COPY TRADING na BINANCE (Tutorial)

Introduction to Binance Copy Trading

Overview of Copy Trading

• The speaker introduces a new feature from Binance called "copy trade," which allows users to automate their trading by mirroring the actions of top traders.

• Emphasizes that cryptocurrency trading is risky due to high volatility, and copy trading is recommended only for those with stable financial situations.

Understanding Trader Profiles

• Defines two types of investors: Traders (active traders who frequently buy/sell assets) and Holders (long-term investors who keep assets for years).

• Highlights the difference between day traders, who need extensive knowledge and experience, and holders, who are less concerned about short-term price fluctuations.

The Reality of Trading

• Discusses the misconception that one can become a professional trader quickly through courses; emphasizes the necessity of years of study.

• Notes that most aspiring traders fail, with only a small percentage succeeding after significant effort and learning.

How Binance Copy Trade Works

Mechanism of Copy Trading

• Explains how users can select an amount to invest while Binance automatically copies trades made by chosen professional traders in real-time.

• Clarifies that users do not need expertise in trading or economics since they are following experienced traders' strategies.

Financial Incentives for Traders

• Describes how professional traders benefit from copy trading; they earn 10% commission on profits generated by followers.

• This system incentivizes traders to perform well as their earnings increase with successful trades made by their followers.

Getting Started with Binance Copy Trade

Setting Up Your Account

• Advises potential copy traders to start slowly and not invest all their funds at once; emphasizes caution in initial investments.

• Instructs viewers on creating a free account on Binance using provided links for discounts on transaction fees.

Funding Your Account

• Outlines steps for depositing money into the Binance account, including selecting currency options like BRL (Brazilian Real).

How to Convert Currency and Start Copy Trading

Converting Reais to Dollars

• The speaker explains that the platform is global, necessitating currency conversion from Brazilian Reais (BRL) to USDT (Tether), as most users are international.

• To convert BRL to USDT, users need to navigate to the "trades" section, select "convert," and input the amount they wish to convert. For example, converting R$200 results in approximately $6.

Initiating Copy Trading

• Users can start copy trading by selecting the "New Copy" button under the trades section, where they can choose traders based on their performance metrics.

• The speaker emphasizes that a good trader can generate returns during both market declines and increases, contrasting with holders who only profit in rising markets.

Evaluating Traders

• An example trader named Moca Crypto is highlighted; he has 456 followers and a return on investment (ROI) of 35%. Users can click on his profile for detailed statistics about his trading history.

• It's noted that not all popular traders are successful; some may have many followers but poor performance. Users should analyze each trader's results carefully.

Setting Up Copy Trade Parameters

• When choosing a trader, it's important to consider factors like ROI and activity level. Some traders may have high follower counts but negative returns.

• Users should set a fixed amount for copying trades rather than investing all their funds at once. A minimum investment of $1 is often required by traders for commission purposes.

Risk Management Features

• The concept of "Stop Loss" is introduced as an automatic feature that halts trading if losses reach a specified percentage—20% in this case—to prevent further financial loss.

• Preferences for specific cryptocurrency pairs can be adjusted; users can choose which assets they want to follow while ensuring they don't miss out on profitable trades in other cryptocurrencies.

How to Use Copy Trading on Binance

Understanding Copy Trading

• The speaker explains how to confirm a service contract for copy trading, emphasizing the ease of copying trades from experienced traders.

• If a user decides to stop following a trader, they can easily do so by navigating to the copy section and confirming their choice. This allows for flexibility in managing investments.

• The speaker highlights that copy trading is particularly beneficial for those who want results without being experts in trading but warns about inherent risks; not all traders are successful.

• It is recommended to start with a small investment and set a stop loss at 20%-30% to mitigate potential losses if the trader performs poorly.

Additional Resources