Crypto.com offers copy-trading for funds and politicians

Source Cryptopolitan

Crypto.com introduces copy-trading, offering automated strategies based on prominent stock whales. The app will unroll the feature for regular users to tap demand for stock market exposure. 

Crypto.com will introduce a new copy-trading feature based on the portfolios of prominent investors. The new feature will not require an additional subscription fee or premium status. 

App users will be able to directly follow prominent investors and whales, including Warren Buffett, Nancy Pelosi, Dan Meuser, Bill Ackman, and others.

Crypto.com offers copy-trading for funds and politicians

The crypto, trading, and fintech app picked a total of 11 prominent investors in the stock space, selected for their experience or social media influence. The copy-trading feature is also available for the portfolios of Jensen Huang, Bill Gates, Brad Gerstner, David Tepper, Dan Meuser, Paul Singer, Dan Crenshaw, and Josh Gottheimer.

The investment baskets are based on each investor whale’s publicly disclosed portfolio. Crypto.com bases its stock selection on 13F filings when copying funds, required of all investors with over $100M in assets. 

The stock picks of politicians are based on Stop Trading on Congressional Knowledge (STOCK), which requires members of Congress and other officials to report personal securities trades above $1,000 within 45 days.

The basket allocations may lag behind the exact actions, and Crypto.com will report as early as possible. Each investor’s approach differs, targeting varied types of stocks and different trades. Traders in the app will be protected by the Securities Investor Protection Corporation (SIPC). 

Crypto.com will allow onboarding through both fiat and cryptocurrencies. The trading will involve actual stock ownership and not tokenized shares. 

Crypto.com targets US persons

The whale baskets will be available to US persons, and the shares will be provided by FINRA-registered Foris Capital US LLC. Complex trading strategies such as options and short trading will not be part of the direct copying. 

The app may lag in reporting all portfolio stocks and not reflect complex strategies, private deals, or other decisions. The portfolios will lag for up to 45 days, based on official reporting requirements, at which time there may be material changes to the whale baskets. 

The new feature will target retail investors, who can allocate as little as $50. The purchase can be funded both from the fiat or crypto reserves on the Crypto.com app. Crypto.com does not charge any commission on stock basket purchases or a subscription fee. 

The basket orders will be placed as Market orders denominated in US dollars. For payments in crypto, traders will have their assets sold for dollars, and then the proceeds will be used to make a stock order. The market for baskets will queue up orders outside market open hours based on the US stock market schedule. 

Traders can also choose to sell percentages or dollar amounts from each basket, though they must wait for the completion of the previous order before opening up a new trade. Users will also be notified of changes in the whale portfolios, and can choose to retain their previous allocation or buy the changed portfolio using the app’s tool to edit the holdings.

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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