The copy trading feature on Binance Spot helps lead traders enhance their reputation, earning 10% profit from those who copy their strategies and portfolios.
What is spot copy trading?
Spot copy trading or copying spot trades is an advanced feature of Binance, allowing users to copy real-time buy and sell orders from experienced investors called "lead traders". This feature allows lead traders to demonstrate their skills and expertise during trading, thereby enhancing their reputation.
Lead traders receive additional rewards from ongoing campaigns, earning a share of the profits from "copy traders" (participants in copy trading). On Binance, each copy trader can simultaneously follow a maximum of 10 lead traders and customize margin settings, leverage, and take profit/stop loss.
Guide to copy trading on Binance Spot
Manage spot copy trading assets
To use the spot copy trading feature, lead traders need to transfer assets from their spot wallet to their spot copy trading wallet; thus, the assets are not withdrawn, transferred outside, or used for other activities while executing copy trading orders.
Investors cannot withdraw assets directly from the spot copy trading wallet but need to transfer them back to the spot wallet to execute a cryptocurrency withdrawal.
Participants can add or remove assets from the active portfolio and review the status change history under "Transfer History".
Become a lead trader
Log in to Binance and select the "Trade" -> "Copy Trading" section.
Select "Spot copy trading" -> "Become a Spot Lead Trader".
Set up the lead trader profile including username, portfolio description, and select "Spot" as the transaction type.
Enter the amount to transfer from the spot wallet to the lead trader account (minimum 500 USDT, maximum 250,000 USDT).
Read the terms of service, check the box "I have read and agreed to the User Service Agreement" -> "Confirm".
Start trading as a lead trader
Log into the lead trader account -> click "Start Leading".
Feature options:
"Trade": Start a new transaction.
"Close": Close the existing portfolio.
"Adjust Balance": Add or remove assets from the active portfolio.
Note: Requirements and restrictions for lead traders:
The amount of assets in the spot copy trading portfolio must be from 500 USDT to 250,000 USDT.
Each user can only have 1 lead trader account and 10 copy trader accounts.
The initial number of copy traders for each lead trader's portfolio is limited to 200.
Binance only offers spot copy trading products and services to users who have verified their identity (KYC).
Execute Transaction
Search for the desired trading pair -> Enter order details in the trading section.
Investors can choose the order type for the copy trading portfolio by clicking the settings icon at the top right.
Data available for lead traders
Statistics on lead traders:
Copier PNL: Total recorded and unrecorded PnL of all copy traders over a specific period.
AUM: The amount invested in the lead trader's portfolio and copy trading function.
Profit Sharing: The percentage of profits from the copy trader shared with the lead trader.
Minimum Copy Amount: The minimum investment for a copy trading portfolio.
Last Trade: Date and time of the most recent trade.
Performance:
ROI: The lead trader's profit over a specific period, calculated using the optimized portfolio value to avoid distortion due to deposits or withdrawals.
MDD: The maximum drawdown observed from peak to trough of the asset curve over a specific period.
Sharpe Ratio: The return of the portfolio compared to risk. The larger the Sharpe ratio, the more attractive the risk-adjusted return of the portfolio.
Win Rate: The number of profitable orders/total orders.
Win Days: The number of days with positive PnL.
View transaction details
At the bottom of the spot copy trading page, lead traders can view their personal investment history:
Holdings: The assets in the portfolio.
Trade History: Actual trade history.
Profit Sharing: Profit sharing profile.
Balances History: Balance changes.
Conclusion
Above is a guide to participating in spot copy trading on Binance and some outstanding features. Hope everyone succeeds and earns attractive profits. However, the feature has certain risks such as slippage during market volatility, low liquidity trading assets... so participants need to build a reasonable investment strategy that suits their personal financial capabilities.
