If you have ever felt it’ll take long before you finally understand how to trade crypto successfully, then this social trading concept will interest you. For most new traders, trading cryptocurrencies is a whole new endeavour. Even with the basic guidelines, you can still make mistakes while trading in the crypto market.
Unfortunately in the crypto market, each mistake results in a loss, loss of your hard earned money and not many people can lose a considerable amount of money just to learn.
If this is your situation, you are not alone. There are thousands of people who also find it difficult trading cryptocurrencies successfully without guidance.
Social trading tends to solve this as you will see below. We will discuss the meaning of social trading, how it works, and the best platform to use.
What is Social Trading?
The meaning of social trading is quite simple when communicated effectively. It is a growing innovation in the crypto market that supports traders with little or no market experience to copy the trades of more experienced professionals and make a profit.
It is like copying Albert Einstein’s physics solution line by line; you’ll likely win a Nobel Prize for that. Anyway, you get the point. It is simply “copying” or “imitation” successfully trading moves of crypto trading experts that have more experience and skill set(s) than you.
While you don’t have to do the work or do the analysis required in social trading before entering a trade, it goes beyond “copy and paste” trades. Social trading is taking new dimensions and is becoming more of a community that allows crypto traders to interact with one another and share strategies and secrets to successful trades.
This is seen on community-driven social trading exchanges like BingX (https://blog.bingx.com/insights/bingx-the-worlds-leading-social-trading-platform/), with over 20000 copy traders and 5000 daily traders. The way social trading runs makes it unique and captivating for most new traders. Social trading is built on inexperienced traders imitating the trades of experienced traders.
How Does Social Trading Work?
This is how social trading works. Trader A is an inexperienced trader who doesn’t know how to carry out many successful trades, while Trader B is a professional.
On a social trading platform like BingX, Trader A will look forward to copying the trades of Trader B, who is more experienced and thriving in the market. If Trader B has a winning rate of 60%, which you can see before choosing to copy him, you will likely have a greater winning percentage when you copy his trades.
Copy trading is the most common and fundamental form of social trading. As the name implies, it is a situation where a newbie copies a professional’s trade.
You can earn predetermined commissions as a professional for each copied trade during social trading. Copy trading often has platforms where the activity is done and regulated. The platform typically has the minimum amount of money invested and often dictates the amount of commission received.
For this type of social trading, all you need to do is to copy the trade and implement what you see.
This type of copy trading is more focused on social interaction among crypto traders.
At trading platforms, crypto traders come together to share strategies, including when to enter the trade and when to leave.
However, to carry out this form of social trading, you should know the basics of trading and be able to place a trade.
This is similar to trading forums, except that the level of communication may decrease slightly.
It thrives on social media platforms where subscribers receive signals. This signal contains the entry price and exit price.
Also, technical, fundamental, and sentimental analysis is carried out on this channel for others to copy.
Should I Try Social Trading?
Social trading is unique and successful today because it finds its roots in the most basic way every human learns, which is through imitation. Humans are products of influence, and we can see this in newly born babies that copy and imitate human sounds and how to walk.
By now, you should understand the meaning of social trading and how you can use it to make a significant profit while trading. The benefits and downsides of social trading are also clear, and getting started with the best platforms is key to success.
Social trading is an incredible innovation in the crypto industry, and BingX is bringing you that value right in the palm of your hands. You shouldn’t wait further to turn around your trading experience for good, try BingX today (https://bingx.com/en-us/)!
BingX is a cryptocurrency social trading exchange that offers spot, derivatives and copy trading services including but not limited to BTC USDT (https://bingx.com/en-us/spot/BTCUSDT/?ref=ZZWENQ), XRP USDT (https://bingx.com/en-us/spot/XRPUSDT/?ref=ZZWENQ), ETH USDT (https://bingx.com/en-us/spot/ETHUSDT/?ref=ZZWENQ) and Luna USDT (https://bingx.com/en-us/futures/forward/LUNAUSDT/?ref=ZZWENQ) to more than 100 countries worldwide with over 5 million users. The copy trading function implemented with our unique technology has benefited over 20,000 copy trading traders and 5,000 daily traders.
Disclaimer: BingX does not endorse and is not responsible or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. BingX is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the article.