Binance Copy Trading review
This article reviews the Binance Copy Trading features and their pros and cons. If you are new to the Cryptocurrency world, stick with me because it might save you a great deal of time and perhaps save your assets from unaccounted risks.
The Cryptocurrency market has been one of the hottest market trends for the last decade. The Crypto market cap is short of $2 Trillion when writing this article; this gives you a sense of how large the Crypto market is in terms of global trades. Even though it can’t yet be compared with the gold’s international market cap, which is about $11.5 Trillion, the Crypto market cap is forecasted to surpass that of gold by a significant margin in the not too distant future; considering its current adoption rate (i.e., Cryptocurrency and emerging Blockchain techs).
In addition, a credible number of published articles have also estimated that over 300 million people worldwide currently hold Crypto assets, which is expected to continue increasing. Other studies have verified the growing popularity of digital assets by claiming that almost 16% of Americans have used, interacted with, or traded Cryptocurrencies. Therefore, if common sense is applied, since governments, large corporations, and even financial institutions are already participating, it is only natural to jump on the bandwagon rather than miss the opportunity.
It is interesting to note that for anyone to start trading, they can spend hours of training and use tons of analytical tools to ensure they make a profit and not lose their shirt. Now, with the innovative creation of Tycoon in partnership with Binance, you can follow in the top gainers’ footsteps and make excellent profits through the Tycoon platform’s Copy Trading features when connected with the Binance exchange, which is the most liquid and popular cryptocurrency exchange in the world.
So, without further ado, let’s see how copy-trading works and see if you can make a fortune using the Binance-Tycoon copy trading features.
What is Binance Copy trading?
As stated earlier, Binance remains the most popular Crypto exchange and with the highest rating. Understanding why so many Crypto traders choose Binance will illuminate why copy-trading on Binance is exciting.
The benefits of Binance exchange
- Supports over 45 fiats
- It is open to 1600+ markets
- There are 405 coins and tokens available
- Offers reasonable fees
- The exchange owns the Binance Smart Chain, which is now referred to as the BNB Chain.
- Domestic BNB coin provides a discount to holders.
- Trading bots, futures or margin tradings et, Cetera are available
- Home to many ICOs and IEOs
- API connection and third-party apps usage are available
Therefore, you can see why many people would prefer the exchange with the highlighted points above. So if you are interested in Copy trading, stay on Tycoon Insights till the end of this article.
Copy-trading on Binance
As mentioned earlier, you can connect different APIs and bots and use them on the Binance exchange. With our developers’ brilliant creation of the Tycoon Trading Platform, everyone (including novices with absolute zero knowledge of digital assets trading) can now jump on the bandwagon.
The Tycoon copy trading feature enables users to copy other traders’ positions in the market. Therefore, it offers excellent win-win opportunities for leading experts and those who copy their trading positions. The signal providers/experienced traders can gain extra profits from letting others follow in their steps. It provides the opportunity for people to follow successful and established portfolios rather than relying on their very own decisions.
How can I copy trades?
To copy trade on Binance, you will need a third-party application. Alternatively, you can develop your codes thanks to the open-source API. The following web applications are examples of the platforms that support Binance Copy Trading: Aivia, Jet-Bot, and Tycoon.io.
Note that some of those applications offer copy trades on multiple Cryptocurrency exchange websites. Thus, copy trading is not just exclusive to Binance, and as a matter of fact, Tycoon is currently working hard to increase partnership with more centralized exchanges soon.
What types of trades and positions are available for Binance copy trading?
There are several types of trades and positions available on the Crypto market. Highlighted below are the market trading categories:
This is the simplest and most common type of trade. Spot trading allows the instant exchange of two tokens.
This type of trade allows users to utilize third-party funds to increase investments or take short positions. In other words, margin trading will enable you to borrow funds from an exchange like Binance and then use that borrowed fund to open a trade with leverage, thereby increasing your trading position. In addition, this feature enables leveraging the borrowed assets to multiply your gains, and this can be a loss if the trade goes against you.
Please understand that you will need to repay the debt plus the interest.
Note: if you are new to Crypto trading, we strongly recommend avoiding margin trading as it highly multiplies your risk, and your assets can be liquidated.
In future trading, people try to predict and take positions in the future. For example, if traders expect a rise, they take a long position; however, they can take short positions if they bet on a market drop. You can also leverage your investments in future trades. USD and Coin markets/contracts allow users to use Stablecoins like Tether or other Cryptocurrency tokens in Binance Futures.
Note: predicting the highly volatile Crypto market takes a lot of knowledge and experience. We recommend mock trading before you invest and leverage your life’s savings.
Why is Binance copy trading only available for Futures?
As mentioned in the definitions above, you need to identify top traders and see what positions and tokens interest them. Copying future trades allows a thorough examination of the positions and assets before committing to the transactions. Moreover, filling your orders in the spot market takes some time. Although the time might not be significant, it might lead to a considerable gap between the price of the primary account traders and the followers’ orders. For example, John Dow is a professional trader who wants to follow on-spot trades. John detects a surge in a token value and buys 100$ worth of the assets. You follow his lead and place the same order. But the prices have already gone up by a few percent.
Later on, when John decides to sell the tokens before the market plummets, you lose some money just because you are always a few seconds late. That’s where copy trading bots come in. In addition, users can leverage their investments on Futures, whereas spot trading does not support borrowing and lending. In all honesty and transparency, with or without trading skills, if you want to start making money right away through a creative and established copy trading channel, consider a ready-made platform like Tycoon.io.
What are Binance copy trading costs and fees?
Apart from the standard transaction fees, Binance doesn’t charge copy traders. However, since you need third-party applications for copy-trading, you must pay additional fees. Depending on which web application you use, the following charges might apply:
Fixed or subscription fees: these costs are billed monthly or annually regardless of the number of transactions.
Commissions: the service provider will charge you based on the value of transactions or profits that you make from Binance copy trading. Usually, web applications give back some of the fees to the primary account holder that you follow as an incentive.
Management fees: if the app also manages the assets, it might charge you for the management algorithm but depending on the Crypto trading platform you intend to use, these costs can sum up from zero to $2000 per month.
Types of market analysis
Traders and holders use different analytics and resources for Crypto market strategies. However, on Tycoon Insights, we provide you with well-researched information and the possible best resources globally available. Nonetheless, it’s helpful to have some analytic tools up your sleeves.
Cryptocurrency- Fundamental Analysis (FA):
In simple words, fundamental analysis measures the essential value of a digital asset. Therefore, understanding the dominant factors, detecting trends, and following Latest Crypto News is imperative to improving your FA skills.
Cryptocurrency- Technical Analysis (TA):
In a nutshell, technical analysis tries to find investment opportunities based on repeating market patterns and price trends. To understand how technical analysis works, you need to extract data from charts and figures.
The Crypto ecosystem is highly affected by human psychology. The social analysis focuses on social media data surrounding Cryptocurrencies. Social volume, sentiment analysis, and influencer analysis fall into the social analysis category. Take the $TYC token, for example, to understand the impact of social influence on the Cryptocurrency market. This token is one of the recent trends and might be a good investment option as it has a strong tie to the Tycoon platform – the Best social Crypto trading platform in the market with new features and competitive advantages.
Copy-trading eliminates so much analytical burden. You can also verify the account you intend to follow for copy-trading on Binance for credibility. In addition, since no one is immune to making errors, you can cross-check the offered trade positions with other analytical tools to improve your chances of getting a higher investment return.
What are the possible associated risks?
So far, we have discussed the basics of copy trading. Now, we want to enlighten you about the potential risks of relying on Binance copy trading and hence the following extra tips:
Always do your homework!
Please take note that even “Rome wasn’t built in a day.”
Don’t expect to get rich overnight. There are a lot of black hat actors or accounts and misinformation on the net. Therefore, check the following items before using a bot or following a trader:
Sentimental analysis (account credibility)
You can look up the account to learn about the person or people behind the trading account. Many traders also have active social media accounts. Therefore, users can look those people up in sentiment analysis web applications to assess their judgment and credibility. Dummy accounts and bots can make a user look popular on exchange websites. Although, some platforms, such as the Tycoon App, already offer this service by verifying users’ identities via the use of a robust KYC system, thereby minimizing your chances of encountering fake traders to absolute zero.
Scams (whales and shit-coins)
If something is too good to be true, don’t trust it. It is important to note that there are many scams and “pump and dump” projects out there where some whales or popular influencers manipulate the community by spamming about a coin. It is not easy to detect such activities; nonetheless, keeping the possibility in mind will help overcome the temptation to jump on just anything that comes your way. Always do your due diligence.
Find your way
Binance copy trading can be lucrative, but mastering trade is even better. Try to find an effective trading style and master it. Some people are traders, while others prefer HODL. Alternatively, you might choose scalping, swing trading, or position trading. Try to improve your knowledge and experience from time to time.
Using bots, copy trading, and analytic tools makes life easier. However, remember that you’re the one in charge. So, take responsibility and take control. Set stop-limits and alerts to save your assets if things are going wrong. Moreover, take the time to scrutinize the terms and conditions of the Binance copy trading API before you take action.
Imaginary expectations are poison.
Psychological experts attest that most traders act upon instinct and feelings rather than common sense and legit signals. Nevertheless, here are some bad habits you should avoid when copy-trading:
FOMO: fear of missing out is the urge to follow others not to be left behind.
Overrating: There is no golden egg. Nevertheless, your ego refuses to believe so and would like to embellish the next trade like the one that will change your life. That’s nonsense! Try to harvest your investments like a farmer, and don’t treat the market like a lottery.
Revenge trading: everybody makes mistakes, which is ok. However, many agitated Binance Copy Traders want to instantly correct their errors by revenge-trading. Although this vengeful approach might work from time to time, it can leave you high and dry in the end. This is more dangerous when the trader uses margins to compensate for his loss.
- Maybe you like to read this post: How People Use NFTs for Money Laundering.
How to make money using the Binance exchange via Tycoon.io?
You can earn money by copying trades of successful traders. Top earning traders also gain badges that differentiate them from other traders. Find below how to start Binance copy trading via a credible and reliable third-party provider/platform.
Registration on Tycoon.io
- Register on the Tycoon social trading platform as a follower. Click this link!
- Write the essential info (such as passwords) in a dedicated notebook.
- It uses the Google Authenticator app and enables the 2FA on your phone.
- Another nifty feature of the Tycoon Trading Platform is its time-out feature.
Identity Verification on Tycoon Trading Platform
Tycoon.io is a registered company in the EU that abides by existing policies and regulations, and so we take customer verifications very seriously. Having KYC (Know Your Customer) verification is not only legally required, but it also grants any user some fantastic benefits. The process is easy and straightforward, and possibly you’re already familiar with this kind of process on other platforms or accounts.
- First, take pictures of your ID, as well as a utility bill. Then record a short video.
- Upload the picture and video into a helpful KYC wizard on the Tycoon Trading Platform.
- Now that identity verification is complete. Your coffee mug is empty—time for a refill and some Binance exploration.
Setting up Binance
- Identity registration on Binance is needed since it will allow you to transact more with a more significant amount of funds. You already have copies of all the required documents.
- Fortunately, by now, you must’ve known the basics of using a centralized exchange (thanks to helpful articles on Tycoon.io/Insights). So now it’s time to generate the API key needed for the copy trading platform.
- Do this via the API management tool on Binance. Every step of the way, write down all the backup info regarding your API key.
- Proceed with connecting your API and deposit your first funds on Binance. Once done, you should head back to Tycoon.io for the final step.
Connection to Tycoon App
- Connect your Binance copy trading API key to the Tycoon Trading Platform. Verify that deposited funds are visible and head over to the leaderboard to do some “Trader Hunting.”
- Your investment strategy is rather prudent. You are not here for quick gains or face-melting quadruple percentage returns.
- The first pro trader that you intend to follow must be ultimately selected according to your investment style and psychological profile.
- Select the trader you like and hit “FOLLOW.” That’s it, and congratulations!
Is Binance copy trading profitable?
Now that you know how to copy trade on Binance, the question is whether copy-trading is profitable or not. As mentioned before, you shouldn’t take copy-trading for granted. You need to find legitimate accounts with a clear record and reliable profits. You can find experienced traders with over 100% ROI and for some mind-boggling losses. Thus, how much you win or lose depends on how the account you’re following performs. Therefore, you should take your time to discover the best accounts to follow.
Of course, you can always browse the list and look up the accounts to figure out who they are and whether you can trust them or not.
Bear in mind to check the profile’s long-term performance and not act based on one’s short-term performance. Also, pay-offs depend on the market trends and the tokens’ performance. The Tycoon App is already equipped with the tools and metrics required to help you select the best performing traders globally.
We appreciate you for following Tycoon Insights and reading this helpful article. To sum it all up, the advent of AI and Blockchain technology has created a unique investment opportunity. Before we bring this article to an end, let’s have a recap!
The benefits of copy trading
- It is easy for beginners.
- Copy-trading requires less time and effort to manage.
- You can earn commissions and gain followers when people copy your account.
The disadvantages of copy trading
- Following newbie traders.
- There could be scam activities. So make sure the accounts and bots you follow are legit.
- Copy-traders might overlook vital market signals, resulting in some losses.
Although Binance copy trading makes investment straightforward, we recommend learning the basics of trade and Crypto before investing your hard-earned money.
Final thoughts about Binance Copy Trading
We anticipate hearing from you, and suppose you know anybody interested in this type of news and information; please invite them to “Tycoon Insights.” Do you like a safe and credible social Crypto trading platform? The Tycoon platform remains the Best Social Crypto Trading Platform out there where you can connect your Binance API key and start your Copy Trading journey. We welcome you to join us now, while it’s still “Free of Charge.”
At Tycoon, we always aim for continuous improvement while ensuring excellent professionalism. We promise to continue to do our best by providing a safe and reliable trading environment for all our end-users. Don’t forget to share this article with others and leave your comments below.