Faced with the current increase in investments and the positioning of cryptocurrencies on the stock exchange, many are wondering how to invest in this growing and promising market. In this post, we will help you understand how to invest in cryptocurrencies with eToro.
How to invest in cryptocurrencies with eToro?
eToro is a broker specialized in ETF trading and investments and its business includes technical analysis of the figures to have a safe strategy. One of the novelties is that it can be done via platforms or applications just like eToro.
This broker was started in 2007 in the city of Tel Aviv by Yoni Assia and Ronen Assia together with David Ring. It currently has offices in Israel, Cyprus, and the United Kingdom. The current value of eToro is estimated at $ 2.5 billion.
Cryptocurrencies
For beginners, cryptocurrencies are a type of currency created in 2009 as a currency with a virtual value. Each unit of cryptocurrency has a value in the market. This type of currency is managed through a specific software that has a chain of blocks and that does not require the intervention of a bank for its management.
How to invest in cryptocurrencies with eToro?
To invest in eToro, you need to go through the following steps:
Open an account
To open an account, you have to download the application on your mobile phone or sign up from any computer. For this, you have to select the option “sign up now”, where you have to register all your data. Remember that you can create an account directly or simply start with a demo account which will allow you to practice before deciding to invest in cryptocurrencies. This type of demo account will give you $ 100,000 as a way to experiment without losing any money.
Get enough information
If this is your first time investing, you can use eToro ‘s FAQs and also read books or information on how to invest.
Choose the cryptocurrency
Once you have completed the process that will show you how to invest, you need to search for the currency you want to buy or in which you want to invest.
Invest
After selecting the cryptocurrency, eToro will ask you to select the investment option.
Amount to invest
After selecting the investment option, the platform will indicate the amount you want to invest in the currency.
Open operation
At this point and after selecting the amount, you should choose the “open operation ” option to finally execute the investment. In this part, we recommend that you stay updated on the fluctuation and price of the cryptocurrency in the market.
In this case, the eToro platform allows you to copy the investments of some of its users, making your account open and close permanently with Bitcoin. This will make things easier for you if you are not an experienced investor.
Profits
Finally, investing in cryptocurrencies offers you the following advantages:
- Security: the platform guarantees the security of the investment.
- Simplicity: it has an easy and simple platform to use.
- Diversity: Allows you to invest in a large number of cryptocurrencies.
- Community: You can join a community with a large number of users.
Recommendations when investing in cryptocurrencies
So when you invest in cryptocurrencies with eToro you know that it is a safe and regulated broker, giving you all the protection you need against fraud and scams. However, while this is the most important point to keep in mind when investing in cryptocurrencies, the truth is that there are many other things that depend on you and that you need to know when investing in cryptocurrencies.
To begin with, you need to know that it is a risky and speculative market where it is possible to make and lose large amounts of money in a short period. The most profitable and least dangerous are, according to experts, bitcoin and ethereum, but even so, they are extremely volatile.
The main advantages are decentralization, not depending on any bank, since only the buyer has the password to access his wallet, sending money to any part of the world quickly and without costs, and the impossibility of counterfeiting, thanks to the Blockchain.
As for the risks, beware. The main one is volatility (large rises and falls in value), which can cause huge losses in a few hours.
Another very common risk is the loss of the wallet key, as it is irrecoverable. According to some experts, around 20% of bitcoins are lost. You can avoid this risk if you keep custody of crypto through a broker like eToro.
We hope you now understand how to invest in cryptocurrencies with eToro. Remember that you need to analyze and review if investing in cryptocurrencies is the best option. Don’t forget that fluctuation is a phenomenon from which you will never be safe and like all investments it also carries risks.
