DeXe Network: How Does Social Trading on Blockchain Work?
Interested in exploring the crypto market but uncertain about how to start? Social trading with the DeXe network offers an easier approach, allowing investors to replicate the trades of seasoned traders and benefit from successful transactions. With robust tools, you maintain complete control over your investment decisions.
But before we present how DeXe social trading works, you need to better understand the concept of social trading. We should first define this notion and present its main characteristics before explaining how it works.
Social Trading: Definition
Social trading, also known by other names such as mirror trading, is an online trading technique that emerged with technological developments.
This trading approach focuses on novice investors who wish to benefit from the experience of professional traders. With just basic knowledge of technical analysis, you can generate profits quickly.
It is a social network where traders share trading tips and allow novice traders to follow their investment strategies.
Social trading activity allows novices to familiarise themselves with market trends, learn new investment strategies, and avoid significant losses. In short, this collaborative approach facilitates the entry of new investors into the stock market.
Key Features And How It Works
First of all, it is important to note that social trading provides easy access to the financial markets, especially as you interact with other experienced traders to find a common investment strategy.
As a social trader, you can use a community trading site like DeXe or take advantage of the information and advice available in stock market forums.
Regardless of the technique chosen, advice from seasoned traders is favoured on social networks. However, we believe that adopting a social trading platform is better because it automatically shares trading strategies and advice thanks to the “Mirror Trading” or “Copy Trading” function. Also, you can subscribe to a professional investor’s channel to receive their positions in real-time.
Moreover, one wonders if the copied trader does not earn something in return. Obviously, it all depends on the forum or platform you have chosen.
It’s good to know that the best traders can be rewarded with a commission on your profits or a ranking based on their success rate.
What Assets Can You Trade?
If you choose to trade socially, just know that it gives you the opportunity to trade on a wide variety of financial markets. Here is a list of the different types of assets that can be invested in social trading:
Forex: Forex currency pairs are the most popular assets for social trading. Some of the most traded currency pairs include EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, and NZD/USD.
ETFs: Exchange-traded funds (ETFs) are also popular in social trading. ETFs provide exposure to a specific market or sector, making them an ideal diversification tool for investors.
Stock indices: Stock indices, such as the Dow Jones, CAC 40, FTSE, DAX, Nikkei, and many others, are very popular assets for social trading. Investors can invest in a specific stock index to track the performance of the entire stock market.
Stocks: Stocks are also common assets for social trading. Stocks of major companies such as Netflix, Facebook, Google, Apple, and others are popular among investors.
Cryptocurrencies: Cryptocurrencies, such as Bitcoin, XRP, Ethereum, and others, are popular assets for social trading. Cryptocurrencies offer high growth potential but are also a synonym for high risk due to their volatility.
What is DeXe.network?
The DeXe.network project, or DeXe, presents itself as a decentralised “social trading” platform designed to follow the best traders’ strategies. This platform provides a complete copy trading tool in decentralised finance (DeFi).
To do this, any user must connect to DeXe.network, a wallet of which he holds the private key, such as MetaMask or Trust Wallet (excluding those of centralised platforms).
Then, he can choose a trader or a group of traders according to their performance and subscribe to them.
Once you follow a trader, DeXe.network copies their transactions based on the parameters predefined by the user himself. For example, the user can request manual confirmation before each operation.
As for traders wishing to share their operations, they simply need to install a specific plugin on their browser and then establish a connection between the Exchange and DeXe.network. After that, they can define the desired payment option for those copying their operations, either a fixed payment or a percentage of the profit made.
When it launches, the DeXe network ecosystem will already be complete, featuring support for major decentralised exchanges like Uniswap, DeFi protocols such as Balancer and Curve, and protocol aggregators like 1inch.
Major centralised exchanges will also be able to be connected to DeXe.network, including Huobi Global, Binance, OKEx, Bittrex, and Bitfinex.
DEXE/USDT 5-Day Chart
The DEXE DAO Governance Token and Its Use Cases
To ensure the decentralisation of its ecosystem, DeXe.network is equipped with a governance token, the DEXE. Holders of this ERC-20 token will play a role in the platform’s future development, in particular by proposing potential modifications and approving or rejecting them by vote.
When a DeXe.network user makes a profit, the protocol’s smart contract will automatically deduct a 30% commission on their income and buy the same amount of DEXE tokens on the market.
Then, there are 3 parts of these tokens. One part will be burned, the second will be an insurance fund, and the third will be distributed to DEXE token holders.
DeXe.network presents itself as an interesting solution for copying the portfolio movements of experienced traders, particularly those specialized in DeFi tokens.
By operating in a decentralised manner and letting the user decide on the execution of operations, DeXe.network brings some novelties to the field of copy trading.
However, this method of portfolio management is not without risks. If you aim to venture into it, be very rigorous in choosing the trader you follow, and select a person who obtains good performance over the long term, whether in an upward or downward trending market.
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