As per the latest updates on the Block, Binance intends to introduce a spot copy trading function that will let consumers emulate and execute identical transactions as proficient traders. According to Binance’s CTO, Rohit Wad, this feature was created to improve user trading and was created in response to community feedback.
With copy trading, which eToro originally popularized, anyone may mimic their portfolios and gain from the tactics and risk management techniques used by traders. Copy trading has recently been added to the platforms of more well-known cryptocurrency exchanges, including Bybit, OKX, and Bitget.
Those who fit the requirements for managing portfolio size are now able to register for Binance’s new spot copy trading service. On trades executed by those who copy their techniques each week, lead traders are eligible for a commission rebate of 10% and a profit share of 10%.
In addition, users will be able to monitor and evaluate the performance metrics of lead traders, create automatic risk management protocols, and mirror up to ten lead trader portfolios at once. Leverage is not an option for spot copy trading, which is an essential distinction.
What’s next?
Additionally, in markets around Latin America, the Middle East, Europe, and Asia Pacific, the cryptocurrency exchange plans to launch a feature that will let users act as both lead and copy traders. Initially, more than 100 place pairs will be available for the function, which will be progressively expanded over time. In addition, Binance has disclosed that it will host a lead trading competition from April 24 to May 8. This tournament will provide traders a chance to strengthen their portfolios before the feature is formally released on the Binance app.
By reducing emotional decision-making and enabling more successful trading strategies with the option of diversification and risk management, this new feature seeks to assist users in navigating the round-the-clock market environment in addition to already-existing automated strategy tools like dollar cost averaging and a rebalancing bot for adjusting the cryptocurrency portfolios.
Lead traders who are currently using the futures copy trading service need to register separately for spot copy trading, according to a Binance representative. The ability to trade spot copies will provide more flexibility in how market trading strategies are managed.
The Binance spokesperson highlighted that spot copy trading might help beginners in the cryptocurrency and trading worlds by giving them the opportunity to study and try things out before committing to futures trading. This is one advantage of spot copy trading over futures copy trading. In addition, the official emphasized that, in contrast to other copy trading platforms, Binance seeks to give users liquidity and minimize slippage.
While they were unable to provide a specific figure for the proportion of users utilizing Binance’s copy trading feature, they did state that spot trading would be more user-friendly because lead traders could interact with a bigger number of copy traders.
