- The power of social media has opened a world of opportunities for us, including social trading.
- Cryptocurrencies have facilitated trading for anyone who is just getting started in the trading arena.
- Social features provide an opportunity for thousands of crypto users to implement their own investment idea on a regular basis.
Social media and the internet have taken over our lives. Today, we can find information on the best restaurants in town, top destinations to visit, or simply directions to new locations within minutes.
However, there’s something even better: the power of social media has opened a world of opportunities for us – social trading. Copy-trading platforms follow the same principle as conventional social networks, allowing members to communicate with each other on an ongoing basis and share information in real-time.
But how beneficial is social trading for beginners, and can they actually profit from social trading platforms? Let’s find out in this article.
What is Social Trading?
Cryptocurrencies have facilitated trading for anyone who is just getting started in the trading arena — no brokers or formal requirements are needed. But unfortunately, many traders who are beginning their acquaintance with cryptocurrency lose tons of money due to a lack of fundamental skills and expertise.
Furthermore, the lack of interactions between users has resulted in the increasing educational costs and slow pace of popularization of the industry, creating barriers to mass adoption.
Luckily, the world of social media has opened up a new way of trading that can reduce the risks of trading while also providing new opportunities to learn from experienced traders’ strategies. And here’s the kicker — it can also become a significant additional source of income.
Platforms such as KuCoin and eToro are a great example of an add-on that increases social engagement in trading and allows users to use trading strategies to boost their return rates, giving crypto newcomers more confidence in the investing process.
Social features provide an opportunity for thousands of crypto users to implement their own investment idea on a regular basis. And with social trading, they are able to evaluate markets, make predictions, and discuss prominent trading tactics within the trading community.
Benefits of Social Trading
Now that we have defined the overall importance of social trading, let's take a closer look at some of the benefits social trading has to offer.
Social trading allows traders to directly discuss and share their successful strategies, methods, thoughts, or tips on a particular market situation. This will allow newcomers to examine the crypto market from different perspectives and select an optimal trading strategy.
KuCoin S is an excellent example of a special space for invited KuCoin users to experience and test the brand new social features before the official launch on the KuCoin App. There, traders may interact and collaborate from anywhere in the world as long as they have an internet connection. In addition, this unique space provides all essential social features such as likes, comments, and sharing. Traders are offered to support each other, eliminating the fear of loneliness in obtaining new knowledge.
Accurate data-driven predictions
Social trading eliminates the process of constantly searching for reliable information by offering updated news feeds and trusted trading strategies from professionals all around the world.
Earning and learning
Social trading aims to connect you, a person who only starts trading, with experienced investors, where you can learn to understand the market and still earn money while watching how they trade. This means that newbies don’t need to wait a specific time until they learn all the crypto trading details — they can benefit from trading right from the beginning.
Social trading platforms allow users to browse the most successful strategies on the platform and create a portfolio with calculated returns and risks in one click. The advantage is obvious — users can simply check and copy a successful trading strategy proven by the market.
The eToro platform is another great online social network of traders who can learn from each other by discussing ideas, sharing their trading decisions, and commenting on others' posts on the social news feed. And such a feature like CopyTrader enables traders to easily replicate other traders’ actions in real-time, allowing members to gain profit while still learning.
(Image Source: CoinCentral)
It’s accessible and affordable
Interacting and learning from other traders is completely free of charge. Traders only require an account in order to gain quick access to all information they potentially need to maximize their profit.
In addition, social platforms have eased the spread of information gathered by a social trading community around the globe. So with a personal account, traders can easily explore social trading information without restrictions.
Reliability is critical, especially when you copy trading. And social trading platforms allow you to take a sneak peek at the traders’ entire portfolio and trading history. Then you can analyze and see how much they’ve profited over a certain period.
Most social trading platforms already include all the necessary reputable sources of information, sparing members from opening multiple tabs to read the latest news in order to make trading predictions.
While there are dozens of resources for users to benefit from crypto trading, only a few of them can offer a reliable and unique platform that allows people to trade and also exchange ideas and talk to like-minded people.
And social crypto trading is one of them. It aims to connect all people who are only starting their journey in crypto trading with top professionals.
Social trading platforms give traders a greatly simplified trading experience, where novice and expert traders can interact as well as learn from each other. And while the biggest emphasis of such platforms is on the social aspect, members can also benefit from making trades.
Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.
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