Binance Introduces Spot Copy Trading Feature, Users to Earn 10% from Trader Earnings

The digital asset platform Binance unveiled its new spot copy trading service today.

This freshly introduced feature empowers customers to emulate the maneuvers of proficient traders seamlessly. The platform, Binance, further clarifies how copy trading diverges in spot trading versus futures markets.

“In contrast to futures trading which might employ leverage, spot trading is about purchasing or offloading cryptocurrencies at existing market rates. Leveraged futures can amplify returns, but they also raise the stakes, taking into account the erratic nature of the market.”

Binance statement

Subscribers to the service may replicate the moves of up to 10 selected traders at once. It was further mentioned that these users are entitled to a profit share of 10% from their designated copy traders, as well as a commission discount of 10% on trades.

An eligible trader must maintain a portfolio valued between $500 and $250,000 and can have no more than 200 copy traders subscribed to their strategy.

The introduction of this function was met with positive momentum for Binance’s proprietary coin, BNB. Data sourced from CoinMarketCap indicates a surge in the coin’s value by upwards of 2% in the preceding day to $580, even as trade volumes stayed relatively stable with a mere 1% uptick post-announcement.

In a previous announcement last October, Binance shared news about introducing copy trading on its Binance Futures platform. This offering allowed participants to keep tabs on veteran traders’ portfolios, access performance data, and use this intel to guide their trading choices.

Traders operating on Binance Futures gained several perks, which includes receiving a share equivalent to 10% of the earnings of their copy traders, alongside enjoying a 10% cut on the trading fees. Seasoned traders with the requisite credentials were also invited to produce and disseminate content about their trading techniques on Binance’s Feed platform.