Table of Contents
Join Trading Community: Learn & Earn from Bingbon.
What Is Crypto Social Trading?
Social trading refers to the interaction of traders to make better decisions, learn about useful trading strategies, and exchange information among traders to strengthen the crypto community.
Social trading provides a potential solution to introduce new crypto enthusiasts into the crypto rabbit hole where they follow profitable trading strategies of experienced traders who receive commissions of the profit that their followers/ amateur new entrants make on adopting their trading techniques. Copy traders not only gain profits from emulating the procedures of professional traders but also learn new trading techniques that might be useful for less experienced traders in the future.
Multiple social trading platforms allow users to follow & copy the strategies of top traders on their websites.
How Does Social Trading Work?
Social trading constitutes different forms of investing. There are three significant ways that traders adopt to engage in social trading. These are signal groups, automated trading strategy marketplaces & follow trading.
Signal groups are usually found on the platforms like Twitter, WhatsApp group, or e-Toro. The Signal provider or leader of the group sends text messages giving the signal of specific trades describing when to take entry & exit positions to capture profit. Followers manually log into their respective exchanges and initiate the individual trades.
Automated Trading Strategy Marketplaces
These trading strategies are connected to specific trading exchanges where it purchases like Binance trading bot platform or 3Commas. Usually, advanced trading bots are used to design and sell automated trading strategies based on defined parameters.
Many traders buy and copy these automated trading strategies based on algorithmic strategies therefore it requires advanced configuration techniques and close monitoring.
Contrary to signal groups and automated strategy marketplaces, follow trading based on the social trading crypto community where followers emulate the strategy of professional leaders.
Experienced traders execute their strategy using automation tools therefore all trades are executed automatically. Novice traders socialize with other seasoned traders in the community and can improve their trading skills.
What Is the Difference between Social Trading, Copy Trading, and Mirror Trading?
There is a correlation between social trading, copy trading & mirror trading but they are distinct in their identity.
Social trading where traders work together & engage in activities to make better decisions. In social trading, inexperienced traders collaborate with experienced traders who share their strategies using social media platforms such as Twitter, e-Toro, Bingbon that contribute to making profitable trades and strengthen the crypto community. Copy trading and mirror trading are two parts of social trading.
Copy trading involves automated trading where expert traders share their successful trade strategy with other traders. Copy trading is a win-win state for copy traders and professional traders. Copy traders gain trading profits from copying the practices of the expert traders & professional traders receive commissions from trading profits of copy traders.
Mirror trading involves automated trading of digital assets based on algorithmic strategies rather than individual trades. A trader just needs to select initial trading criteria such as preferred asset classes or investment goals from a list of trading criteria on the platform; the rest of the trading decisions are handled by the Algorithms.