The value of social trading
Social trading is a relatively new concept in stock picking, but it is a powerful tool for those looking to learn valuable trading skills. What platforms such as eToro and ZuluTrade offer are the ability to see the trading moves made by other stock pickers – particularly those who have experienced massive successes. This can give a novice or intermediate trader a uniquely-powerful learning experience: The ability to study both the textbook strategy required to locate and enact successful trades as well as the real-world example of already high performing traders who have carved out a healthy living in the financial markets.
With the addition of cryptocurrency trading to these social platforms, the doors are open for novice traders to learn this new dimension of financial solvency. Cryptocurrency remains underrepresented in the markets, but this ten-year-old monetary innovation — beginning with the Bitcoin — has the potential to act in the same manner as any other financial instrument, but with the added benefits of its baked-in volatility: A massive benefit for the younger investor.
Crypto: The future of lucrative trading
Cryptocurrency is an exciting new commodity that combines all of the positive attributes of other tradable assets into one package. Crypto markets never close, the price movements in a typical day are much wider than traditional forex or stock pricings, and day trading crypto has no minimum thresholds or potentially dangerous leveraging capabilities as do the traditional stock and forex markets, respectively. While seemingly a drawback, the inability to execute leveraged trades actually forces crypto traders to make smart moves with their capital. Leveraging, on the other hand, allows inexperienced traders to easily go in too heavily on a bad trade and suffer extreme losses.
Day trading, in particular, is an interesting capability in the crypto market. Because the market is always open, the commodity is accessible to those looking to add a second stream of income after regular working hours or over weekends. Likewise, the opening times associated with crypto trading means that a new trader looking to learn the craft can cut down on the time required to become a knowledgeable actor in the field down from the months required to learn the stock game or weeks to become proficient in the standard forex market.
Owning the new frontier of the trading game is the best opportunity for investors to continue to see increasingly productive returns on their investments. Learning to invest by using social trading platforms is a phenomenal opportunity for new investors to get themselves up-to-speed in record time. With the addition of cryptocurrency trading on these social learning platforms, the time has never been better for you to engage with the market across multiple commodities and platforms to maximize both your time and financial growth before these commodities become taken over by mainstream traders and the big financial firms develop algorithmic trading methods that hinder the wild, revolving natural growth of these explosive commodities.