Cryptocurrency exchange Binance today announced the launch of its spot copy trading feature.
The new option allows users to copy the trading strategies of experienced traders directly. Additionally, Binance explained the difference between copy trading in the spot and futures markets.
You asked and we listened.Introducing Spot Copy Trading on #Binance!Replicate strategies of #Binance top traders in a few clicks.Get started 👉 https://t.co/kY1KnOjw0T pic.twitter.com/QsVtPewuXj
— Binance (@binance) May 15, 2024
“Spot trading involves buying or selling crypto at current market prices. Futures trading, meanwhile, often uses leverage. This can significantly increase potential gains, but also risk, especially given market volatility.”
Binance announcement
Exchange clients will be able to copy the transactions of 10 traders simultaneously. The message also says that users will receive 10% of their copy traders’ profits and a 10% discount on trading commissions.
Experienced traders’ portfolios should range from $500 to $250,000, with a maximum of 200 copy traders.
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Following news of the feature launch, the cryptocurrency exchange’s native token, BNB, reacted with growth. According to CoinMarketCap data, the coin has risen in price by more than 2% in the last 24 hours to $580. However, trading volumes remained virtually unchanged despite the announcement of the new feature, increasing by just 1%.
Source: CoinMarketCap
Last October, Binance announced copy trading on the Binance Futures platform. The new option allowed users to monitor the trading portfolios of experienced traders, view performance indicators, and make decisions based on this information.
Binance Futures traders received several benefits, including 10% of copy traders’ profits and a 10% discount on trading fees. Qualified market participants can also create content on the Binance Feed platform and share trading strategies.
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