Crypto trading is undoubtedly more difficult than any other financial market out there. This is because cryptocurrencies are much more volatile and have unpredictable patterns making decisions more difficult. That being said, there are a lot of successful traders out there who have a positive track record, and thanks to Binance copy trading, you can now mimic their trades on your own trading account.
What is copy trading?
Have you ever watched a YouTube video or read a blog that discussed which trades you should make? We all have, and they involve an expert showing you which trades they are making so that you can make the same trades. This is referred to as copy trading, except that the process is automated to take the physical hassle out of it.
It works by allowing a more experienced trader to send trade orders by signal and then they are executed on your own trading platform just as if they were your own. All you need to do is find a trader with a history of successful trading in crypto and then subscribing to their trading signals. You will also need to set how much capital to allocate to the copy trading services and it’s not recommended to dedicate your entire capital to copy trading.
Does Binance allow copy trading?
Binance does not offer any copy trading services directly. However, recognising how popular it is accounting for 60% of all crypto trading volume, the exchange created an API that would allow crypto trading services to access the platform. This is how there are several services that offer copy trading services for Binance users (more on that later).
In case you’re unaware, an API is simply a program interface that lets two or more platforms share information. APIs are very common, such as those used by budget tracking mobile apps to track your credit card and bank account expenses. Your bank sets up the API which provides a gateway for these third party apps to view your account balances.
This is the same with the Binance API and it is accessed using an API key which is like a private key or password. Binance generates an API key for each service that tries to access the API linked to your account thus ensuring that only authorised services can access your account. You can easily generate an API key from your Binance account by going to the User icon > API management > Create API.
Once you have your API key and identified a copy trading service you like, enter the key to give it access to your account. The copy trading service will perform the analysis to determine the best trades to make and then transfer the orders to your Binance account. Therefore, the trades appear to have come from your own account and you get to keep all the profits made.
Platforms offering Binance copy trading
Being the most popular crypto exchange, several companies provide copy trading services, but here are the 3 we would recommend based on various values.
Wall of Traders
Using AI and computer algorithms, Wall of Traders claims to generate ‘good’ returns although the exact percentage has not been mentioned. Nevertheless, this Binance copy trading service is mostly known because it’s free. Most copy trading services charge a subscription fee because it doesn’t receive any of your profit, but this one is completely free.
According to the official website, the platform says this is because of its entry into the Binance Broker Program where it earns a portion of the trading fees charged on the Binane exchange. It seems to have worked because Wall of Traders boasts of over $20 million in monthly trading volume with over 4 million trades.
The main downside is that Wall of Traders only has 14 traders to choose from and only 7 work with the Binance API. Moreover, all these ‘traders’ are actually bots because, as mentioned, the platform relies on algorithms and AI. Even so, some of the bots promise great returns such as RigorsBot – Reborn which estimates up to 20% returns when the market trend is favourable.
For someone looking to earn higher returns, Diabolo may be a good option for you. Not only do you get both human traders and bots, but some of the returns have been as high as 94.6%. That is obviously a very high return rate that can almost double your capital when using it. This success rate has been attributed to the use of over 14k trading strategies all of which have been backtested to verify performance.
1,453 users are active on the platform at the time of writing and it has over $7 million in AUM. Its website says that this is ‘riskless’ trading but you should remember that all trading carries risk. Besides, the platform also has a total of 14 traders to copy from just like the previous one and some have been inactive for months. So, in effect, you could only have the services of about 8 – 10 traders.
Also keep in mind that this is a paid service that costs $39.20 per month when billed annually or $49 if you pay monthly. It’s a fair price considering the returns it promises to deliver, but there’s never a guarantee in any market, let alone crypto which is far more volatile.
This is the biggest Binance copy trading platform by trading volume and number of users. WunderTrading boasts of having over $300 million in 30-day trading volumes and over 60k active traders on the platform. And although it has over 11k bots to choose from, it’s transparent enough to show each one’s records from the statistics to the metrics so that you can choose the best one for you.
When you first sign up on WunderTrading, you get 7 days free service and then you can choose between the Basic, Pro, and Premium plans that cost $13.30, $27.97, and $62.30 with an annual payment. No percentages have been indicated for the potential returns but considering the large number of users, it’s bound to be high and profitable.