Hassan Maishera
Binance, the world’s leading cryptocurrency exchange by trading volume, announced on Tuesday, April 23rd, that it has launched its spot copy trading strategy tool.
In a press release shared with Cryptowisser, Binance said this new feature is available to experienced users who meet minimum portfolio asset size requirements to register as lead traders.
The feature be rolled out fully for all users in May 2024. The launch of this feature increases the crypto exchange’s f automated spot strategy trading tools, which include Spot Grid Trading, Dollar-Cost Averaging (DCA) and Rebalancing Bot.
The Spot Copy Trading feature offers users several benefits, which include, 24/7 coverage, speed and efficiency in executing trades, elimination of emotions from decision-making, and diversification and risk management.
The feature makes it possible for users to follow and automatically execute the same trades as those of the lead traders, enabling copy traders to leverage other users’ experiences, trading techniques and risk management strategies.
This means that experienced traders can monetize their expertise when they make their portfolio available for copy trading.
While commenting on this launch, Binance’s CTO, Rohit Wad, said
“At Binance, we’re always listening to our users and incorporating their feedback into our products. Our users give us great ideas because, very often, they know what works best for them. Spot copy trading is one such idea that came from community feedback. This is a great tool that automates trading for our users, and gives them the ability to try new trading strategies.”
The crypto exchange revealed that its users simultaneously become lead and copy traders. Each user can have one lead trader account and copy up to ten lead trader portfolios.
Binance explained that lead traders receive a 10% profit share and a 10% 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 that they want to follow while setting their own risk controls.
Lead traders will enjoy certain benefits such as ease of use, revenue sharing, regulator payouts, and access to the largest crypto user base in the world.
Meanwhile, copy traders will enjoy benefits that include ease of use, the opportunity to learn from experienced traders, transparency, and a market-competitive fee structure.
Binance warned that digital asset prices can be volatile. This means that the value of users’ investments may go down or up and they could lose their capital. As such, traders are solely responsible for their trading decisions and Binance is not liable for any losses they incur.
Binance is the world's leading blockchain ecosystem and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users and features an unmatched portfolio of crypto products and offerings, including trading and finance, education, data and research, social good, decentralization and infrastructure solutions, and more.
