The social addition to trading is what online multiplayer is for gaming. It provides the next-generation layer for crypto traders to have dynamic and natural adventures in the markets.
Socialization is at the root of many crypto trends, such as non-fungible tokens (NFTs). Now it has made its way into crypto trading. It supplies crypto traders with interconnectivity while trading, so the barriers stopping them from having fun and less fearful experiences are breached.
Cryptocurrency platforms are known to lack the social features that meet user demands and expectations. The overload of technical crypto trading features has caused exchanges not to notice how it adversely affects the end-user.
Social trading immerses users in a friendlier environment and gives them opportunities to have a helping hand in the market. Most people have been going through crypto as a one-man-army due to not being a systemized method of introducing them to the markets.
These kinds of platforms disrupt this phenomenon by giving traders ease of entry with various choices.
Social trading explained
Social trading is a form of investing that enables traders to know other people’s decisions in the market. They are essentially allowing traders to copy or mirror the trading strategies of others. Therefore, not solely having to rely on their actions to make money.
eToro was the first to give bitcoin traders a socialized experience. Meanwhile, KuCoin has set the trend by becoming the first major crypto exchange to launch a social trading platform for the crypto markets.
They’ve done this by adding to their platform called KuCoin S. It is a special space in their app that reintroduces trading to the crypto world by integrating social features such as copy trading, sharing your trades, access to real-time crypto news, and interacting with like-minded communities.
So, how exactly can traders benefit from this “socialization”?
What social trading offers
Copying the trades of winners
Everyone goes into trading to win. However, winning is the most challenging thing to consistently accomplish, especially for newcomers.
Copying the trades of a consistent winner can give you immediate confidence and more positive trading days. This can also be beneficial for those who have no interest in coming up with trading strategies but would like to reap the rewards of trading.
Traders entering the markets for the first time can increase their chances of becoming profitable just by copying others. It’s common for new crypto traders to have distasteful experiences early on in crypto trading.
Trading on the go
The crypto markets are live 24/7, and that means there will be trading opportunities missed due to busyness, lack of time, or sleep.
Social trading addresses this issue by copying the trades of winners whenever you can’t trade.
Learning from other people’s trading strategies
Many people claim to have winning trading strategies, but they don’t show their trading results most of the time.
Social trading is transparent as users can study the strategies of others and modify them to fit their preferences. Also, users can get experienced traders to evaluate their strategies and give them advice such as where to place a stop loss or when to take profit.
Interacting with other traders
Trading is usually a lonely experience. It’s just you, your laptop, and the charts. Guidance can be a helpful factor in achieving trading goals, and social trading creates an environment where you can speak to experienced traders or join communities.
Without social trading, traders have to settle for Discord and Telegram groups that can be very meme-driven and offer no real support . This results in traders following the emotional-based decisions of others and adopting a counter-intuitive mindset.
Gaining a better understanding of crypto news
News in crypto spreads like wildfire, and misleading news often gets circulated. This can trigger you to go against your trading plan and make impulsive decisions.
For example, someone retweeting a false crypto article of Microsoft using bitcoin for payments can lead you to exit out of your other coins and get into bitcoin (anticipating it pumping).
Social trading platforms like KuCoin S have a news feed of real-time crypto information for users to like and comment on. The likes of an article suggest its validity, and comments can reveal extra information for more insight. It’s much more reassuring when a trader you trust gives their take on crypto news.
Social trading is about making trading easier
Placing trades on crypto exchanges isn’t as simple as it should be. Many exchanges put too much information on the trading screen, and it only makes trading confusing.
It also leaves you open to making costly mistakes. Buying and selling cryptos should be a straightforward experience and not require users to learn how to do it. As Elon Musk said, “Any product that needs a manual to work is broken.”
Social trading aims to put the users first. Its architecture is designed to simplify your trading actions and put an end to the complexity of crypto exchanges.
The socialization of trading attracts different generations into crypto. Simply because they’ll acknowledge it as being easy to use, they don’t have to worry about the technical barriers in their way.
Social trading is the next trend to amplify crypto’s growth rate and lead to mass adoption. Its performance in traditional markets suggests the massive impact it could have on crypto.