Binance Copy Trading – How to Copy Crypto Trades on This Centralized Exchange
Several centralized crypto exchanges have launched over the past decade. To stay ahead of the competition, many of these trading platforms are constantly introducing innovative services to retain or attract new crypto users. Copy trading is one of the most popular services adopted by centralized exchanges. It allows users to mimic the trades of expert traders.
In this article, we will teach you how to copy crypto trades on Binance, the largest exchange by trading volume. Read on to learn more.
About Binance
Binance is a leading centralized exchange launched in 2017. It operates in more than 180 countries, serving over 200 million customers. As of June 2024, Binance lists over 350 cryptocurrencies. Although the exchange has encountered legal challenges in recent months, it remains a top choice among crypto enthusiasts.
How to Sign Up With Binance
Before using the Binance copy trading feature, you’re required to create an account. The registration is relatively straightforward. Here are the steps to follow:
1. Download the Binance mobile app on your phone. You can get it from the App Store or Play Store.
2. Upon installation, click the “Sign Up” button and provide the required details, which include your email and password.
3. Next, verify your email to access your Binance account.
4. Although you can start trading without completing the Know Your Customer process, you will have several restrictions, such as daily withdrawal limits and the inability to buy cryptocurrencies using fiat currencies. To remove these limitations, verifying your identity is advisable. To complete the KYC procedure, Binance will ask you to submit your proof of residence, identification card, and a selfie.
5. Upon verifying your identity, go ahead and deposit USDT to start copying trades.
Binance Copy Trading
You now have a funded Binance account, so it is time to replicate crypto trades. But how do you do this? Well, the step involves clicking the “Copy” function on the top bar menu. You’ll be directed to the Binance copy trading platform, which allows you to copy trades in the futures and spot markets.
It is worth mentioning that Binance lets users copy trades risk-free through the “Mock Copy” functionality, which comes with a virtual copy trading capital of $10,000.
After you’ve identified your ideal expert trader, click on their profile and specify the copy trading parameters, including your take profit and stop loss levels, as well as margin per trade. To start replicating trades, click “Mock Copy” if you are using virtual capital or “Copy” if you want to use real money.
You can monitor all copied trades on your Binance account and change the copy trading parameters when necessary.
How to Select a Suitable Lead Trader on Binance
1. Risk Management: Choose a trader who prioritizes risk management. They should only risk about 2% of the available capital per trade.
2. Consistency: Check whether the trader has posted consistent profits over the past six or more months.
3. Trade History: It is important to analyze the trade history of a particular trader to get clear insights into their overall strategy.
4. Followers: In copy trading, a huge following usually indicates that a trader is trusted by Binance users.
5. Communication: Pick a trader who engages with their followers regularly.
How to Become a Lead Trader on Binance
To become a lead trader on the Binance exchange, click “Join Elite Trader Program” and fill out the application form. Before applying, ensure you have a 30-day win rate of at least 60%. Once Binance approves your application, create a lead trader account and make it visible to users. You can receive a profit share of up to 30% on successful trades.
Benefits of Copying Crypto Trades on Binance
Copy trading has several benefits, including:
1. Ease of Entry: Novice users can start trading cryptocurrencies without having deep knowledge about the crypto markets.
2. Learning Opportunity: Along with earning passively, beginners can learn more about crypto trading from their lead traders.
3. Time-Saving: Since Binance automates its copy trading service, copy traders do not need to spend a lot of time monitoring copied trades.
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