As online currencies and mobile banking have become more prominent in our everyday lives, we forget that a large amount of planning and preparation has gone into the process. Not only has this led to the development of a number of useful applications, but it has also helped to streamline a number of different industries in the process. In this article, we will be providing you with insight into how social trading applications have impacted Fintech technology as well as the cultural behaviours of modern-day society.
What Is Social Trading?
A social trading platform is one of the best new ways to trade, with a network of people over a number of different countries, there are a number of strategies that can be followed for the utmost success every time. In addition to the pioneering social features, the social trading app helps to make the financial market much more friendly whether you are using it for the first time, or you are an experienced trader.
How Has Cryptocurrency Brought About The Growth Of Social Trading Platforms?
Though Bitcoin has been around since 2009, many consider it to be a recent fintech development that has revolutionised modern day finances. However, the foundation of fintech technology goes back much further with the first signs of such cryptocurrency coming into fruition in 1998. Though it was not fully developed at this time, this was the origins of the online currency and saw the progression of fintech technology begin.
However, it was not until 2010 that the bitcoin was valued for the first time. The reason it had taken this long to place a value on the online currency is that it had only ever been mined, never traded. This is important to remember as, from 2010 onwards, this emerging cryptocurrency began the growth of financial trading platforms.
Following this sudden spark in online currency, a number of others began to emerge with bitcoin reaching a total of $10,000 in 2017. As the market continued to expand during this time, this brought about an opportunity for trading firms to create online platforms to cater to this growing market. This has since grown to the platforms that we see in present day with platforms evolving to keep up with the changing times in the market.
One of these platforms that has seen evolution in recent years is Etoro. Along with some of the social features that has already been added, there was the addition of a mobile application implemented in 2010. The year of 2012, then paved the way for the introduction of cryptocurrencies in 2017 as well as the expansion of other social features allowing for further communications between the Internet of Things and Ai deep learning algorithms commonly used in mobile banking applications in order to track spending.
The Benefits Of Social Trading Platforms
As the social platforms continued to grow from 2017 to the present day, there have been a number of benefits for both individuals and businesses alike. Whether this is the ability to create a more secure transfers or the transparency of each trade that is taking place, this can all benefit businesses and individuals looking to trade in the future.
Allows For The Sharing Of Trading Strategies
One of the major benefits of this style of trading platform is the sharing of strategies. With the trading platform allowing for communities to discuss and share strategies, this makes the market seem friendly and allows for beginners to learn the market with very minimal risk. Whether this is a small investment made or a larger investment, you can use the community element to track and monitor patterns in the market and ensure the best possible return of investment.
Boosts Accessibility To Markets
Another benefit that came from the creation of social trading platforms is the accessibility to a number of different markets. Whether you are looking to trade on the Forex market, or you are looking to delve into trading online currency, a trading platform such as this makes the markets more accessible for beginners as well as experienced traders. With a social feed and other little tools to help you monitor and track markets along with other traders, this is what makes a social trading platform more popular.
Trading Firms Setting Up There Own Social Trading Platforms
As some social trading platforms began to become established, there were more companies looking to implement this style of technology. With pre-existing trading platforms such as Etoro, evolving to cater to this expancing marker and a number of new and emerging platforms allowing for trading using this new form of currency, this sparked the growth of the industry that we have today.
One of the biggest changes that we have seen recently is with online shopping and the e-commerce industry as technology is put in place to ensure that every transaction is secure. With Visa and other major banks currently developing some form of Augmented Reality proof of concept, to help shape the future of e-commerce, making it safer than ever before.
How Has This Revolutionized The Business Sector?
Social trading applications, as well as frequent investments in the future of the fintech industry, have helped to revolutionize the business sector in a number of ways, whether this is through streamlining the online banking process or helping to provide secure solutions for online international trading, this has all benefited the business sector in the long term to help streamline daily operations.
What Is Next For Social Trading And The Business Sector?
Though the future of social trading remains vastly unclear at this time, 2020 is set to be a big year for social trading and fintech technology in general. With the implementation of AI in a number of different fintech businesses, there is potential to increase customer service through an automated system, as well as use Ai to operate fraud detection and claims management. This is great for business as this helps to streamline a number of existing processes helping to increase productivity in a number of different business sectors.
In addition to the changes to the business sector, increased development in Fintech technology is set to expand the capabilities of a number of social trading platforms. Whether this is an additional algorithm to track markets and alert users or even a chat function for communities to be able to communicate about different trading sectors and markets that are looking to enter in to, this will help businesses to make the most out of each investment in the long term.
What Is The Future Of Fintech Technology?
Though the future of social trading is an important element when it comes to the individual markets, it is the Fintech technology industry that carries the most weight. Not only could it potentially change behaviors surrounding banking and opinions on online currency, but it can also revolutionize the business sector as online secure payments and blockchain technology can benefit a number of different sectors, thus helping to strengthen business in tough economic times.
Whether you have been trying your hand at social trading for some time now, or you are just looking to find out more about the impact it has had on traditional banking methods, we are sure that you have either seen or heard of a social trading platform at some point in your life thus far.