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Social Crypto Traders Growing More Savvy — By Working Together

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Sat, 07/31/2021 - 06:36
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Lovely Inu Finance is making its baby steps in the cryptocurrency market
Social Crypto Traders Growing More Savvy — By Working Together
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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By Catherine Barkley

As the Bitcoin and cryptocurrency markets continue to make strides toward mainstream acceptance, retail investors are more eager than ever to participate. In fact, despite lowered trading volumes in practically all exchanges in June of 2021, the June 2021 trade volume was still recorded as the one of the top five months for trading volume ever. One of the main contributors to this acceptance is that novices and pros are interacting with one another online, and social-first trading platforms are facilitating this interaction, resulting in more trading activity.

Communities of online traders have developed a distinct swagger recently, sharing their gains and losses with the world. For instance, one of Reddit’s most notorious subreddits is WallStreetBets (WSB) where members routinely share recent success and failures of their trading portfolios, alongside plenty of public jesting from fellow community members. This portfolio sharing in WSB started at a rudimentary level, with traders taking screenshots of their trading apps or even screenshots of spreadsheets they use to track their picks. While portfolio gains have historically been something investors hide, the growth of these communities has supercharged an intriguing subculture of traders wishing to be outward facing about their investing prowess.

This act of publicly sharing private investment decisions and their outcomes has given rise to a new method of crypto currency trading: social trading. Social trading operates as a neo social media network, connecting global traders to watch each other's trades and learn about decision making processes. It aims to break the stigma that crypto trading is navigable only for professionals by creating a tight knit community where professional traders and market novices alike can evaluate the market and share insights.

For professionals and experienced traders, the most recent crypto boom has accentuated their skills. Experienced currency traders have transferred their skills into crypto, and crypto enthusiasts have built their skills into a new mastery using these digital assets. However, for a novice trader looking to jump into crypto, the entire market can feel very risky and confusing. Through social trading new traders can bypass the usual hestiations that come along with investing assets in an unknown market. Rather, social trading provides an avenue where new traders can lean on the user-found investment strategies of those who have more experience navigating the market.

Social trading platforms like eToro, Zignaly and League of Traders have made public-facing profiles a key platform feature. Each of these platforms is either crypto-enabled or crypto-centric, and they focus on building a community among their traders. Copy trading is encouraged, and even celebrated, on these platforms, notably on League of Traders where real time notifications, copy trading, and portfolio information is available for the top traders that you follow on the app, all at the click of a button.

Users are able to analyze top-traders portfolios, seeing their growth, current picks, trade history and risk assessment. Once a trader is comfortable committing to copy the trading of a top performer, the user can click the copy button to mimic the exact behavior of that top trader.

League of Traders provides the copy trading features that forge the foundations that make social trading a viable option for new crypto investors. Copy trading parallels the human desire to form communities and look to peers for guidance and support; League of Traders provides the platform for crypto trading to merge with human experience. Novices are able to drastically shorten the learning curve for crypto investments, leading to a more savvy community of traders.

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