Binance is still leading the crypto industry with an impressive 17% market share and several millions of users globally. At Binance copy trade features work excellently thanks to its multifunctional API and a strong online infrastructure allowing external services to directly connect to various applications offered by the exchange.
Can you copy trade on Binance?
The idea of following the best traders and repeating their market positions is not new. Before the Great Depression, many people eagerly watched successful brokers to find those who usually predict the market well. They would simply look which positions those brokers took and copied them immediately.
The internet made communications instant. It means that you need to be able to react quickly and try to make sure that you time your orders well. Following several traders at once can be quite a challenge. Manually placing orders after analyzing what they did recently is also a tedious task. There are way too many variables in this process to ensure consistency.
The existence of the Binance copy trade API makes it much easier for retail traders to quickly browse the list of public investors who make correct guesses about the market regularly. You may try to connect to the API using a custom-made application, but it requires advanced technical know-how and dedication. Alternatively, you may simply register at WunderTrading and use its automation capabilities to work with the biggest exchange in the world.
WunderTrading is fully integrated with Binance meaning that it can access all data made public by the exchange. The automation vendor simply provides a functional interface for social trading allowing users to follow each other. Some do it for free, others ask a small fraction of any returns earned by following their lead.
How to copy trade on Binance?
The process is relatively simple and requires you to have a couple of things prepared ahead of time.
- First of all, register at Binance and create an account. If you already have one, make sure that it is the right kind of account. If you want to follow someone working with the P2P section of the exchange, the general account is fine. If you would like to copy trade Binance futures, creating margin trading account is necessary.
- Next, register at WunderTrading and connect your exchange. The process takes a couple of minutes and won’t be a nuisance. Note that it is much easier to do if you have a Binance mobile app where all codes can be accessed quickly.
- After registering, go to the “Marketplace” and browse through the list of traders that are working on Binance. Use filters to see traders from selected exchanges during certain timeframes. Simply click “follow” and create a bot that will follow actions of chosen traders.
You can follow users, trading bots, and signal providers. Binance is the biggest exchange among those showcased at WunderTrading, but you may be interested in looking into other options. Just after a couple of clicks, your first Binance copy trading bot will be working automatically without any involvement on your part.
Selecting the right trader
It is important to choose traders carefully. By default, the marketplace shows the performance of traders during the last month. Across a 30-day period, many experienced traders may show great results, but they may dip harder than others in the long run. Analyze the all-time performance and try to choose people who deliver consistent results even if their monthly gains appear smaller compared to recently more successful traders.
Another crucial factor to consider is price. While people with huge capital may disregard a relatively small fee, investors with limited resources should think carefully whether they are ready to pay $70 per month to follow a certain trader. Some people allow others to follow them for free, but their performance may be less impressive or consistent.
Some traders that make their activities public are also quite popular online and may even have their dedicated communities. Talk to them directly via social media and other communication channels. Learn whether you can trust their judgment and interact with people who have been following the trader for some time.
Exploiting other features at WunderTrading
While it is a great Binance copy trading platform to work with, WunderTrading has a plethora of other interesting features including DCA, GRID, and arbitrage bots. Each of these products is interesting in its own right.
- DCA is a time-tested approach to buying assets over time to reduce the average cost. It is a great tool to slowly grow your portfolio. The strategy is often suggested as the best entry trading system for newcomers.
- GRID is an advanced version of DCA which creates a “grid” of buy and sell orders to capitalize on price corrections during any type of trend. GRID is a unique product by WunderTrading and already has some diehard fans.
- Arbitrage is good for people interested in trading across platforms by leveraging the diversity of the market and seeking price discrepancies on different exchanges.
The most valuable feature here is custom bot building. You may use any strategy that you come across on the internet and turn it into a money-making machine. Simply create a bot that will receive data from signal generator (TradingView) and create a set of instructions for the script. It will automatically place orders according to the rule set and trade on your behalf using relevant market data.
The main takeaway
Taking advantage of the community is not a bad thing. Many retail traders are hungry for tips and advice from experienced traders. However, following those with expertise and intuition is a much better idea. WunderTrading is a great platform for people interested in copy trading on the biggest exchange in the world Binance.
The interface of the web platform is comprehensive and allows you to quickly get started without feeling confused or intimidated by the complexity of the process. Start following the most profitable traders with a couple of clicks.