Social trading has been a popular way for many inexperienced traders to break into the challenging and fast-paced stock and commodities trading world. Social trading allows first-time or novice traders to copy the trades of professional traders. Ideally, this should put the newcomers at an advantage because they can mimic the trading activity of advanced traders who may have learned the best strategies to maximize returns consistently.
Social trading is also becoming popular in the cryptocurrency space, with many new traders exploring how this nascent asset class can be leveraged to earn sizable returns. Although copying the trades of experienced traders can serve as a great learning experience, it also comes with certain drawbacks.
Common Problems and Risks Associated with Social Trading
It can be risky to copy the trades of professional traders because it’s not always easy to accurately identify the experts or the best traders who are able to generate profits regularly with their proven strategies.
One of the major issues with social trading services is that they provide copy trading options that are not always transparent. These platforms might simply provide a list of the leading traders; however, they may be ranked based only on their latest earnings.
And if a trader gets lucky and goes on a hot streak — which does not happen very often, but it can and still does happen occasionally — then it could be just a matter of time before they start to lose a lot of money, and you would also begin to lose since you copied their trades. This might lead to huge losses if you decide to copy or mimic most of their trading strategies.
Fortunately, there may be a much simpler and more reliable way to address this problem. Recently, Decoin exchange introduced its own social trading platform, known as Dtrade.
Dtrade Can Significantly Improve Social Trading Experience
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As mentioned on the Decoin website, Dtrade is an innovative & transparent pro-social trading platform designed to meet the requirements of the fast-evolving crypto space. It’s becoming a popular way for the crypto industry to come together and start trading with real professional traders, who regularly stream their proven strategies online and via live platforms.
As noted by its developers, the Dtrade trading platform has been designed to take communicating & sharing to an “all-new level.” If you simply want to watch live trading sessions, then you may do that. Alternatively, you may engage in trading by performing auto trades with specific traders in a live environment.
There are also options to review the past earnings of platform traders. This allows everyone to check whether a particular trader is a real professional based on their extensive history of conducting highly profitable trades. It’s also possible to check if a trader happened to get lucky on a few trades, which means they cannot be relied on for earning steady returns.
The Decoin platform and Detrade features can help traditional traders get more comfortable with cryptocurrency trading by making it easier to view traders’ profiles and their established trading histories.
Understandably, newcomers may be apprehensive or unsure of how to approach digital currency trading since it can be a completely new world, even for experienced traders who are only familiar with traditional markets. By using platform features like Dtrade, even beginners might gain more confidence and start trading more effectively.
As noted on the Decoin website, they let platform users evaluate their traders based on their performance (or lack thereof) and skill level. Clients can decide just how much to trade and whom to follow, which is how social trading should be, according to the creators of Dtrade.
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To enhance users’ trading experience, there are live and recorded sessions available on the platform. There are also options to trade in sessions and engage in auto-trading. Moreover, Dtrade is fairly innovative, easy to use, and “most importantly” Social.
As mentioned on the Decoin website: “We revolutionized the Live trading experience [with Dtrade, so it’s suitable] for beginners that want to learn from the professionals by watching a live session or auto trading with them. Experienced professional traders enjoy more exposure from new audiences showcasing their skill.”
