As much as being a stock market trader comes with many benefits and profits to those who know a thing or two about social trading and the market, the fact cannot be denied that trading is a practice that cannot be taken lightly. It’s money after all! Being an investor in financial markets like Forex, Stocks, and cryptocurrencies requires a trader to be proficient with current market trends, analyzing charts, and reports, among many other things.
If a trader or investor is new to the market, chances are that they are going to lose their hard-earned money. Where experience does take a great nod towards the profit-making side of trading, capabilities in market analysis can differ with focused proficiencies in the area irrespective of the experience at hand. For those who lack the said capabilities, this is where social trading comes to the rescue, especially with the rising interest in crypto trading and investing. So, let’s start with understanding social trading before we dive into its benefits in crypto trading.
What is Social Trading?
Working almost like any other media network, social trading accounts for sharing trading ideas and strategies. Just like how the mainstream social media platforms like Facebook, Instagram, Twitter, etc. are for sharing photos, videos, posts, or anything that comes to mind, social trading networks are built specifically for sharing trading ideas. But how does it bode well for the aspiring traders?
Be it anything or any industry that you are new to, you are inspired or at least look up to a successful and achieved figure in the industry. Similarly in social trading, an investor copies the trading strategy of an investor and applies them to their own, which is quite alright. It’s quite distressing to see traders lose their valuable money in trading, besides everyone needs help at times.
Being somewhat similar concepts- social trading, copy trading, and mirror trading are considered a great way to enter into the global market, no matter what anyone else says. In very practical terms, social trading allows us to directly copy the trading strategies and strike the same deals in the market that are developed by someone else. Where many traders consider the automated mode as their best option, the manual isn’t so bad itself, once you are a little caught up with the market and gained some experience.
Role in Cryptocurrencies
It’s a great possibility and quite a fact too that almost every investor in the traditional financial market is well aware of the crypto market, and with time is recognizing it as a highly profitable market to invest in. Cryptocurrencies, even with a somewhat rough start into the market with several associations with illegal activities and markets, have now emerged to be one of the advancing industries for investments.
With the global crypto market cap crossing over $1 trillion dollars in 2021, cryptocurrencies are currently in the middle of their finest wave of global adoption and recognition including leading banking institutions like JPMorgan Chase & Co. and Fidelity Investments advising their long list of clients to invest in cryptocurrencies as a hedge against fluctuations in traditional assets.
Why Social Trading in the Crypto Market?
It’s quite a mainstream fact regarding the reputation that the crypto world holds for still being new to the human race, but where this very fact contributes to inevitable speculations, it also makes it a successful opportunity to become an early adopter and investor for undeniably much higher returns. So even if you are not a part of the crypto market yet, it’s not exactly too late to join the party. Even today, anyone starting as a crypto trader would be counted as an early adopter of the currency.
However, the crypto market is more than familiar with volatility. With the storming amount of fluctuations that crypto assets have seen, many traders fear investing at all. This is where social trading can be a trader’s best friend, especially in the world of cryptocurrencies. In a short span of 12 years, the crypto market has seen an abundance of investors like the Winklevoss brothers becoming millionaires with an early investment in Bitcoin, new traders are at a benefit with quite some crypto trading strategies to look for.
With several crypto exchanges like Decoin, allowing social trading on their platforms, newbie traders can have easy access and entry into the crypto market. With a prudent vision of designing one of the most transparent and innovative social trading platforms, Decoin offers top security elements to its traders. Powered by an independent blockchain, functioning on Proof of Stake (PoS) consensus algorithm, Decoin takes pride in providing 24X7 support along with Decoin Staking, credit card program, etc.
With its extremely easy-to-use social trading platform, Dtrade, the crypto community has an easy way to come together in online live streaming sessions to share trade and investment strategies. As the platform allows its traders to evaluate the performance and skills of other traders, users new to the trading world can actually learn from the top professional through the live sessions or simply auto trade with them.
Benefits of Social Trading
Along with being the perfect gateway into the trading world including the crypto market, this practice has quite some benefits.
- Apart from being host to extensive and reliable information from professionals in the trading market, social trading platforms offer an amazing chance to interact with skilled traders and brainstorm with them on their ideas and trading strategies.
- Since social trading allows newbie traders to learn directly from experienced traders and successful investors, aspiring traders have the benefit of taking less time and cost to grasp the concepts and navigate through the market.
- Probably, one of the greatest benefits of social trading, the process allows investors to earn while they are still learning. With the help of already seasoned investors helping new investors navigate through the market, new traders don’t actually have to wait to acquire full knowledge to start earning from trading and investing by simply copying the trading strategies of professional traders.
- Social trading platforms contribute heavily to the trading community as a whole and bring them in close-knitted communication, allowing them to have interesting interactions and exchange valuable information while collaborating on new and different ventures. Social being in the name itself, social trading platform allows anyone to access trading information and strategies from anywhere around the world quickly and efficiently.
Social trading platforms carry the idea of being in the same boat for a community that indulges in the market every single day. Social trading bodes perfectly well for aspiring traders to gather valuable intel and grasp the technical concepts easily, which are normally quite time-consuming and difficult to understand.