Social Trading Cryptocurrency is a disruptive phenomenon that is causing ordinary investors to think big when it comes to consistent and profitable trades. Anyone can now participate in the trading frenzy by learning from expert traders and implementing their unique investment strategies.
Forget the disclaimers that say more than 70% of traders lose money when they trade. Instead, the combination of crypto trading and social trading gives traders the opportunity to become consistently profitable while avoiding the inherent psychological fear of the markets.
What is Social Trading Cryptocurrency?
Social Trading Cryptocurrency is a type of investment that allows traders to learn from experts and mimic the trading strategies of seasoned cryptocurrency traders. It's not like regular cryptocurrency trading. In the past, you would open an account with a cryptocurrency exchange to trade various types of cryptocurrencies. To trade the crypto market successfully, you would rely on financial news along with technical indicators. While this is the most common technique of trading financial instruments, it is also the most dangerous. Most traders fail in the long run because they lack the mindset required to make consistent profits.
If you have a lot of money to invest, one way to avoid risk is to invest in a hedge fund. However, doing so rarely results in the consistent monthly returns that most traders seek. Social trading is one solution to these issues. Social trading allows you to replicate trades made by experienced traders in your account and reap the benefits of high returns from intraday and day trading. Crypto trading platforms allow users to invest as little as $1, so you don't have to be a millionaire to participate. In general, anyone can participate in an open and unrestricted environment.
What Is the Process of Social Trading Cryptocurrency?
In recent years, several crypto social trading platforms have emerged, offering their services to the general public. While the dynamics of each social trading platform vary, the underlying concept remains the same: allow investors to replicate the trading patterns of more experienced traders.
In each case, the account creation process is nearly identical. To begin copying trades, you must first create an account on your preferred crypto social trading platform. Filling in basic details is usually required during setup. Sharing such credentials with the platform grants access to expert traders' extensive trading history and performance charts. You can also gain quick access through social media or your Gmail account.
Some social trading platforms also allow users to view individual expert performance without creating an account; however, such stats are typically limited in scope and do not provide a detailed analysis of trading performance. As a result, it is strongly advised that you open a free account to evaluate the platform as well as its expert traders before trading with real money.
Pros of Social Trading Cryptocurrency
Quickest Learning Curve
Regardless of your knowledge of financial markets, crypto social trading allows you to generate positive ROI. Automation also provides a psychological boost, allowing you to continue earning without being concerned about current sentiments and market conditions.
By allowing others to trade for you, crypto social trading saves you time and energy. It is not necessary to sit in front of the trading terminal and manage trades. Modern crypto social trading platforms provide advanced control panels that allow you to automatically set a risk profile in order to capitalise on existing trends.
Education in Trading
Crypto social trading is an excellent tool for learning new trading strategies and techniques. If you've spent time trading financial instruments, looking at an expert trader's trade history can reveal important information regarding their strategies and risk management.
Crypto social trading is completely transparent. In contrast to hedge funds, signal providers, and copy trading, reputable crypto social trading platforms provide detailed information on each trade. As a result, manipulating performance data is nearly impossible.