Paper Trading: How to Practice Risk-Free in 2024

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 in 2024 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 & Copy 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, 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 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.

In the fast-paced and ever-evolving world of cryptocurrency trading, the importance of honing your skills cannot be overstated. As the saying goes, "When in Rome, do as the Romans do," and when it comes to trading, this means putting in the time and effort to practice and learn before risking your hard-earned money. In this digital age, paper trading emerges as a beacon of opportunity, offering traders a risk-free environment to refine their strategies and build their confidence. Throughout this article, we've explored the concept of paper trading, delved into some of the best platforms available, and even provided tips to help you make the most of your paper trading journey. As we wrap up, let's recap some of the key takeaways and reflect on the significance of paper trading in the realm of cryptocurrency.

The Essence of Paper Trading Paper trading, also known as demo trading, is a method that allows traders to practice their craft without risking real capital. Its roots trace back to a time when trading was conducted on physical exchanges, with traders jotting down their ideas and comparing them to actual market movements. Today, it has evolved into a digital playground where traders can simulate real-world trading scenarios and test their strategies in a safe and controlled environment. The allure of paper trading lies in its ability to bridge the gap between theory and practice, offering an invaluable learning experience.

Why Choose Paper Trading? Throughout this article, we've presented various reasons why paper trading is a worthwhile endeavor. From mastering technical analysis to exploring new trading strategies, paper trading serves as a versatile tool for traders of all levels. It offers a risk-free space to experiment, make mistakes, and learn from them. Consider platforms like 3Commas, eToro, TradingView, CryptoHopper, StormGain, and BitMart, each offering unique features to aid your paper trading journey.

The Power of Preparation In the world of trading, preparation is key. Before embarking on your paper trading journey, it's crucial to set realistic expectations. Remember that paper trading and real trading are two distinct experiences. While success in the virtual world is gratifying, it should not inflate your confidence to the point of recklessness in the real market. Instead, strive to keep your virtual balance closely aligned with your actual deposit. The ultimate goal of paper trading is to prepare you for the challenges of real trading, where emotions and real money are in play.

Continuous Learning and Growth Trading is an ongoing journey of learning and adaptation. When you engage in paper trading, don't just focus on recording your wins; analyze every aspect of your trades. Track your decisions, strategies, and outcomes meticulously. By doing so, you'll identify areas for improvement and gain a deeper understanding of the market. In essence, paper trading accelerates your learning curve, making you a more proficient trader over time.

Selecting the Right Platform Choosing the right paper trading platform is paramount to your success. The platforms mentioned in this article each offer unique advantages, from advanced trading bots to seamless user interfaces. Evaluate your specific needs, such as the type of assets you want to trade or the features you require, and select a platform that aligns with your goals. Remember that some platforms, like 3Commas, offer a trial period to allow you to explore their features before committing.

Closing Thoughts on Paper Trading As we draw this article to a close, it's evident that paper trading is not just a luxury but a necessity for anyone aspiring to become a successful cryptocurrency trader. It offers a risk-free environment to sharpen your skills, develop effective strategies, and gain the confidence needed to navigate the turbulent waters of the crypto market. Whether you're a newcomer looking to dip your toes into trading or an experienced trader seeking to refine your techniques, paper trading has something to offer.

In conclusion, the world of cryptocurrency trading is dynamic, challenging, and rewarding. To thrive in this environment, you must be prepared, knowledgeable, and adaptable. Paper trading equips you with the tools you need to build a solid foundation and excel in the crypto market. So, don't hesitate to embark on your paper trading journey today, armed with the insights and recommendations shared in this article. Your success as a cryptocurrency trader begins with practice, and paper trading is the key to unlocking your full potential. Happy trading!