In the past few years, technology has dramatically changed the way people approach investing. As a result, many companies have taken advantage of the ever-increasing capacity of the internet and smartphones to decentralize the concept of commerce. This means that the new generation of fearless risk takers can now trade cryptocurrencies, forex, stocks and commodities among other instruments at the touch of a button.
This is good news for professional traders who have the training needed to profitably navigate the markets. However, this does not apply to inexperienced traders. The mere fact that such a powerful tool is available to virtually anyone with an Internet connection has created undesirable results for many newbies who end up losing most of their capital. To solve this problem, a concept called social trading was introduced.
What is social trading?
Social trading is a concept that enables novice traders to copy the trades or trading style of professional traders. It helps the novice make more informed decisions by giving them access to a trading guide based on tested principles rather than letting the novice trade on a whim.
This arrangement results in a learning experience for the beginner while minimizing the risk involved. It also helps beginners build confidence that they would not otherwise have had without years of training and experience.
These are the top 5 crypto trading platforms
This brokerage firm is a pioneer in the concept of social trading. A quick visit to their website reveals that it offers over 90 crypto assets (including Bitcoin) and is regulated by CySec and the FCA.
EToro’s website and platform are very user-friendly, even for first-time traders. They offer numerous deposit and withdrawal options and their fees are: The social trading feature consists of a copy trader that allows you to provide the details of the trader you want to copy. You can choose to copy only certain assets or the entire portfolio of a profitable trader.
Coinmatics is a Russia-based popular crypto social trading platform that describes its results as passive income for steroids.
This trading platform was founded in 2018 and underlines its strengths, the lightning-fast execution of trades, security and reliability / availability. It’s currently in beta and only supports Binance accounts. The connection to your Binance account is via an API key, which can be used to execute trades from the copier on your account. For security reasons, Coinmatics is not granted access to withdrawals.
Shrimpy, also founded in 2018, is a great cryptocurrency social trading platform that supports 15 cryptocurrency exchanges and instruments. There are three subscription options, with entry (Hodler) being free. The Professional Package is $ 13 per month and the Premium (Business) Package has flexible pricing that is tailored to your needs.
You can register as a follower or a leader, depending on whether you want to copy trades or have your trades copied.
ZuluTrade is one of the older providers in the market offering social trading by integrating over 50 brokers on one platform, which ultimately makes social trading easier regardless of which broker you use.
In addition to offering five major cryptocurrencies, stocks, currencies and commodities are available to help you diversify your portfolio. There are social charts that investors can use to share opinions and insights on various instruments. Another great thing about this platform is that your money stays safe in your brokerage account.
Zignaly offers a revenue sharing model instead of asking customers to pay a fixed monthly fee to use the social trading platform. You can either follow / copy specific traders or rely on signal providers for your entrances and exits. Various levels of automation are offered and you don’t have to pay any fees until the merchant makes a profit on your behalf. It integrates with five cryptocurrency exchanges and there are no minimum investment requirements.
With the advent of social media, many service providers are increasingly encouraging their users to engage with one another. Building a sense of community is a matter of course for people and often makes them more comfortable. Because of this, many cryptocurrency traders are looking for trading platforms that offer this functionality.
If you are new to cryptocurrency exchanges and are looking for a reliable way to invest your money, social trading is the way to go. It’s a handy arrangement that allows you to gain valuable insight into cryptocurrency trading while securing a passive stream of income.
Because of the risk involved in trading, it is always advisable to start trading with a demo account using virtual money. Once you fully understand the dynamics of the social platform you are using, you can start trading small amounts of real money / cryptocurrency. Remember that most cryptocurrencies are very volatile. It is therefore advisable to come up with a trading plan that will not leave you bankrupt.