Best Crypto Paper Trading App for 2024
Best free crypto paper trading app 2024 - Bybit Testnet
TOP free crypto paper trading apps 2024:
Bybit Testnet — the perfect platform for crypto derivative traders;
OKX demo — allows users to practice their trading strategies in a simulated environment;
Binance Mock Account — a great way to get familiar with cryptocurrency trading without risking your own money;
KuCoin Sandbox — for traders who want to test their trading strategies in a safe and controlled environment;
eToro — provides services in cryptocurrency, stocks, currencies, commodities, indices, and EFTs.
NOTE!
If you are planning to trade cryptocurrencies, and not just keep your savings in crypto wallets, we recommend that you choose one of the top brokers with reliable regulation and access to trading crypto CFDs. This type of trading will help you avoid holding your cryptocurrency in e-wallets of exchanges, which quite regularly get hacked. Also, availability of leverage will allow you to trade crypto CFDs for amounts much higher than your deposit.
Traders Union experts recommend considering Top 3 companies from our rating:
Crypto trading is a risky venture for investors. You'll need to track the highly volatile markets where the value of assets rises and drops by hundreds of dollars overnight and decide which of the thousands of coins and tokens is best.
Fortunately, crypto trading is a skill you can learn through practice. You'll get a real feeling of the markets and develop techniques on when to buy or sell your assets. Additionally, you'll get to gauge your readiness before putting any real money on the line.
The best way to practice crypto trading is through crypto paper trading.
In this article, we explore crypto paper trading, the best crypto paper trading apps and simulators, if you should try them out, how to get started, and how to successfully paper trade crypto.
What is Crypto Paper Trading?
Crypto paper trading is the process of using simulated crypto markets to practice buying and selling assets without losing money. The practice dates a few decades to when individuals wrote nonexistent trades on paper and watched the markets to see if they did well. Currently, the act is done online and resembles demo accounts.
Most online crypto trading apps offer paper trading resembling their services. The goal is to show customers what to expect and an idea of how the markets behave and test strategies. No money is staked, meaning that you get insight at no cost.
The best paper trading experience incorporates using educational materials. Dig into research and review essential educational materials such as tutorials and videos.
Best Crypto Trading Apps and Simulators Comparison
| Trial Period | Virtual Limit | |
|---|---|---|
Not limited |
$10,000 |
|
Not limited |
Up to $150000 |
|
Not limited |
3,000 USDT |
|
7 days |
$30,000 |
|
Not limited |
$100,000 |
ByBit Testnet - Best for Crypto Derivative Traders
ByBit Testnet is the perfect platform for crypto derivative traders. It provides a risk-free environment to test and learn, with 100% replication of the product and services on the mainnet. ByBit Testnet offers a variety of features that make it an ideal choice for traders looking to get into crypto derivatives trading.
The ADL ranking system is one of the most useful features offered by ByBit Testnet. This ranking system assigns a score based on your leverage and your positions' profit ratio, allowing you to track your performance against other traders.
Additionally, ByBit Testnet allows users to open a demo account and trade contracts without risking any real money. This makes it easy for new traders to learn how the platform works before investing their own funds.
ByBit Testnet provides risk management tools such as Limit Orders and Conditional Orders, which are designed to help traders mitigate their risks and safeguard their investments. The platform has been designed with ease of use in mind and offers 24/7 customer support, so you can always get help if you need it.
Overall, ByBit Testnet is a robust platform that offers a range of features to help crypto derivative traders manage their risks and maximize their profits.
OKX Demo
OKX demo is trading platform that allows users to practice their trading strategies in a simulated environment. It allows traders to experience the same features as real-time trading without putting any money at risk.
The platform also provides access to a wide range of markets, including spot trading, swaps, and futures. The OKX demo platform is easy to use and understand. It has an intuitive interface that makes it simple for beginners to get started with trading.
The platform also offers advanced features, such as automated trading, which can help experienced traders maximize their profits. Additionally, users can access detailed analytics and reports to help them make informed decisions about their trades.
One of the most impressive aspects of the OKX demo is its pricing bot named WAGMI. This bot automatically responds to market changes and adjusts prices accordingly, allowing traders to stay ahead of the competition. Additionally, OKX offers a Demo Trading Challenge, which rewards users with prizes for reaching certain milestones in their trading activity.
Overall, the OKX demo is an excellent choice for both novice and experienced traders looking for an effective way to practice their strategies without risking real money. The platform's intuitive interface makes it easy for beginners to get started, while its advanced features provide experienced traders with the tools they need to maximize their profits.
Binance Mock Account
Binance Mock Account is a great way to get familiar with cryptocurrency trading without risking your own money. It allows users to practice their trading skills in a simulated environment and gain confidence before trading with real funds.
With Binance Mock Account, you can access the same features on the live platform, including order types, charting tools, and market data. The process of setting up a Binance Mock Account is simple and straightforward.
All you need to do is log in or register for a new account on Binance Futures and then grant Testnet access to your account. Once you have done that, you will be able to access the mock trading platform, where you can place orders and view market data just like on the live platform.
The only difference is that no real money will be exchanged when placing orders in this environment. One of the best things about using a Binance Mock Account is that it allows traders to test out different strategies without any risk involved.
You can try out different order types, such as limit orders or stop-loss orders, and see how they work in real-time without having to worry about losing any money if something goes wrong. This feature makes it ideal for beginners who want to learn more about cryptocurrency trading without taking too much risk.
How to Use Binance: A Step-By-Step GuideKuCoin Sandbox
KuCoin Sandbox is an ideal platform for traders who want to test their trading strategies in a safe and controlled environment. The Sandbox is specifically designed for testing purposes, allowing traders to connect to an API or test web trading before making real trades.
It provides all the functionalities of the live exchange, allowing traders to experience the platform's features and capabilities without risking real funds. The Sandbox environment is completely separate from the production environment, ensuring that any testing or experimentation does not impact live trading activities.
The login session and the API key in the Sandbox environment are entirely independent of the production environment, providing a safe and secure testing environment. Upon registration, traders receive a predetermined amount of fake funds, including BTC, ETH, or KCS, automatically credited to their accounts.
These funds are solely for testing purposes and cannot be withdrawn. If a trader wants to trade in the Sandbox environment, they must transfer assets from the primary account to the trade account.
KuCoin Sandbox provides an excellent opportunity for traders to test their trading strategies in a secure, controlled environment. With its user-friendly interface, extensive trading tools, and simulated funds, it's an ideal platform for both novice and experienced traders looking to refine their skills.
eToro Paper Trading App - Best For Social Trading
eToro is a well-known trading account that provides services in cryptocurrency, stocks, currencies, commodities, indices, and EFTs. In addition, the platform provides users with virtual accounts where they can practice trading.
eToro virtual accounts let users open free accounts where their accounts are credited $100,000 in virtual funds. The amount is large enough to let you learn effectively but low enough to force you to work within limits you could reach.
The demo account gives you the experience of all eToro features. You'll access a clean and straightforward interface to manage your virtual portfolio where you can study up to 16 digital currencies, install metrics, and draw lines and trends. You'll then enter buy and sell orders to enter a spot without the risk of losing money.
The virtual account also provides insight into time trends with advanced analysis tools and lets users experiment with various risk levels through leverage, Stop Loss and Take Profit.
The most exciting thing about eToro is its social news stream that lets users share ideas and chart analysis. It allows you to connect with top traders from around the globe and lets you copy their portfolios. In addition, you'll get to discuss strategies and learn from top-performing investors.
eToro lets you gain confidence in the trade before you start investing your real money. It is the best crypto paper trading application in the market.
Should I Try a Paper Trading App?
Paper trading Apps simulate the real markets to enable users to practice trading. They allow them to learn the ropes before investing. However, they have advantages and disadvantages.
Paper Trading Apps Benefits for Beginners
Here are the benefits beginners will reap from using paper trading apps.
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Risk-Free Trading: Paper trading apps offer simulated trading, meaning that users don't commit actual capital. Instead, they provide access to simulations that resemble the real market and provide you with virtual coins to use in trading. This way, you get to practice without the stress of losing.
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Test Strategies - Using a new strategy in the real market without testing is risky. Investors want to ensure the strategy works before investing real money. Paper trading apps allow them to try out their various methods to determine which one gives desired results. Users can also determine ideal strategies for different temperaments.
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Gather Performance Data: The best way to improve trading skills is by leveraging access to the performance data. The data reveals the key metrics that can help a user practice in those areas that are dragging them behind. For example, when using paper trading apps, users accumulate a lot of data that they can use to sharpen their weak points before investing real money.
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Build Confidence: Confidence is vital in trading. Traders need to be confident in the decisions they make and the methods they employ. Paper trading apps let them practice their methods on a variety of instruments to aid in speeding up the learning process. The more successful trades you make, the more confident you become in your methodology.
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Practice Execution Skills: A good strategy is the first step to success. Knowing when to apply the strategy is the second part. This is because different market environments need different execution strategies. A paper trading app allows you to test your strategies in various scenarios to apply them seamlessly in actual trading.
Paper Trading App Limitations
Here are the disadvantages of using paper trading apps.
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Underestimates True Transaction Costs - True Transaction costs in the real world include entry and closing prices, bid-ask spreads, commissions, and slippage. However, most paper trading apps will only provide data based on the entry and closing prices alone. This can be a huge difference between a perfect and marginally profitable strategy. Therefore, users should ensure they add the other costs to transaction costs before using their strategies.
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Eliminates the Emotional Part - When using a paper trading app, you subconsciously know you will not lose money. Therefore, trading using simulators doesn't reflect the emotional stress of ups and downs in the market. This can trick users into thinking they are ready when they are not.
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Can Lead to Optimization - When trading, it is common to tweak some parameters in a trading strategy to bring profits. However, there is a line between curve-fitting variables and over optimization. The best way to avoid optimization is by using a range of parameters in the test period.
How to Get Started With Crypto Paper Trading? A Beginners Guide
Practicing cryptocurrency trading is the best way of getting good at it. The most effective way to learn is by using paper trading apps, and eToro is the best in the game. Here are steps on how to get started on eToro paper trading.
Step 1 Account Opening
Users need to search for the eToro Demo Trading Account and visit the site. Then, click on create an account for free and provide your information. You'll need to provide your new account username, email, and password. Alternatively, users can sign up for a free account using their Google and Facebook accounts.
Step 2 Choose your Trading Platform
Once you have created an account, you must choose the platform you would love to use. eToro provides you access to trading on several platforms such as mobile, web and desktop. You can log in through the platform's website, where you'll click on log in and enter the required information and password.
Step 3 Access Paper Trading Account
Once you log in, you'll access a $100,00 virtual money that you can use to trade for free. You'll get to learn the skills to trade successfully and open positions, experiment with leverage, Stop Loss and Take Profit, different strategies and invest in portfolios and communities.
Step 4 Start Trading
Once you have gone through the platform and gained the confidence to trade and information on the financial instruments you would love to invest in, you can start trading. You can invest in stock with 0% commission, open short positions using CFDs, and use pro charts and the research tab to gain insight.
How to Paper Trade Crypto
Paper Trading accounts provide free sign-up and virtual money for practice. However, it doesn't mean you just jump into it. You'll lose the virtual funds before you learn anything useful. Here is how to paper trade crypto.
Choose your Trading Strategy
Traders have access to various strategies to make good trading decisions. Some of the most common strategies for trading experts include scalping, day trading, and swing trading. Each is ideal for individuals with different times for physical trading. For example, those with limited time will profit from swing trading, while one with time will benefit from day trading. The good news is that you are using virtual coins meaning no money is lost.
Placing Orders
Placing orders on a paper trading app resembles placing an order on an actual trading app. First, search for the instrument you wish to trade, select to buy or sell that order, and decide the amount of virtual money you wish to invest before submitting the order.
Practice your Execution Skills
After finding a good strategy, it is important to try it out in different scenarios. You can use a range of apparatus so that you can have a view of different performances.
Consider Real Money Trading
After training for a while and finding your working strategy on the paper trading account, you may want to consider going into real trading. eToro provides users with a smooth transition from the paper trading account to the real one at no fees.
Summary
Crypto trading can be quite risky but profitable when done correctly. The good news is that numerous paper trading applications are in the market to help beginners learn the ropes, and experts to try strategies before using them in real trading.
The trick is finding a reliable paper account that will give you a feel of real trading. Before signing up, look at the features and what the accounts offer. Ensure you also practice techniques and strategies to know what works or fails.
FAQs
Is there crypto paper trading?
Yes, there are several platforms that offer crypto paper trading, including KuCoin Sandbox, BitMEX Testnet, and TradingView paper trading.
Does Binance have paper trading?
Yes, Binance offers a paper trading feature called "Binance Futures Testnet" that allows users to practice trading futures contracts without risking real funds.
Where can I practice trading crypto?
There are several platforms where you can practice trading crypto, including KuCoin Sandbox, BitMEX Testnet, TradingView paper trading, and Binance Futures Testnet. These platforms offer a risk-free environment to learn and practice trading strategies before trading with real funds.
What are the risks of opening a paper trading account?
Paper trading accounts are free to open and provide users with virtual coins for trading. The trader will not incur any loss from trading in paper trading accounts.
How do I know I am ready for real trading?
If your paper trading account is making good money at a steady rate, it means your strategies are working, and you are ready for real trading.
Will my Demo account go live after trading?
Most brokers provide users with demo accounts where they practice their trading. While most will allow users to switch to live accounts, they are not compulsory.
Is paper trading similar to real trading?
No. Paper trading is a simulation of real trading and doesn't involve real money.
Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.