Did you know that there are more than 1,000 different digital currencies in the world today? Furthermore, the market capitalization of all these digital coins combined is now worth more than $300 billion. With so much money flowing into digital assets these days, it’s no wonder that trading crypto tokens has become one of the fastest-growing markets for investors. That being said, it’s not always easy for a beginner to get started with this type of investing. If you’re new to the world of cryptocurrencies and want to dip your toes into this exciting world, read on to learn more about eToro and how you can use their platform to trade digital assets.
What is eToro?
eToro is a trading platform that allows its customers to invest in a wide range of markets, including cryptocurrencies, stocks, commodities, and more. The eToro trading platform is designed to be accessible to investors of all skill levels by allowing traders to copy the actions of higher-performing traders. This is a great way for new investors to get started with less risk of losing money. eToro was founded in 2007 and is headquartered in Israel. The company has more than 12 million customers and has facilitated more than $400 billion in transactions. eToro is regulated in Europe by the Financial Conduct Authority (FCA). In the United States, eToro is registered with Finra as an introducing broker.
How to trade on eToro
eToro offers investors a variety of trading strategies to choose from. When you open an account with eToro, you can choose to mimic the actions of other traders. There are various categories available, including stocks, commodities, currencies, and cryptocurrencies. You can also create your own portfolio. When you choose to create your own portfolio, you can choose the number of assets, their proportion in the portfolio, and their order of priority. Once you have chosen which assets you want to trade, you can start trading right away. eToro’s trading platform is easy to navigate and offers useful real-time charts and graphs to help you make better trading decisions. When you’re ready to close your positions, you can do so with a single click.
Benefits of using eToro
eToro offers many benefits to both new and experienced traders, including the following:
- Wide range of markets – eToro offers customers a wide range of markets to trade in, including cryptocurrencies, stocks, commodities, and more.
- Better diversification – Trading in multiple markets can help investors diversify their portfolio and reduce their risk of losing money.
- Copy trading – One of the best features of eToro is that customers can copy the actions of higher-performing traders, which allows new investors to get started with less risk.
- Simple and easy-to-use interface – The eToro trading platform is simple and easy-to-use, which makes it a great choice for beginners.
- Free trading – All eToro customers who sign up and open an account are given $100 in virtual money to trade with for free.
- Customer service – eToro offers 24/7 customer service to help investors with any issues that they may have.
- Regulation – eToro is regulated in Europe by the Financial Conduct Authority (FCA). In the United States, eToro is registered with Finra as an introducing broker.
Limitations of eToro
While eToro offers many benefits to investors, there are also a few limitations to consider, including the following:
- High minimum deposit – eToro’s minimum deposit requirement is $1,000, which is higher than many other trading platforms.
- High fees – eToro charges investors in fees and has been criticized for its high fees compared to other trading platforms.
- Lack of security – eToro does not offer two-factor authentication, which means that your account information is not as secure as it could be.
- Lack of direct purchase – eToro does not allow customers to purchase cryptocurrencies directly, which is a downside for some investors.
- No personalized advice – While eToro offers some useful educational articles, it does not offer personalized advice to its customers.
- No access to company financials – Some investors may be concerned that they do not have access to the company’s financials.
- Trading options – eToro offers only a limited number of trading options.
Final Words
eToro offers investors a great way to get started in the world of trading cryptocurrencies and other assets. The platform is easy to use, has a large selection of trading strategies to choose from, and is available to customers globally. Customers can also benefit from eToro’s Copy Trading feature, which allows new investors to get started with less risk. eToro also offers a wide range of markets and is available free of charge to all customers. With all these benefits and more, eToro is a great choice for crypto traders of all levels.
