Paper trading is a simulated trading activity where securities are traded without using any real money. It is used by traders to test different strategies and to practice buying and selling securities before they risk any actual money in the market. Paper trading can also be used as a way to learn about the stock market and how it works.
The same logic applies to cryptocurrencies: replace security with cryptocurrency and stock market with cryptocurrency market.
Paper trading vs Live trading
This article is going to discuss the pros and cons of paper trading vs live trading. The best way to decide which one is right for you is to consider your goals, experience, and risk tolerance.
Trading bot testing phase
Let's take a look at the testing of the trading bots in the BOTS app. What is the Bots Test category, and why do we have another testing phase?