Home Finance How Copy-Trading Works on Binance?

How Copy-Trading Works on Binance?

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How Copy-Trading Works on Binance?

When searching for the best crypto exchange to work with, Binance is candidate number one. It is a massive CEX platform with a sizeable 17% market share and millions of users from across the planet. It is the reason why copy trading Binance futures is such a lucrative instrument for retail traders who want to be flexible and stay safe when entering market positions.

What is copy trading in crypto?

Over 85% of all retail traders enter the market without any prior exposure to any financial investments. The absence of experience often leads to unsatisfactory results with over 50% of all traders losing everything because they never learned how to control risks.

One of the best strategies for people without market experience is using social traders’ tools. Copying the actions of someone who already achieved success and makes good profits consistently is a much better approach for novices who will most certainly lose money if they attempt to start trading on their own.

The question “how do you trade in Binance” is for beginners who want to make money right away while they are learning the intricacies of the crypto market. Binance is a good choice for newbies. It has a very simple app that grants access to spot, P2P, and margin trading. However, the most important one is the access to the margin account where you can use leverage to benefit from spread trading.

If you want to automate this process and make it even easier, you should follow these steps:

  1. Create a new account with WunderTrading.
  2. Connect your existing margin trading account on Binance.
  3. Go to “Marketplace” and set the exchange filter to “Binance”.
  4. Select one of the top-performing traders and click “follow”.
  5. You will be able to manage followed traders in the dashboard.

Most managers featured on the marketplace trade futures since these are the most popular derivatives available in the crypto industry. Copy-trading Binance futures is a good start for newcomers because learning how spread trading futures works is quite a challenge if you don’t have any experience.

Experienced traders know how to use spread positions and predict prices. Their portfolios have various market positions to reduce risks, copying their actions is a low-risk investment strategy that helps many newcomers to get started.

Binance futures: tutorial for automation

To trade futures, you will need a margin account. To start automating your trading system, you need three things:

  • An account on TradingView to create a technical indicator strategy or employ user-generated systems.
  • An account on WunderTrading, where you will deploy and run bots.
  • A margin account on Binance, where orders will be executed according to your instructions.

Note that WunderTrading has detailed video tutorials and user manuals, so you won’t feel lost when creating a new automated trading system. It is possibly the best Binance copy trading platform out there since it is integrated with this exchange and TradingView. This interconnectedness minimizes idle time and makes it easy for bots to copy the actions of followed traders or execute user-generated instructions.

Binance futures trading for beginners is an open gateway to financial success if you are willing to dedicate enough time and effort to learning the market and using a wide range of tools like copy-trading platforms. It is also crucial for you to learn from followed traders instead of just allowing them to do everything for you.

By watching closely when and why these traders open market positions, you will get a deeper understanding of the crypto industry and its intricacies. Also, you should take a closer look at the history of any given trader. They may look good when retroactively inspected within six months, but may also have an unfortunate history on a longer time scale.

Remember that any past performance won’t guarantee that successes will be repeated!

Should you use automation?

Considering the sheer size and complexity of the contemporary cryptocurrency landscape, it would be an unwise decision to completely forgo automation tools and do everything manually. The market is global and operates around the clock with everything happening everywhere all at once! Even if you have a consistent strategy, you will miss many opportunities to enter the market.

Automation is a great way to reduce time waste and improve your trading game. While you are not guaranteed to make any money using bots without a good strategy, even basic preset solutions are quite impressive. They can deliver good results when market conditions are favorable.

The decision to incorporate ATS in your investment strategy is yours alone, but you should remember that the current situation in the crypto market is not conducive to avoiding advanced trading techniques and products that are widely used by successful retail traders.

The main takeaway

Binance is certainly a good choice for people who want to deal with derivatives on cryptocurrencies. The catalog of financial instruments on this platform is quite long and contains hundreds of choices. If you are interested in making your strategy profitable, you should consider using automation on Binance.

Selecting the right tools, following the best traders, and using low-risk bots such as GRID and DCA bots are all good ideas for a novice to start making money consistently. You can also use a free account at WunderTrading to test bots before upgrading to a paid plan.