Remember when Bitcoin’s value rocketed like crazy in 2017 and suddenly your aunts and neighbors were all into cryptocurrency? Because we do! Whatever happened to them? You thought with all those bragging and know-it-all conversations, they would be traveling the world as billionaires by now — or maybe they have and we’re of the lesser society for them now. Dang you, Aunt Debra.
Either that or they’re diving into Bitcoin empty-handed with zero knowledge whatsoever about it. Let’s just hope the latter was untrue. But all jokes aside, cryptocurrency is a fragile market. When it rises, it does exponentially, and when it lowers, it can lower very drastically. To truly and sustainably make income as a cryptocurrency Trader — or any kind of Trader — you will need extensive knowledge on the matter and monitor the market to decide when is the good time to buy or sell your currency.
This can be very overwhelming for everyone who is just testing the water, as not everyone has the time or energy to do so especially with all the confusing graphs and numbers. Luckily, you can skip all the trouble and make money like an experienced Trader with social trading!
What is this social trading?
To put simply, social trading is a service where you copy other Trader’s strategies to make profit. It is a great start for starters to learn and familiarize themselves with the market to independently trade. With social trading, they can analyze how experienced Traders behave in certain situations and know how to make vital decisions themselves.
How does social trading work?
Social trading platforms mediate their Traders with a platform where they can showcase their performance and gain trust from regular users who are interested to copy their strategies. Users can browse and review which Trader is more suitable to their needs and goals and after they pick their favorite, they can subscribe to that particular Trader. When a user subscribes to a Trader, they will trust a certain amount of money to Trader, increasing the Trader’s asset under management, and receive profit if the Trader wins. A portion amount of your money will also be given to the Trader if they win as a commission.
What are the pros of social trading?
In a sense, social trading enables beginners to collect all the knowledge and strategies of experienced Traders. It is a great alternative to learning how to trade independently with more secured confidence under the guidance of others. While back in the analog days you had to either learn on your own or to find yourself a mentor, you can now collect tons of Traders’ data and their performance through social trading platforms. It is also a great way to learn that you can lose money when you trade and that’s all about the learning process.
Already a skilled Trader? Don’t miss out on our upcoming article on why you should let others copy your strategies!
What are the cons of social trading?
There is always a downside for any kind of trading. One example of social trading is how starters may trade under different position than the Trader they copy. When you copy a Trader, you may never know how diversified their portfolio is and what kind of long term plan they might be operating. You need to adjust their strategy to your needs and goals. In another case, social trading can also boast or decrease confidence of new Traders, generating false hope to the scenario.
Is social trading for me?
If you’re interested in trading but hesitant with all the learning process, social trading is a great step to start your learning curve with more secured confidence. It is also a great way for experienced Traders who need a break from trading yet still need their portfolios managed.
Social trading may sound both thrilling and intimidating for new Traders, but in Lubna.io, we strive to make your experience as convenient and fun as possible. Join our waitlist and be a part of our ever-expanding cryptocurrency trading community!
See also: What is Lubna.io and How Does It Work?
