Whether you consider yourself a beginner or an experimented player, as you may be aware of, the number of new concepts and terminology that comes into the scene almost every year demanding more and more understanding among either technology or investment procedures. One of those very often mentioned concepts has been Social Trading.
The concept was first introduced and practiced in financial market, especially stock trading and, let’s say, it’s a roleplay approach in financial services in which the individual trade straggling is minimized. Then, leveraging in technology the concept scaled up and positioned itself strongly in digital investment platforms carrying the idea of a service that enables any users to take a role of follower, giving the greenlight to them to duplicate the transactions of a leading trader.
The greatest achievement social trading could have brought is that allows new investors to simply take a shortcut and deem the need to educate themselves about financial products unnecessary. The sole responsibility users have is to make sure the right leader, whose assets allocation, success rate and risk tolerance are in line with their preference, is chosen.
Key characteristics of Social Trading
1) Users can choose expert traders to follow, establishing a ‘follower & leader’ type of relationship, based on the expected returns and risk preferences.
2) Users can learn the trade & investment strategies implemented by more than one leader, depending on how many they choose to follow, and combine them in order to make the optimal one of their own.
3) Shorts the learning curve for new participants.
However, despite that most of social trading platforms are largely founded upon flexibility, there is still lack of transparency and friendly usage interaction on most of them. Also, there is a significance ethics perspective when using social trading for the purpose of short-term monetary benefit. While social trading can be a great and dynamic way to learn from other advanced traders, in the long run, it’s always important for new traders to observe and learn by copying trading orders; to know which trading strategies fit their investment style and help them gain consistently.
The Knowledge Sharing Era
Social trading exemplifies boundless knowledge sharing. It offers the opportunity for traders to work collaboratively on trading strategies, either by sharing information, working on multiple market research or pooling other resources together.
Among Carboneum key value propositions there is Knowledge Sharing. We capitalize on free flow of information among digital assets and cryptocurrency investors in the network, allowing them to exchange any forms of knowledge liberally. Additionally, Carboneum would like to take the knowledge sharing aspect to the next level by organizing its own or sponsoring events, training or live broadcasts, bridging the gap of virtual world and reality, and promoting not only smart wealth-generating platform but also channels of acquiring the know-how of making good trade strategies.
Also, highly important to emphasize our commitment towards be a democratized social trading platform for all user type of users; followers and leaders by allowing a wide range of role participants. Therefore, positioning oneself as ‘wisdom of the cloud’, a digital asset investment platform for everyone by everyone.