Follow the Best Social Crypto Traders on binance cryptocurrency exchange
There are currently thousands of active traders managing their portfolio on binance athbhreithniú a dhéanamh orainn
. These traders are some of the most advanced traders in the industry.
As the market matures, novice traders will continue flooding into the crypto space at increasing rates. These traders won’t have the same experience as seasoned trading experts.
Thankfully, there is now a way for novice traders to set themselves on the same level as the best traders in the industry. This is accomplished through social trading services.
What is Social Trading?
Social trading is the idea that traders can work together to make better decisions, 바이 낸스 xmr learn about unique trading strategies, p & l binance cryptocurrency exchange
saben dina and share information for the betterment of everyone in the community.
Social trading can take many different forms. Some of the popular ways that traders engage in social trading include signal groups , strategy marketplaces , and follow trading .
Although each of these is designed to disseminate information to a community of traders, they each have their own unique advantages and disadvantages.
Signal groups are one of the most informal options when it comes to social trading. Essentially, a signal provider (often the leader of the group) will send out text messages that indicate the specific trades they will be making.
In this example, the signal provider outlines when the followers should enter the trade, how they should take profit, and where to set a stop-loss.
Often these signals will include entry and exit conditions along with when it would be appropriate to take profit.
These groups can be found on platforms like Telegram, Discord, and WhatsApp. As the signal provider sends out the signals, followers must manually log into their exchanges to execute the individual trades.
Signal groups typically don’t include any automation when it comes to executing trades, so it is the responsibility of each individual to manually follow the signal.
Followers can selectively decide what signals to follow.
Signals can be used to trade on any exchange with the same trading pair.
Trades don’t happen automatically based on the signal.
Signal providers can pump an asset they own after they already purchased the asset.
It can be difficult to know what signals to take and which to ignore.
Signals require quick reaction to place the orders on an exchange after the signal is received.
The strategy can easily become diluted (resulting in reduced performance) as thousands of other traders attempt the same strategy.
Followers of these signals don’t get insights into why the decisions were made.
Strategy marketplaces are applications designed to connect strategy buyers and sellers to exchange trading strategies. Typically, these strategies will be usable only on the platform that was used to create the strategy. This means they wouldn’t be portable to other platforms.
Two popular cryptocurrency strategy marketplaces include 3Commas and Cryptohopper. Both of these advanced trading bots provide a way for strategy developers to create and sell their strategies directly to customers.
This option is a great alternative for those expert traders that are not interested in keeping up with a community. Using strategy marketplaces means there are fewer interactions with novice traders.
The strategy will automatically trade based on the set parameters.
Followers can often see the logic behind how the strategy operates.
The strategy will only work on the platform where it was purchased.
Thousands of people can copy the strategy, reducing the performance of the strategy.
The purchased strategy may become ineffective over time, requiring the follower to constantly buy new strategies.
The strategies can still require close monitoring and complicated configuration.
Novice traders don’t have the opportunity to learn. They are blindly trusting someone else to develop a strategy.
Follow trading is a community-based social trading option where leaders manage a community of followers. Unlike signal groups and strategy marketplaces, follow trading relies on personal relationships between experienced and novice traders.