Social Trading

Social trading is a form of investing where participants copy the trading strategies of experienced or successful traders. In the crypto ecosystem, this is often facilitated by platforms that allow users to follow and automatically replicate trades.

It leverages the collective wisdom of the crowd but also exposes followers to the risks of herding and individual failure. While it lowers the barrier to entry for beginners, it can also lead to systemic risks if too many people follow the same strategy.

It represents a shift in how financial knowledge and strategies are distributed.