Binance Defies Regulatory Strain, Unveils Spot Copy Trading Feature

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In the face of regulatory hurdles, Binance, a prominent cryptocurrency exchange, has unveiled plans for a new copy trading feature in spots, set to launch in May 2024.

Binance Listened To Its User’s Feedback 

Binance suggested the upcoming introduction of a spot copy trading tool on their platform, inviting experienced traders to join the Leaderboard Competition. Yet, it’s important to note that these potential leaders must manage portfolios with a minimum set value as determined by the exchange.

A Binance representative has shared that for using the copy trading feature in spot markets, traders’ portfolios should have a balance between $500 and $250,000 in USDT. Initially, this functionality will be accessible only on the web version of the platform as the team is currently developing its integration into the Binance app.

With this copy trading tool on Binance, users can effortlessly mimic the trades of elite traders and experience the same profitable outcomes. In simpler terms, Binance members can automatically execute identical trades as these top-tier traders who will earn up to a 10% profit share and a 10% commission reduction from followers mirroring their actions. Notably, Binance CTO Rohit Wad announced the launch of this product in response to user suggestions.

“Our users give us great ideas because, very often, they know what works best for them,” Wad added.

The feature called “spot copy trading” was explained in more detail by him. It’s a handy tool that lets exchange users automatically execute trades based on other traders’ actions. Furthermore, it provides an opportunity for them to experiment with fresh trading approaches.

Experienced Traders To Get Monetized With Copy Trading

Significantly, eToro, a well-known cryptocurrency trading platform that has acquired a license under Dubai’s Financial Services Permission (FSP), was among the first to introduce copy trading in the digital asset market. Similarly, other trading platforms such as Bybit, OKX, and Bitget have begun offering this service in recent times.

Experienced traders allow newcomers to peer into their successful investment portfolios and learn from their methods. These seasoned traders willingly share their expertise by making their portfolios available for imitation. New traders can then adopt their proven techniques and effective risk management strategies to execute trades on their own.

Additionally, team members have the ability to access and examine the profit and loss statements of the head trader. They are allowed to make up to ten copies of selected portfolios. Equipped with this data, they can establish their risk management settings, including stop-losses and duplication using a set ratio or monetary value.

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2024-04-24 00:22