eToro Cryptocurrency Trading
If you’re looking to trade in crypto, then eToro has a great selection on offer. The broker has many leading digital coins featured as assets, including Bitcoin (BTC) and Ripple (XRP), and many more.
In this guide we want to show you what they have on offer, and how you can trade in crypto too.
Let’s get started!
Is eToro crypto trading Safe?
Yes, the broker is fully regulated and has regulation licences from many important authorities.
For example, they are regulated both by CySEC (no.109/10) and the FCA (Financial Conduct Authority) with the licence number 583263. In Australia, they have an Australian Financial Services Licence issued by ASIC.
Regulation is important because it means that the broker must follow financial trading rules put in place to protect traders against scams. You can be reassured that eToro is secure to trade with.
If you are in the USA, the broker has a separate entity called eToro USA. They are regulated by U.S. based financial authorities.
Trading Crypto in eToro
It’s possible to start crypto trading with eToro via a Contract for Difference (CFD’s) for all traders except for US and FCA traders. A CFD lets you speculate on the price of a cryptocurrency, you trade on a crypto’s price movement.
For example, let’s say that you want to trade with Bitcoin, you base your trade on whether to ‘sell‘ or ‘buy‘ a position on the Bitcoin asset.
When you sell it’s because you believe that the value of Bitcoin will go down. If you decide to buy, you think that the price of Bitcoin will go up.
The important thing to remember is that you don’t actually own the crypto asset. You just own any profits made from your crypto trades.
Is eToro good to trade crypto?
Trading in crypto provides you the chance to make more potential profits, even if the price of a cryptocurrency should go down.
This is why trading can be a better option compared to just owning a crypto.
If a person has purchased let’s say some Bitcoins. They fully own them. However, if the Bitcoin price decreases, that person has lost money on their investment, unless the value goes up again.
Whereas for trading if you decide to sell the Bitcoin asset, and then in reality the actual price of it drops, you still make a profit.
This is because you made the correct trading speculation.
eToro Cryptocurrencies Available
For the CFD markets, the broker has on offer:
- Dash – DASH
- Ripple – XRP
- Stellar – XLM
- NEO – NEO
- Ethereum – ETH
- Ethereum Classic – ETC
- Litecoin – LTC
- Bitcoin – BTC
- Bitcoin Cash – BCH
- Cardano – ADA
- EOS – EOS
- Tron – TRX
- ZCash – ZEC
- Binance Coin – BNB
All the above can be traded as CFD’s on eToro’s trading platform. Please note that Cryptocurrency are not offered as CFDs for clients under FCA.
There is a good range of cryptocurrencies on offer, which means that there is something available for everyone.
This cryptocurrency range from eToro has impressed us because they have a good mix of popular as well lesser known coins listed.
For example, it’s likely that you and many other traders know about Bitcoin and Ethereum, but what about NEO and Stellar?
By having some of the less known coins listed, you have a wider choice to choose from. It also gives you the chance to learn more about the new cryptos when they are listed on eToro.
Some of the newer coins to be added as CFD assets by the broker include Tezos (XTZ) and Miota (IOTA).
Whether you wish to invest in them or not is up to you. However, by viewing the coin’s performance with eToro’s price charts and statistic features, you can make your decision based purely on analysis.
It’s also worth using eToro’s social newsfeed tool where you can follow trading discussions based on the crypto of your choice.
eToro Crypto CopyTrading
One of the key features that eToro offers is their CopyTrade feature. This means that if you like the virtual coins trades that other user’s are making, then you can copy their trades.
So if you are fairly new to cryptocurrency and want to learn from other successful traders, this might be a good tool for you.
To begin, go to the eToro Markets page to find other members who specialise in this market. You can see other user’s recent crypto trades and portfolios.
When you’ve found someone you wish to copy, just click on the ‘Copy‘ button. Then you must select the amount of funds you want to use for copying.
Your account will then start copying the trades made by the selected trader.
However, you remain in full control of the account. You can close the trade whenever you want.
To learn more about eToro, you can read our full eToro review: https://tradingonlineguide.com/etoro-uk-review-and-fees/
Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
Author of this article and founder of Tradingonlineguide.com
My aim is to help you increase your trading knowledge with helpful content. I come from an economic background and have a strong passion for forex trading. With more than 6 years in the online trading world, I want to share my financial knowledge so that anyone can develop their investment skills.
In my spare time I enjoy cooking and travelling.
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