Like many other financial markets, trading cryptocurrency could be dicey, and if not carefully navigated, it could lead to uncontrollable losses. Crypto Demo Trading (or Paper Trading) platforms were created to avoid these dreaded scenarios, helping investors build experience and familiarity with the market. Typically, trading the crypto market is most alluring during the bull season, when many people show off their trading wins; however, using strategies that work with traditional markets like stocks, and forex, may not work perfectly with cryptocurrency, so to test new strategies without losing much money, demo trading platforms were created.

This article discusses the Top 5 crypto demo trading platforms in 2022 and their pros and cons, helping you choose the most suitable one for your needs.

1. Binance – Best for Futures Demo Trading

2. eToro – Best for Beginners

3. TradingView – Best for Technical Analysis

4. StormGain – Best for Margin Demo Trading

5. Plus500 – Best for Diverse Demo Trading Options

1. Binance – Best for Futures Demo Trading

Binance is arguably the best crypto exchange globally, amassing billions in daily transaction volumes in spot and derivative markets. Hence, to aid traders with a practice mode before venturing into highly risky leverage trading, Binance allows traders to participate in “Mock Trading.” The platform gives all mock traders $3,000 in virtual money to test their skills and futures trading strategies, as well as familiarize themselves with the platform.

Pros of Binance

• Wide pool of crypto trading pairs to choose from.
• In-app analysis can be done with the platform’s indicators and other analytical tools.
• Tutorials and Educational materials available
• Customer support is excellent

Cons of Binance

Demo trading on Binance is limited to Futures, with no options for Spot or Margin.

2. eToro – Best for Beginners

eToro is a trading and investment platform used to invest in financial instruments, including Crypto, Stocks, Forex, ETFs, Indices, and Commodities. eToro allows users to create demo accounts with a virtual portfolio to demo trade any instrument of choice without restrictions. Hence, with a simple demo account, you can access all of eToro’s features as though you were managing a real account. Beyond these, eToro is also known for its social trading experience, where traders can interact with each other, discuss strategies, and even copy trades to ensure mutual profitability.

Pros of eToro

• No limitations or restrictions on a demo account.
• It can also be used for other financial instruments outside of cryptocurrencies.
• Social trading to help beginners learn from others.
• Easy-to-Use interface.

Cons of eToro

• The trading pairs on eToro are distributed across several financial instruments; hence, for traders who intend to demo trade not-so-popular crypto pairs, eToro may not be ideal.
• Trading tools on eToro are generic; hence, crypto traders who intend to use more advanced tools may prefer other options.
• Customer service response time isn’t rapid.

3. TradingView – Best For Technical Analysis

Unlike the other options in this list, TradingView isn’t an exchange or trading platform; it is an advanced charting platform that displays pairs from several trading platforms in charts, allowing users to monitor prices or make technical analyses to project future prices. In addition, TradingView has a “paper trading” tool that allows you to simulate trades as though they were real.

So, after concluding your analysis, you can execute a paper trade and monitor the results in real time.

Pros of TradingView

• Excellent choice for advanced traders looking to test new strategies.
• Wide range of trading pairs supported across all financial instruments.
• It has social capabilities, as traders can share their analysis and get comments, as well as insights from fellow traders.

Cons of TradingView

• Not beginner-friendly.
• You may need to pay a premium to get access to some tools.

4. StormGain – Best for High-Leverage Demo Trading

StormGain is a crypto trading platform that allows spot trading on a few crypto pairs; its main selling point is its high-leverage trading capabilities with the Futures and Margin markets, up to 300x.

In addition, StormGain allows demo trading for users, allowing them to try out margin trades with high leverages.

Pros of StormGain

• Ability to demo trade with high leverage
• Users can demo-trade several types of derivatives, including options and futures
• Users can also engage in Margin trades with demo accounts.
• Quite easy to use with an appealing User Interface

Cons of StormGain

• Very few spot trading pairs
• It is not available in the United States
• It may not be suitable for advanced traders

5. Plus 500 – Best for Diverse Demo Trading Options

Like eToro, Plus500 is an easy-to-use trading app for all financial instruments, including Crypto, Stocks, Forex, Indices, Commodities, ETFs, and Options. It also has a free demo account to test new strategies and get acquainted with the platform.

Pros of Plus500

• The platform is beginner friendly.
• Tutorials and trading guidance are available for traders.
• Has price alerts for risk management.
• Responsive customer service.

Cons of Plus500

• Not available in the U.S.
• Leverage trading Isn’t available.
• Crypto trading pairs aren’t as much as dedicated crypto trading platforms.

Choosing A Crypto Demo Platform That Suits Your Needs

Among all the options listed above, one may be more suitable for you than the other, and this can only be determined if you identify your own needs. Here is a checklist to aid your decisions

• Fees charged
• Analytical tools available
• Trading pairs available
• Ease of use
• Availability, i.e., desktop and mobile app versions.

Final Takeaway

If you are trading cryptocurrencies or other financial instruments as a beginner or as a pro who intends to try out new strategies, demo accounts make it a lot easier. Several platforms allow you to carry out demo trades on the spot market, as well as futures, options, and margin trades.

If you intend to choose one in 2022, any of the platforms listed above would be great; do remember to filter your checklist to find the most suitable one.

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