SPONSORED POST*
Social trading has become a real magic key that opened the cryptocurrency market to a huge number of new investors. Entering crypto exchanges without deep financial knowledge is quite a challenge since cryptocurrencies are highly volatile assets, trading which assumes quite high risks. However, relying on the experience of professional traders and copying their strategies on the Social Trading Platform, new and inexperienced investors can start earning crypto even without a strong base in financial science. In doing so, they gain both knowledge and experience by analyzing the effective strategies of professional traders and interacting with a broad and passionate community of crypto traders.
Key Social Trading Tools and Features
Effective and informed trading decisions largely depend on the range of tools that social trading platforms offer. Among the most basic tools that you can find on such popular platforms as eToro, NAGA, InvestMates, and Bybit are the following:
- Portfolio Management Tools that facilitate decision-making through high-quality visualization of numerous data and in-depth analytics;
- Risk Management Tools such as stop loss, allowing you to halt the execution of orders when a critical level is reached;
- Automated Trading Tools such as trading bots that execute orders in accordance with specified algorithms;
- Trading Academic Tools in the form of video lectures, blog posts, webinars, etc., which increase the level of knowledge of traders, allowing them to delve into all the details of successful trading.
Evaluating Performance Metrics and Analytics
Some traders think that when entering the cryptocurrency market, the indicators they rely on when trading other assets will be enough. However, crypto has its specifics and, therefore, its features of conducting an in-depth performance analysis. The portfolio of performance metrics for crypto trading is quite voluminous and includes the following indicators:
- Market capitalization;
- Active return on investment (Alpha);
- Stablecoin flows;
- Fear & Greed Index;
- Bitcoin heat map;
- Aroon indicator, and many others.
Advanced Tools and Features for Crypto Investors
As beginner traders gain experience and knowledge through social trading, they have a demand for more advanced tools that allow them to enhance crypto trading experiences and build independent strategies, such as:
- Various graphic tools and patterns;
- Testers for comparing and evaluating the effectiveness of applying different strategies;
- Portfolio rebalancing tools;
- AI-based tools for exploring blockchain processes, and more.
This is well understood by new projects for social trading, which enter the market with a wider palette of tools. One such new social trading platform BIDSBEE will be launched pretty soon. In the meantime, check out BIDSBEE on Twitter for more advanced tools and features it offers for social trading.
Choosing the Right Social Trading Platform
With the explosion in the popularity of crypto and the proliferation of social trading platforms, it is essential to choose one where you can get both a quality social trading experience and high profits. Check out the following factors before making the final decision:
- A large choice of crypto pairs;
- Exchanges you can access with the platform;
- Active community and intensive communication of traders;
- Tools and statistics for risk management;
- Convenient representation of trade history;
- Automated bots for algorithmic trading.
Social trading is a safe, reliable, and efficient way to quickly integrate into the crypto finance industry and gain in-depth knowledge. It is recommended to everyone and gives the highest results compared to all other ways to obtain a successful trading experience.
*This article was paid for Cryptonomist did not write the article or test the platform.
Source: https://en.cryptonomist.ch/2023/06/22/exploring-social-trading-tools/