Forex Basic Strategies

Social Trading: What are the Advantages and Disadvantages?

Social trade is a fairly new concept in Forex retail and its popularity has been growing considerably in recent years. Let’s see the pros and cons of this trading modality that is very similar to social networks.

The concept that drives social trading, especially in Forex, is that the process offers online traders the opportunity to obtain information about operations and strategies of other traders and thus use the knowledge and experience of other professionals in combination with their own experience.

Social trading works very much like the most popular social networks, such as Facebook and Twitter, where individuals communicate directly with each other continuously from wherever they are. And, as with other social networks, there are advantages and disadvantages in their use.

Advantages of Social Trading

One of the reasons for the success of social commerce is that it is easy. By monitoring the activity of other traders, novice or intermediate-level operators can base their movements on the professional decisions of more experienced traders; there is no need to conduct its own fundamental or technical analysis. It’s like when you have the answers to a test before the date and even taking a look at the test questions!

With social trading, Forex traders can have an immediate association with many other traders in an environment where it is possible to interact with each other, discuss points of view and then copy the most successful trades. At the same time, the beginner and the more experienced traders can learn how elite operators get to the decisions they make, what strategies they use, and which ones work better than others in their efforts to make profits, while at the same time limiting the risks to your entire portfolio.

Another important advantage of Social Forex Trading is that, when trading as a member of a community rather than as an individual, it is often easier to avoid personal biases that often result in loss of positions. As part of the package, it becomes much easier to observe the change in market activity from a more impartial perspective. For example, a transaction that starts showing losses can trigger emotional reactions in a trader that can often lead to wrong decisions. When operators work together as a unit, it is easier to discuss and analyze market activity as it develops and make more wise decisions.

Finally, the opening to the public of transactions through social trading has made Forex trading no longer an instrument that is normally restricted to the best brokers and multinational banks. And, since all transactions placed on a social trading platform are copied directly, no one can intervene in such transactions, generating more transparency.

Disadvantages of Social Trading

Social trading provides an exchange of information for individual and retail investors. And although this seems an advantage, it can also become a disadvantage. This is because there is only a small number of successful traders in this market, by using social trading networks an operator can follow the wrong trader and end up losing instead of increasing their profits.

Copy Trading represents a greater threat, as even novice traders, without the prior knowledge of Forex, are allowed to replicate the commercial behavior of successful traders. Therefore, they basically become helpless in case the “leader” fails.

The execution of trades, based on collective wisdom, remains an impressive proposition – in the beginning. However, some initial successes might even deny the danger that you will become totally dependent on others. You may be able to generate huge benefits by integrating other ideas into your own game plan. However, there is no guarantee that these strategies will work infallibly in the long term.

Choosing the Right Platform

One of the main disadvantages of social trading is that it is still relatively difficult for an operator to select the right social platform. Etoro, Zulutrade, and Signaltrader, (to name a few) are the main Social trading platforms of Forex. There is no shortage of social platforms and this makes it difficult to choose. And, even though social trading operations are not a scam, there are scam platforms that do not comply with the rules and there are some social trading scammers willing to cheat and an unsuspecting trader can be easily surprised. Some of them even end up claiming that they offer the best signals for you. Therefore, it is very important for you to choose your platform carefully. Choosing the right trading platform is key, but it is complicated, and you need to be informed and alert enough to tell the good from the bad.

Copy Trading represents a greater threat, as even novice traders, without the prior knowledge of Forex, are allowed to replicate the commercial behavior of successful traders. Therefore, they basically become helpless in case the “leader” fails.

We can’t just fall into the hands of dishonest racers. Traders should also be careful when choosing the individuals they want to follow, as there are people with little confidence. Defining several indispensable criteria before opening a trading account helps traders select the best operators to follow from a list that may include hundreds of them.

There are several social trading networks that offer different features, many of which are not fully understood by a novice Forex trader. Some networks reward their operators not only for the benefits they get but also for their low-risk management approach. This makes traders in these types of companies more aware of the risk than operators in other networks that reward only for profit and may encourage risk-taking in the process. This approach might not be a good start for novice operators.

In addition, traders who have just started trading may not fully understand the ramifications of various social trading networks. To take an example, there are social trade networks that place a limit on the amount that a trader can assign to 20 or 30%, which is certainly an advantage as this forces the trader to spread his risk. On the other hand, an operator can be allowed to run a risk of up to 100% in a single operation, and can technically lose everything in a single move.

Future of the Market

Last but not least, the presence of too many traders without prior knowledge is not advisable for the market itself. As in that case, (the market) runs the serious risk of running out of “leaders” in the long run. Only a continuous recycling of ideas will help to prevent a “substantive” future.

In Conclusion

There are advantages and disadvantages in all types of investment and this also applies to social trading. The key to success in any enterprise is knowledge; the more the trader knows about how a particular financial instrument works, the lower the risk you run and your chances of winning will increase substantially.

Crypto Guides

Introduction To ‘Cryptohopper’ – A Reliable Crypto Trading Expert Advisor


Cryptocurrencies are intensively volatile. The volatility of the currency is a matter of concern, but in the case of trading with cryptocurrency, it’s quite advantageous. In the crypto trade, you can invest when the market value is declining, and you can retrieve your amount when prices are on hike.

However, it requires experience to become an expert in reading and analyzing this market’s up-down trends, so that you can invest at the perfect time to expect maximum returns. To predict this market flow for investors, trading bots are introduced with automated algorithms in the industry. Today in this article, we will be discussing one such trading bot- Cryptohopper.

Understanding Crypto Trading Bot

Crypto bots are cloud-based computer programs to host cryptocurrency trading. It provides idle tools to beginner and advanced traders. At the right time, it can automatically buy and sell cryptocurrencies. Users can simply connect the bot with their cryptocurrency exchange, and then it can smoothly trade on their behalf. For successful trading, it is necessary to rely upon complicated probability estimation for predicting the market trends, and a bot can calculate this much faster than a human brain. 

What is Cryptohopper?

The cryptocurrency industry is offering various services and tools to traders to elevate their success rate. Cryptohopper is one such tool that can simplify the crypto-trading ecosystem. It’s a trading bot that has been customized as per the requirements of users and can also provide market technical detail.

Earlier, a user would have to spend a lot of time in front of the computer screen to trace market flow all day, but now the fully automated bot can monitor the trade 24/7 on behalf of the users. To ensure high output, it can perform backtest for each iteration and can optimize decisions based on the current situation. 

Why do you need a bot like Cryptohopper?

In the cryptocurrency trading world, every second matters a lot. So, to make life easy and to earn more, traders can make use of a crypto trading bot like Cryptohopper to make every second count. Let’s have a look at how Cryptohopper can help in various domains of crypto-trading.

Objective trading 

The trade will be executed entirely based upon the data analysis. You don’t need to panic about the buying or selling process because the trade activities shall be evidenced without any involvement of stress or emotion.

Social trading 

Cryptohopper directly subscribes to market signalers who analyze the trade and suggest how to raise the value of your coin. As a result, you can get appropriate information for trade optimization.

Simultaneous trading 

It operates and manages all your coins simultaneously. It can keep track of all price details and sell your coin exactly at the target profit scale that you have set.

Intuitive tools 

This bot has the potential to keep the users at the top market position. It notifies with alert in advance about the trade opportunity to sell the declining coins and to repurchase the coins at a lower price.

Cloud-based platform 

It remains 24/7 online in the cloud. It means you don’t need to keep your device ‘on’ always to track your coins. You can log in to your bot account anytime, and you will get a notification about the latest market updates. 


The ability of Cryptohopper to provide users with high returns in cryptocurrency trading is something to look at. The traders won’t feel the need to rely on a computer screen as this bot can automatically trace the trends and take the necessary steps that have been fed. It can be easily used without any coding background and can also be connected to any global crypto exchange without incurring any trading fees.

Crypto Daily Topic

Why You Shouldn’t Join Crypto Signal Groups And What To Do Instead

The allure of cryptocurrency has drawn millions into the craze. The stories of people becoming millionaires overnight during the 2017 boom are too irresistible. As such, it’s easy to have an unrealistic view of how people make money off crypto trading.

When getting started with crypto trading and digging for helpful resources, you’ll likely come across “signal trading groups.” These groups promise to help you maximize on your trades by providing you with winning buy/sell signals. However, you need to take these promises with a grain of salt.

What are Crypto Signals Groups? 

These are communities/groups where the creators publish live trades that members can use to enter into trades. The essence of a crypto signal group is for the members to ease into crypto trading by following these guides/signals that dictate to them where and when to buy crypto and when to rope in profits.

Crypto signals groups can be paid or free. Usually, paid crypto groups offer deeper insights, more regular signals, and in some cases, trading advice. Free groups, on the other hand, are more likely to merely churn out signals without much thought paid to the process.

Crypto Signals | Forex Academy

In an ideal environment, a crypto signal group should guide traders to make profitable decisions backed by actual market analysis and accurate interpretation of market trends. Instead, we have unoriginal info being packaged as new, overly expensive subscriptions not worth the penny, and other undesirable practices around the art that should have you questioning the need to join.

Here are some compelling reasons why you shouldn’t join crypto signals groups.

1. Targeting of the Inexperienced

Usually, crypto signal groups target beginner traders who are still looking to gain a foothold in the world of crypto trading. Since they’re still familiarizing themselves with even the tiniest of details, they’re willing to fork out cash for the promise of handholding.

But that’s hardly the problem. The thing is, these traders are likely to accept any and all information coming their way and trust it as the gospel. One of the surest things in crypto trading is doing your own research and verifying information. If you’re not doing this, you’re risking money. In crypto trading, no one can look out for your interests better than you can.

2. No Learning Here

Some crypto signals groups, especially paid ones, provide in-depth analysis of crypto trends, what’s triggering what in the crypto world, and how you can better optimize your knowledge for smart decisions.

But these groups are the exception, not the norm. Most crypto signal groups typically spoon-feed traders, who then never get to learn why certain calls were made, why the crypto market is moving a certain way, and how to base future trading decisions.

3. Bank-breaking

As we’ve noted before, some crypto signal groups are free. But for the most part, these groups are low-effort.

Paid groups, for their part, cost money. Some go for up to hundreds of dollars per month. Most crypto traders are just trying to make money. If they follow trade signals blindly, it can lead to their entire savings going up in smoke.

4. Pump and Dump Scams

Some crypto signal groups are run by individuals who do the right thing. Others are pump and dump scams. Usually, the group leader will hype up some low-cap coin and sing praises of how it’s going to be the next big thing (pumping). This will cause the coin’s demand to shoot up as more people rush to invest in.

After the price soars, the group leader will then offload their holdings. This is what’s called ‘dumping’. After offloading, the coin floods the market again, losing value. Investors will then be left with a worthless coin in their hands, one which they might never get an opportunity to offload profitably.

5. Work of Copy

Most of the time, the ‘novel’ innovation presented in these groups is anything but novel. On the contrary, many of the group leaders of these groups are actually following other crypto signals groups. Then, they will gate keep the best of the info and present the rest.

Other group leaders will relay buy and sell signals without a single shred of analysis on how they arrived at a particular decision. They make it look like the market is ripe for amazing profits anytime. The truth could not be more different.

6. Manipulation and Lies

Quite often, these groups will say anything just to get more subscribers. But without you going back to their posts and comparing them with actual market figures, it’s very easy to get duped. It’s not uncommon to see signal groups making unrealistic claims about the massive profits they stand to gain, while in actual sense, they’re manipulating figures.

7. Copycatting 

It’s exactly as it looks like. The information these groups are peddling – you too can find it where they’re sourcing it from. Many of the most successful traders post their analysis on forums like Facebook and Twitter.

The thing is, this info is freely available. Its originators aren’t charging for it, so why should you? Moreover, when you go to the original source, you get to learn so much more than just responding to signals.

8 Here Today, Gone Tomorrow

Again, there’s no catch here. Most of these group leaders are in it for the money, and guess what? There’s the chance they’ll be gone as soon as they figure they’ve made enough of it. And, of course, if they disappear, chances are high the group will too and with it, your money.

What You Can do Instead

Instead of joining crypto signal groups, which are rarely worth the money, what can you do instead? One of the surest strategies you can look into is social trading. Social trading is not a new thing by any means. Going back centuries, people have always looked upon each other to be guided on critical decisions. By listening and taking cues from others, we can always make wiser decisions on many things.

Social Trading | Forex Academy

The same applies to modern trading. Experienced traders make better decisions than beginners primarily due to their exposure in the game and continued mastery of the skill. Some platforms such as eToro allow traders to leverage the knowledge of experts in the community so as to improve on decision making and portfolio and asset choices. Social trading can either be copy trading or relying on social forums for trade ideas.

  • Copy Trading 

Copy-trading allows inexperienced traders to copy the moves of more experienced and seasoned traders. This strategy gives traders the opportunity to participate in the markets when they don’t have the time or experience to do so.

New traders get to rely on others’ experience while acclimatizing to the trade. They also get the chance to learn new strategies from others and, in the process, become better traders themselves.

  • Social Forums 

Social Forums are avenues where you can talk to other traders and exchange trading ideas and knowledge off each other. These forums are on platforms such as Reddit, Telegram, Twitter, and Facebook. Other forums were made with the sole goal of building reliable crypto communities.

Topics in these communities are exclusively dedicated to discussing trends in crypto, trading, market movements, mining, and other crypto trading technicalities. Some of the most popular crypto forums include,,, and

Final Thoughts

The ideal crypto group signal should be reasonably priced, provide original and profitable ideas, and provide insightful market analysis. Even then, these kinds of groups are not necessary for your path as a crypto trader. Following the moves of actual industry experts and learning from the insights of fellow traders can prove to be a far more fruitful approach.