Heaptalk, Jakarta — Binance launched its Spot Copy Trading strategy tool, available for experienced users who meet minimum portfolio asset size requirements to register as lead traders, and it will be rolled out fully for all users in May 2024.
The launch of spot copy trading further increased Binance’s diverse and popular offering of automated spot strategy trading tools, which included Spot Grid Trading, Dollar-Cost Averaging (DCA), and Rebalancing Bot.
The crypto-asset company reveals the benefits of using automated trading tools such as spot copy trading, including:
- 24/7 coverage: Automated trading tools allow the user better control over how they participate in the crypto market, which trades 24 hours a day, seven days a week.
- Speed and efficiency: Once users have set their trading strategies and parameters, automated trading tools can process vast amounts of market data and execute orders within milliseconds, exceeding what the individual user can otherwise do.
- Removes emotions from decision-making: Automated trading tools help the user avoid emotional or impulsive trading by operating according to predetermined trading strategies and parameters.
- Diversification and risk management: With a continuously growing range of automated trading tools, users have more diversification and risk management strategy tools.
Copy trading allows users to follow and automatically execute the same trades as lead traders. This enables copy traders to leverage other users’ experiences, trading techniques, and risk management strategies. Lead traders can monetize their expertise when they make their portfolio available for copy trading.
Chief Technology Officer at Binance, Rohit Wad, conveyed, “Our users give us great ideas because they often know what works best for them. Spot copy trading is one such idea that came from community feedback. This great tool automates trading for our users, allowing them to try new trading strategies.”
Binance first launched copy trading for its highly liquid futures products in selected regions in October 2023. In markets with both spot and futures copy trading, users will have even greater flexibility in managing their trading strategies and overall portfolio.
Users on Binance can simultaneously become lead and copy traders. Each user can have one lead trader account and copy up to ten lead trader portfolios. Lead traders receive a 10 percent profit share and a 10 percent trading commission rebate from copy traders who replicate their trades. Copy traders can review the lead traders’ performance metrics, such as profit & loss records, and choose the ones they want to follow while setting their risk controls.
Presents benefits for its traders
Binance spot copy trading benefits for lead traders, consisting of:
- Ease of Use: Simple to sign up with no lengthy registration required.
- Revenue Sharing: 10% profit share and 10% commission rebate from followers.
- Largest User Base: Millions of potential copy traders to engage with.
- Regular Payouts: Payouts are sent weekly.
Binance spot copy trading benefits for copy traders include:
- Ease of Use: A User-friendly interface makes copy trading easy.
- Learning: Leverage the experience of lead traders to learn about trading strategies.
- Transparent: Lead trader performance metrics are readily available.
- Highly accessible: Market-competitive fee structure makes trading accessible.
