Social trading has been around for years, allowing new traders and investors to enter the trading industry, despite the fact that they lacked the necessary knowledge to make educated decisions. But, with social trading at hand, they didn’t have to know what to do — they could simply copy those who did.
With the crypto industry going big over the last few years, social trading started emerging on numerous crypto exchanges and trading platforms, as well. However, while it was and is extremely helpful for those who are only just entering the industry for the first time, it is also riskier than it might seem at first glance.
The Problems with Social Trading
When we say that social trading allows users to copy professional traders’ moves and achieve the same results, you might wonder, what is risky about that? If you are following true professionals, then you are pretty much all set. All you need to do is exactly what the top trader is doing, and you will achieve the same results.
Yes, that’s exactly right. The problem, however, is identifying who is a true professional, and who only happened to get lucky a few times. You see, the issue with most social trading platforms that offer copy trading is the lack of transparency. These platforms offer only a list of top-ranking traders, typically based on their earnings.
So, if someone happens to have a few lucky breaks — which is rare, but it still happens — it is only a matter of time before they make a mistake, and you alongside them. This could end up costing you a lot of money, especially if you decided to go all-in and copy them with all of your trading funds.
However, there is an easy way to solve this issue, even though it wasn’t around until the Decoin exchange launched its own social trading platform, Dtrade.
How does Dtrade Change Things for the Better?
Dtrade’s unique approach is actually pretty simple. All it did was increase transparency, and improve communication within its platform. Basically, users can now have a deeper insight into top traders+ trades, watch them perform live trades, copy them in real-time, and even engage in automatic copy trading, where their account does all on its own, simply copying the selected trader.
By seeing the traders’ past earnings, users are easily able to tell who is a true professional based on their lengthy history of successful trading, and who only managed to earn profits a few times. This can solve a major issue for traditional traders who have found the crypto sector to be too new, too different, and too intimidating from what they are used to.
By seeing these stats and details, traditional trades can now know with certainty whether the trader they have chosen to follow is reliable, and capable of helping them earn money. That way, they can enter the crypto industry and earn money with every arriving opportunity, even without spending time and resources on educating themselves on crypto trading first.
Of course, it is always better to have your own knowledge and skill than to rely on that of others, but for the initial period, copy trading via Dtrade is a good way to make sure for yourself that the crypto industry is legit, and perfectly capable of providing you with a sound profit, as long as you know what to do and when to do it.
Hopefully, the platform will help reassure traditional traders who are still convinced that the crypto sector is some sort of a scam, despite the past 12 and a half years worth of evidence claiming otherwise. And, with them joining the crypto sector, the industry will see that much more adoption, and it will become further legitimized in the eyes of other skeptics out there.
