How to Do Copy-Trading on Binance for Free
- 22 Sep 2022
Binance is the biggest international crypto exchange that has an impressive 16% market share and offers a wide range of various financial products as well as interesting assets to millions of retail traders and investors from across the globe. If you want to try copy trading Binance strategies, you should take a closer look at the industry and automation vendors offering their services to a diverse audience of crypto traders.
What is social trading on Binance?
The term “social trading” refers to a very specific form of automated trading when you choose a well-performing portfolio manager and copy their orders to get closer to their results. It is a good way for newcomers and unsure investors to get accustomed to the world of crypto. While it may seem like something with a hands-off approach, the true value of such strategies is endless opportunities to learn more about markets.
Technical analysis is the bread and butter of any contemporary day trader. However, it is not enough for a novice to be profitable when trading crypto assets. Experienced investors make decisions based on multiple sources of information and types of analysis. You may employ technical indicators to find a good entry point, but your decision should be informed by understanding fundamentals and knowing the projects that invest in.
For example, you could choose Cardano as a destination for your investments. Considering that the Vasil hard fork is going to occur, the price could go up before the event as the hype would allow the Bulls to push for higher prices. At the same time, you may notice that the US dollar is getting weaker due to inflation. Combined with alerts from technical indicators, an experienced trader would decide to buy ADA now and resell it before the hard fork to protect themselves from volatility.
A newcomer to the industry would not have this thought process and decide without considering multiple factors at once. However, with copy trading crypto on Binance, you can follow someone who conducts a thorough analysis of price dynamics and fundamentals to automatically repeat their orders!
How to do Binance trading automation?
The simplest way to introduce automation to your overall investment strategy is by registering on a specialized automation platform like WunderTrading and CryptoHopper. These companies offer a rich catalog of bots including DCA, GRID, and Arbitrage bots as well as special automation solutions like copy-trading crypto on Binance.
How does it work? The whole process is very simple and can be described as follows:
1. You need to register at WunderTrading and connect the CEX account that you plan to use. Binance has API for accounts that operate on spot markets and margin trading accounts.
2. Go to “Market Place” and choose copy-trading to create a new bot that will copy the actions of chosen traders.
3. Select well-performing traders from the list and click “follow”. Now, the bot will start copying their orders on your accounts. You can select multiple traders at once.
WunderTrading is a great Binance copy-trading platform because it provides copy-trading that can be adjusted according to your preferences. The list of successful traders is regularly updated based on their performance. Note that some traders may ask for a fee if you want to copy their orders. Prices vary between $10 and $400.
The marketplace is a free system where traders can choose any fee, so be careful to not follow someone who will just take your money without doing anything. Many traders offer to follow them for free. However, finding a well-performing portfolio among free accounts can be tricky. There is a reason why many people are charging followers fees.
Should you try any binance copy trading platforms?
The list of result-oriented traders regularly making profits is quite long and includes people with over 400% ROI and over 1000% cumulative percentage growth. These are extremely knowledgeable investors that know how to game the market and reach impressive milestones. For any retail trader unsure whether they should be using their strategy or just following the lead of someone with a proven track record, choosing copy-trading is a good idea.
WunderTrading is among many other companies offering flexible automation products that allow you to quickly find a good portfolio manager and start copy trading on binance futures. While the upfront payment may seem high, if you make a good choice, you could double or even triple your capital quickly with the help of someone capable of making informed investment decisions.
As always, you should remember that choosing your investment strategy is your personal responsibility that should never be influenced by any opinion without scrutinizing it with logic and intuition. Ultimately, the decision to use any form of automation or any other investment product should be made by you alone.