Binance is undeniably the biggest crypto exchange in the world. It is an outstanding platform that offers a wide range of services including a myriad of financial instruments, interesting derivatives, and more. If you are looking for a place to start investing in crypto, you will unlikely find a better place to do so.
Since this exchange is a contemporary service with advanced technology, it works perfectly with various automation tools such as Binance copy trading or DCA bots. You can choose from a diverse array of options and be sure to find a suitable third-party solution that works excellently with Binance thanks, in part, to its well-performing API allowing many external companies to interact with the platform efficiently and without any delays.
When it comes to choosing which Binance app to use, we should understand that Binance has its automation products, but they are lacking compared to many specialized platforms out there. For example, WunderTrading offers a much wider selection of tools including Arbitrage bots that make purchases simultaneously on different platforms.
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How to start copy-trading crypto on Binance?
First, you need to choose a good automation vendor. The market is quite diluted, but you can find really good platforms that offer rich selections of interesting automation services including DCA, GRID, Arbitrage, and other specialized bots. When looking for a good company, make sure to pay attention to several aspects:
The versatility of products. It is important to look for platforms that offer diverse instruments that allow you to effortlessly implement any strategy that you find worthy of exploring. For example, WunderTrading offers DCA and GRID bots, customizable scripts, analytical tools, and a long list of integrated services like the TradingView terminal and numerous exchanges.
Pricing. You can always check prices before committing to paying. If you cannot find a comprehensive price list, ask for a preliminary quote from managers. However, you should be looking at services that have moderate prices and offer trials or free plans.
Visual design. The interface must be informative and intuitive. If you spend hours learning how to navigate within your dashboard, you will never be able to master the platform. Understand that using a website expertly is a sure path to better profits in the future. User experience matters and should never be considered something trivial.
Testimonials. User reviews should be a defining factor when looking for a reliable platform allowing you to engage with Binance social trading strategies. Do not put heavy emphasis on 5-star and 1-star reviews which are generally not helpful. Look at informative, well-written reviews from users who have first-hand experience of working with the platform you are interested in.
Setting up a Binance copy trading bot
While different services use unique technological solutions and coding techniques, the general principle is the same. You will need to follow three easy steps:
Go to your account at the automation website and connect to Binance. You may need to specify which account you need to connect to. For example, margin trading accounts are used most commonly for automation purposes, but you may be interested in DCA buying with your primary account.
Go to the market tab (when using WunderTrading) or a similar page where you can choose from a list of successful traders. These traders disclose information about investment efforts and show their results openly. Choose people that you want to follow.
Click “Follow” next to the name of the trader you like. The automation service will start to repeat its market activities and automatically place orders in your name using the Binance copy trade API.
You don’t need to perform any other tinkering. Social trading is that easy. It is an instrument targeting the audience of those who want to start investing, but do not have in-depth knowledge of financial markets. These novices can simply follow the lead of professional traders and make money by copying their actions.
It is also a great way to interact with assets and derivatives that you don’t fully understand. For example, a Binance futures copy trading strategy will allow you to perform great tricks like calendar spreads (if you follow an experienced spread trader) without even understanding how they work.
Should you use copy trading?
Many believe that active investors should learn about markets and try to trade without any external guidance. However, it is an outdated view of the industry where automation became so prevalent that many people who do not use it start lagging behind the competition. Simultaneously, understanding the nuances of many digital assets is very challenging for newcomers who would like to start investing right away.
Ultimately, it is up to you to decide whether you want to follow someone’s lead or want to improve personally by trial and error.