Social trading platform eToro launches cryptocurrency CopyFund

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Social trading platform eToro launches cryptocurrency “CopyFund”

The boom of cryptocurrency has been going on for a while, but now it has reached the Forex market, CFDs, ETFs and even binary options. The growth of the rate of crypto currency began to attract a lot of excitement among traders. EToro, which is known as one of the largest and most successful CFDs and Forex brokers, has launched its new service, which will allow everyone to participate in the trade in cryptocurrency.

With the help of eToro Crypto CopyFund, not only such popular crypto-currencies as bitcoin and Ethereum will be available for trading, but other not less popular ones:

Many analysts have already named 2020 – the year of the crypto currency. Over the past year, its value has increased in a few times. All advanced investors wanted to enter the crypto currency market. It was very difficult for the market to keep up with such a strong dynamics of growth of the crypto currency.

Many who wanted to enter the crypto currency market could not do this through the limited knowledge in the field of trading. The company eToro decided to facilitate the process of investing in the crypto currency. The main task facing the company was to simplify the process of investing in the crypto currency.

The potential of the crypto currency will be able to diversify your portfolio of investments. Using the platform of social trading eToro you will make it much easier. With the help of Copyfund you can perform operations with the crypto currency in just a few clicks.

Test the innovation from eToro, it is available for trading now.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% 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 launches Crypto Copyportfolio – Intro & Our Opinion

With the demand for cryptocurrency trading increasing exponentially and the global market cap of cryptocurrencies reaching over $100bn, eToro, the popular social trading and investing network, launched its Crypto copyportfolio earlier this month.

eToro Crypto Copyportfolio Methodology

The copyportfolio offers investors a balanced exposure to six of the most popular cryptocurrencies currently available. As well as popular cryptos Bitcoin and Ethereum, both available to trade individually on the eToro platform, you will now be able to gain exposure to DASH, LiteCoin, Ripple and Ethereum Classic via the copyportfolio as well.

To be included, a cryptocurrency needs to have a minimum market cap of $1 billion and a minimum average monthly trading volume of $20 million. The weight of the cryptocurrencies in the copyportfolio is based on market cap, with a minimum of 5%. If one of the cryptocurrencies market cap falls below $1 billion or their monthly trading volume drops below $20 million, they will be excluded from the copyportfolio.

The Crypto copyportfolio is regularly analysed and automatically rebalanced by eToro’s investment committee on the first trading day of each month.

The minimum investment in this Crypto copyportfolio, as well as eToro’s other copyportfolio, is $5,000. There is however a daily limit set on how much can be newly invested in the copyportfolio. When this limit is reached, it will be closed for new investors, but re-opened the next day. You can, however, close your investment in the Crypto copyportfolio at any time during trading hours.

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Please don’t confuse this with a traditional professionally managed asset fund. The eToro Crypto copyportfolio follows a strategy (in the case going long on cryptocurrencies) and when you invest you’re basically copying this strategy.

What Yoni Assia, Co-founder and CEO of eToro, said:

2020 has been a defining year for cryptocurrencies. The global market has now topped $100 billion and the last few months alone have seen an influx of new cryptos entering the space.

We believe that $100B is a milestone on the way to a Trillion USD market cap and that a good strategy to capture this growth is by simply investing in the top billion dollar cryptocurrencies on a market cap weighted average.

As the popularity of the market grows, and more investors are learning about its potential, we want to ensure that our clients have as much access to it as possible. Investing in the top cryptocurrencies is an extremely complex process today, it requires technical, security and risk management knowledge to buy and hold these new digital assets, at eToro we are simplifying this process to a click of a button.

This copyportfolio is the first of its kind globally providing investors access to the world’s biggest digital currencies in one innovative portfolio. For those who believe in the technology’s potential, this is an opportunity to invest in a straightforward and simple way.

eToro’s Crypto Copyportfolio – Our Opinion

Unless you’ve been living on a deserted island over the past 6 months you’ll have become aware of the exponential rise in the value of cryptocurrencies. Where over the past few years only early speculators invested in them, these days many retail investors are jumping on the bandwagon.

Hence it’s almost a surprise that it’s taken this long for eToro to add CryptoCurrencies to their copyportfolio. I like the idea and concept and see the following key benefits:

  • simplicity of transaction process
  • diversification
  • reduced risk

The simplicity of the transaction process

Anyone who’s tried to purchase Bitcoin or any of the other cryptocurrencies will know that the process isn’t simple and can be very confusing. To start with, you need to find a crypto exchange that you trust. The registration process can take days to weeks (I’m still in a queue for one particular crypto exchange for over a month). You also need to decide where and how to store your digital wallet. And when it comes to selling your coins there’s been plenty of stories of exchanges being hacked and/or suspending trading for hours or days. If you’re concerned about the legitimacy of eToro, we discuss it in-depth in our eToro Scam Guide.

If you already have a funded eToro account, it takes less than a minute to invest in their Crypto copyportfolio. Opening an eToro account is also straightforward and quick (the only reservation being that they don’t accept customers from the US).

If you want to close your position you can also do this instantly during trading hours.

Diversification

If you think that buying and managing one cryptocurrency is a complex process, try doing this for 6.

eToro’s Crypto copyportfolio gives you direct access to a balanced portfolio of the major cryptocurrencies AND automatically rebalances the portfolio each month. In addition, if new cryptocurrencies become popular (i.e. market cap reaches $1 billion) they’ll be added automatically (and hence become part of your investment portfolio).

In addition, while cryptocurrencies tend to move in the same direction, there are some significant differences in their individual gains over the past year. Unless you have a magic crystal ball, it’s impossible to predict the next big winner (or loser), so the diversified portfolio should, in the long run, increase the chance to benefit from the exceptional winner(s).

Reduced Risk

Bitcoin wallets can be lost, just look at the story of James Howells, who’s hard drive with over $8 million worth of bitcoins is in a Newport landfill site. When you invest with eToro on the other hand, you’re not buying any actual assets but CDFs (contract for difference). They move with the values of the underlying asset. Your actual money and risk just sit with eToro, one of the world’s leading social investing platforms.

While no one can guarantee the future of any company, eToro has been trading for over 6 years and no stories so far of cyberhacks or attacks. On the other hand, as recently as 2 weeks ago, major bitcoin exchanges were hit by cyberattacks as record rally makes them a target while 45% of bitcoin exchanges end up closing according to WIRED UK.

The eToro Crypto copyportfolio’s diversification also means that if one cryptocurrency would fail, you don’t lose your full investment.

The eToro copyportfolio’s minimum investment amount of $5,000 may turn some people of (though consider that at the time of writing this buying one Bitcoin would cost you already $2,787 as well). However, it’s worth noting that you can trade Bitcoin and Ethereum individually on eToro as well (in much smaller amounts) or copy some of their popular expert traders like Liam Davies or Jay Smith (click to open their latest stats) whose portfolios have performed very well, focussing on cryptocurrency.

Never EVER think that because cryptocurrencies have gone up in recent years that this trend will continue. In fact, their values can be highly volatile, as is the value of the eToro Crypto copyportfolio as the graph below demonstrates (click here to view today’s chart).

Within a period of less than 2 months you could have made a profit of 10% or loss of 30% (FYI the copyportfolio officially launched on July 12th).

In any case opinions will vary so feel free to leave yours.

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. 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. 75% 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. Past performance is not an indication of future results. Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

FXDailyReport.Com

eToro, one of top bitcoin forex brokers and investing social network, is today announcing the launch of its Crypto CopyFund, which offers investors exposure to six of the most popular cryptocurrencies currently available. This comes as eToro sees demand for cryptocurrency trading grow four-fold in just 12 months, as the global market cap of cryptocurrencies reaches over $100bn.

As well as popular assets Bitcoin and Ethereum – both available individually on the platform – investors will now be able to gain exposure to DASH, LiteCoin, Ripple and Ethereum Classic via the CopyFund.

The portfolio, which is regularly analysed and automatically rebalanced once a month by eToro’s investment committee, will offer investors a diversified portfolio weighted according to market cap size.

Yoni Assia, Co-founder and CEO of eToro, said:

“2020 has been a defining year for cryptocurrencies. The global market has now topped $100 billion and the last few months alone have seen an influx of new cryptos entering the space.

“We believe that $100B is a milestone on the way to a Trillion USD market cap, and that a good strategy to capture this growth is by simply investing in the top billion dollar cryptocurrencies on a market cap weighted average.

“As the popularity of the market grows, and more investors are learning about its potential, we want to ensure that our clients have as much access to it as possible. Investing in the top cryptocurrencies is an extremely complex process today, it requires technical, security and risk management knowledge to buy and hold these new digital assets, at eToro we are simplifying this process to a click of a button.

“This CopyFund is the first of its kind globally providing investors access to the world’s biggest digital currencies in one innovative portfolio. For those who believe in the technology’s potential, this is an opportunity to invest in a straightforward and simple way.”

eToro CopyFunds enable you to invest in predefined market strategies whilst taking advantage of the wisdom of the crowd. Top Trader CopyFunds and Market CopyFunds give investors access to the top performing strategies from eToro’s global community of investors. They are designed to help investors minimise long-term risk and to promote opportunities for growth by creating diversified investments.

On eToro, users can also trade individual cryptocurrencies, focusing on Bitcoin and Ethereum. Additionally eToro users can copy the trading strategies of cryptocurrency experts, such as Liam Davies, Alex Plesk and Jay Smith who has returned 171% over the last 12 months and is now copied by over $2m on the platform.

eToro now has dozens of CopyFunds available, all with a minimum investment of $5,000.

About eToro

eToro is a leading online trading and investing community. The award-winning platform connects you with a global, growing network of 6 million users, with expertise in everything from short-term trading in Bitcoin to long-term investing in bank stocks. Learn from and copy the best investment strategies and become a leading trader yourself. eToro is the next-generation hub for traders and investors of all shapes and sizes.

Investment products offered by eToro are contracts for differences (CFDs) in currencies, stocks, commodities, indices and exchange traded funds (ETFs). These products carry a high degree of risk and are not suitable for many investors.

If the market moves against you, you may sustain a total loss greater than the funds invested in a specific position. You are responsible for all losses on your account up to the equity in your account.

*All trading involves risk. Only risk capital you’re prepared to lose. Past performance is not an indication of future results. Trading history presented is less than 5 years and may not suffice as basis for investment decision. This is not investment advice.

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