I must have had a bit of spare time in February 2021 because at some point, I found Coinmatics, a copy-trading platform dedicated to crypto.
Essentially, it allows you to pick a strategy and follow the trader’s trades automatically via a Binance connection, earning passive income, assuming you follow good strategies…and assuming it actually works.
With some strategies giving monthly profits of over 100%, what's not to be excited about?
Read on to find out…
How does Coinmatics work?
For investors, you set up an account, connect your Binance via API and then simply select a trading strategy to follow. Your Binance account will follow the trades of the trading strategy you chose to follow.
This means, the funds are always in your Binance account and under your control.
Coinmatics display various metrics about the strategies and a risk-rating to help you choose a strategy that suits you.
You can also choose to follow manually via Telegram alerts if you prefer not to connect Binance.
Some strategies are free to follow, others require a monthly fee. Coinmatics take 5% of the traders profits on the platform fees as a means of monetization.
The user interface is really simple and you can also follow along via a Telegram bot.
They say you can gain faster trades by signing up to Binance with their referral link.
However, I already have a Binance account so I didn’t use this.
How does it work for traders?
You register an account and then give Coinmatics access to your Binance trading history via the Signals Providers section. Then you can set your fees.
Unfortunately I don’t know much than that as I did not register as a trader 😉
What were my results like?
I was pretty excited about the idea of following a trader who would earn me passive income every (or most!) months, however in reality for me, it didn’t work out very well…
My results were not good.
And they did not align to the metrics being displayed in Cointmatics.
After two weeks, according to Coinmatics, the strategy was up $1,000, whereas my Binance account was down $600. 😢
So, I contacted Coinmatics support
Their initial response was that I did not have enough funds in my Binance account. ie. it did not match closely enough the balance of the trader and therefore my account could not follow it correctly.
I thought this was a bit strange.
Yes, I could understand if there was a massive difference and tiny amounts in Binance so the percentages could not be executed.
Another confusing thing was that the Coinmatics dashboard had said the minimum to follow was $150 — I had much, much more.
What went wrong?
Anyway, despite not being 100% convinced, I increased my Binance balance so it was the same (slightly more) than that of the Trading Strategy I was following.
And I waited to see what would happen…
It wasn't good…
Massive difference.
I'd lost $108 more than the trading strategy in just 2 days!
Having already lost hundreds with Coinmatics, I decided to pause and look into things myself.
When I looked more closely, the trades in Binance were not executing at the same time (some trades did not execute at all).
So I contacted support again.
I took the time to provide screenshots, lots of information and feedback.
Their response;
We're sorry about this inconvenience. Our formula calculating profit can return incorrect results sometimes. It shows bigger than expected profits.
We're currently reworking this formula to make the charts correct.
Kindly note that we're in BETA version. Some functionality is not yet released, some may require rework.
Firstly, it would have been nice to know this in advance!
Secondly, it does not exactly inspire confidence.
And then..
We're sorry to hear that you're losing money. Kindly note that your situation is not an issue, it's how market orders work on Binance:
https://support.coinmatics.com/hc/en-us/articles/360017583017-Why-my-deal-price-differs-from-the-trader-s-deal-price-
Your price can differ.
They didn't care. 😔
If transactions don't execute fast enough, then why allow scalping-style strategies?
Why display charts and metrics without some form of disclaimer?
Why immediately blame the customer?
What were other people’s results like?
I’d read good reports about other people’s results. When looking more closely, the strategies they followed were much slower; either swing trades or only a few trades per day. ie the precision of execution time is not so important.
Conclusion
Whilst I very much enjoyed the user interface (even if it wasn't accurate!), I didn’t enjoy the results nor the “support”. I decided to transfer the funds I had into Yieldnodes and my crypto portfolio instead.
I’m very interested in copy-trading as a form of passive income and Coinmatics showed great potential but sadly did not perform for me on multiple levels.
Maybe I'll come back and try again at later date, however for now I’ll stick to other opportunities.
You can try Coinmatics here: https://coinmatics.com
