In a recent development, Binance has rolled out a new option that enables users to directly copy the trading strategies of experienced traders. The platform also explained the distinction between copy trading in the spot and futures markets.

The announcement from Binance emphasized the significance of the new Spot Copy Trading feature, wherein users can replicate the trading strategies of top traders on the Binance platform with a few simple clicks. This innovation aims to provide users with an efficient way to mirror the trading activities of skilled individuals.

Spot trading entails the buying or selling of cryptocurrencies at prevailing market prices, whereas futures trading often involves leveraging. While leveraging offers the potential for increased gains, it also carries heightened risks, particularly in the face of market volatility.

Through the newly introduced Spot Copy Trading feature, users on the exchange will have the ability to replicate the transactions of up to 10 traders simultaneously. Moreover, participants will receive 10% of the profits generated by the traders they opt to copy, as well as a 10% discount on trading commissions. The portfolios of experienced traders should range from $500 to $250,000, with a maximum of 200 individuals being able to copy their trades.

Following the launch of this new feature, Binance's native token, BNB, has reflected positive growth, with the coin's price rising by over 2% in the past 24 hours to $580, as per CoinMarketCap data. Despite the introduction of the Spot Copy Trading functionality, trading volumes have shown marginal changes, increasing by just 1% since the feature announcement.

This recent development in copy trading on Binance spotlights the platform's ongoing efforts to empower users by providing them with opportunities to engage with and benefit from the expertise of seasoned traders. Last October, Binance had introduced copy trading on the Binance Futures platform, offering various benefits to participants, such as a share in profits generated by copy traders and discounted trading fees. Qualified traders can also contribute content on the Binance Feed platform, sharing insights and strategies with the community.