We get it. You want to trade and invest in cryptos not only safely but also quickly. That is why eToro had been introduced into the crypto sphere to provide you with the best experience ever. Sometime or the other, you would have probably come across eToro if you were looking for a platform through which you could trade cryptocurrencies.
Taking into account that cryptos have undergone immense development in terms of popularity over the past few years, more and more people are looking for ways to invest or trade in them. One such way to do so is by using eToro. So in this guide, we are going to give you all the information that you need to know about eToro.
Table of Contents
- What is eToro?
- CFD trading
- CFD NOTE
- Pros and Cons of eToro
- eToro cryptocurrencies
- Creating an account on eToro
- Great eToro features
- eToro important notes
What is eToro?
Founded in 2006 by two brothers along with another, eToro is a multi-asset brokerage company that is based in Israel. eToro was founded as a Retail FX by three people, in which two of them were brothers. Yoni Assia, Ronen Assia and David Ring.
The best way to describe eToro is as; A multi-regulated broker platform (that is trusted by millions of users) where you can trade currencies, stocks, commodities, indices and more all in one portfolio with dedicated customer support 24/7, Monday through Friday.
One thing that made eToro famous is its CFD (an option through which you can trade stock). Some people find CFDs quite hard to understand, so here I will explain it in an easy understandable method. Introduced in 2013, CFD (Contract For Difference) is a method of trading. It is like an agreement between the buyer and the seller.
In recent years, CFDs have become the most popular way for online investors to trade due to various reasons. One of it is because in CFD, the asset is not directly acquired, instead an agreement takes place in which (after the position closes) the buyer and seller should replicate the market state and settle the difference. What actually happens in this process is that at the end, the seller pays the buyer an amount (the difference between the current price of the object (present-day) and the price that it was during the time of the contract/agreement). This method was named CFD (Contract For Difference) because no asset needs to be acquired directly, therefore it enables individuals to trade and invest in an asset by engaging in a contract between them.
- CFDs are illegal in the U.S.
- 65+% of accounts lose money in trading CFDs so be careful.
- You should consider the circumstances and how CFD works, and whether you can afford to take the high risk of losing your money or not.
- CFDs are complex
Pros and Cons of eToro
- Lots of cryptos to choose from
- Good trust and high ratings from people
- Funds are protected by high security protocols
- eToro makes trading seem easy and fun
- Offers copy trading service
- High first-time deposit
- Withdrawals sometimes can be quite slow
- Trading only available in 49 US states
- Platform sometimes crashes
eToro, being one of the first as well as a very popular brokerage platform, offers its users a feature to trade cryptocurrencies. This is what most people know eToro as. “A cryptocurrency platform: crypto wallet”. But eToro not only allows you to trade cryptos but also has a lot more features. Scroll down a few paragraphs to find out about the features that eToro offers.
Although not a lot of brokers have successfully managed to have so many cryptos, it seems that eToro has succeeded to provide a variety of cryptocurrencies as well as crypto trading options one of which is the copy trading feature. Scroll down a few paragraphs to find out about the features that eToro offers.
eToro offers a wide variety of cryptocurrencies in which some are Bitcoin – ₿, Ethereum – Ξ, Bitcoin Cash – ฿, Ripple – Ʀ, Litecoin – Ł, Cardano – ₳, Binance Coin etc. To view all the cryptos available, visit eToro
The eToro website and app both are considered easy to use as trading features are really simple. For example, buying is very simple, there’s a buy button on your portfolio listing which you should click to buy. To sell, tap on the drop down button or just click. Then select sell from that list. Placing a trade is also very simple, you just have to click on the trade button when viewing the coin.
Creating an account on eToro
You can create an account on eToro can only take a few minutes, we can do by just 7 easy steps (sounds long but actually is not) and here they are:
Step 1: Open the etoro website and then click on the “Join Now” button at the top right.
Step 2: The eToro sign up page will now appear. You then have to fill out all the required information to open a trading account. All you have to enter is an email, username and a password which you have to keep safe. You can also log in via facebook or google but these are just optional.
Step 3: Before clicking the button for signing up, be sure to have read all the terms and conditions as well as the other information given. After the conditions, you have to check the box in the given space.
Step 4: Click on the Create Account button.
Phase 5: After the previous step, you have to undergo the KYC (Know Your Customer) process as per the EU law.
Step 6: In this process, you are required to provide a confirmation of residence (a valid utility bill dated to the last 6 months) as well as proof of authority such as photo ID or a valid passport.
Step 7: You are then requested to undergo a questionnaire. One example of this question is your professional status, financial liquidity, acceptable levels of risk, investment goals, etc. Then that’s it, Voila, you have successfully created an account.
Great eToro features
There are a few great things that you can try out with eToro once you have finished setting up your account. Here they are:
Free $100,000 virtual account
The first thing that you can do after you have an account, is to try the virtual account. After you sign up, you will receive an account with free $100,000 virtual money just for you to experiment with. You can just try out your trading skills and even improve them before you actually start with your real account. Here’s what you can do with your virtual money (only a few things are given, you can try out a lot more):
- Practise a bit of copy trading
- Open positions
- Start to buy and sell stocks
- You can add funds to your virtual account
Another thing that you can do, is try out the Copy Trader in which your account automatically copies other people’s trading portfolio performance. This feature was introduced in 2010. As soon as this feature was introduced, it became one of the most popular in eToro. This feature really helps those who have low trading experience/no trading experience or even those who don’t have time. This really saves your energy as you don’t actually have to do anything. Once you copy a person, all he does is automatically replicated in to your portfolio.Here’s what you can do with your Copy Trader™ (only a few things are given, you can try out a lot more):
- Search for top traders and Copy Trade them
- See the stats of traders that you are copying
- You can join the Popular Investor Program
Another thing that you can do is try out the CopyPortfolios™ feature. This feature is a long-term investment tool. Here, groups of traders are merged into a single fund (does not affect anybody). This feature is just like the Copy Trader. The only difference is that you get to copy an entire portfolio filled with traders instead of just a single one at a time. eToro allows traders to invest in three different types of CopyPortfolios (Market Portfolios, Top Trader Portfolios and Partner Portfolios):
- The Market Portfolios focus on a single division of the market and categorise these key assets from each segment together into one Portfolio.
- Top Trader Portfolio groups together a wide variety of traders on the eToro platform into a single asset.
- Partner Portfolios are created by eToro’s partners (world’s leading financial institutions). These operate similarly to Market Portfolios.
You can use a wide variety of trading tools that eToro offers. Some of these tools are (only a few tools are given, you can try out a lot more):
- One-click trading
- Take Profit and Stop Loss
- Trailing Stop Loss
eToro important notes
- eToro does not provide their service to US citizens who reside outside the USA
- Real trading through eToro is only available in 49 US states
- Your capital is at risk
- Crypto assets are highly volatile
- High first-time deposit
- The eToro trading platform is not an exchange or a market. You can only buy or sell stocks within the eToro trading platform.
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Disclaimer: Digital Wallets News does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.