Investing in Crypto Assets on eToro: Everything You Need to Know – 2022 Review

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The rise of crypto-assets has been inevitable over the past five years or so. No matter if you’ve invested in crypto, you’ve no doubt heard the words Bitcoin, Ethereum, or even Dogecoin spoken in polite conversation. And with this level of interest, countless trading platforms are vying for your crypto wallets and your attention. A major player in the world of online investing is the social investment platform eToro. An incredibly popular option in Australia for trading the US stock market, eToro has also been making a name for itself in the crypto world for years. If you want to use eToro to invest in crypto-assets, you’re in luck. We have put together this guide to outline how crypto investing works on the platform.

Disclaimer: AFSL 491139. Venture capital. See PDS and TMD

What is eToro?

Launched in 2007, eToro is a global social investment and multi-asset investing company. It offers an online platform for daily users to invest online in stocks, currencies, commodities, crypto-assets, and ETFs. Apart from its ease of use, one of its greatest strengths (and what uniquely positions eToro in the crypto space) is its “social trading” functionality. Much like with its stock trading communities, eToro provides a platform for investors and traders to share their knowledge and provide invaluable knowledge to newcomers and day traders.

When you think of the eToro social platform, think of Facebook or LinkedIn, but only stocks and cryptoassets. If you want to learn more about eToro and the various tools and services available on the platform, check out our guide to using eToro in Australia.

Investing in Crypto with eToro: What to Expect

eToro provides a powerful yet user-friendly platform that offers investors (from beginners to experts) an all-in-one solution, from the ability to quickly buy crypto-assets to storing them in an eToro wallet that can be managed at anytime, anywhere.

After setting up your account, you can browse the investment platform to find live trends and current trading data. By far eToro’s most popular social trading feature is the CopyTrader System. This allows you to automatically copy trades from other eToro users. Find investors to follow easily with the social news feed and a Popular Investor program. The most successful crypto traders always share their thoughts and provide insight into a familiar social timeline, which can really break down some of the barriers to entry that many newcomers face when looking to dip their toes in. the crypto game. Find out what top performing investors are doing with their portfolios on eToro and plan your strategy accordingly.

While eToro is unquestionably convenient and easy to use, it is important to note that eToro is not an exchange. Prices and fees may be less competitive than other specialized cryptocurrency exchanges. So, if you are looking to trade crypto exclusively, you might want to consider other options. However, if you are someone who already has a diversified portfolio and wants an easy way to combine those investments and add crypto-assets, eToro has a great user interface for doing so.

New users can even enjoy the benefits of a free demo account preloaded with $100,000 to learn the basics and test out strategies before risking real money.

Disclaimer: AFSL 491139. Venture capital. See PDS and TMD

What cryptocurrencies can I trade on eToro?

eToro users have access to over 50 of the most popular crypto-assets in the market, including Bitcoin, Ethereum, XRP, Cardano and many more. We have reviewed some of the most important assets available through eToro below. But you can see for yourself on the eToro Crypto Discover page here.

  • Bitcoin (BTC): Largest cryptocurrency by market capitalization, considered the first large-scale implementation of blockchain technology.
  • XRP by Ripple Labs (XRP): This popular cryptocurrency enables real-time payments with faster transaction speeds and lower costs, and is already used by many well-known brands.
  • Ethereum (ETH): This leading cryptocurrency has received international recognition from tech giants such as Microsoft and Intel. In addition to payments, Ethereum also supports “smart contracts”.
  • bitcoin money (BCH): A “hard fork” designed to be a solution to the backlog of transactions that Bitcoin was experiencing, Bitcoin Cash’s block size is eight times that of Bitcoin.
  • gimbal (ADA): Inspired by Ethereum, Cardano differentiated itself with a dual-layer structure running each layer separately, as opposed to Ethereum, where the two layers are intertwined.
  • TRON (TRX): Tron aims to create a decentralized alternative for distributing digital content through one of the largest blockchain-based operating systems in the world.
  • Tezos (XTZ): The Tezos ICO in September 2018 was one of the largest in crypto history, raising a record $232 million.
  • Chain link (LINK): This negotiable token is used to pay for transactions on the Chainlink network, a decentralized platform that enables smart contract agreements between oracles, or outside data sources, and the blockchain.
  • Polygon (MATIC): This open-source protocol aims to be a hub for connecting compatible blockchain networks to the Ethereum network, leveraging its security and speed, via smart contracts.
  • Dogecoin (DOGE): Originally created as a satire, but quickly gaining popularity on social media, Dogecoin is named after an internet meme featuring a Shiba Inu dog.

Disclaimer: AFSL 491139. Venture capital. See PDS and TMD

How do fees work on eToro?

Creating a new eToro account is free, with no management fees levied on any transaction or investment. However, trading on the eToro platform is done in USD. If you deposit or withdraw in a foreign currency other than USD, conversion fees will apply. eToro charges a fee of 5 Australian dollars for withdrawals and the minimum withdrawal amount is 50 dollars. Learn more about eToro fees here.

eToro also offers a premium membership service called eToro Club which offers five different levels. Club members have access to crypto staking. This is not a paid service, and instead eligibility is based on the amount of funds in your account, starting at 5,000 USD.

What payment methods are accepted?

eToro supports a wide range of payment methods including wire transfer, credit/debit card, PayPal, POLI, wire transfer, etc. Once you have selected your currency on the deposit page, you will be presented with the full list of options.

Is eToro safe?

eToro has been in business since 2007 and today over 20 million registered users worldwide entrust their money to eToro. It is a regulated business and as such must fully comply with all required rules and regulations. In Australia, eToro is regulated by the Australian Securities and Investments Commission (ASIC). The company protects user data with encryption and firewalls. Users also have the option of two-factor authentication on their account.

When trading crypto as an investment strategy, there are always risks to consider. The crypto-asset market is notoriously volatile. This should always be kept in mind before making any investments. However, as a platform, eToro has proven itself for over a decade as a safe and trustworthy place to invest with confidence.

Disclaimer: AFSL 491139. Venture capital. See PDS and TMD

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