eToro’s Bitcoin Trading Platform

The online trading world’s top social trading destination, eToro.com has always been skilled at spotting new opportunities and keen on being at the cutting edge of Forex trading, in more ways than one. These are just some of the reasons why the online brokerage added Bitcoin to its tradable markets selection back in January 2014. Since then, Ethereum has made its way onto the platform too, and crypto currency trading has seen a 4,500% increase. With more and more laymen jumping into the crypto currency markets, that volume is almost certain to increase further in the future.

Unlike various Bitcoin exchanges and brokerages which support BTC trading in the vein of Forex, eToro has cooked up a unique offer. Due to its social nature, the platform is by far the easiest way for beginners and new traders drawn in by the current crypto-rush, to invest profitably. Despite massive overall gains, crypto-currencies – with Bitcoin leading the pack – are still highly volatile. While trading opportunities do indeed abound under such circumstances, making heads and tails of the volatility is no easy task.

eToro’s strength resides in its social nature, more precisely in the opportunities it gives its traders to follow their successful peers and to shamelessly copy their trading moves. What this means is that a trader looking to make money on eToro trading Bitcoin, doesn’t have to understand the technicalities behind the volatility. All he really needs to do is to provide the money.

eToro (Europe) Ltd., a Financial Services Company authorized and regulated by the Cyprus Securities Exchange Commission (CySEC) under license 109/10 since 2010. eToro (UK) Ltd, a Financial Services Company authorized and regulated by the Financial Conduct Authority (FCA) under the license FRN 583263.

How does one go about investing in Bitcoin at eToro?

It takes about three clicks to jump into the fray, although granted, some irksome verification does have to be completed.

Signing up to eToro is obviously the first step. Once the procedure is completed, traders are free to log into their Openbook accounts and to hit the “Invest in Bitcoin” button, after they navigate to the Bitcoin market section.

The actual price of Bitcoin isn’t a hurdle for anyone. Investments in the crypto currency start from as little as $10. As soon as the investment is confirmed by the trader, the order is placed and marked for execution. In this regard, it has to be noted that orders are executed only four times a day: at 6:00, 12:00, 18:00 and 0:00 GMT. In order to have an order executed at 12:00 for instance, traders need to have it placed at 11:55 the latest. Furthermore, while Bitcoin is indeed traded over the weekends and holidays, there is no order execution at eToro at such times.

Another important issue traders have to be aware of is that their Bitcoin investments are treated as CFDs, so they won’t actually get to own any virtual currency. They won’t just have to guess the direction of the price-change though. The actual amount of gains and losses also matter in determining the eventual losses and profits.

eToro Crypto Currency CopyFund

The new and innovative eToro cryptocurrency CopyFund gives allows you to trade the two biggest digital currencies, Bitcoin & Ethereum, all in one easy-to-use portfolio. Ripple, Litecoin and Dash are coming soon. When trading on the eToro platform, you don’t have to pay any investment management fees, yet you can set your account to follow the best traders among a global investment community consisting of millions of traders. A free demo account is available.

What’s a Copy Fund, you’re wondering? Copy Funds are investment vehicles that bundle together a collection of financial assets. The assets are picked and re-picked, given a predetermined strategy.

eToro allows you to invest in two types of CopyFunds: Top Trader CopyFunds which comprise the best performing and most sustainable traders on eToro, and Market CopyFunds that bundle together CFD stocks, commodities or ETFs under one chosen market strategy. A Top Trader CopyFund is based on a trader-only portfolio, where each of the traders that are being copied as part of the portfolio, are selected based on the CopyFund’s strategy. For example, a CopyFund that aims to take only top-performing, long term stock investors, will pick those investors based on performance, with significant stock allocation as part of their portfolio. On the other hand, a Market CopyFund is comprised of financial assets only, and not traders, so its portfolio may consist of stocks, ETFs, indices, commodities, or currencies.

The goal of the eToro CopyFunds is helping investors minimize long-term risks and promoting opportunities for growth by creating diversified investments.

Once you choose the CopyFund that fits your strategy, all you have to do is to enter the amount you wish to invest, click the “Invest” button, and you now have a fully allocated portfolio, professionally managed by eToro’s investment committee. Each CopyFund is analysed in depth and rebalanced automatically to maximize the potential of returns for investors.

If you are an investment manager, you can join eToro and create your own CopyFund.

eToro Review Conclusion

eToro offers a superb opportunity for beginners to get in on the crypto currency action, without having to break the piggybank. That said, the eToro brand of trading is simplistic, aimed at simple traders. There are no advanced options available such as short selling and there’s no leverage.
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