All kinds of investment carry some risks. Which is why it’s good to practice buying and selling first before getting to the real thing.
The term “paper trading” came from a time when budding traders would practice on paper before actually risking money in live markets. Before the advent of online trading platforms, a paper trader would manually record all trades in order to keep track of hypothetical portfolios, profits or losses, and trading positions. Nowadays, most of the paper trading is conducted via electronic market simulators, which closely resemble real trading platforms.
Fortunately for CryptoHero users, we have a paper trading tool that enables you to test out bots in a risk-free way before using them on the real markets. Given that the bots only follow instructions and do not adjust to new market behavior which is already volatile since we’ re dealing with crypto assets , the ability to test them out is very much needed.
Paper trading on CryptoHero couldn’t be any easier. All you have to do is make sure that you’re currently in paper trading mode. By default, there should be a starting balance of 10,000 USDT. To manage your paper wallet, go to the settings page and then the paper wallet tab. You should be able to enable, disable or edit your paper trading account here.
If you’re using the app, the feature can be found in the Portfolio screen. Be sure to confirm that you’re currently in paper trading mode. To get started, just create a new bot while in paper trading mode. Aside from creating bots, you can also trade on the Terminal page or screen with the paper trading account.
You can pick either Cross or Isolated Margin method, as well as Spot trading. In the context of derivatives space, a margin is the amount required to enter into a leveraged position. Leverage is the use of borrowed funds used to enter a higher trading position in situations when their available balance wouldn’t allow. Cross Margin is spread across all open positions of the same settlement cryptocurrency. In order to avoid liquidation, a position may get more margin from the total account balance of the corresponding crypto asset.
Isolated Margin only applies to that specific position for a certain amount. The position will undergo liquidation once the margin falls under the Maintenance Margin level. Spot trading is instantaneous. You’re technically buying and selling assets at the current market rate.
