Why is investing going social? And is it really worth it?
Investing is not easy, and let’s be honest—nobody is born a great investor. It takes exceptional discipline, insight and experience to become a profitable trader. In fact, most top traders lose money for weeks, months, or even years before finally turning a profit. And it is a painful journey.
Social Investing is essentially hope for those who don’t have the leisure of time to gain that kind of expertise.
They say the quickest way to learn something is by doing it. But that may not be the best idea when it involves money. And that’s where strategy comes in. Combining theoretical knowledge with market analysis and then executing it is a powerful combination, especially if one knows what they are doing. Unfortunately, though, most novice investors think they know what they’re doing, only to realize they don’t. And by the time they do realize it, it’s usually too late.
That’s why having someone with whom you can discuss the market and your investment ideas is an invaluable experience. It always helps to surround yourself with people who can challenge your perceptions. And that is where social trading platforms come in.
Social trading platforms act as social networks for traders and investors, allowing them to connect with other people trading the same markets or goods, to share and discuss their analyses and/or predictions, to ask questions, build a following and learn faster than one typically would.
In the world of cryptocurrency, having uninterrupted access to real information is crucial. Social trading platforms allow for the free exchange of information among small scale and individual investors, creating a cooperative environment for traders to learn from one another and make better investments.
By revealing traders’ performance statistics, open and past positions, and market sentiment, social trading platforms in the crypto space provide complete transparency. This information enables members to assess the credibility of the contributors they follow on the platform. Often, social crypto traders also pool funds, divide research, share information, and trade collaboratively.
How it works
Social investing works by allowing traders to share their insights, trading strategies, and portfolio holdings with other traders in real-time.
Another popular feature of social investing in crypto is the ability to copy the trades of more experienced traders. Known as “copy trading”, this feature allows less experienced traders to follow the trading strategies of more experienced traders.
On platforms with communities—such as eToro and Dyor App—traders can interact with each other through various communication channels, such as chat rooms and forums, to ask questions, seek advice, and share their experiences.
So, where can I start?
Slow down. Social investing does come with its risks (especially in volatile spaces like the cryptocurrency market), but if you’re willing to take the plunge, dyor.exchange is a good place to start.
Dyor promises to be a user-friendly platform for decentralized investing, so you can step up your investment game a notch and start decentralized. Further, by connecting you with its active community of veteran Web3 investors and contributors, Dyor helps you discover and invest in new Web3 projects early, thus increasing your chances of earning positive returns.