Social trading is the next big wave and here are the top riders
Early this year, Insight Partners released a report on social trading platforms forecasting that the market size of social trading platforms will double from $2.2 billion to almost $4 billion in the next few years. Trading has been around for thousands of years and has been always evolving. And it appears that one of the hottest trends right now is social trading.
Social trading is an investment method that allows investors to acquire investing strategies from interaction with others and even more follow the trading strategies of some of the traders. From the second half of last year, the market has seen a springing of social trading applications such as eToro, Avasocial, PrimeXBT, and social trading platforms specifically for cryptocurrency, MoonXBT. Here are some reasons why social trading will be the next big wave and you should pay attention as a trader, entrepreneur, and capitalist seeking new investment projects.
Automation facilitated by technology
Social trading has long existed just like trading. Perhaps everyone who has traded before has had the experience of hearing from someone and making investment decisions based on the “tips” (not in the form of insider trading). Even Joe Kennedy, the father of the former American president John Kennedy, has listened to the shoeshine boy for stock trading advice.
Today, you don’t have to go to a shoe shine boy to get valuable trading information. With the facilitation of technology, individual investors can get on to social trading platforms to join trading forums, groups, etc. to get access to trading information and strategy. More importantly, trading platforms such as Avatrade and MoonXBT provide copy trading functions where traders can copy the traders whose strategies they favor in just one click. This significantly simplifies the social trading process and boosts the development of social trading.
Power of integration of social interaction and trading
It’s still vivid how a single subreddit WallStreetBet can change the destiny of a stock. When WallStreetBet learned about the hedge fund short sellers in Gamestop last year, they organized the young investors to invest in the stock and somehow drove the price up by 134% at some point.
There seems to be no denial of the power of social interaction when it’s combined with real cash activity such as trading. Hence, the social platform which focuses integration of trading and social interaction has enormous potential if they keep on a healthy track of development.
New users, New investments
During the last two years, there has been a significant increase in the growth of individual investors. In America alone, millions of new users have downloaded some sort of trading application for the first time. Meanwhile, it is found that more and more young investors are investing in cryptocurrencies over stocks
With the new investment preferences of new demographics, there will be great growing room for social trading platforms, especially social trading platforms for cryptocurrencies.
It can be seen from the above that it is highly possible that social trading will be the next big explosion in the trading space. And there are some top riders worth noticing:
Etoro, the world’s largest social trading platform is expecting an IPO soon.
Avasocial, is the social trading platform of one of the earliest FOREX exchanges Avatrade.
PrimeXBT, is a comprehensive exchange that offers cryptocurrencies, forex, stocks, and commodities.
MoonXBT, is the next generation copy trading platform focusing on crypto from spot trading to derivatives.
For more information on the best social trading platforms, please refer to: