You could be ready to try on cryptocurrency trading, but not ready to put your money on the line yet. This issue plagues both experienced traders and neophytes to the cryptocurrency space.
Fortunately, among the countless trading apps available today there are so many that allow you to carry out simulated trades and you don’t have to worry about losing money. Paper trading, known as simulated trading. Provides traders with the chance to test and correct strategies. If a trader is to make a mistake or not had good enough foresight at present, he then can sell an asset at the current market price or attempt to repurchase it when price rises.
It is trading just like in the live market, except that there is no real money involved.
Below are some recommended platforms for mock trading:
Cryptohopper: Cryptohopper offers paper trading functions and also provides a trading bot system for traders. It might be a bit inconvenient for a beginner to use some of these features.
Listed below are some of the features of Cryptohopper:
- Cryptohopper’s paper trading feature allows for the use of bot which serves as your trading assistant. When you open a demo account with Cryptohopper, you are not confined to paper trading alone; you can train these bot and test your strategy by trading with them also.
- Upon activating your account, Cryptohopper provides a free seven-day trial. You can buy and sell all kinds of crypto assets and experiment with every function in the app for free.
- In your demo account, you can also deposit as much as a hundred thousand of your favorite currency and start buying and selling immediately.
- The downside of this tool is the complexity it presents to users who are not very experienced at trading and also the added cost of getting more signals.
TradingView: Completely free of charge, you can trade cryptocurrencies with fake money the moment you create a TradingView account.
Its features include:
- TradingView is hosted on the cloud which means that you can access your account from anywhere.
- Charting tools, analysis tools, access to the latest market information and live data from other traders who are following successful strategies make it a widely utilized platform with an array of features.
- The multi-trading view element lets you compare strategies side by side, to see which works best for you.
- TradingView has a very accessible interface for beginners and also advanced features, which means it is suitable both for novices who fancy a go now and expert traders who have tried all kinds of complex software on their search for something that suits them just right.
- The biggest drawback is that its customer service practically does not exist, there have been complaints from people who need help.
KuCoin: Their demo account system was launched on KuCoin Futures with over 700 supported cryptos. The system fully simulates the market environment but only dummy coins are used.
You need to open a KuCoin account to take advantage of these trading features.
- It shares same features as its live account counterpart. It allows you choose whether you want to opt for a demo or live. You can also flip back and forth at will.
- When you activate a KuCoin paper account, this comes with an initial deposit of U.S$ 30,000.
- No one in the United States can benefit from these cool features but KuCoin is still a great choice for both beginners and experienced traders.
Bybit: Bybit Testnet is a place where traders can do simulated trading on a mock network. The Testnet was set up by Bybit in order to mirror its mainnet trading platform environment as closely as possible while not risking any real loss of money.
- With automatic trading in its Testnet, you can try out and test your own trading plans with BOTs
- The user-friendly interface of Bybit makes it an ideal mobile app for beginners.
- Bybit Testnet allows you to test whether various functions like limit orders, market orders or stop-loss orders are suitable for your style and needs.
- It is built with great customer service and for beginners and has a good step-by-step course for your learning experience.
Binance: Binance is the most renowned cryptocurrency exchange platform worldwide, and for very good reasons too. They offer variety of paper trading features to those who are new to the cryptocurrency space as well as experienced traders looking to experiment different strategies.
Few of their standout features include:
- At activation, your account on will be credited you a 3000 USDT deposit for simulated trading.
- Binance Testnet simulates the real market, with both buying and selling prices from actual market data. This helps to make simulated trading more realistic.
- Binance has amassed a lot of positive reviews for the numerous trading options it offers. You can buy over 500 different types of cryptocurrency directly using your Fiat currencies or via P2P transactions.
- The platform also provides APIs that allow bots to make trades on your behalf when you enable them.
- These varieties of options makes Binance a suitable platform learn and execute. All these, while shuffling between the demo account and the live account.
- Binance could be a bit tricky to navigate for firsts timers, however, it is highly recommended for any trader.
Paper trading employs the use of real market conditions to give you a real experience of how trading online feels. If you SUCCEED in with the demo version, then you can succeed in making profits when you go live.
Trading with historical data can validate your strategy and help you identify potential problems in it. To achieve the greatest results out of your trading, it is necessary that you deploy same level of discipline and diligence as you would in a live scenario.
