update 23 July 2021

Shrimpy Brings Futures Markets to Social Trading, Here Is How It Works

Shrimpy is a portfolio management platform introduced in 2018 that provides multiple solutions to the crypto trading world. For three years, the platform has delivered intuitive and valuable products that allow cryptocurrency investors to interact with the digital asset market hassle-free.

Shrimpy’s prime offering is represented by its portfolio rebalancing and social trading tools, which users can utilize to improve their market performance. Not to mention, the platform currently supports a list of 16 exchanges which includes: Binance, Kucoin, Coinbase, Bittrex, Poloniex, Kraken, Bibox, Bittrex global, Gemini, Binance US, HitBTC, Huobi global, Bitmart, Bitfinex, Bitstamp, and OKEx.

The team behind Shrimpy has new plans for upgrading its platform. Namely, their current goal is to integrate futures contracts for their existing social trading ecosystem. A futures contract involves buying an asset at a future date but with predetermined prices. Why is that important for crypto investors, and what incentivizes Shrimpy to launch such a feature under its social trading program?  Let’s find out. 

Why Futures Social Trading?

As mentioned earlier, Shrimpy has already planned to launch its new futures trading features, merging them with their copy trading segment. According to a press release, their primary reason for introducing futures trading is increasing user demand for the service. Truth be told, there is indeed a lackluster of futures integrations for such tools in the crypto market, so the heightened demand does not come as a surprise.

Shrimpy wanted to give their customers what they wanted, and as such, planned the phased introduction of its new feature. But why do the consumers need social trading for futures?

Futures are among the riskiest investment options in the financial markets. Among the risks associated with futures include counterparty risk, liquidity risks, delivery and settlement risks, and operational risks. Therefore, high-risk levels and increased complexity forces beginners to look for help from experienced trading veterans.

How will Shrimpy’s Social Trading Work?

Shrimpy’s social trading on futures will work similarly to its usual social trading program. Once automated, the user will follow a selected market leader, and any changes the leader makes to their portfolio will happen on the followers’ portfolio. 

Therefore, every time a leader profits, the follower will make profits as well. Do note that the case is also true vice versa. Once automated, users will set a stop loss, above which the follower’s account will automatically unfollow the leader if the loss threshold is hit. The stop loss threshold will help vastly protect small investors from losing all their wealth.

However, before you start following market leaders, you must first allow futures trading on your exchange account and link the account with a Shrimpy account. How can you set up futures trading?

How to Set up Futures Trading on Shrimpy

Once introduced at Shrimpy, futures trading will require investors to create new API keys and link them to their accounts.  The feature will initially only be available on the Binance exchange. However, Shrimpy plans to integrate more exchanges in the future so that investors gain access to a broader range of trading platforms. 

How can you merge the Shrimpy futures trading with your exchange? Here is how; 

  1. Enable the futures trading option on your Binance account. Simply visit the futures trading section after logging into your account, fill in the required details, and finish the process to enable futures trading.
  2. Set up the API keys and allow the futures trading permission for the specified keys.
  3. Update the API keys on Shrimpy by pressing the update keys function.
  4. Click the ‘Manage portfolios’ button on Shrimpy’s dashboard tab, and within the new window, click on the check box for futures trading.  Once checked, you will be able to add and manage futures portfolios on your Shrimpy account. 

It’s a Phased Launch

Shrimpy will be launching its futures social trading option within the next few weeks. The process of this rollout began in March 2021, and according to the developers, the complexities associated with futures led them to launch the feature in phases. 

The first stage (completed in early March) involved implementing the futures portfolio rebalancing feature. This tool helps Shrimpy monitor futures transactions and balances of investors and their relevant exchanges to display the information for the end-user. 

Afterward, Shrimpy focused its attention on introducing the futures option on the trading page. 

The third stage focuses on introducing the manual futures trading feature. At this stage, investors will be able to complete their social trading by manually copying the strategies of the market’s leaders. 

Finally, the platform will combine the social trading features with portfolio rebalancing tools to automate social trading for futures. Once this fourth stage is ready, investors will only need to select their leaders, place their orders, and await their trading returns.  

Why Use Shrimpy Futures Social Trading?

As mentioned earlier, futures are among the most complex financial assets of our time, and crypto-linked futures pose even more complexities. Expert traders have already mastered trading on futures contracts; therefore, they can provide vast assistance. 

By introducing social trading for futures contracts, Shrimpy creates the possibility of helping inexperienced users invest in futures and earn profits without any prerequisite knowledge. The user’s sole task is to create a futures portfolio, select a profitable leader, and monitor their performance. 

Leaders will also be high beneficiaries of the launch of Shrimpy futures options. They benefit from the charges they make from their followers. Generally, the introduction of futures trading opportunities will benefit both the leader and market followers in the long run. 

Futures trading followers will enjoy choosing between a large diversity of strategies offered on Shrimpy. These strategies are either provided by the platform or by individual experts who created strategies that help in maximizing income.

Final Word

Shrimpy has been providing excellent social trading and portfolio rebalancing options for cryptocurrency investors. Numerous social trading leaders and beginner investors have indeed met success in maximizing their incomes by using Shrimpy. Therefore the introduction of futures trading makes it even more attractive and creates further revenue-maximizing options. 

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One of the most exciting things about Shrimpy is its user interface (UI) which provides a great user experience (UX). Furthermore, Shrimpy’s pricing for its subscription-based payment model makes it stand out over other platforms providing similar services. 

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