If you are planning to use eToro cryptocurrency trading, then you might want to watch this video first. There a few things that are enough to make me stay away from it.
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I am a big fan of eToro ( I love their copy trading feature ! )and i am also a big fan of crypto. But i am just not a fan of using eToro cryptocurrency trading because of the few aspects that i will be telling you in this video.
Let’s go through what I will be covering:.
00:00 Introduction
00:43 Not Owning The Actual Coin
05:55 Limitations of eToro Cryptocurrency Trading.
09:23 Who Should Use eToro Cryptocurrency Trading?
Part 1: eToro CFD vs Actual Coin ( Not Owning The Actual Coin )
eToro is licensed under several different jurisdictions, They have UK, Seychelles, and Australia. Depending on which license your account is under. You get to different treatment.
If your account is under UK or Europe, then your trades are secured with real assets. Which means eToro will buy the real cryptocurrency on your behalf. Although this is a better option. My account however is under Australia, therefore all my crypto trades is CFD. It means i cannot own the actual coin.
Why do I insist on owning the actual coin?
1) Being the sole owner and keeping it for however long i want ,doing whatever i want with it. I am in control.
2) A digital currency. This is one of the ways that blockchain is changing the game. It is changing the traditional way of sending money.
3) Supporting the project. If you don’t know, a lot of cryptocurrency actually has a mission behind it
Part 2: Limitations of eToro Cryptocurrency Trading.
1) Withdrawal. If you are planning to transfer your coins to other platforms, it might not be so user-friendly. There is a wait time to withdraw your times and you need to wait for eToro to process your request.
2) Staking. Depending on your account tier, there is a different treatment on rewards you get. A bronze account that has below $5000, will get 75% of rewards. A silver account that has above $5000 will get 85%. To get 95% of rewards, you need to have an account worth $50,000. The problem is that staking is a really simple process and can be done easily on an external platform and you can get the full rewards.
Part 3: Who Should Use eToro Cryptocurrency Trading
Person Type 1 – You just want to make money from price speculation and not going through too much hassle of setting things up. And you just want to buy-sell with just a click of a button. This is not wrong. It just depends on your trading style.
Person Type 2 – You want to have your entire portfolio in one place. Since eToro offers more than cryptocurrency, you can build up your stocks and forex portfolio on one platform for convenience.
Let me know what you think in the comments below.
Disclaimer :
This YouTube channel will occasionally contain affiliate links, which means I receive a small commission on a purchase without additional cost to you, if you buy something through my links. Past performance is not an indication of future results. eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro
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