The world of cryptocurrencies has always intrigued me, but my practical trading experience in the beginning was limited. Like many others in the MENA region, I have a busy schedule that prevents me from spending hours daily studying charts, technical indicators, and following market news.
When I heard about the Copy Trading feature on Binance, I felt it could be an interesting way to participate in the market without making trading decisions myself. The idea is simple: you choose a professional trader (known as the 'leader') with a proven track record of profits, set your budget, and the system automatically copies their trades into your account.
I decided to try this feature for one week with a budget of $500 to see if I could make a profit without the need for active trading.
Step one: choose the right trader
This was the most important step. I went to the copy trading section on Binance and began browsing the list of available traders. Each trader displays detailed statistics such as total profit percentage, number of followers, assets under management (AUM), winning trade rate, and trading history.
My criteria for selection:
Look for traders with consistent performance for at least three months, rather than someone who made a big profit in just one week.
I focused on the maximum drawdown (MDD). A trader who makes high profits but suffers significant losses is a big risk for me.
The steady upward curve in their performance record was more important than sudden and unexpected spikes.
After reviewing about twenty profiles, I filtered the options down to three traders. The first was high risk and high reward, having achieved over 200% in the last month, but the maximum drawdown was too high. The second had a more balanced approach with a winning trade rate of 60% and moderate gains. The third was a low-risk trader with a steady growth line and monthly profits of around 10%.
In the end, I chose the balanced trader because his previous trades showed discipline in using stop-loss orders and managing risks in each trade. In copy trading, I believe it's better to survive in the market longer rather than chasing unrealistic profits overnight.
Setting up copy trading: the process was very simple
Once I made my decision, the setup process was very easy.
I clicked on the trader's profile and selected the 'Copy' option.
Binance asked me to specify my parameters, such as the amount allocated per trade and whether I wanted to copy open trades or only new trades.
I chose to start with only new trades so I wouldn't enter a trade halfway through.
I allocated the full $500 to this trader and set a comprehensive stop-loss order at 20%, meaning Binance will automatically stop copying trades if my losses reach $100.
After finishing the setup, all I had to do was wait.
First week journey: learning through observation
On the first day, the trader opened three trades: one on Bitcoin, one on Ethereum, and one on Solana. I saw the trades appear in my account at the same entry price, leverage, and stop-loss.
At first, I felt strange watching my account copy the trader's actions without doing anything, but this relieved me of the pressure of decision-making.
By the end of the day, my account balance increased by $15, most of which came from a Solana trade that closed with a quick profit.
Over the next few days, I noticed some interesting patterns in the way the trader operated:
Rarely holds trades for more than 24 hours, meaning he practices day trading or quick trading.
Avoids overtrading, sometimes opening only one trade a day if market conditions are not clear.
Uses tight stop-loss levels, limiting losses on bad trades while allowing winning trades to continue for longer.
In the middle of the week, the market became volatile due to macroeconomic news, and one of our trades hit the stop-loss level, resulting in a $20 loss. However, later that same day, the trader opened a buy position on Bitcoin that rose over 5% within a few hours, recovering the loss and adding more profit.
This situation confirmed for me the importance of having a clear plan and sticking to it. While many new traders panic after a loss, this trader remained calm and waited for the right opportunity.
Weekend and final results
By the end of the week, my account balance grew from $500 to $536. While this wasn't a huge amount, the return in just one week, without any personal analysis, was impressive to me.
Most importantly, I gained valuable insights into trading strategies, risk management, and timing of entry and exit. I learned that consistent profits come from discipline, not by chasing every market move.
Tips from my experience for those considering copy trading
⚠️ Do not choose the trader with the highest recent profits: look for consistent performance over several months, with a low maximum drawdown and clear risk control.
Start with an amount you can afford to lose: even the best traders have losing streaks.
Set a stop-loss for your entire account: this ensures you control the maximum risk you may face.
Occasionally monitor the trades: not to intervene, but to learn from the strategy of the professional trader.
Be patient: performance takes time to materialize, and avoid switching traders frequently.
Copy trading is not a magic solution, but it can be a great way to participate in the market with limited time or knowledge. It can also be an educational tool, helping you understand how experienced traders operate in real conditions.
Always remember that past performance is not a guarantee of future results, and all forms of trading involve risks. If used wisely, copy trading can be an opportunity to earn extra income and serve as a learning experience at the same time.