If you invest in crypto regularly, then crypto social trading will help you get less overwhelmed when choosing the type of token or coin to invest in. The process of crypto investing has gotten even more intricate with the existence of CoinMarketCap. This is among the most sophisticated token and coin databases in the blockchain space. What’s more, it is home to a growing list of crypto assets.
As of now, CoinMarketCap has listed more than 6,500 coins. There’s a chance that this number will have multiplied again by the time you’re reading this article. Remember, the platform approves new coins on a regular basis.
Luckily, there are many crypto communities and platforms you can turn to to guide you along your journey as a new crypto investor.
How to do crypto social trading as a novice
With the above information in mind, how do you decide which token or coin to invest in? As we said before, the process can be overwhelming. Don’t worry, though. We’re here to help with that.
Let’s go back in time to over a decade ago and look at the 2006 business review by Harvard. According to the study, when people are presented with a large number of options, only a few end up making a purchase.
The research reveals that when people were given a couple of dozen options, their purchases dropped by 90%. On the other hand, if they had about 6 options, their purchases were higher.
Today, there are 300 times more options for investment products in the crypto space. As you can imagine, this gets overwhelming for a new investor who is making an investment decision. Some of them will get reluctant since they can’t tell which token or coin is worth buying.
Having noted that, what is the best way for new investors to participate in crypto social trading? Simply put – by relying on the people around them. As human beings, we are social creatures. We tend to rely on support from others when doing something new or overwhelming. Through continuous engagement with more seasoned investors, we develop strength and confidence in our choice of crypto assets.
Plug into virtual crypto social trading
Virtual socializing isn’t comparable to physical meetings, but it plays a vital role in our lives. Over the years, the Internet has become a more powerful force in building connections between people. As the world embraces borderless communication, we’re living more and more of our real lives online. Joining crypto communities and participating in conversations about crypto investments is a great way to ease into crypto social trading. More importantly, these online communities are great places to get advice for people who have been trading in crypto assets for a longer time.
Follow crypto influencers and thought leaders for advice
It’s a good idea to turn to prominent figures in the crypto space as our source of intel. The idea is to track what they do and use that information to influence any decisions. When choosing which crypto influencers and thought leaders to follow, make sure you choose people who reflect our values and principles, otherwise they might lead you to make the wrong investments for your goals.
When you’re doing crypto social trading, influencers, bloggers and thought leaders in the space can connect you to the greatest opportunities in this market and help you tap into them. This reduces the amount of time you have to spend digging for good investment opportunities
There are different types of crypto industry experts who can make your crypto social trading a little easier. To make things easier, we’ve classified these people into three major groups.
Types of crypto industry experts
1) Market experts
Since the average person isn’t an investment or finance expert, Stock and MACD indicators can be hard to comprehend. Luckily, social media channels such as Twitter have crypto experts who advise people on the best investment strategies. With their help, you can know when put your money into an investment. Likewise, they can tell you when the best time to pull your money out of an investment is so that you can avoid losing money. With advice from an expert like Ivan Liljeqvist, you don’t have to be an expert in blockchain or crypto to make good investments.
As a crypto developer himself, Ivan Liljeqvist consistently sheds light on crypto market trends and best practices. He predicts the coins or tokens whose value is about to rise or fall. Due to successful guidance from industry experts, a phenomenon known as copy trading has emerged. People are investing more and more based on the decision of industry experts. In. fact, today you can find several sites that offer these kinds of predictions.
2) Celebrities
While celebrities have no expertise in crypto trading, they can help with investments using their influence. Don’t get us wrong – most celebrities don’t know much about crypto trading. However, since they also have a reputation to protect, they will rely on experts in their team to point them in the direction of the best investments. They will then share those investment opportunities with you. Keeping up with what celebrities are saying about your favourite crypto assets can also help you foresee changes in the market.
A good example of a celebrity who crypto investors follow closely is Elon Musk. Not only is he a successful crypto investor but he has also made a name for himself in other industries. Over the years, he has succeeded thanks to his ability to make the right choices.
We’re not saying that Musk is an expert in cryptocurrencies. After all, due to purely personal reasons, he prefers Dogecoin over other alternatives. He doesn’t always rely on numbers, financial experts, or market indicators as one would with stocks. However, to his influence, he can sway the crypto market in whichever direction he wants. We’ve seen him changing the tide of the crypto market again and again, with as little as a single tweet. This is exactly why he and other celebrities get followed in the crypto space. It all comes down to their influence.
3) Thought leaders
Cryptocurrencies are much more than financial instruments. There’s even an intricate mathematic model supporting its existence. Not to mention, each token or coin has a distinct ecosystem that influences its value. For an average person, understanding how the elements of a blockchain or cryptosystem function can be overwhelming. However, they can still make successful trades by relying on gems of information from thought leaders who deconstruct crypto assets for educational purposes all the time. With their insights, you can anticipate exactly when a token or coin will be launched. Most importantly, you will know the best time to invest or sell.
The future of crypto social trading
More coins are entering the market daily. What’s more, the trading and investment arena is getting bigger. As a result, identifying the next golden opportunity is even harder than ever before. With all this confusion in the crypto space, some traders rely on crypto influencers who can sway opinions or market trends.
By participating in crypto social trading, you can make your investment decisions a lot easier and much less overwhelming. By relying on powerful crypto communities, influencers, and thought leaders, you can make successful investments that earn profits.
How Pressfarm can help you earn social proof for your crypto project
Whether you’re launching a new crypto project or boosting an established one, you need social proof. This can go a long way towards helping you earn credibility among people who engage in crypto social trading. If you feel this is something you can’t manage on your own, you should reach out to a team of professionals who can help you with this. For example, PR specialists, expert writers, and certified designers at Pressfarm can help you create quality content to capture attention widely and drive people to your project. With a professional press release, some engaging guest posts, and a branded media kit, you can earn credibility online. Once you’ve earned this credibility, it will be easier to attract new community members and investors.
Beyond creating this content, the team at Pressfarm can distribute it widely to ensure that the right people see it when it matters most. Finally, once you sign up, our Account Executive builds a custom media list to help you connect with respected journalists who can help you tell your story. With a PR package from Pressfarm, you’ll have an easier time building a supportive community of crypto enthusiasts for your project.