Investing in financial markets such as stocks, Forex and cryptocurrencies requires extensive knowledge and experience. You need to be up-to-date with news events affecting the business world, and also have the capability of reading charts, analytics reports and understand trends.
If you lack this capacity, chances are you may lose your money in the market. It’s unfortunate that many people continue to lose their hard earned money in the financial markets simply because they have little knowledge of how to and when to invest. Social trading comes in handy in cubing such challenges.
So, What is Social Trading?
Social trading works more or less like a social network. The only difference is that instead of sharing selfies or lunch photos, on a trading network people share trading ideas. Here traders interact, watch trading results of other professionals and brainstorm on market situations in real time.
As an investor or less experienced trader, in social trading your financial trading decisions are based on other skilled investors generated financial content collected from various reliable platforms. In other words, once you identify a successful trader and you like their trading strategy, you can start following them and copy their trades.
What are the benefits of Social Trading?
Well, some of the benefits of Social Trading include:
· Quick access to reliable trading information
Social Trading platforms cut down on the process of searching for reliable trading information by providing extensive information from professional traders across the world. You also get to interact with the skilled traders on the platforms like one-on-one Tutorage.
· Quick grasping of the trading market
Social Trading platforms reduce the duration and cost of becoming a professional investor by allowing you to learn from seasoned investors, quickly and efficiently.
· Earning while still learning
Social Trading platforms allow you to learn from experienced investors, where you get to know how to navigate the trading market and still earn some money by copying their trades. Therefore you don’t have to wait until you have all the required knowledge for you to start earning.
· Build a trading community of investors
Social trading platforms build a community of investors, where you get to interact with other investors and share information, while also collaborating on different ventures. It being an online platform, you can access trading information from anywhere in the world quickly and easily as long as you have the internet.
Popular Platforms for Social Trading
Now that you know what social trading is as well as some of its benefits, how about you learn a little about platforms you can use for Social Trading.
In this post, we shall explore both traditional social trading platforms as well as modern/crypto social trading platforms:
1. Spiking
Spiking has to its credit the first technology trading app designed to help the average investor understand the nitty gritty of the trading market. The verified real-time updates help the investor in ascertaining the reasons for the spike in the trading market. It helps the average trader follow the Big Investors like Warren Buffett, as they trade on the stock market, helping the investor in making informed decisions rather than relying on instinct. It has around 170,000 sophisticated investors with it right now.
The existing app can be downloaded on Google Play and App Store.
The key features of this app include:
• See what stocks are active in NASDAQ, Dow Jones, NYSE, AMEX, S&P and others
• All American stock market price updates, news feeds, and price alerts
• Get notified when friends buy or sell stock options
• Track sophisticated investors real-time
Spiking is a management system using Blockchain Spike Protocol to allow you, as a trader, to locate and follow market whales with the aim of learning or collaborating with them. Here, whales refer to seasoned traders, large holders of cryptocurrency tokens, mining pools or key executives of companies owning cryptocurrency tokens.
Spiking will collaborate with leading whales to offer you, as a trader, Certified Smart Trader (CST) program that will allow you to learn about trading and investing in cryptocurrencies. You will also be able to gather and verify information about the whales. And through its Spike Protocol, it will be able to verify all trading transactions to ensure there is no falsification of information.
It will also use Spike Tokens as a reward incentive and for all transactions on the protocol. As a trader, you will be able to pay for the CST program with Spike Tokens. Also if you graduate from the program as a top student or you get voted as the top instructor in the CST program, you will be rewarded in Tokens. The tokens will essentially allow users to access the Spiking Platform and its services.
2. eToro
eToro is a platform allowing users to share and access each other information and trading activities like on social networks.
The platform has features such as News Feed, Copy Trading and demo account for users. The News Feed feature allows users to monitor and manually copy their preferred traders, while the Copy Trading feature automatically does the coping for users. The demo account is completely free and unlimited for users, and they can try all the eToro trading and social features.
3. TradingView
TradingView is a cloud as well as a web-based social trading platform for Futures and Forex traders. It offers incredible charting tools and social components for beginners and advanced traders to view and share trading ideas.
Through a forum setting, the platform enables users to follow, copy as well exchange ideas with other like-minded traders. Traders consult with their peers and with more advanced traders on the current market conditions. The conversations are in real time.
Traders publish their trading ideas, and they get feedback or comments from other traders trading the same instrument. The goal here is supporting each other to prosper as traders by sharing ideas and seeing what other investors are doing.
4. Covesting
Covesting is a Blockchain and smart contract based platform that allows beginner investors connect with skilled traders to earn profits in the crypto market. Here, as an investor, you are able to earn profits in the crypto market by simply copying trading strategies from skilled traders automatically. You get to choose the trader to copy from according to his/her strategy and level of trading skill.
On the platform, as an investor, you get to see and pick skilled cryptocurrency traders according to their trading strategy, which matches your profit objective. Before you pick a skilled trader, you get an overview of each skilled trader’s strategy, read their trading strategies reviews, access history of their real-time trading strategy. Therefore you are able to know, before choosing, the best-skilled trader to match your profit objective. And because the skilled traders are many, you can choose to subscribe to as many professional traders as you want.
But it’s not only beginner investors who benefit from the platform; professional traders benefit too through profit from profit sharing from an investor.
Final word
To wrap up, we have learnt that social trading enables free flow and access to information to help individuals make informed investment decisions through leveraging on the power of the community.
Social Trading platforms offer beginners avenues where they can easily and efficiently trade in the crypto market without the fear of beginners failures. Of course, they do not completely eradicate failure, but they minimize chances of failure.
Since social trading platforms cater for both beginners and professionals, they create a reliable trading community, which enables you to earn profits as you learn. Try social trading here and share with us your experience in the comment section below.
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