Adding social to commerce is what online multiplayer is for games. It provides the next generation layer for crypto traders to experience dynamic and natural adventures in the markets.
Socialization is the root of many crypto trends, such as non-fungible tokens (NFTs). Now he has made his way into crypto trading. It provides crypto traders with interconnectivity while trading, so that barriers that prevent them from having fun and having less scary experiences are overcome.
Cryptocurrency platforms are notorious for not having the social features that meet user demands and expectations. The overload of technical crypto trading features caused exchanges to fail to notice how this negatively affects the end user.
Social trading immerses users in a more user-friendly environment and gives them the opportunity to have a hand in the market. Most people have experienced crypto as a one-man army because it was not a systematized method of bringing them into the markets.
These types of platforms disrupt this phenomenon by providing traders with ease of entry with various choices.
Social commerce explained
Social trading is a form of investing that allows traders to learn about the decisions of others in the market. They basically allow traders to copy or mirror the trading strategies of others. Therefore, don’t just have to rely on their actions to make money.
eToro was the first to provide bitcoin traders with a socialized experience. Meanwhile, KuCoin started the trend by becoming the first major crypto exchange to launch a social trading platform for the crypto markets.
They did this by adding to their platform called KuCoin S. This is a special space in their app that reintroduces trading to the world of crypto by integrating social features like copy trading, sharing your transactions, accessing real-time crypto news, and interacting with like-minded communities.
So how exactly can traders benefit from this “socialization”?
What social trading offers
Copy the trades of the winners
Everyone goes into trading to win. However, winning is the hardest thing to accomplish on a consistent basis, especially for newcomers.
Copying trades for a consistent winner can give you immediate confidence and more positive trading days. It can also be beneficial for those who have no interest in offering trading strategies but want to reap the rewards of trading.
Traders entering the markets for the first time can increase their chances of becoming profitable just by copying others. It is common for new crypto traders to have unpleasant experiences early on in crypto trading.
Negotiate on the go
Crypto markets operate 24/7 which means there will be some missed trading opportunities due to activity, lack of time or sleep.
Social trading solves this problem by copying the trades of the winners whenever you cannot trade.
Learn trading strategies from others
A lot of people claim to have winning trading strategies, but they don’t show their trading results most of the time.
Social trading is transparent because users can study the strategies of others and modify them according to their preferences. Additionally, users can ask experienced traders to rate their strategies and give them advice such as where to place a stop loss or when to take profit.
Interact with other traders
Trading is generally a lonely experience. It’s just you, your laptop, and the graphics. Advice can be a useful factor in achieving trading goals, and social trading creates an environment in which you can talk to experienced traders or join communities.
Without social trading, traders have to be content with Discord and Telegram groups which can be very memes-oriented and offer no real support. As a result, traders follow the emotional decisions of others and adopt a counterintuitive mindset.
Better understand crypto news
Crypto news spreads like wildfire, and misleading news often circulates. It can cause you to go against your trading plan and make impulsive decisions.
For example, someone retweeting a fake crypto article from Microsoft using Bitcoin for payments may cause you to exit your other coins and enter Bitcoin (anticipating its pumping).
Social trading platforms like KuCoin S have a real-time crypto news feed that users can like and comment on. The likes of an article suggest its validity, and comments may reveal additional information for further insight. It’s much more reassuring when a trader you trust gives their opinion on crypto news.
Social trading is about facilitating trading
Placing trades on crypto exchanges is not as easy as it should be. Many exchanges put too much information on the trading screen, and this only makes trading confusing.
It also leaves you exposed to costly mistakes. Buying and selling crypto should be a straightforward experience and not require users to learn how to do it. As Elon Musk said, “Any product that needs a manual to function is broken.”
Social trading aims to put users first. Its architecture is designed to simplify your trading actions and put an end to the complexity of crypto exchanges.
The socialization of trading attracts different generations to crypto. Just because they will recognize it as easy to use, they don’t have to worry about the technical barriers that stand in their way.
Social trading is the next trend to amplify the growth rate of crypto and lead to mass adoption. Its performance in traditional markets suggests the massive impact it could have on crypto.
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