The crypto industry is transitioning from a harsh winter to a promising spring, aiming to revive its reputation. To regain credibility, a novel trading model has emerged, enabling users to gain valuable insights from other traders, thereby making informed buying and selling decisions.
During the crypto boom of recent years, the fear of missing out on lucrative investments affected many individuals. Prominent figures on social media platforms, as well as celebrity endorsements in FTX advertisements, created the illusion that everyone was making a fortune.
However, this was not the case, as only a handful of individuals earned substantial profits. Many people bought in during the bubble’s end and ended up losing their savings. The lack of transparency regarding the traders’ returns led to the misconception that everyone but oneself was making money. They failed to mention the alt-coins they lost money on, causing individuals to invest without adequate knowledge.
Trading platforms such as Zingeroo and WeBull are transforming trading into a social and competitive activity, inviting traders to engage with friends and other users. Zingeroo even holds weekly and monthly competitions, complete with leaderboards that encourage responsible decision-making among participants. These platforms allow users to observe the strategies of successful traders and avoid the mistakes of less successful ones while keeping tabs on their peers’ performance.
Zingeroo reports that traders who participate in competitions held 63% fewer meme stocks, indicating that investors tend to be more cautious when they know others may be watching or when competing for a spot on the leaderboard. Additionally, a recent analysis by a leading brokerage found that Zingeroo traders were more risk-averse than traditional retail investors.
ZoZ Barry, founder and CEO of Zingeroo, believes that solo investing can be a daunting and isolating experience for amateur traders. She is the only woman to have launched a retail trading platform in the United States in the past decade and raised over $42 million for her previous venture, ZappRx, which was acquired by Allscripts (NASDAQ:MDRX) in June 2019.
According to Barry, transforming investing into a competition between friends can encourage more responsible behavior among traders, leading to greater success while making investing more social and enjoyable. Zingeroo is the first and only FINRA-regulated “competitive” crypto trading platform, and Barry believes that this new interface addresses many of the problems faced by solo traders in the past 18 months.
Meanwhile, the crypto market has experienced a surge in trading volume, with a 12% increase in recent weeks. Some of the most popular coins, such as Bitcoin, Solana, Cardano, Polygon, and Ether, have seen an upward trend for the first time since last year’s crash.
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Source: Cryptocurrency - investing.com
