Binance, the globally leading cryptocurrency exchange, has introduced a spot copy trading feature.
This tool allows users to automatically replicate the trades of some of the platform's top traders, aiming to simplify trading and enable users to adopt new strategies more effectively.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is a Crypto Wallet? (Explained With Animation)
Allowing less experienced traders to benefit from the expertise of seasoned professionals through copy trading isn't a new practice. Pioneered by the social trading platform eToro, copy trading has already been adopted by major crypto exchanges, such as Bybit and OKX.
Rohit Wad, Binance's Chief Technology Officer, highlighted that this feature was developed in response to user input, stating:
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.
Binance has started the registration process for "lead traders" who must manage a portfolio ranging from 500 USDT to 250,000 USDT. They will receive a 10% share of the profits and a weekly 10% trading commission rebate from their followers.
Binance offers detailed metrics on lead traders, including their profit and loss records. Users can follow up to ten lead trader portfolios and tailor their trading with automated tools like stop-loss orders and fixed ratio copying.
This feature is set to roll out gradually to users in May, marking another milestone in Binance's commitment to enhancing user experience and engagement.
The development is introduced while Binance is being targeted by a class-action lawsuit in Canada, which alleges the company violated securities laws.
