Binance will introduce an area of spot copy trading.
The functionality will enable its ecosystem’s new utilize monetization features.
The launch of Binance’s spot copy trading capability is scheduled for May.
Leading cryptocurrency exchange Binance, has revealed that it will launch a spot copy trading tool in May 2024 despite facing regulatory obstacles.
Binance’s New Spot Copy Trading: Empowering Users to Mirror Elite Traders
Binance As it listened to user feedback on X, Binance hinted at the upcoming spot copy trading feature and urged experienced traders to join the Lead Trader Tournament. These lead traders must, however, fulfil the exchange-imposed minimum requirements for portfolio asset management size.
A Binance representative stated that the traders’ spot copy trading portfolios must contain 500 USD to 250,000 USD. Upon debut, the product will be made available to traders on the Web while the cryptocurrency exchange works to integrate it into the Binance application.
This feature allows Binance users to trade spot copies on par with qualified “lead” traders. Specifically, “Binancians” can replicate elite traders’ deals and execute them automatically with similar outcomes. As a result, users gain access to elite trading strategies seamlessly. In doing so, they can earn up to a 10% profit share and a 10% commission rebate from their followers. According to Binance CTO Rohit Wad, the new offering is the outcome of customer feedback.
“Our users often know what works best for them, so they give us great ideas,” Wad said.
He went on to say that the spot copy trading feature is a tool that helps exchange users automate trading and experiment with different trading tactics.
Skilled Traders Can Profit From Copy Trading
The well-known cryptocurrency trading site eToro notably pioneered the use of copy trading in the digital asset ecosystem. Recently, eToro obtained a license under the Financial Services Permission (FSP) in Dubai. In recent years, a few other trading platforms have also looked into the service, such as Bitget, OKX, and Bybit.
It’s a strategy that helps novice traders understand seasoned traders’ holdings and trading techniques. In particular, these lead traders allow replication into their portfolios because they feel comfortable making money from their knowledge and experience. Today, anyone may learn how to run trades using their methods and risk management measures.
In addition, they can monitor the lead trader’s profit and loss history and duplicate up to ten lead trader portfolios simultaneously. This data allows businesses to establish automated risk controls, including copying by a defined amount or ratio and stop-losses.
