What is Paper Trading? A Guide to Practicing Crypto and Stock Markets (2023)

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 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

What is Paper Trading? A Guide to Practicing Crypto and Stock Markets (1)

(Video) How To PAPER TRADE On TradingView! *Beginner Guide*

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

What is Paper Trading? A Guide to Practicing Crypto and Stock Markets (2)

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

What is Paper Trading? A Guide to Practicing Crypto and Stock Markets (3)

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.

(Video) What is PAPER TRADING? | Paper Trading Using Trading View | BOOMING BULLS

CryptoHopper — Paper Trading For Mid-caps

What is Paper Trading? A Guide to Practicing Crypto and Stock Markets (4)

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:

(Video) How to Paper Trade Crypto in Trading View

  • 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

What is Paper Trading? A Guide to Practicing Crypto and Stock Markets (5)

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

What is Paper Trading? A Guide to Practicing Crypto and Stock Markets (6)

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.

(Video) TradingView Paper Trading Tutorial (2023) - Everything You Need!

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.

(Video) Stock Market Trading FREE Practice | PAPER TRADING

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.


What is paper trading in crypto? ›

What is Paper Trading? # Paper trading allows you to trade using real-life exchange data with simulated crypto. Without risking any actual funds. With every paid subscription, you can create one Paper Trading bot.

What is paper trading practice? ›

A paper trade is a simulated trade that allows an investor to practice buying and selling without risking real money. The term dates back to a time when (before the proliferation of online trading platforms) aspiring traders would practice on paper before risking money in live markets.

Is paper trading good for practice? ›

Paper stock trading is crucial for beginner traders to help them practice their trading strategies in real-world scenarios without investing real money. The best part is that the trades using paper trading don't influence the actual market, so traders don't need to worry about losses and take bold decisions.

What is the difference between paper trading and demo trading? ›

Demo account users receive an amount of virtual money in the beginning, and can start trading by opening selling and buying positions. Just like a real account, the paper trading account shows market movements on the traders' screens, so they can decide if they should continue their trade or get out.

What is the downside of paper trading? ›

The biggest drawback of paper trading is that it's not real. An investor can't keep the returns they earn paper trading. And those paper returns can lead the investor to have an unrealistic sense of confidence, and a false sense of security.

Does paper trading cost money? ›

Paper trading is usually free, enabling investors to try their hand at buying and selling without risking real money. Tip: There are many platforms that offer free trading simulators, although some may charge a subscription fee.

How do I start practicing paper trading? ›

That method is the age old practice of “paper trading.” Here's how it works:
  1. Write a fixed sum of money down on a piece of paper. ...
  2. Write down the names of the stocks you're thinking of investing in. ...
  3. Write down the current stock prices next to each name. ...
  4. Divide your total investing cash by the number of stocks.
Mar 18, 2012

Who has the best paper trading platform? ›

Here are five of the best paper trading sites and stock market simulators:
  • MarketWatch.
  • Investopedia.
  • Finviz.
  • Thinkorswim by TD Ameritrade.
  • eToro.
Jan 27, 2023

Where can I learn paper trading? ›

Best Virtual Trading Websites in India
  • #1 TradingView – Most Popular Among Paper Trading Websites.
  • #2 Neostox Trading.
  • #3 MoneyBhai.
  • #4 ChartMantra – Virtual Trading With Brokerage.
  • #5 Sensibull – Paper Trading Options Also Possible.
  • #6 Dalal Street Investment Journal (DSIJ)
Jul 18, 2022

How many days should I do paper trading? ›

Practicing paper-trading for several weeks to a month helps build practical new strategies and market approaches. These new strategies can be used when the trader's real money is put at stake.

Is it smart to start paper trading right away? ›

If you're a first-time investor, take as much time as you can paper trading before you jump ship and begin live trading. Be sure to explore different strategies and new ideas so you can get comfortable.

How long should you practice trading? ›

If you are an extremely new trader who is practicing it on a full-time basis, then we recommend that you spend at least 3 months in a demo account. While this may seem like a long time, it will help you learn more about how the market works. Most importantly, it will let you experience different market conditions.

How long should you paper trade before trading? ›

Traders should paper trade until they can meet or exceed their monthly percentage return goal, averaged over a 4 month period. For example, if a trader has the goal to make 2% per month, then the trader should make at least 8% profit, over a period of 4 consecutive months.

How do you buy in paper trading? ›

You can start by logging in to use Paper Trading. By default, your account balance starts at $100,000, which you are able to reset at any time. The chart is equipped with “buy/sell” buttons that let you enter orders quickly. You can buy any security that actually trades.

Is TD Ameritrade paper trading free? ›

Looking for a trading simulator? Try paperMoney®, the free stock market simulator from TD Ameritrade. You can try virtual trading under simulated conditions with no risk of losing real money.

Why is paper trading easier? ›

No Risk: It costs nothing, and you can't lose money with bad decisions or poor timing. It also allows you to observe all of the flaws in your analytical process so you can begin the arduous task of building a well-defined trading edge.

What is the best app to paper trade options? ›

The 7 Best Stock Market Simulators (Free Virtual Paper Trading Platforms & Apps)
  • Get your free eToro Demo Account.
  • Get thinkorswim paperMoney here.
  • Start using TradeStations Trading Simulator here.
  • Download NinjaTrader's free Simulate software here.
  • Get eToro Paper Trading.
Jan 4, 2023

Can I paper trade on TD Ameritrade? ›

Considering upping your game by adding a new strategy? Or maybe you'd like to try your hand at options. With paperMoney®, a trading simulator from TD Ameritrade, you can trade without risking a dime, in a real-time environment.

How I taught myself trading? ›

Top 10 Ways to Learn to Trade:
  1. #1. Open a stock-broker account:
  2. #2. Read books:
  3. #3. Read articles:
  4. #4. Find a mentor or a friend to learn with:
  5. #5. Study successful investors:
  6. #6. Read and casually follow the stock market:
  7. #7. Carefully consider the paid subscriptions:
  8. #8.
Aug 25, 2022

How can I practice stock trading for free? ›

The answer is by using virtual stock trading platforms.
#6 Best sites to learn virtual stock trading in India.
  1. Moneybhai. Moneycontrol website offers Moneybhai. ...
  2. TradingView. TradingView is another popular virtual stock trading website/app in India. ...
  3. TradingLeagues. ...
  4. TrakInvest. ...
  5. Dalal Street.
Dec 31, 2022

Is paper trading the same as day trading? ›

Paper trading is simulated trading that allows a day trader to practice in analyzing trades and placing trades without using real money. Many brokerages provide a full working copy of their trading platforms in a paper trading format for their investors.

What is the most profitable trading platform? ›

NerdWallet's Best Trading Platforms for Day Trading of March 2023
  • Merrill Edge.
  • Interactive Brokers IBKR Pro.
  • J.P. Morgan Self-Directed Investing.
  • TradeStation.
  • Zacks Trade.
  • Firstrade.
  • Ally Invest.
  • Charles Schwab.
Mar 1, 2023

Is it hard to make $100 a day trading? ›

You're really probably going to need closer to 4,000 or $5,000 in order to make that $100 a day consistently. And ultimately it's going to be a couple of trades a week where you total $500 a week, so it's going to take a little bit more work. Want to learn more about trading?

Is $1000 enough to day trade? ›

To get started with day trading it is possible to do it with less than $1000 but not by a lot. As we noted, day margins on the E-mini S&P are commonly $500. The less money you have to day trade the less of a cushion you will have in case of a loss of your very first trade.

What is the 90 day trading rule? ›

Under Regulation T, brokers must freeze an investor's account for 90 days if the investor sells securities that have not been fully paid (i.e. paid for with unavailable funds). During this 90-day period, the investor must fully pay for any purchase on the date of the trade.

What are the hardest months to trade? ›

One of the historical realities of the stock market is that it typically has performed poorest during the month of September. The "Stock Trader's Almanac" reports that, on average, September is the month when the stock market's three leading indexes usually perform the poorest.

What time is most profitable to trade? ›

The U.S./London markets overlap (8 a.m. to noon EST) has the heaviest volume of trading and is best for trading opportunities.

What is the best trading time for beginners? ›

Trading at the Opening of the Market

The ideal amount of volatility for beginners arrives in the market after these initial extreme trades have occurred. Hence, this makes the time frame between 9:30 am to 10:30 am the ideal time to make trades.

What is the #1 rule in trading? ›

A lot of day traders follow what's called the one-percent rule. Basically, this rule of thumb suggests that you should never put more than 1% of your capital or your trading account into a single trade. So if you have $10,000 in your trading account, your position in any given instrument shouldn't be more than $100.

What is the 45 minute rule in trading? ›

If there's a movement of 15 percent before 1 pm, trading is halted for one hour 45 minutes. In case of a rise or fall between 1 pm and 2:30, it is halted for 45 minutes. When there's 15 percent movement after 2:30 pm, trading is halted for the remainder of the day.

What is the number 1 rule in trading? ›

The 1% rule for day traders limits the risk on any given trade to no more than 1% of a trader's total account value. Traders can risk 1% of their account by trading either large positions with tight stop-losses or small positions with stop-losses placed far away from the entry price.

What is the 60 40 rule for day trading? ›

Enjoy potential tax benefits

Take advantage of preferred tax rates on futures trades, based on the 60/40 rule. That means 60% of net gains on futures trading is treated like long-term capital gains. The other 40% is treated as short-term capital gains and taxed like ordinary income.

What months should you not trade? ›

Best Months to Trade

No wonder traders across the world have “Sell in May and go away” as one of their favorite mottos. August is by far the worst month to trade. Most institutional traders are on holiday, so the market generally experiences greater and more unpredictable volatility.

What is the 3 day rule in trading? ›

In short, the 3-day rule dictates that following a substantial drop in a stock's share price — typically high single digits or more in terms of percent change — investors should wait 3 days to buy.

Is paper trading app free? ›

Even though it's a virtual trading app, you still can get a paper trading account for free and build your own portfolio to track. Note: This app is intended to be used for informational and educational purposes only. No real trade will ever be placed. No real money is involved.

Why do people paper trade? ›

Paper trading is a simulated trading strategy. With paper trading, investors have the chance to experiment with market trading and see what stock market investments are all about without having to risk losing any of their capital in the live market.

How does a paper wallet work crypto? ›

A paper wallet is a piece of paper with your keys printed out on it. When you choose to print your keys, they are generally removed from your digital wallet and the network. No one can hack your paper wallet or retrieve your keys unless they physically take the paper on which you have them stored.

Why crypto is better than paper money? ›

Bitcoin is digital and decentralized – With Bitcoin people get the liberty to exchange value without intermediaries which translate to greater control of funds and lower fees. It's faster, cheaper, more secure and immutable. Cash is controlled by banks while bitcoin has owners.

What is the best paper trading site? ›

Here are five of the best paper trading sites and stock market simulators:
  • MarketWatch.
  • Investopedia.
  • Finviz.
  • Thinkorswim by TD Ameritrade.
  • eToro.
Jan 27, 2023

How many days I should do paper trading? ›

Start with paper trading but don't spend more than a few weeks on it. Once you get fairly comfortable with the idea of trading, move on to your broker's platform and start trading with just 1 quantity. That's it. This will keep your risk minimal but at the same time, start invoking the emotions of greed and fear.

How do I start paper trading? ›

That method is the age old practice of “paper trading.” Here's how it works:
  1. Write a fixed sum of money down on a piece of paper. ...
  2. Write down the names of the stocks you're thinking of investing in. ...
  3. Write down the current stock prices next to each name. ...
  4. Divide your total investing cash by the number of stocks.
Mar 18, 2012

How can I practice trading without money? ›

Virtual Stock Trading (also known as Paper Trading) is similar to actual trading where you can buy and sell stocks. However, here no real money is involved. You invest only in virtual money. Such platforms that provide virtual trading facilities are called stock simulators.

What is the disadvantage of paper wallet? ›

Disadvantages of paper wallets

The ink on the paper could fade over time, and that's just a disaster waiting to happen if you have old-school printers. Further, paper wallets are designed to store only a single currency. You can only have one private and public key to store one kind of cryptocurrency.

What is the best crypto paper wallet? ›

Best Bitcoin Wallets of 2023
  • Best Overall: Ledger Nano X.
  • Best for Security: Trezor Model T.
  • Best for Beginners: Exodus.
  • Best for Advanced Bitcoin Users: Electrum.
  • Best for Mobile Users: Mycelium.

Is a paper wallet safer than a hardware wallet? ›

Hardware wallets are more secure than paper wallets as they have a secure chip in them meaning a private key never has to be entered on a connected computer. Instead, a pin is entered on the hardware wallet itself.


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