What online multiplayer is for gaming is the social component to trading. It provides a next-generation layer for cryptocurrency traders to have dynamic and natural market adventures.
Many crypto trends, such as non-fungible tokens, are rooted in socialization (NFTs). It has now made its way into cryptocurrency trading. It provides crypto traders with interconnectivity while trading, breaking down the barriers that prevent them from having fun and less fearful experiences.
Cryptocurrency platforms have a reputation for lacking social features that meet user demands and expectations. Because of the overabundance of technical crypto trading features, exchanges have failed to notice how it negatively affects the end-user.
Social trading places users in a friendlier environment and allows them to lend a helping hand in the market. Due to the lack of a systemized method of introducing them to the markets, most people have approached crypto as a one-man army.
These platforms disrupt this phenomenon by allowing traders to enter with ease and a variety of options.
Explanation of social trading
Social trading is a type of investing that allows traders to learn about other people’s market decisions. They essentially allow traders to mimic or copy the trading strategies of others. As a result, they are not solely reliant on their actions to generate revenue.
eToro was the first to provide bitcoin traders with a socialized trading experience. Meanwhile, KuCoin has set a precedent by becoming the first major cryptocurrency exchange to launch a social trading platform for the cryptocurrency markets.
They accomplished this by incorporating KuCoin S into their platform. It is a section of their app that reintroduces trading to the crypto world by incorporating social features like copy trading, sharing your trades, access to real-time crypto news, and interacting with like-minded communities.
So, how does this “socialization” benefit traders?
What social trading has to offer
Taking after the trades of winners
Everyone enters trading with the intention of making a profit. However, winning is the most difficult thing to do on a consistent basis, especially for newcomers.
Copying the trades of a consistent winner can provide you with instant confidence and more profitable trading days. This can also be advantageous for those who have no interest in developing trading strategies but want to reap the benefits of trading.
Traders who are new to the markets can improve their chances of success simply by imitating others. It is common for new crypto traders to have unpleasant experiences early on in their crypto trading careers.
Interacting with other merchants
Trading is typically a solitary endeavor. You, your laptop, and the charts are all you have. Guidance can be beneficial in achieving trading objectives, and social trading provides an environment in which you can speak with experienced traders or join communities.
Without social trading, traders must rely on Discord and Telegram groups, which can be very meme-driven and provide little real support. As a result, traders adopt a counter-intuitive mindset and follow the emotional decisions of others.
Acquiring a better understanding of cryptocurrency news
Crypto news spreads like wildfire, and false information is frequently circulated. This may cause you to deviate from your trading strategy and make rash decisions.
For example, someone retweeting a false crypto article about Microsoft accepting bitcoin payments may cause you to sell your other coins and invest in bitcoin (anticipating it pumping).
Users of social trading platforms such as KuCoin S can like and comment on a news feed of real-time crypto information. Likes on an article indicate its validity, and comments can reveal additional information for greater insight. It’s much more reassuring when a trader you respect weighs in on crypto news.
The goal of social trading is to make trading more convenient.
Trading on cryptocurrency exchanges isn’t as simple as it should be. Many exchanges display far too much information on the trading screen, which only adds to the confusion.
It also puts you at risk of making costly mistakes. Buying and selling cryptocurrency should be a simple process that does not require users to learn how to do so. “Any product that requires a manual to work is broken,” Elon Musk said.
The goal of social trading is to prioritize the users. Its architecture is intended to simplify your trading actions and eliminate the complexity of cryptocurrency exchanges.
The socialization of trading draws people of all ages into cryptocurrency. They don’t have to be concerned about technical barriers because they will recognize it as simple to use.
Social trading is the next trend that will accelerate crypto’s growth and lead to mass adoption. Its performance in traditional markets suggests that it could have a massive impact on crypto.