Social Trading

Original title: "the past of Social Trading"

Original author: rhythm & NBSP; 0 x49

Social Trading, or "Social Trading," is when investors observe others to mimic their investments. This is not a new concept, we have now become accustomed to the investment in the secondary market to communicate with others anytime and anywhere to obtain information, which is the credit of the Internet. But Social Trading is not a post-internet product. The story can be told by livermore, the "master stock trader" of 100 years ago.

Since he was a teenager, Mr. Livermore has been playing with stocks, standing all day on the trading floor of the counter, staring at price after price on a blackboard, trying to find patterns in price changes, then crowding onto the counter, writing down the amount and quantity of purchases and handing them, along with the cash, to the clerk. After the clerk confirms, accept the cash and confirm the purchase. Because of his talent, he always makes money. So high was his profitability that livermore became popular with investors: every time he entered a betting shop, a crowd followed him. When he buys, the crowd buys, and when he sells, the crowd sells.

When he became famous, he had an office. Livermore's office is said to have 60 people on guard at the telephone, telegraph and stock tickers, keeping up to date with the latest stock market movements and providing livermore with stock market analysis.

Instead of working alone, he combined information from 60 people to determine what to do next, the Social Trading of the era.

From the early 20th century to the 1990s, the media channels have been upgraded, and the Social Trading of domestic investors has also changed.

In the early days, a-share investors had to read two pieces of information almost every day. One was the daily news broadcast at 7 p.m. and the other was the securities times, which was sponsored by the People's Daily. Both have a common, the next day on the page of the listed companies either up or down. Investors may buy or sell against the mentioned business the next day.

A few years later, the a-share market ushered in A great bull market rarely seen in history, and people began to invest in the stock market. At that time, there were no mobile phones and the Internet was far from universal. The most real-time way to obtain information was the stock hall, which was the favorite place for investors in those days.

The investors sat in the securities hall for a day, flashing red and green Numbers under the big screen, the investors turned heads, many "stock god" walk in the securities hall, to investors to recommend shares to earn a share. That's Social Trading for old stock investors.

Soon, the stock hall was thinning out, and the Internet came. With the blessing of the Internet, Social Trading has been revolutionized. Finally, in 2010, eToro, the most famous Social trading product in foreign countries, came into being.

Top of the market for Social trading

Investment itself is an industry that needs a lot of time and experience, which undoubtedly requires high quality of investors involved in the transaction. Social Trading is a form of Trading that allows investors to observe the Trading behavior of peers and professional traders and follow their strategies by following their orders. Investors can operate with little or no financial knowledge.

EToro, formerly RetailFX, was founded by Yoni Assia, Ronen Assia and David Ring in 2007. EToro launched a "Copy Trading" feature on its social investment platform, attracting a large number of users and traders. In 2010, the number of registered users reached 1.5 million and the amount of transactions on the platform exceeded $100 billion. By 2018, it had more than 13 million registered users.

On eToro, the merchandiser pays $10 a month to the merchandiser, who can choose whether or not to follow each order. In addition to the investment income, the merchandiser can also enjoy the monthly "subscription fee" of the merchandiser. Founder Yoni Assia said in a 2012 interview that the average win rate across all platforms is 80%. Moksel1972, the most popular German foreign exchange trader on the platform, had more than 20,000 followers and earned 99.6% on his trades. That means Moksel1972 earned more than $200,000 per subscription.

Investors are making a lot of money on eToro, and the platform's natural earnings are not too bad.

Between 2007 and 2013, eToro raised $31.5 million in four rounds of financing. In December 2014, eToro raised $27 million from Russian and Chinese investors. In 2018, eToro raised another $100 million. Its shareholders also include softbank, Spark Capital, China investment corporation and other well-known investment institutions. EToro is now valued at $800m.

The success of eToro has also pointed out the next development direction for a series of financial platforms. In China, platforms such as snowball have launched a merchandiser system.

At that time, fang sanwen had just resigned from netease and had been dealing with content for almost his entire career. As a lover of investment, he chose the track "investment + community" and started snowball. On the snowball, a number of early in the blog, TV "stock god" was stripped, authority is collapsing every day, because the investment logic, investment path in the snowball in a glance. Fang sanwen said that many of the comments are worth more than the main post, snowball, investors follow, regarded as a great user, some are just ordinary employees of a company. Snowball's documentary mechanism and disclosure mechanism attracted many domestic investors to join, and attracted 12 million users three years after its establishment, while the effective a-share account was only more than 60 million. The business path of social merchandising has proved effective.

Cryptocurrency trading platform of this life

Since the end of 2017, eToro has been laying out cryptocurrencies, first entering the U.S. market by offering 10 cryptocurrencies, including bitcoin, ethereum, litecoin, and ripor. It then acquired Danish blockchain company Firmo in 2019, and launched a sentiment based cryptocurrency portfolio based on AI technology in the same year. Then it acquired Belgian cryptocurrency portfolio tracking company Delta. EToro is trying to bring merchandisers to the world of cryptocurrency trading.

Since the collapse of bitcoin on March 12, the market has come to the crossroads between $9,000 and $10,000. The big fluctuation of $1,000 May come at any time. In addition to the futures contract, the derivative is more complex and cannot be introduced in a short time. For users, the learning cost is low, and the merchandiser function only requires users to synchronize the trader's operation behavior, without staring at the plate or studying the market. Users can follow multiple traders at the same time to maximize profits. The revenue of each order is directly visible, and the earnings data are displayed in real time. Also can modify the amount of the documentary, the documentary contract at any time, also can stop the documentary at any time or stop profit closing. For those who are being followed, they do not need to bring their own flow, nor do they need self-marketing. They only need to study the market and improve their own rate of return and profitability.

Therefore, after eToro, domestic cryptocurrency entrepreneurs have also entered this field, including coin, contract emperor, which started with firm offer and data provision, and Bitget, which is based on the trading platform.

Bitget was founded in 2018 with a multi-million dollar investment from SNK, the world's top gaming company, which went public in KOSDAQ, South Korea, in 2019, setting a record for the highest market capitalization of an overseas company in South Korea.

Unlike eToro's Social Trading, Bitget's merchandising product still has a lot of innovation.

First of all, the merchandiser of Bitget does not need to pay for the merchandiser first, and the merchandiser only needs to pay a certain fee when it is profitable. Bitget's incentive to the merchandiser is 10% of the merchandiser's profit. Unlike the eToro subscription system, the Bitget model is more likely to motivate followers.

Secondly, in order to prevent the wrongdoer from doing wrong, Bitget has implemented such measures as "trader review", "limit the maximum multiple of the order opening", "limit the maximum number of single contracts", and "users can modify the setting of the order at any time, stop the order and close out the position".

In fact, these measures are also the protection of the trader. In the mode of the trader, the operation of the trader is of vital importance to the investor. The true and transparent record of the trader with the order and the record of the trader with the order is a must for the investor.

Platform to monitor traders, if it is found that traders two-way open positions at the same time more than three pens, loss of open position for more than 24 hours, or open a warehouse number less than 20 traders losses of more than 50%, loss of position more than 48 hours open, Bitget will be punished for traders, light suspended traders access 3 days, or titles. These risk control measures are not a decoration, on the official website platform also published a list of illegal traders.

At the same time, the account of investors can not be in the hands of traders, but still need to take the initiative to modify or stop the order at any time. In order to improve user experience, Bitget iterated two weeks after its launch. When selecting traders, users can refer to indicators of more dimensions. Users can select traders from multiple dimensions such as synthesis, income, rate of return, and winning rate.

Innovation of trading platform and user education

Innovation is actually the core of a trading platform. If there are only a few simple currencies for trading, it is impossible for the three exchanges to achieve the current volume. Not to mention the low price of the currency, which now stands at around $10,000, there have been reports of the closure of the once popular pizza dog platform in the secondary market. Bitget's Social Trading product reveals that the platform is still focused on derivatives track innovation.

With the rise of options, the focus of many futures contract platforms is no longer on futures. They just keep updating the project contract and focus on other derivatives, but Bitget still focuses on the contract track. Like the bitcoin mining machine's chip, is a 7nm process necessarily more powerful than a 10nm process? In fact, it is not. After careful study of 10nm, it is still possible to make a mining machine with performance higher than 7nm.

In a sense, the Social Trading of Bitget is a product trend after 312 collapsed, which we can understand as user protection, and more generally, as user education.

One of the biggest assets the slump has brought to the secondary market is an understanding of the importance of trading portfolios. Those who put puts on multiple orders, those who hedged all the time, were at least not wiped out in the crash, but those who were fully leveraged in one direction were hardly immune to such a calamity.

Therefore, after the crash, options began to be concerned by investors, and insurance began to be mentioned a lot. For a long time, the silent grid trading started to be promoted in the trading platform. It should be the "quantification" that big capital would consider, and it also began to be tried in small capital. All this points to a growing need for investment education with the right logic, and trading products are moving in that direction.

Social Trading of Bitget is also one of them. The current market situation is prone to 10% fluctuation, and inexperienced investors are struggling very much. It is easier for users to avoid market risks with the experience of professional traders than to learn the concepts of quantification and options by themselves.

A few days ago, an FTX leverage token was removed from the shelves and its modified leverage token was put online, which led many people to say that an FTX did not fulfill the responsibility of user education. In fact, with the user volume of coinan, a large number of inexperienced investors are not familiar with the rules and begin to trade, resulting in asset losses are bound to occur from time to time, so it is reasonable for them to modify the rules to meet the trading habits of more people.

After the occurrence of 312, users themselves have understood the importance of reasonable transaction, and more and more platforms are launching user education products. Following this trend, Bitget is expected to launch more new products for various scenarios after Social Trading, which will be the next battleground in the Trading platform space.

Original link:https://mp.weixin.qq.com

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