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Copy Trading is somewhat a well-known concept, especially in the cryptocurrency industry. In the past few years, copy trading has opened new horizons to the crypto asset management industry, which is rapidly growing in market size. Among all crypto copy trading platforms, Finestel.com has an interesting new product that catches eyes: Finestel Pro, a white-label application.
Finestel Pro is a white-label web application, focused on arming professional crypto traders –with a community of followers (e.g. copy traders, investors)-- with a set of customizable tools and services.
A white-label software (or product) can be modified (brand name, logo, color, domain address…) to your personal or business’ preferences, and be available as if it’s your own software.
In this paper, we’ll explain how copy trading makes automated non-custodial crypto asset management possible. Also, we'll tell you about Finestel Pro's innovative solution for the crypto investment management industry in the form of a white-label customizable platform, and why you would need to get one if you manage a community of clients.
What Is Crypto Copy Trading?
Copy trading is a form of social trading that is done on an exchange or a third-party platform that is connected to the trader and copy trader exchange accounts via API keys. Generally speaking, reading and copying a professional crypto trader’s actions and executing them on other crypto investor accounts that copy the trader is copy trading.
However, depending on the design sophistication, copy trading systems can do much more than just copy and pasting orders between accounts. These systems are versatile automated algorithms (commonly known as bots), capable of executing thousands of trades in fractions of a second, fast, accurately, and also proportionally.
Popular Types of Crypto Copy Trading
The most well-known crypto copy trading models are API copy trading, and copy trading as a crypto exchange service or feature. Let’s see what they are:
Copy Trading via API Access
API access copy trading is the model that we’ll talk about the most in this paper and is done via third-party copy trading platforms that connect to exchange accounts using API keys (Application Programming Interface keys). APIs are channels that pieces of software, computers, and applications talk to each other through.
Copy trading platforms usually have two sides:
This side of the equation is an exchange account that is connected to the copy trading platform via read-only API access and a professional crypto trader, portfolio manager, or trader bot (ATS) trades on.
The platform’s copy trading bot reads and copies the traders actions and then executes a proportional replication of the copied trades on the copiers’ (AKA investors, followers, copy trader) connected exchange account.
The investor, follower, or copy trader exchange accounts connect via trade-only API access. Trade-only API keys allow copy trading platforms to execute/cancel replications of the copied trades into copiers’ exchange accounts, automatically, rapidly, and most importantly, proportionally accurate.
If the trader makes a profit they receive a percentage of their investors’ profits. By the way, investors may also pay other fees (subscription or management fees) depending on the platform’s payment policies and/or the trader’s preference.
Copy Trading on a Crypto Exchange
Many exchanges (e.g. Bybit’s futures copy trading, Etoro, OKX, etc.) provide different models of copy trading (in the form of social trading, profit sharing, copying trading bots...) as a feature or service on their platforms.
Copy traders can select and copy the exchange’s traders and they will receive a portion of copy traders’ profits. On some exchanges you just hit a copy button, and on some others you’ll have access to define or modify extra parameters (SL, TP, etc.).
Crypto Asset Management and Custody
Crypto asset management refers to the process of managing and maintaining crypto investments, performed by one or a group of professional crypto traders, fund, portfolio, or asset managers.
The industry is rapidly growing in market size and experts believe it may reach a total capitalization of up to $4.5 billion or even more by 2030.
Many forms of investment management exist nowadays, but generally speaking we have custodial and non-custodial asset management schemes.
Custodial Asset Management
The custodial form, as the name suggests, is when investors pass their investment dedicated capital to a trader or an asset management firm so they can trade those assets, targeting a profit.
Custodial asset management is a traditional model and not quite favorable in the crypto industry because of the nature of cryptocurrencies; irreversible transactions for example.
Non-Custodial Asset Management
The non-custodial model refers to the forms of asset management in which the trader, portfolio or asset manager does not hold clients’ assets but has trade-only API access to their exchange or platform native trading account.
So when the traders make a trade on their exchange account, their clients’ exchange accounts (copy traders) will proportionally receive the same trade.
This form of asset management is available on crypto exchanges and third-party API copy trading platforms.
Finestel Pro Takes Non-Custodial Crypto Asset Management to a Whole Different League
Numerous copy trading platforms and models are available on various platforms for the public crypto investors. Some of these platforms have great interface design and are focused on user-friendliness.
However, Finestel Pro is more of a toolbox for professional traders to craft a branded copy trading platform with, and provide portfolio management services to their community of clients.
They’re literally filling up a massive gap in the crypto asset management industry.
What Does Finestel Pro Give You & Your Clients?
By requesting a demo account you’ll gain access to see all the dashboard corners and the brandings and personalizations you can order the white-label software with. After making your decision, contact the customer support to request the personalizations and send your logo and business details.
Upon receiving the software you will gain access to an admin panel to modify and customize the tools and services such as:
Copy Trading Bot
Marketing Tools & Services
Copy Trading Bot
Finestel Pro uses an autonomous software that reads and copies actions (trades, orders, leverage, etc.) from the “trader exchange accounts” that are connected to the platform via read-only API keys. Afterward, Finestel will execute a proportional replication of the copied actions into the “investor exchange accounts” that are connected via trade-only API keys and copy that trader account.
Proportional Trade Execution
Finestel copy trading bot executes all elements of the copied trade replications such as the orders (SL, TP, leverage…) and trade settings (cross, isolated, hedge mode…). As a simplified example:
Bob trades with $100,000 exchange account balance value, Amy copies Bob with $10,000, and I copy him with $1000 worth of balance.
If Bob places a $10,000 BTC buy order with 1% SL (stop-loss) and 5% TP (take-profit), Finestel will place a $1000 worth of the same trade set (SL, TP, OCO…) on Amy’s account, and a $100 worth of BTC buy order set on my account.
The image below contains two screenshots from two futures Binance accounts depicting a futures trade proportional replication:
Finestel copy trading bot currently supports Binance (spot & futures), Bybit (spot & futures), KuCoin (spot only) copy trading, and OKX (soon), shortly. The spot and futures copy trading processes are slightly different.
On The Spot Market:
The spot traders on Finestel Pro can choose between allowing for their investors to instantly sync their account’s asset allocation with the copied trader’s, or just execute the new buy/sell replication on their account. The screenshot below is from an instant spot portfolio process:
On The Futures Market (Derivatives):
Finestel Pro does not execute any replications from the trader’s open positions and open order for pairs with open positions into copiers’ accounts, to prevent risk management issues. So futures copy traders will only receive the copied trader’s new futures orders.
The white-label owners and their clients have access to Finestel’s portfolio tracker tool. With a couple of clicks you can switch between your connected exchange accounts, see your account’s performance history, asset allocations, track your futures positions, set alerts and notifications and more.
The white-label owners have access to add/remove/modify report parameters and see their clients’ exchange account performance and profit history. Also, they can customize and integrate alert and notification systems (via Telegram bot, email…) for live reporting.
Using “subscription fee” and “performance fee” or a combination of both with different cycles (daily, weekly, monthly), traders can define their preferred billing model.
Traders and their Clients can use the Finestel wallet for the payments which is a TRC-20 USDT only wallet. However, The white-label owners can embed their own personal wallet and receive the payments in any coins they prefer.
Marketing Tools & Services
You can integrate your personal email service or Telegram bot with your asset management platform and run marketing campaigns. You can embed your social media channels, website, Discord server, and more.
Plus, the white-label owners have direct contact with Finestel’s technical and marketing team for any support and consultations.
You can customize or integrate email ticketing systems, Telegram support bots, or third-party in-app chat support systems. That is your platform’s customer support system, but there’s another 24/7 support channel between you and the Finestel team.
You will have access to a private Telegram group with the Finestel support team for live support.
Starting a Crypto Asset Management Business
After applying all your customizations, you can list various trader accounts, strategies, bots, funds, or anything you prefer to call them, making them available for your community of investors to copy.
Now, your clients can choose between different risk profiles, pricings, drawdown, so on and so forth, or diversify their copy trading by copying multiple investment funds that are available to copy on your platform.
To Whom Finestel Pro Benefits The Most?
Professional traders who have a community of followers (copy traders, investors, clients) are basically portfolio managers, although the concept is not that common in the cryptosphere. So, if you have a community of copy traders, own a crypto asset management business already, or even if you are an affiliate marketer in the crypto industry, Finestel Pro is one of the must-have pieces of software, and the set-up fee is actually zero!
The pricing is tier-based, which depends on your client count and AUM. Payments are in the form of fixed monthly fees (per user), which either you (the white-label owner) pay to Finestel or your clients (the white-label users), to copy your strategies.
The Finestel team is always available for online meetings to answer your questions and to help you set up your platform. They will also help you market your white-label, plus connect you with a dedicated technical online support agent on a private Telegram group, available 24/7.
You can read much more about Finestel Pro here.
So, using Finestel Pro, pro crypto traders will be able to distribute trading or portfolio management strategies into their community of clients’ exchange accounts, and also manage their customer relationships. So it’s a go-to-market turn-key platform you can build and grow your copy trading business upon.
I'm a blockchain tech and crypto market enthusiast. I've been researching and writing notes and reviews about crypto platforms, finance and asset management for the past couple of years.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.