NOV 1, 2023
Binance CopyTrading: How to Check for Profitable Traders on Binance Futures
by ZIBAH, CopyChain Crypto
One of the best ways to earn passively as crypto traders (either experienced or inexperienced) is copytrading. Recently, Binance Futures introduced its Copy Trading feature which allow users to replicate the trades of expert lead traders. In this post, we will be going over this new copy-trading feature by Binance and we will also see how we can Perform Lead Trader Profile Analysis without stress
Taking a leap into the exciting realm of cryptocurrency futures trading has never been easier than with the new Binance Futures copy-trading opportunity. With the introduction of Binance Futures' Copy Trading feature in a few markets, amateurs and those with little trading experience can now take advantage of and learn from the experience of seasoned traders. To make sure you maximize this opportunity, we'll examine the idea of Binance copy trading, the benefits of becoming a Binance copy trader, the risks involved, and how to check for profitable lead traders in this post.
What is Binance Futures?
Binance Futures is a derivatives trading platform provided by Binance. It enables traders to make predictions on perceived cryptocurrency price swings in the future by purchasing and selling futures contracts.
Binance Futures CopyTrading
Copy trading allows users to copy experienced traders’ portfolios in real time. On activating copy-trading, users can determine an investment amount, and the system will automatically copy trades from the lead traders the user follows.
Lead traders are experienced traders who let others follow and copy their trades, while copy traders are those who follow and copy trades from lead traders.
Image source: Binance.com
How Binance Copy Trading Works
To use Binance CopyTrading, users must first select a lead trader to copy. Lead traders are ranked by their past performances, so users can choose a trader who has a good track record. Once a lead trader has been selected, users can choose how much money they want to invest and how they want to copy the trader's trades.
There are two copy trading modes on Binance:
- Fixed amount: Users copy the trader's trades with a fixed amount per trade.
- Fixed ratio: Users copy the trader's trades with a fixed proportion of their total portfolio.
Once a user has selected a copy trading mode, they can start copying the trader's trades. Binance will automatically copy the trader's trades to the user's account. Users can monitor their trades at any time and can stop copying the trader's trades at any time.
Tips for Getting Started on Binance Copy Trading (as a copytrader)
1. Discover Lead Traders: Browse the list of established lead traders and review their trading patterns, past performance, and areas of expertise.
2. Lead Trader Profile Analysis: Don’t rush. Traders are advised to take their time to analyze different traders’ portfolios, risk profiles, and strategies before making decisions.
3. Follow your Preferred Lead Trader: Choose to follow the lead traders whose strategies align with your investment goals.
4. Set Your Investment Parameters: Binance Futures offers modes such as Fixed Ratio and Fixed Amount. Traders can use these settings to determine the right investment amount for them.
5. Monitor and Learn: As you begin copy trading, monitor the trades that are being replicated in your portfolio. It's not just about potential profits but also about understanding the 'why' behind each trade.
How to Check for Profitable Lead Traders on Binance Futures and Avoid Making Losses
Here are steps to check for profitable lead traders on Binance Futures copy-trading in order to avoid losses:
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