By
Mayowa Adebajo
April 5th, 2024
The first regulated social broker, eToro introduces a brand new cryptocurrency offering that bundles together various traders and assets into a single tradable portfolio, disrupting traditional trading schemes.
Last year proved the rise of cryptocurrencies, with many reaching unprecedented popularity and smashing record after record. Currently, there are more than 1,500 listed digital coins and growing by the month which can provide utility to an otherwise archaic financial system totaling a market cap of over $500 billion.
Digital currencies have become a source of high marginal returns, considering their s abundant trading opportunities and skyrocketing prices. Consequently, they allow individual traders to take advantage of multiple aspects of altcoins often without knowing about the pitfalls of trading, such as high volatility leading to major price swings.
As a result, traders can often witness high rates of gains and losses in a short period of time. Moreover, since there are many currency exchanges and trading platforms designed for buying and selling cryptocurrencies, the decision-making process could be daunting and time-consuming, thus, many early traders may be discouraged even before making their first trade.
However, there is another way to invest in cryptocurrencies by utilizing a revolutionary social trading approach that enables users to interact with each other, exchange trading information, copy other traders or be copied by them.
Trading platform eToro introduces a user-friendly way of trading, investing, and earning money, whereby users can follow successful traders who show consistent returns while maintaining a low risk score and eventually become Popular Investors. In turn, Popular Investors are rewarded for sharing their wisdom with others.
By now, the platform’s community is estimated as totaling more than 9 million users worldwide who trade and invest in multiple assets in various categories, including cryptocurrencies. eToro is constantly adding more assets to its offering and currently this list of cryptocurrencies includes all of the most popular digital coins such as Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Dash, Litecoin (LTC), Ripple (XPR).
Along with a lot of risk management, traders and investors have always been exposed to substantial entry barriers. Cryptocurrency exchanges usually demand a rigorous verification process and require the installation of additional software together with an understanding of blockchain technology. As opposed to some cryptocurrency exchanges, signing up for eToro is simple, and trading can be achieved with just a few mouse clicks or taps on your smart device’s screen.
Nevertheless, despite its easy-to-use o registration process, eToro is a safe and trustworthy platform on which to trade as it adheres to the strictest of regulations imposed by Cyprus Securities and Exchange Commission, Financial Conduct Authority, and the National Futures Association.
The recent market drop once again reminds traders that cryptocurrencies can fluctuate widely in price and, therefore, managing a crypto based portfolio still requires technical knowledge and risk management skills.
In seeking to address this issue, eToro has created the Crypto CopyFund — a long-term investment instrument, which offers a balanced portfolio of six cryptocurrencies including Litecoin, XRP by Ripple Lab, Dash, Ethereum Classic, Bitcoin and Ethereum. The Crypto CopyFund is managed by eToro’s investment committee and optimized periodically to contain only the top-performing cryptocurrencies on the platform. One might argue that it is the simplest way available for investing in a basket of cryptocurrencies.
As the cryptocurrency market is constantly evolving and a growing number of newly born digital assets are put into circulation, features such as the Crypto CopyFund and the option to follow other popular traders, together with the above-mentioned perks, are very useful. Hence, there is a strong incentive to try eToro for those who wish to get their feet wet in the world of cryptocurrency.