How to Become a Leading Crypto Social Trader Influencer?

The learned crypto social trader should go through an extensive learning process of strategies & financial market indications. 

To become a leading social trader, he/she acquires the following learning skills & techniques:  

  • A social trader must have absolute knowledge about crypto financial markets.
  • He/she can analyze financial data, study market sentiments, focus on technical analysis of data, review past performance of asset classes along with returns on investment, & identify market trends.

  • Provide signal trades when to enter the trade, make a profit, where to set the stop-loss option and when to take exit position.    
  • An experienced social trader can be able to implement their strategies using software or automation tools.
  • Having the ability to grow their community by interpersonal communication skills.
  • Be a proactive learner, constantly monitor the flow of market information and keep eye on industry news.
  • Timely revise diversified strategies & turn losing strategies into profitable ones.

Why Is Social Trading so Important for the Crypto Industry?

The statistics of CoinmarketCap show that crypto investment grew up to 2.4 trillion dollars indicating the growing trend of investment. More people are striving for finding new opportunities for investment in the crypto space. But the majority of newcomers are inexperienced and amateur. They can get involved in social trading activities by asking questions about trading techniques & gaining more insight into trading when experienced traders share information about the successful trading event.

Social trading increases the responsibility on trading exchanges manifold to scrutinize traders who don’t cheat others to create a trustful environment for the community. A safe and secure social trading platform will give investors and influencers more confidence & boost the reputation of the platform.

Crypto experts earn commission on each copy trades & allow the newcomers to enter into the cryptocurrency rabbit hole in a perfect way.   

Pros & Cons of Social trading

Pros of Social Trading

1. Inexperienced Traders Copying Effective Trading Practices

Understanding the crypto trading challenges why the digital assets fluctuate in value & how to take advantage of bearish and bullish market trends is a complicated task. However, social trading has the potential to provide the solution & enabling inexperienced traders to mimic the trading strategies of experienced traders.

2. Expert Traders Can Make Passive Income

Expert traders share their successful trading strategies & receive commissions of the profits on each trade taken by their followers.

3. Newcomers Learn Profitable Trading Techniques

Social trading acts as a shield for those inexperienced traders who enter into positions emotionally & getting involved in making irrational decisions resulting in loss of capital. Social trading assists inexperienced traders to take the right decision at the right time by adopting profitable trading techniques. Followers analyzing each trade & understanding the market moves give them confidence and make them better traders. 

Cons of Social Trading

1. Amateur Trader Becomes Overconfident

Some inexperienced traders become overconfident; they believe that strong strategies based on past performance serve as a guarantee for future returns & make mistakes when a sudden downturn happens in the market.

2. High Risks Involved

Copying trades of other traders or automated trading based on algorithmic strategies should never be a substitute for self-close analyzing of position performance. Inexperienced traders’ money carries high risk when they make a decision on someone’s strategies which are also being followed by other novice traders.      

Novice traders make Unfavorable copy trades that result in unprofitable moves in the long run.