Cryptocurrency has been on a rollercoaster ride in the past few years. It’s one of the most volatile and profitable markets to trade, but it can be difficult for traders who are new to cryptocurrency or investing in general, as it can take a lot of time and research. If you want some help, social trading is an option that lets you copy other traders and make money off their trades. In this post, we will discuss what social trading is and how it works so that you can start profiting from cryptocurrencies today!
What is Social Trading?
Social trading (also known as copy trading or mirror trading) in simple terms can be best described as copying expert traders. This includes copy trader — where only a single trade is copied, as well as mirror trading — where a less experienced trader copies the exact trading strategy as an expert trader.
Social trading has been around for quite some time and there are many platforms today that facilitate social trading to potential investments. This concept is ideal for beginners as it allows insight into complex strategies and helps understand the trading landscape of what works and what doesn’t without having to actively worry about the trading strategy.
Social trading enables you to replicate an expert’s strategy and make it your own or use the expert’s technique to inspire your own trading strategy.
Benefits of Social Trading
Many beginners are unaware of the benefits that social trading can yield. Here are a few benefits for novice traders.
1. Valuable insights
Many new entrants in the crypto markets aren’t confident about investing or prefer to copy trades rather than starting from scratch. Accessing how other traders have made decisions based on the markets can provide deeper insight into understanding assets and prices. It shows you where, when, how, and why a trader decided to implement something and will give you a competitive edge.
2. Market sentiments
Social trading will give you a perspective on the market in terms of demand and supply. You will be able to see how many people are buying or selling certain assets and which is consistently profitable or declining.
3. Automation and intelligence
Research plays a major role in making trading decisions. Social trading enables you to follow reliable traders and your decisions are ultimately based on research as well as data that have already been tested and analyzed by expert traders.
4. A source of learning
Social trading is a great way to learn more about the market. Since the crypto market is extremely volatile and changes from day to day, it is important for crypto traders to be open to learning.
Best Crypto Social Trading Platforms to Use
There are many crypto social trading platforms to choose from. Here are some of the best social trading platforms that you should try.
Mudrex is a new-age cloud-based Algo trading platform that enables users to build their own automated trading bots or invest in bots created by top traders.
To invest in bots create by top traders on Mudrex, you need to connect your crypto exchange to Mudrex using the API feature, or use the Mudrex Wallet. The next step is to choose a trading strategy from the ‘Invest’ feature. Each strategy is ranked based on the performance score, total returns, number of investors and the total number of active days.
Once you’ve found the strategy you wish to copy, click on that strategy and allocate the fund, and you are done! The automated Algo takes care of trading and you can just sit back and relax.
eToro social trading platform is great for beginners who are looking to start with copy trading. eToro deals in various markets including cryptocurrencies, stocks and ETFs.
There are numerous filters to help you find a trader whom you can copy. You can further click on any profile to see their details like performance over time, existing portfolio, and more.
Shrimpy is an automated tool to help manage your portfolio and offers a social trading feature. You can automatically copy the top crypto traders using Shrimpy. You can filter the leaders based on the exchange and their performance.
To know more details about their strategy, performance, allocations, and more, you can visit their individual pages. Once you have found a reliable leader to follow, click on ‘Follow Leader’ and allocate a portion of your funds to start copy trading.
The Bottom Line
As the cryptocurrency market is maturing, we can expect more similar platforms. If you want to start investing easily and generate consistent returns, then Mudrex is the platform you are looking for.
Mudrex helps people invest in 100% automated trading bots created by expert traders with total security and reliability. At Mudrex, users do not need to pay any platform fee but a small fee when they invest in a strategy, which can be as low as $5. It is safe to say, Mudrex is the high-performing automated trading platform you are looking for.
Let your trades work on autopilot. Get consistent returns with Mudrex.