Reeling From the Crypto Crash, Investors Turn To Social & Competitive Trading in 2023
A brutal winter in crypto is thawing into a promising spring. And as the industry looks to revitalize its reputation, a new trading model is helping to build credibility back by providing a pathway for users to make more informed buying and selling decisions, all by learning from other traders.
$2,000 Quarter? Check Your Pockets Before You Use This 2004 Coin
Find Out: 3 Things You Must Do When Your Savings Reach $50,000
With the crypto craze of the past few years, it seems everybody had a “fear of missing out.” They saw people on Reddit and Twitter — celebrities in FTX ads — and they thought everybody was making a fortune and they were missing out. So, many people bought in toward the end of the bubble and lost their savings. The truth is very few people were making as much money as they claimed. They were tweeting about their 500% return on one coin and failing to mention the ten other alt-coins they lost money on. A lack of transparency led to a belief that you were the only one not making money.
A Look at Social and Competitive Trading
Social and competitive trading platforms like Zingeroo and WeBull now invite traders to engage with friends and fellow users. In Zingeroo’s case, compete in weekly and monthly competitions for prizes — with leaderboards that encourage better decision-making. On the platforms, trades are visible to all users, injecting social pressure to facilitate more responsible decision-making. That means that users can also study the strategies of the most successful traders and avoid the mistakes of the least while seeing how their peers are performing.
Interestingly, traders who engage in competitions held 63% fewer meme stocks, according to Zingeroo, suggesting that investors tend to be more careful when they know others might be watching or when they’re gunning for a place on the leaderboard. And a recent analysis of Zingeroo traders by a leading brokerage found that its users were more risk-averse than traditional retail investors.
“Solo investing can be a hard and lonely endeavor, especially for amateur traders,” said Zoë Barry, Zingeroo’s racecar-driving serial entrepreneur, founder & CEO. Barry is recognized as the only woman to launch a retail trading platform in the United States in the last decade. Prior to Zingeroo, Barry raised over $42 million for her previous venture, ZappRx, before Allscripts acquired it in June 2019. “Turning investing into a competition between friends can inspire traders to act more responsibly, and ultimately be more successful, while making investing more social, and more fun. We’re the first and only FINRA-regulated ‘competitive’ crypto trading platform, and we believe this new interface is the antidote to many of the problems solo-traders faced in the past 18 months.”
Live Richer Podcast: How To Leverage Your Investments
In recent weeks the crypto market saw a 12% increase in trading volume, with some of the most popular coins — including Bitcoin, Solana, Cardano, Polygon and Ether — trending upward for the first time since last year’s crash.
At the same time, social-based trading platforms only continue to grow. For example, users can now trade over 40 digital currencies on Zingeroo’s platform. WeBull offers a similar number. But the platforms recognize that more work has to be done to shore up confidence in the crypto industry after a series of recent damaging headlines. It’s why Zingeroo routinely touts its credentials as the first FINRA-regulated trading platform of its kind.
“By achieving FINRA accreditation, we hope to bring some credibility and integrity back to an industry that has been marred by controversy and assures our users that their investments are being managed responsibly,” Barry said.
It’s a stark contrast to the current Wild West of decentralized currency trading. And after FTX, those are the qualifications that traders will be looking for in their platforms of choice.
“Crypto is suffering from a severe reputational crisis that threatens to undermine the future of the digital currency,” Barry said. “Platforms like Zingeroo that are working to gain the favor of regulators are providing others a path forward to rebuilding the public’s trust.”
The journey to changing crypto’s perception won’t be easy, particularly as the FTX trial continues to garner intense public attention. But Zingeroo and WeBull show how trading platforms can learn from their mistakes and put the industry on the road to recovery.
More From GOBankingRates
- Social Security: Proposal for $2,400 Extra in Checks Expanded and Reintroduced in Congress
- Got a Question About Money? Ask an Expert
- Maximize your savings with these 3 expert tips
- Take Our Poll: How Do You File Your Taxes?