Trading basics
Trading 101: What is Social Trading?
Beginner
2022-07-07 | 5m
Trading 101: What is Social Trading?
The term Social Trading has been capturing the headlines as GenZ is flocking to investment brokerages and educating themselves on the topic. One thing that we can all agree on is the Internet, and especially social media, are these defining traits of young people: they grew up during the dot-com bubble, they’re changing the whole social media landscape, and most importantly, they simply “breathe” it in a way that no other generation does. Social Trading is one such thing born out of the amazing potential of the Internet.
In a sense, a
Social Trading platform is no different than Facebook or Twitter; people will follow bright minds to get inspired and eventually start to mimic or integrate such inspiring quintessence into their lives. With Social Trading, seasoned traders have a place to not only share their experiences and their well-tested strategies but also earn incentives for their high-quality contributions to the trading community. At the same time, newbies can rely on the “success stories” of their predecessors to conveniently join the complex world of trading. It’s a win-win situation for both parties, gaining in popularity over the past years.
How Social Trading is changing investing
There used to be a time when huge differences between retail and institutional traders' outcomes could nip any individual interest in trading in the bud. Then came the Internet, whose powers enabled the transition from floor trading to electronic trading, but retail traders have still been at a disadvantage due to a lack of knowledge and valuable information. Social Trading is their knight in shining armor, remarkably lowering the entry barriers in both traditional and
crypto markets.
Accessibility inclusion
First and foremost, let’s talk about online trading. Anyone can sign up for an account on any electronic exchange platform, meaning they can participate in trading activities from anywhere around the world as long as there is Internet access.
Besides, Social Trading makes getting expert bits of advice easier. All jargon is e xplained in layman’s terms, and each trade is a digestible piece of valuable information, helping more groups of people to grasp the idea and become financially literate.
Greater information transparency
On leading social trading exchanges such as Bitget, we strictly review transaction records of registered professionals so that data reflects the actual trading activities on our platform. It is not a mere forum thread discussing (theoretically, mind you) what to buy and what to sell; Social Trading gives insights into the real transaction costs and returns via real-time stats.
Social Trading also democratizes data in that each trade initiated by a professional will his/her followers of macroeconomic trends, market movements, and project news - all valuable information previously available to big players only.
Word-of-mouth credibility
We all have the tendency to check out product reviews before purchasing, so how should it be different when it comes to stocks and cryptos? Plugged-in traders can make informed decisions thanks to collective trust in particular assets and/or experts. For those who do their own research (we advise you to do that, too), the number of followers and reviews on the associated strategies are impactful indicators of the traders’ creditworthiness.
Social Trading on Bitget
Crypto Social Trading has been available on Bitget since 2020, connecting thousands of trading experts with eager crypto enthusiasts. The on-chain unit, in the form of
Bitget One-Click Copy Trade, has generated a total of $20 million in accumulated traders profit sharing. Also, in May 2022, we launched the
Spot Grid trading and
Futures Grid trading - the quantitative trading strategy tools designed to buy low and sell high in a range-bound market. Together Bitget’s
Copy trading and Grid trading light a path to the full potential of social trading, enabling users, KOLs, and professional traders to exchange information freely, adopt multiple trading patterns and optimize strategies for their benefit. Our off-chain counterparts, Bitget Global and Local Communities, are thriving with daily in-depth discussions. We also offer 24/7 Customer Support in more than 20 languages across the world. Obviously, Bitget has successfully redefined the way crypto investors interact: Sharing knowledge verbally
and practically with actual trades.
Register now and start your social trading journey today at Bitget!
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