Online trading and brokerage company eToro provides some features for its customers aimed at helping users acclimate to the platform and then use its several tools to make money.
The company began in 2007 as an online trading platform and is now offering services aimed at cryptocurrency investors and traders. Lena Birse, for instance, said that while she had no prior knowledge or any experience of trading and investing in securities, she was able to earn an income using the eToro platform.
Investing in Cryptocurrencies Using Social Trading at eToro
Jay Edward Smith has been an active trader in stock markets and now uses eToro for trading cryptocurrencies. He is one of the leading digital currency investors on the platform, and his rising follower count can perhaps stand testament to his capabilities. Smith said, “[cryptocurrencies] are very volatile, with far fewer traditional investors in the space.” He continued, “even if [a cryptocurrency] does dip in the short term, it just turns into a long-term position.”
Smith has held a bullish view on cryptocurrencies ever since he first came to know about bitcoin in 2012. Speaking about the benefits of social trading at eToro he said:
“Social trading is an amazing movement in finance that empowers those who would normally feel unable to benefit from the movements of global markets to be put on a level playing field. The community on eToro is fantastic, in fact, I chat with my copiers every day.”
Easy platform for New Investors to Learn
Lena Birse used CFD, a tool provided by eToro, which makes it possible for any small retail investor to buy small bits of a stock. While bitcoin and Ethereum’s ether can be further divided into smaller sub-components, such as a satoshi and milliether respectively, a stock cannot be subdivided for trading below its face value.
At times, the price of a growth stock may skyrocket. Following such circumstances, it is common to see such companies unwilling to split their shares or allot bonus issues which would increase the number of outstanding stocks. Berkshire Hathaway Class A shares, for example, trade at $296,100. This price is too high for a common investor to afford. By using eToro’s CFD, any retail investor can invest a small amount in a company with the potential of higher earnings.
Another popular feature of eToro is that it allows newer investors to copy the strategy of top traders, known as Copytrading. For someone new to the fundamentals of investing, the tool can help them avoid losses. Wesley Warren, who has been trading for the last 15 years said, “The eToro platform is open, so you have a place where people can share information.” Whenever he researches a new stock, he shares this bit of information with his copiers.
A copier is the person who is following another investor for his strategy. He engages with his followers to find out more information about the stocks in question.
Having access to crucial information at the right time is very important for having a successful trading career. Speaking about cryptocurrencies, Waren said:
“They will change the world in so many ways. These are global currencies no longer owned by any country, which could have huge implications for politics and the way our world works. Eventually, some crypto-based marketplaces will allow people to trade anything for anything else.”
User-friendly Interface
Wayne Ryan, an investor, having a following of over 27,000 copiers also praised the mobile application of the trading platform.
He said that the desktop application and mobile application simplify trading as the user interface is extremely easy to use. Users can view real-time charts of stocks and analyze them using technical parameters. The application also notifies its users if the price of a particular stock is nearing its resistance levels.
Disclaimer: Buying cryptocurrencies is not appropriate for everyone. Cryptocurrencies are not regulated. They are not backed by governments or central banks. Cryptocurrencies are backed by technology and trust. You will not benefit from the protection available to clients receiving regulated investment services, such as access to the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service (FOS) for dispute resolution. You are at risk of losing all of your invested capital.
Disclaimer II: BTCManager does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as investment advice.
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Author: BTCManager.com
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