In recent news on the Block, Binance plans to launch a spot copy trading feature that will enable users to mimic and carry out the same transactions as successful traders. Rohit Wad, the CTO of Binance, mentioned that this tool was developed in response to feedback from the community and is designed to streamline user trading.
Copy trading, which eToro first introduced, allows individuals to benefit from the strategies and risk management methods that traders practice by enabling them to replicate their portfolios. Other prominent cryptocurrency exchanges like Bybit, OKX, and Bitget have recently integrated copy trading into their platforms.
Binance’s new spot copy trading service is currently accepting registrations from “lead traders” who meet the criteria regarding portfolio size management. Lead traders are entitled to a 10% profit share and a 10% commission rebate on trades made by those copying their strategies each week. Users will also have the option to assess lead traders’ performance metrics, mirror up to ten lead trader portfolios simultaneously, and establish their automated risk management mechanisms. It’s important to note that leverage is not an option for spot copy trading.
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The crypto exchange is also set to introduce an option that will allow users to take on the roles of both lead and copy traders in markets across Latin America, the Middle East, Europe, and Asia Pacific areas. The feature will be launched with over a hundred spot pairs and gradually rolled out over time. Additionally, Binance has revealed plans for a lead trading tournament from April 24 to May 8, providing traders with an opportunity to solidify their portfolios prior to the feature’s official launch on the Binance app.
Alongside existing automated strategy tools like dollar cost averaging and a rebalancing bot for adjusting the crypto portfolios, this new feature aims to help users navigate the 24/7 market environment by minimizing emotional decision-making and facilitating more effective trading strategies with the option of diversification and risk management.
A spokesperson from Binance mentioned that lead traders who are currently utilizing the futures copy trading service must separately register for spot copy trading. The spot copy trading functionality will offer increased flexibility for managing market trading approaches.
When discussing the benefits of spot copy trading as opposed to futures copy trading, the Binance representative mentioned that spot copy trading could benefit newcomers in the crypto and trading world as it will allow them to learn and experiment before moving on to futures trading. The representative also highlighted that Binance aims to provide liquidity and reduce slippage for users compared to other copy trading platforms.
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Although they couldn’t reveal the exact percentage of users using Binance’s copy trading feature, they mentioned that spot trading would be a more accessible option to a wider range of users as lead traders can engage with a larger group of copy traders.
