Social Trading is the Most Demanded Feature to Reduce the Cryptocurrency Trading Difficulties – Survey
10 September 2018
Cryptocurrency trading can be intimidating at first sight. Not that it is very complex but it’s the design complexity of cryptocurrency exchanges. It takes a while to master the art of cryptocurrency trading. You should be capable to be in charge of the security of your funds and wise decision-making ability so that you do not get trap in false breakouts.
So, how to do it? Watching videos and reading blogs isn’t sufficient. A trader can have a real idea by actually performing in the real market. However, without any prior exposure, it is likely to get difficult to encounter the cryptocurrency trading market at first. The traders appreciate a proper guidance here.
To overcome this situation, an upcoming cryptocurrency exchange site – Encrybit organized a survey. One of the questions asked the participants to choose the most wanted feature to reduce trading difficulties with the following given options:
- Social trading
- Educational blog
- Handy expert advice
- Paper trading
The survey witnessed participation of over 10k traders from different countries of the world. Looking at the insightful results published last month, 39% of the traders voted for “Social Trading”.
Let’s analyse the reason underneath.
What is Social Trading?
The survey also included a question to know whether all the traders are aware of the “Social Trading” concept. 14% of the participants had no idea. So, before we start analysing, let us first understand the concept of social trading.
“A helpful feature for novice traders to follow/copy the trades of experienced traders.”
As simple as it states. There are traders who have gained expertise can do some social work by helping the novice traders. It is a feature where the newcomers can either copy or follow trades of experienced traders based on their rankings. The novice traders can allocate certain funds for this purpose. Before following/copying a trade, the leader and follower mutually agree upon a profit sharing ratio.
Thus, it is quite relatable to the social concept of helping others. It is a two-way benefit feature where novice traders can learn the trading tactics and the senior/experienced traders can earn a bit by imparting their knowledge.
Why is Social Trading the most demanded feature?
Now, you have a basic understanding of the social trading concept. It is the time to compare it with other available features. Starting with educational blog, as mentioned in the starting of the post, it is not that effective. Simply reading or even watching tutorials will make you educated on how to use an exchange. It is not sufficient to make anyone learn the principles of cryptocurrency trading.
Moving over to the next option, “handy expert advice”. It is not handy all the time! In addition, a person’s advice may or may not turn to be beneficial all the time. Thus, it is not capable enough to reduce the trading difficulties. The novice traders demand something concrete.
The next and final option, “paper trading”. It is a practical approach just like the social trading. The latter two are theoretical approaches, which are less preferred by the traders. Paper trading offers a simulated environment to learn trading before actually trading in the real market. It can be broadly described as self-learning practical approach.
Paper trading is a strong competitor to social trading. However, here again, you will have to try and test yourself. Whereas in social trading, you get to learn by following or copying the trades of experienced traders. It is safer in this is highly risky and volatile cryptocurrency trading market.
Thus, social trading is the most demanded feature to reduce trading difficulties.
The survey results intensify the fact that if “Social Trading” is available as a feature on cryptocurrency exchange platforms then it will greatly reduce the trading difficulties. Especially, the traders can save themselves from getting trapped in false breakouts and losing their money due to emotional decisions.
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