Could Social Platform Trading Be The Key To Cryptocurrency Adoption?
Cryptocurrencies have been around for some time now, with the first ever coin Bitcoin having been introduced back in 2009 but despite how long it’s technically been around, it’s not until as of late that the popularity has risen. However, despite this rise, global adoption of cryptocurrencies isn’t quite underway and debates around what could be stopping it are common in the industry. Regardless of the cause, further debate has circled around whether social trading platforms could be the push that these coins need. Without further ado, here we’re looking into whether social platform trading could be the key to cryptocurrency adoption.
What Is Social Trading?
Social trading is the name given to the act of investors following the actions of those more knowledgeable or with more experience than them. Within cryptocurrencies, this can be a highly valuable method for those new to the industry, as it allows them to pick up on trade habits, trends and to learn more about the industry that they’re investing in. In most cases, social trading platforms offer a service not too unlike the social media that we all utilise today. A news feed can look similar to one that you’d find on the likes of Facebook, Twitter or LinkedIn and opens up the opportunity for investors to give and receive feedback, follow influencers and keep up to date with the industry.
The Power Of Social
Social media has been a driving force in practically every industry as of late, so is it truly hard to believe that cryptocurrencies could be the next to benefit? Social media, in general, has taken over our lives, from the way we communicate and meet new people, to the way we play our favourite games, and the power that this holds is incredible. With an estimated 2.62 billion users on social media today, the sheer volume of people that a single post could theoretically reach just goes to show how quickly information can spread through our social channels.
When you apply this power to a cryptocurrency social platform, the potential is huge. One of the biggest hurdles that cryptocurrency has to jump for adoption is the spread of knowledge and understanding of just what it is and what it could do. With the power of social media behind it, the discussion around crypto and its uses could easily spread, creating a new way for people to find out information and understand the ins and outs of these coins.
Investing In Influencers
Influencers are nothing new to the digital world and as far as cryptocurrencies are concerned, these influencers can do anything from pulling in new users to encouraging more experienced traders to act a certain way within the markets. Consumer behaviour – or in this case, human behaviour in general – means that we tend to follow the actions and suggestions of the people that we look up to due to our perceived credibility that they hold. Think about your favourite celebrity or ultimate idol – if they buy a book or suggest a clothing brand, are you likely to give it a look? In most cases, the answer will be a resounding yes and this is entirely human.
Influencers have the ability to encourage people to act in a certain way and when you apply this psychology to a cryptocurrency trading platform, it’s easy to see just why it could pull in more and more users over time. If celebrities took to these social platforms, their fans could follow and learn more about the industry as they go. In a similar way, those already in the cryptocurrency market can be influenced to buy or sell at a certain time if it’s an action that someone experienced seems to have done. While this is essentially just following the trends, it’s also a valuable tool for the cryptocurrency industry.
Whether you’re a fan of social media or not, there’s no denying the power that social platform trading could hold over the industry as the whole. The incredible influence that our social media use can have is testament to the power it holds, so we could very well see these trading platforms being the cause for increased cryptocurrency adoption in the future.
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