Paper Trading: How to Practice Risk-Free.
If you’re willing to practice trading as much as possible but don’t want to put your deposit at risk, make sure to read on. This digest jots down core paper trading platforms available on the market and describes each.
When in Rome, do as the Romans do is 100% for trading, as each professional trader has practiced a great deal. Some use paper trading, others exhaust their deposits and regret it later on, and the rest are lucky ones first [they don’t lose], but eventually, even luckers lose — everyone loses.
The only question is whether a trader has enough experience to recover and keep going to make up for losses. Paper trading is a sustainable way to hone trading skills before it’s too late.
What Is Paper Trading?
Paper trading is all about practice. The term derives from times when stock trading was yet physical rather than electronic like nowadays. Traders wrote down their trading ideas on paper and compared them with the real market moves during the sessions. Paper trading is also called a demo account quite frequently.
The essence is the same — instead of trading straight out, you master your skills in a safe manner to put those on real trades later. Paper trading imitates real-world trading, so you can gauge strategies without the risk of losing money.
Why Paper Trading? [3Commas Example]
Here is the list of some possible reasons why you might want to paper trade crypto with 3Commas.
3Commas Developer API tool Practice technical analysis knowledge You can learn how to trade without risking real funds Hone your trading skills and try out new trading strategies to master them. Customize existing TradingView alerts or build your own apps with the 3Commas Developer API tool. Practice with the 3Commas features like advanced trading bots and Smart & forex copy trading signals, aviator.binaryoptionsreview.ru, trading. Up to 100 orders.
Best Crypto Paper Trading Apps & Simulators.
Here are some of the best crypto paper trading platforms to help you learn the basics before risking your money.
3Commas — Best Paper Trade Crypto App.
3Commas is a comprehensive cryptocurrency trading platform that allows automated trading bots, tracks and copies trades of traders, and creates and monitors the best portfolios of platform users.
Unless you have a subscription plan, the paper trading feature is off by default. However, new users get a top-tier PRO plan for 3 days at no charge, which means you can test it out.
Later on, you can refer friends and subscribe a year upfront to get up to a 50% discount and enjoy year-round paper trading, smart & copy trading, and a wide range of automated trading bots.
Here's the list of core 3Commas features:
3Commas uses a web-based platform to introduce an intuitive user interface with a wide range of features and detailed analytics Automated trading is done through API connection with exchanges, which allows the bot to work with any services 24 hours a day; Mobile applications on Android and iOS; Web3 crypto wallet The platform provides a large set of trading tools, and in addition to automated bots, users can create, analyze and test other users' crypto portfolios based on their past performance; Customer support - the platform is available in several languages, and the support team is available to solve any problems 24/7; 3Commas will send you transaction notifications in your browser, via the mobile app, Telegram, or email.
eToro — Best Paper Trading Exchange.
eToro is a multi-asset trading platform that provides access to the stock, CFD, and crypto markets. In addition, the platform made known that they allow users to buy assets without incurring any transaction fee. Instead, you copy the trading strategy of professional traders. This is a great addition for new users to test the waters.
In addition, eToro provides a "virtual portfolio" that users can experiment with while acquiring knowledge about the fundamentals of trading crypto assets.
Currently, only US-based users can trade cryptocurrency, although its other markets, such as stocks and CFDs, are available to everyone around the globe.
Moving on, as a user, you can trade about 20 cryptocurrencies. The paper trading account is a model of the real account. It has everything a real trading account has and allows users to analyze the performance of several expert traders, learn how to use the strategies, and learn how to earn profit from them without risking real money.
Notably, copy trading crypto reddit you don't make any real funds in a paper account either. However, you have access to a $100,000 virtual money and unrestricted access to the trading platform.
TradingView — Best Paper Trading Community.
TradingView provides charts and analysis tools to trade spot opportunities in general markets. TradingView allows you to track your trade assets, get trading resources, spot trades, a chart with fellow traders, and trigger trades directly on their charts.
TradingView offers features like:
Several premade relevant technical indicators like Volume Profile indicators in one click. Candlestick patterns recognition Modified indicator templates Smart drawing tools Many timeframe analysis Auto Fibonacci Retracement.
TradingView also offers an effective paper trading system, unlike some other platforms providing this service — you cannot convert the currency from USD to a different one. Using the Paper Trading feature from TradingView, $100,000 is deposited into your account, and you can always reset it.
CryptoHopper — Paper Trading For Mid-caps.
Cryptohopper is a trading platform that eases the process of trading crypto. It allows users to automate their trades, copy advanced traders, and set signals and alerts directly through the platform.
With every paid package, you have the opportunity to build one simulator — paper trading. This makes it suitable for trying out strategies on your paper trader so that you master the best-performing strategy and use them on your live account.
While signing up, you'll have the option of creating a paper trading account or an actual account, then connecting your preferred exchange account.
You can use one exchange per paper trading account. In case you want a paper trading account on the same exchange for two paper trading accounts, you need to select a different exchange for a second or third paper trader. Otherwise, you can create an entirely new paper exchange account.
In addition, in a situation whereby you have exhausted your deposited balance, you can reset and get a new balance.
Below are relevant stats you might find helpful in creating your paper trading account:
Allowed coins: 75 Interval Time: 10 minutes interval TA search Max open positions: 80 Allowed triggers: 2 All coins for signals: Not allowed.
StormGain — Best Leverage Paper Trading.
StormGain is an advanced cryptocurrency trading and investing platform that offers access to trade several futures markets with optimal leverage up to 200x.
The platform offers paper trading for its users, which allows them to trade using live chart tools and get used to the interface. Using paper trading accounts is free, meaning you don't need to pay for any of its plans to use it.
These accounts are deposited with 50,000 USDT. The platform offers exact features of real accounts on demo accounts as well. For example, you can configure a market and pending order. You can also execute fundamental orders such as stop-loss and take-profit. Likewise, you can set advanced trading orders such as volume auto-increase systems to avoid closing your position after a margin call.
BitMart — Best Technical Paper Trading.
BitMart is a popular trading platform known for crypto assets. It offers various services, including futures trading, staking, and lending services to earn rewards. Upon signing up, you can start with the provided practice account to know your way around the platform before committing real money.
It has a smooth interface built for newbies to trade the crypto spot market. It also offers a simple interface for trading futures markets. The charts are obtained from TradingView, where new traders can access more than 50 technical indicators.
The paper trading interface has the exact design of a real trading account. In addition, you can practice this paper trading account while learning through the collection of educational resources on the site. You can even enter, check out other traders' charts and see how your imaginary portfolio is faring against other traders.
3 Tips for Paper Trading.
Before diving headfirst into paper trading, here are a few final tips that could help you along in your journey.
Paper Trading vs. Regular Trading.
Trading virtual and real money are two different experiences, as subconsciously, you understand demo account burnout won’t affect you in any way. However, you should concentrate and think about your potential once you tame the emotions.
You can start small amounts on your real account parallel with demo accounts to get used to real-life pressure.
Stay Realistic while Paper Trading.
Easy success might hurt your trading. Do not inflate your deposit to play mind games with the terminal. Instead, keep your virtual balance as close as possible to your actual deposit.
Analyze Your Paper Trading.
Wins are good, but not right away and definitely not right away in trading. Record and track all your deals to spot each transaction rather than restoring successful ones by heart. This way, you’ll learn and master trading skills way faster.
Step 1: Create an Account.
Reach out to the 3Commas website and click on Try It Free to get started.
Fill out all the fields required to create an account from scratch. Alternatively, you can use your Apple/Facebook account to pace up and crypto copy trading platforms keep going faster.
Step 2: Set Your 3Commas Account.
If you’re willing to start off using 3Commas paper trading functions directly, you can use a demo account — these concepts are the same.
Read more about enabling demo mode. Please note that paper trading is only available for subscribers. In other words, 3Commas free doesn’t provide a demo account by default.
Closing Thoughts.
Paper trading undoubtedly offers users several benefits, including getting familiar with a trading platform and user interface. It also boosts your technical learning speed.
For both new and experienced traders looking for a platform to try out paper trading, you can choose from any of the above-listed platforms. Then, depending on the market, you're willing to trade live.
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