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What are social trading and copy trading?

There is a strong correlation between social trading and copy trading, though they are distinct in their own right and should not be mixed.

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Social trading can be described as those activities that engage or facilitate interactions among traders to strengthen the crypto community. On the other hand, copy trading is an element of social trading that allows users to mimic the trading patterns of other traders, in particular, experienced or professional traders.

As industry players and professionals in the cryptocurrency and blockchain space, it’s helpful to understand why these terms are different and how they are similar. Not only will we better understand these concepts but it also makes it easier when explaining them to those who might be new to the industry.

What are the advantages and disadvantages of copy trading?

There is no magic trick to understanding how copy trading works. Once traders make a successful trade, they have the option of sharing their trades with other users. If they choose to share, then copy traders can opt to copy them.

There are benefits for both sides in copy trading. Other than potentially gaining more trading profits from copying the practices of professional traders, copy traders acquire knowledge and new techniques that may be useful for them in the future.

Those who choose to share their trades receive a commission, usually in the form of a percentage or a fraction of the earnings each time their trade has been copied. Such incentives are encouraging and motivate professional traders to share their trades for other users to copy. In this respect, copy trading is a win-win situation.

This has helped the practice of copy trading to quickly become popular. As more new traders join in with copy trading, they gain more practice and become better traders. In turn, they’re more likely to share their own success with future copy traders to get the additional rewards of copy commission. However, there are some precautions to be observed. It is no secret that many who utilize the copy trading feature are predominantly amateurs. Due to their inexperience, they might make unfavorable copy trades that prove to be unprofitable in the long run.

One common mistake from new copy traders is that they’re swift to copy others, especially those with a large number of followers. It may not always be the case that traders with a large following are trustworthy.

Why is social trading so important for the industry?

According to Statista, the number of cryptocurrency users grew by 25% between Q2 2019 and Q2 2020, reaching an all-time high of 50 million. Therefore, it’s evident that more and more people are searching for new investment opportunities in the cryptocurrency industry, but a large portion of these investors are newcomers. Becoming involved in social trading activities is a perfect way for them to kick-start their crypto journey.

When traders share information about trading or events occurring in the industry, they will gain more insight into trading. They can even share ideas or ask questions about trading procedures to get input from those in the know.

However, the influx of newcomers puts responsibilities on crypto companies to ensure that they aren’t jeopardizing the ongoing growth of the cryptocurrency community. Operators offering social trading should scrutinize traders to ensure that they do not cheat others or engage in behaviors that create distrust within the industry.

Knowing they’re using a safe social platform will give investors and leaders more confidence and will help to boost the reputation of the cryptocurrency sector.

What’s hindering exchanges from becoming more innovative with social trading?

There is still quite a bit of work to be done regarding the innovation of copy trading and social trading. Only a few exchanges have integrated the copy trading feature. However, that could quickly change because exchanges can freely borrow innovative ideas from their competitors without any legal restrictions.

What the industry lacks and needs is a robust, comprehensive and intellectual property legal framework that prevents exchanges from stealing the work of other players. Emerging exchanges are particularly vulnerable to this threat.

While that is so, some may argue, on the contrary, that adopting shared ideas has been working for the industry so far, and any interference could create problems. The counterargument is that it takes dedication, commitment and a lot of hard work to create something innovative, so laws governing unfair competitive behaviors like this are essential. Having sound intellectual property laws may even encourage companies to be more creative, and, who knows, they might come up with unique social trading innovations that can bring the community closer.

Furthermore, investors would be more likely to back crypto exchanges that can prove themselves to be innovative. Once the crypto community practices and complies with similar industry standards as its traditional counterparts, it will gain more respect from the financial community, and exchanges can be creative without any fear.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Daly Young has led many projects throughout his career that allowed him to gain a wealth of experience and knowledge about the finance and technology sectors. Daly pursued and completed his bachelor’s degree in communication engineering at Shanghai Jiao Tong University — one of the top five prestigious universities in China. Right after, Young kick-started his career journey with Tencent, one of China’s top tech conglomerate giants, and was employed as the product manager for five years. He later moved on to Futu Securities International (Hong Kong) Limited, a fintech company ranked among Asia’s top online brokerages. Daly now works as the product lead for Bingbon.

Source: https://cointelegraph.com/news/what-are-social-trading-and-copy-trading

Blockchain

Bitcoin price is going to ‘infinity’ — Kraken CEO

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Bitcoin (BTC) will be worth “infinity” and humanity will soon give up pricing it in U.S. dollars, says the CEO of cryptocurrency exchange Kraken.

Speaking to Bloomberg on March 4, Jesse Powell was characteristically bullish on Bitcoin as BTC/USD broke above $50,000.

Powell: $1 million Bitcoin in ten years “reasonable”

“Of course, you know, we can only speculate, but when we measure it in terms of dollars, you have to think it’s going to infinity,” he told Bloomberg TV about future price trajectory.

“This national currency’s only fifty years old, it’s already showing extreme signs of weakness, and pretty soon I think people are going to start measuring the price of things in Bitcoin.”

Powell was commenting as the USD weakened alongside a macro market sell-off on Wednesday, an event which had next to no impact on Bitcoin. At the same time, the U.S. national debt quietly passed $28 trillion for the first time in history.

Despite a rejection of $50,000 support, Bitcoin bulls thus remained more than optimistic.

“The people that are believers in Bitcoin see… it’s going to replace all of the world’s currency, so that basically means whatever the market cap of the dollar is, the euro — all of that combined is what Bitcoin could be worth,” Powell continued.

“I think in the near term, people see it surpassing gold as a store of value, so I think $1 million as a price target within the next ten years is pretty reasonable.”

As Cointelegraph noted, Bitcoin closed February 26% above its target dictated by the stock-to-flow-based price models, with creator PlanB still confident that $100,000 will hit at some time this year.

Bitcoin stock-to-flow chart as of Mar. 3, 2021. Source: Digitalik

No time for gold

Meanwhile, the gold ecplise argument has been steadily gaining support on social media in particular, often at the expense of gold bugs, who are left with increasingly little ammunition to defend their anti-Bitcoin stance.

As Cointelegraph reported, it was billionaire and former Bitcoin skeptic Mark Cuban who this week took SchiffGold.com CEO Peter Schiff to task over his love of the precious metal. Gold, he told Schiff, “is dead.”

“Bitcoin has been crushing gold since inception,” Kraken growth lead Dan Held added in response to claims by Schiff that a bet against gold was a losing one.

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Source: https://cointelegraph.com/news/bitcoin-price-is-going-to-infinity-kraken-ceo

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Giottus technologies offers access to Bitfinex liquidity

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Giottus Technologies (Giottus), a cryptocurrency exchange, today announced that it will provide access to liquidity on Bitfinex, providing its customers with some of the deepest crypto-to-crypto liquidity in the industry.

Giottus is also introducing the most competitive fee structure in India for its customers.

“Giottus customers can now enjoy high liquidity across BTC/USDT, ETH/USDT, XRP/USDT, TRX/USDT, ETH/BTC, and many more. Through the strategic agreement with Bitfinex, we have further strengthened our compliance policies and procedures, both on and off-chain,” said Vikram Subburaj, Co-Founder & CEO at Giottus.

The commitment to our customers comes first, which is why we have introduced the most competitive fees in India, 0% Maker & 0.075% Taker. Traditionally, the largest global exchanges charge these low fees only to customers trading USD 3Bn+ monthly. Giottus customers can enjoy these fee levels irrespective of their monthly trade volumes,” added Arjun Vijay, Co-Founder & COO at Giottus.

Benefits of this new strategic agreement include,

  • Some of the deepest crypto to crypto liquidity in the industry
  • The most competitive fees in India – 0% (Maker) & 0.075% (Taker)
  • Enhanced on & off-chain compliance and controls

About Giottus 

Giottus is changing the way Indian users trade their digital assets by building a platform that is customer-centric along with top-tier customer support on par with the world’s best international exchanges. Preferred by beginners and veterans alike, Giottus offers products and solutions that cater to users of all segments.

Key product features include,

  1.  Trading in 100+ crypto pairs
  2.  One-Click INR Deposit and Buy
  3.  24×7 Banking Support
  4.  Multilingual Customer Support (English, Hindi, Tamil & Telugu)
  5.  Superfast KYC processing

In the past month, Giottus has launched the trade of 30+ new INR-crypto pairs along with an improved compliance mechanism and upgraded tech-stack to support its growing Indian consumer base.

Giottus is highly rated and loved in India with a greater than 4.8 on 5 average ratings among reviews on Google, Facebook, and Trustscore.

Contact

Srivathsan A R, Chief Marketing Officer, Giottus @ [email protected]

For more details, visit their website or contact them on Telegram

Disclaimer: This is a paid post and should not be taken as news/advice

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Source: https://ambcrypto.com/giottus-technologies-offers-access-to-bitfinex-liquidity

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Coinbase CEO tops China’s Hurun list of blockchain billionaires

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The CEO of the United States’ largest cryptocurrency exchange, Coinbase, has topped the list of global industry billionaires by China’s Hurun Research Institute.

Issued on March 2, the latest Hurun report provides a brief overview of the world’s richest, stating that the number of global billionaires has surged nearly 50% to hit over 3,000 people over the past five years. The report includes 17 “blockchain billionaires,” or industry entrepreneurs who made their fortune “mainly from cryptocurrency” as of January 2021.

According to the report, Coinbase CEO Brian Armstrong is the world’s biggest crypto billionaire, with his net worth surging ten-fold from $1 billion last year.

According to Hurun’s data, Armstrong now has an estimated wealth of $11.5 billion ahead of Coinbase’s imminent initial public offering. The company officially announced its IPO plans in December 2020 in a draft filing with the United States Securities and Exchange Commission.

Sam Bankman-Fried, founder and CEO of Alameda Research and FTX exchange, is ranked the second-richest blockchain billionaire, with a net worth evaluated at $10 billion. The executive is a new entrant in the Hurun list, following the massive growth of FTX in 2020.

Changpeng Zhao, CEO of the world’s largest crypto exchange Binance, is ranked the third, with total wealth estimated at $8 billion, up more than 200% from last year. In 2020, Zhao was featured as the richest crypto billionaire in the Hurun list, overtaking Bitmain’s co-founder Micree Zhan Ketuan.

The Hurun’s new blockchain billionaires list includes a number of major industry players like Ripple co-founders Chris Larsen, Stellar co-founder Jed McCaleb, Digital Currency Group CEO Barry Silbert, the Winklevoss brothers, MicroStrategy CEO Michael Saylor, and others. The list features a total of 11 new entrants in the list including major industry investor Tim Draper and Galaxy Digital founder and CEO Michael Novogratz.

Source: Hurun

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Source: https://cointelegraph.com/news/coinbase-ceo-tops-china-s-hurun-list-of-blockchain-billionaires

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