Have you tried trading cryptocurrencies without success?
Don’t worry; that sounds like most people.
In this article, we will describe what social trading is and how it works in crypto trading.
What Is Social Trading?
Social trading allows crypto traders to interact with other traders, combining social interaction with trading.
However, the underlying principle is the same: Investors copy the trades of more experienced traders.
You then copy everything the leaders do automatically in real-time.
Signal Providers
Signal providers give signals and trading tips to other traders.
There is usually little to no interaction among traders on these platforms.
The followers also need to have some level of knowledge to understand and execute the signals provided.
Trading Forums
These are platforms that allow traders to interact with one another before initiating trades.
They discuss trading strategies and styles, where to enter and exit trades, etc.
Many trading platforms have forums where clients interact to share what they are doing and learn from one another.
This style of social trading helps beginner traders learn from more experienced ones.
It also requires the follower to have a basic knowledge of trading.
6 Advantages of Crypto Social Trading
Below are some advantages of crypto social trading.
Saves Time
Social trading saves time and effort because you could (potentially!)
make money without having to trade yourself.
you’ve got the option to easily combine it with your day-to-day activities or a full-time job.
Some experienced traders also participate in social trading to earn passive income as they engage in other activities.
Traders can discuss their thoughts about trades and then choose the one that seems like the best.
They can also learn from more successful traders by watching how they trade and conduct their analyses.
This way, you could, to an extent, predict the key in of result to expect.
However, do not forget that past successes do not guarantee future results in trading.
you could choose to opt-out of trades that you are not confident about.
you could also close losing trades to limit your losses.
If you lose faith in a trader, there is always the opportunity to leave him for another.
3 Disadvantages of Crypto Social Trading
Below are some drawbacks of involving in crypto social trading.
There is no doubt that traders following such signals cannot be successful in the long run.
Having suggestions from many people can also confuse traders and, in the long run, become unproductive.
Some platforms have also been developed specifically for this purpose.
This section will consider four platforms where you might carry out crypto social trading activities.
1.eToro
eToro is a social trading platform for trading multiple assets.
It allows its clients to trade forex, stocks, commodities, and other CFDs in addition to cryptocurrencies.
you’re able to also invest up to $200,000 in one trader.
2.Zignally
Zignally started in 2018 and started its copy trading model-sharing mode later on.
The profit-sharing model integrates professional traders, who use their trading capital to generate income for their followers.
The platform provides investors with strategies, insight, and tools to choose the best digital asset managers.
Not long after, it introduced its social trading service to connect a community of crypto traders.
In addition, the service allows the integration of more than 30 exchanges and wallets.
4.CopyMe
CopyMe also lets investors copy traders automatically and in real time.
you’re free to follow one or multiple experts on the platform without sending out any funds.
There is no profit sharing on CopyMe.
You only have to pay the monthly subscription fee set by the expert trader(s) you follow.
The platform supportsexchanges like Binanceand BitMEX.
Is Crypto Social Trading Worth a Try?
Over time, institutions and individuals with large funds have employed professionals to trade and handle their funds.
Now, this opportunity is open to all through social trading.
check that you are patient enough to choose the right trader and strategy.
In everything, do not forget that positive results are not always assured in trading.
