Binance Defies Regulatory Strain, Unveils Spot Copy Trading Feature
Amidst its regulatory challenges, leading cryptocurrency exchange Binance has announced its upcoming spot copy trading tool that will be available from May 2024.
Binance Listened To Its User’s Feedback
On X, Binance hinted at the coming of the spot copy trading tool, encouraging pro traders to come aboard the Lead Trader Tournament. However, these lead traders are required to meet the minimum portfolio asset management size requirements fixed by the exchange.
According to a Binance spokesperson, the traders’ spot copy trading portfolios must contain between 500 USDT and 250,000 USDT. Upon its launch, the product will first be available to traders on the Web while the crypto exchange works on bringing it to the Binance application.
This spot copy trading tool will help place Binance users in the same position as eligible “lead” traders. Precisely, ‘Binancians’ can follow and automatically execute trades in the same manner as these top traders who will receive as much as a 10% profit share and a 10% commission rebate from followers that replicate their trades. Binance CTO Rohit Wad highlighted that the new product is the result of the feedback received from users.
“Our users give us great ideas because, very often, they know what works best for them,” Wad added.
He further described the spot copy trading feature as a tool that automates trading for the exchange’s users. In addition, it allows them to try new trading strategies.
Experienced Traders To Get Monetized With Copy Trading
Notably, the popular crypto trading platform eToro, which recently received a license under the Financial Services Permission (FSP) in Dubai, pioneered the use of copy trading in the digital asset ecosystem. Some other trading platforms including Bybit, OKX, and Bitget have also explored the offering in recent years.
It is an approach that gives new traders insight into the portfolio and methods of experienced traders. Particularly, these lead traders who are comfortable with monetizing their expertise and experience, open up their portfolios for replication. Anyone can now pick up their techniques and risk management strategies to run trades.
They can also view the lead trader’s profit and loss record, and make copies of up to ten lead trader portfolios at a time. Armed with this information, they can set their automated risk controls such as stop-losses and copying by a fixed ratio or fixed amount.
The post Binance Defies Regulatory Strain, Unveils Spot Copy Trading Feature appeared first on CoinGape.
