The coronavirus crisis was a breakout of a new revolution in the financial world as millions of users found themselves stuck in lockdown, signing up to trading apps and using the opportunity to explore the world of stocks and cryptocurrency, signaling a new change and approach to the financial world.
The effect of social media has been unfathomable before now, as there has been high speculation of the transfer of wealth to Gen Zs and millennials by 2050, with an estimated growth of 70%, amounting to $60 trillion in the hands of these individuals inclined to the internet age.In today’s investing world, timing and information play a significant role in the financial market.
The rise of social media has had a rapid influence on the hearts of many users today as there are simpler, quicker, and more efficient ways of disseminating information as regards the financial market. The tendency for retailers to follow and copy other experienced investors has become a spiral behaviour and has affected many in the cryptocurrency market. Users should take the time to source information and investment data from authentic sources.The financial market witnessed a boom during the advent of social media buzz in the past few years.
With such practices becoming pronounced in the financial market and being aided by social media, financial regulators have struggled to catch up or try to curb these practices among fake trading influencers posing to infiltrate the market. Copy trading is a strategy that allows retailers and users to link a certain amount of their investment portfolio to a selected experienced trader and then replicate all trades automatically without monitoring the trades or worrying about the best strategy for better profitability.