit. It is the option that I see as more meritocratic.
in option “Copy Traders”, you will be able to copy the portfolios of the traders who offer their services, but unlike the previous option, most traders charge a monthly fee. Keep in mind that if you connect with a spot account you will only be able to copy those traders who operate in the spot market.
If you are an advanced user, in the section «Signal Providers» you can set up your own strategies based on signals provided by these traders. I do not recommend it because you are trading someone else’s strategy.
And finally, we have the section «Trading Terminal» that allows you to manually trade the cryptocurrency pair of your choice using charts imported from TradingVew. These orders are executed directly in your Exchange account as if you were trading directly from their platform.
In this section you have a wide variety of options to configure your entry orders. You can execute a Limit Order, Market Order or Stop Limit Order. Set the take profit, stop loss or a trailing stop. you can also do DCA (Dollar Cost Averaging) in an automated way, one of the popular ways of buying and accumulating cryptocurrencies, that is, you can buy more cryptocurrencies if the price falls by a certain price or percentage established by you.
3. Fees and commissions in Zignaly.
Zignaly does not charge commissions for the use of the platform. Instead they use a profit scheme called Profit Sharing, in which they receive 5% of the profits we obtain. If the position ends in losses you do not pay commission.
For example, if you select a trader who has a profit commission of 30%, Zignaly keeps the 5% commission, 25% goes to the trader and the remaining 70% of the profits goes to you.
All the fees and commissions that you will pay to carry out your operations correspond to the fees of the exchange where you have your account.
4. What cryptocurrencies can I trade in Zignaly?
Being connected to the main exchanges (Binance, Kucoin…), you can practically trade any cryptocurrency, some of the most popular: Bitcoin (BTC), Ether (ETH), Binance Smart Chain (BNB), Theter (USDT), Solana ( SUN).
You should look at which cryptocurrency pairs the trader you select to copy in your portfolio trades.
5. Is Zignaly a secure platform?
Zignaly, like the vast majority of crypto exchanges, is unregulated. It has two verification mechanisms: password and two-factor authentication (2FA). Of course, our funds always remain in the exchange to which we are connected. Despite the above, it gives me a lot of peace of mind knowing that Zignaly is endorsed or sponsored by Binance (Binance Broker Program).
6. Zignaly Customer Service and Support.
Zignaly gives a fairly complete section with a quick start guide and answers to the most frequently asked questions that will solve almost any doubt, currently it is only available in English. Here I leave the links if you want to take a look.
You also have a chat with which you can open a ticket with any questions you have and they will answer you via email.
7. From which countries can I operate with Zignaly?
Basically you can operate from any country in Latin America and Europe. The only countries with limitations to operate are: the United States, El Salvador, Cuba and Venezuela.
8. How do I make a deposit? What cryptocurrency exchanges are supported?
The registration process is super simple, an email, a password and that’s it, straight to the main panel of your account. zignaly It automatically opens an account at Binance (Zignaly sponsor broker) to which you will be connected from the platform.
You can use this account or create another one if you want. On the contrary, if you already have an account with any of the brokers compatible with the platform, you can connect to it. The available brokers are: Binance, ascendex, Bitmex, KuCoin Y VCC Exchange.
To add balance to your account you must click on the option “Add Funds” on the main panel. This will take you to a window where all available deposit and withdrawal options will be shown.
If you decide to trade with your exchange account zignalyyou can make a deposit like this:
- Buying cryptocurrencies with your Visa and MasterCard credit card, through the popular platform changelly (I do not recommend it, very expensive).
- Transferring cryptocurrencies from an external wallet.
Although with this option you can manage your funds directly from the main panel of zignalyactually, your funds are kept safely in Binance or on the connected Exchange.
To connect your account, you will need the API Key and API Secret of your account. You will find these API keys in the profile of your exchange account where you have said account.
Regarding the withdrawal of your funds, you can withdraw to a wallet without problem.
9. Conclusions
Although it is often spoken of zignaly as if it were an exchange, this is not so. It does not store the funds.
One of the points in favor is the ease of using its platform, even if you do not have much experience in trading.
If you follow a trader, verify his strategy well, that he trades the cryptocurrency pairs that you see well, that he is consistent in the benefits and in following his strategy. It is important that it has constant growth and that it is not due to a few winning trades. Avoid martingales.
One of the main disadvantages is that it is very young and they are developing. Obviously you can already do everything I have told you about, but they are constantly growing and changing.
Another point to consider is the number of exchanges available, only five.
Despite this, zignaly It is the best option we have found to apply our algorithmic trading operations here. If you use another, I’ll read you in comments.
And finally, as always: only invest money that you can afford to lose.