If you have ever felt it’ll take long before you finally understand how to trade crypto successfully, then this social trading concept will interest you. For most new traders, trading cryptocurrencies is a whole new endeavour. Even with the basic guidelines, you can still make mistakes while trading in the crypto market. 

Unfortunately in the crypto market, each mistake results in a loss, loss of your hard earned money and not many people can lose a considerable amount of money just to learn. 

If this your situation, you are not alone. There are thousands of people who also find it difficult trading cryptocurrencies successfully without guidance. 

Social trading tends to solve this as you will see below. We will discuss the meaning of social trading, how it works, and the best platform to use. 

What is Social Trading? 

The meaning of social trading is quite simple when communicated effectively. It is a growing innovation in the crypto market that supports traders with little or no market experience to copy the trades of more experienced professionals and make a profit. 

It is like copying Albert Einstein’s physics solution line by line; you’ll likely win a Nobel Prize for that. Anyway, you get the point. It is simply “copying” or “imitation” successfully trading moves of crypto trading experts that have more experience and skillset than you. 

While you don’t have to do the work or do the analysis required in social trading before entering a trade, it goes beyond “copy and paste” trades. Social trading is taking new dimensions and is becoming more of a community that allows crypto traders to interact with one another and share strategies and secrets to successful trades. 

BingX Social Trading Exchange, Source: Bingx.com

This is seen on community-driven social trading exchanges like BingX, with over 20,000 copy traders and 5,000 daily traders. The way social trading runs makes it unique and captivating for most new traders. Social trading is built on inexperienced traders imitating the trades of experienced traders. 

How Does Social Trading Work?

This is how social trading works. Trader A is an inexperienced trader who doesn’t know how to carry out many successful trades, while Trader B is a professional. 

On a social trading platform like BingX, Trader A will look forward to copying the trades of Trader B, who is more experienced and thriving in the market. If Trader B has a winning rate of 60%, which you can see before choosing to copy him, you will likely have a greater winning percentage when you copy his trades.

Source: Tixee

One should note that there are different dimensions to social trading, which you will discover shortly. 

Copy Trading 

Copy trading is the most common and fundamental form of social trading. As the name implies, it is a situation where a newbie copies a professional’s trade. 

You can earn predetermined commissions as a professional for each copied trade during social trading. Copy trading often has platforms where the activity is done and regulated. The platform typically has the minimum amount of money invested and often dictates the amount of commission received. 

For this type of social trading, all you need to do is to copy the trade and implement what you see. 

Trading Forums 

This type of copy trading is more focused on social interaction among crypto traders. 

At trading platforms, crypto traders come together to share strategies, including when to enter the trade and when to leave. 

However, to carry out this form of social trading, you should know the basics of trading and be able to place a trade. 

Signal Channels 

This is similar to trading forums, except that the level of communication may decrease slightly. 

It thrives on social media platforms where subscribers receive signals. This signal contains the entry price and exit price . 

Also, technical, fundamental, and sentimental analysis is carried out on this channel for others to copy. 

Pros and Cons of Social Trading 

Pros of Social Trading 

Great For Beginners 

One of the significant advantages of social trading is that it is one of the best ways for a beginner to start their journey in crypto trading. 

When you access more interactive platforms, such as trading forums, you get guidelines on how and how not to carry out a trade. 

Saves Time and Money

As you can see, you only get to copy a trade already analysed by another person and just execute it.

This means you don’t have to waste your time again doing the fundamental and technical analysis of the trade. 

In saving you money, you no longer have to lose your money by trading blindly. You can easily follow the steps of successful traders. 

You Become Part of a Community 

Together with other traders, you can form a community with other traders where people can learn about the best trading strategies. 

Different Alternatives 

Access to alternatives is a significant benefit of social trading that attracts people to it. Instead of depending only on your strategies to make a profit, you can access different trading strategies. 

Learn from the Best 

When you engage in social trading, you are copying the trades of those who are better than you in crypto trading. 

This means you have the chance to imitate and follow the steps of those who are miles ahead of you in trading. 

Cons of Social Trading 

Over-reliance 

One of the significant disadvantages of social trading is that when you engage in it too much without learning, you will always have to rely on the analysis of others to trade. 

This can be disastrous as even the analysis made by professionals can be wrong at times. 

Potential of losing Money 

Even professionals can make mistakes. Since you copy their trade, any single mistake from them will also lead to a loss of money on your part. 

What is a Social Trading Platform? 

A social trading platform is a place where social trading takes place. As explained above, social trading platforms are diversified, with some focusing on copy trading, trading forums, and signal channels. 

However, some of them combine a lot of useful varieties like BingX which is the leading crypto social trading platform in the world. BingX’s cutting-edge copy trading tool has benefited more than 20,000 copy traders, with a total of 5,000 daily traders.

Features of a Good Social Trading Platform: BingX Overview

Regulatory Licenses Obtained, Source: BingX

To use social trading successfully, it is good to use a platform that ensures transparency, has great traders, and ensures your fund security. 

Below are some features that make BingX a special social trading platform for you. 

• Diversity: BingX is accessible to over 100 countries in the world with offices in Canada, Hong Kong, the United States, Australia, and Taiwan.
• Ease Of Use: BingX has cutting-edge copy trading tools and user interface that makes it easy to use 
• Reliable. The website or software should be able to run smoothly without bugs. 
• Security: A social trading platform should be secured and BingX has up to date security technology in place. 
• Product Features: BingX has enough technical features, such as an account manager, trade copier, and signal analytics.
• Customer support: BingX has enough reliable customer support for your step by step inquiries. 

Should I Try Social Trading?

Social trading is unique and successful today because it finds its roots in the most basic way every human learns, which is through imitation. Humans are products of influence, and we can see this in newly born babies that copy and imitate human sounds and how to walk. 

By now, you should understand the meaning of social trading and how you can use it to make a significant profit while trading. The benefits and downsides of social trading are also clear, and getting started with the best platforms is key to success. 

Social trading is an incredible innovation in the crypto industry, and BingX is bringing you that value right in the palm of your hands. You shouldn’t wait further to turn around your trading experience for good, start trading with BingX to get $5155 New User Rewards today!

Disclaimer: BingX does not endorse and is not responsible or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. BingX is not responsible , directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the article.