Leading cryptocurrency exchange Binance is officially launching the much-requested Copy Trading feature. Inexperienced users will now be able to imitate the positions of experienced traders with a few clicks.
Binance launches Copy Trading feature
Copy Trading is an investment strategy based on inexperienced traders to automatically follow the trades of experienced and successful traders and execute the same trades in their own accounts. This feature will now be active among users of the world’s largest crypto exchange Binance.
Binance Futures, the futures arm of Binance, announced that it will gradually launch its copy trading feature starting at 21:45 today. Currently, leading trades are active. The full launch of the Copy Trading feature will take place in mid-September 2023.
Copy Trading automates the copying of real-time trading tactics of skilled traders. This concept simplifies trading by making it easy for industry experts to copy their strategies.
There are many methods of futures copy trading in the cryptocurrency industry. For example, Bybit uses PAMM models. Many third-party platforms accessible via API enable copy trading. These services use read-only API keys for traders and trade-only credentials for copy trading. Now Binance exchange is also adopting this feature.
What does the expected mean specifically for the cryptocurrency market?
Binance Futures’ copy trading feature demonstrates its commitment to innovation and customer satisfaction. The leading exchange aims to democratize trading by providing a platform for everyone to learn and use the methods of talented traders. Investors and enthusiasts can expect a vibrant and immersive trading environment as new features are added.
Copy Trading platforms allow experienced traders to share their portfolios and transactions with other traders. On these platforms, new or inexperienced traders can review the trades of successful traders. So, like the image below, you can emulate the trading strategies of the traders you follow with just a few clicks. The highly anticipated feature will be very effective in attracting new users to Binance and the crypto ecosystem.
cryptocoin.comAs we have reported, Binance came to the fore yesterday with the allegations that it could not refund its users in Europe.
Pay attention to these when copy trading
Copy Trading brings with it some significant risks as well as potential benefits. The most important of them are:
- Uncertainty: Past success does not guarantee the same results in the future; markets are constantly changing. Experienced investors can be wrong
- Lack of risk management: Ignoring your risk tolerance by copying other people’s transactions leads to excessive risk.
- Technical Issues: Technical issues may affect your transactions. Causes erroneous operations or delays.
- Market fluctuations: Rapid fluctuations in the markets cause losses on copied trades.
