Binance said it now allows users to take up dual roles on the platform. Users can register for both lead and copy trading.
Binance, the leading global crypto exchange, has unveiled the launch of its long-anticipated copy trading tool for spot customers.
According to an official announcement on April 23, the new tool is available for certain users who meet the exchange’s minimum portfolio asset size requirements.
The feature also allows qualified customers to register as lead traders. These registered traders can choose to monetize their expertise to users who leverage their experience and trading techniques to execute the same trades.
Managing Risks with Automation
By May 2024, Binance plans to extend the service to all customers on the platform, thereby broadening its range of automated spot strategy trading tools. These tools, including options like Spot Grid Trading, Dollar-Cost Averaging (DCA), and Rebalancing Bot, offer traders various benefits.
For the newly launched spot copy trading, the tool is designed to assist users in several ways, such as enhancing speed and transparency, reducing emotional decision-making, facilitating diversification and risk management, and providing continuous market coverage.
Traders utilizing this tool can rely on pre-set trading strategies and parameters, allowing them to participate in the crypto market more effectively while avoiding impulsive trading decisions.
User’s Great Idea Comes to Live
Binance chief technology officer Rohit Wad said the launch of the copy trading tool was based on insights gathered from users’ feedback and experiences.
“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,” he said.
While the new copy trading tool is dedicated to spot traders, Binance has already rolled out its futures counterpart, designed explicitly for futures traders betting on crypto performance. The company launched the copy trading tool for its highly liquid futures products in selected regions in October 2023.
The exchange said that customers are now better positioned to manage their trading strategies and overall portfolios, with both spot and futures copy trading available on the exchange.
Binance to Offer 10% Profit Share to Lead Traders
Binance said it now allows users to take up dual roles on the platform. Users can register for both lead and copy trading.
Each user can have one lead trader account and copy up to ten lead trader portfolios. The exchange will offer lead traders with qualified portfolios a 10% profit share and trade commission rebate from copy traders. Copy traders, on the other hand, can review lead traders’ performance metrics and set their own risk controls.
The company said spot copy trading is currently accessible on Binance’s official website for lead traders and will be progressively introduced on the Binance app.
Binance is also calling on lead traders to start building up their portfolios to qualify for an upcoming competition from April 24 to May 8, 2024.
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