Are you excited about the prospects of cryptocurrencies? Looking to invest in the sector as a whole? Well you now can. eToro recently added a bunch more cryptocurrencies to their Crypto CopyPortfolio.
When it was first launched, it only included Bitcoin and Ethereum. While this was a great start, I felt that it could be a bit more diverse. So this is great news.
What is a CopyPortfolio
A CopyPortfolio is an investment product offered by the social trading platform eToro. A CopyPortfolio invests in a number of underlying assets based on a specific trading strategy. The crypto copyportfolio’s strategy is fairly obvious – it’s going long on digital currencies.
The underlying assets are all CFDs – this makes it easier to buy and sell into the CopyPortfolio. In fact, you can do so pretty much instantly. The CopyPortfolio is rebalanced every month as well, to ensure that the funds ratios don’t get out a proportion.
What is in this CopyPortfolio
The two largest currencies in the portfolio are Bitcoin and Ripple. Ethereum and Ethereum classic and Litecoin and Dash. Ripple was the one surprise to me – It’s probably the popular currency that i’ve heard the least about. As of writing, Ripple (XRP) is worth around $0.19. So eToro may be thinking that there is plenty of room for it to double in value a few times over.
Why would you invest in this
This CopyPortfolio is for you if you believe in the technology and the potential that digital currencies offer. Many people believe there is still significant upside. Personally I think platforms like Ethereum could potentially be huge and we’re only just starting to realise the potential. Of course, this is just my opinion, and like all investments, you need to do your own research.
This is good news for Cryptocurrency
Cryptocurrency isn’t currently a mainstream investment and it’s still very much on the fringes. Products like this put these digital currencies in front of traditional investors and makes it much easier to invest in. It’s also seen as a less risky option compared to dealing with an exchange.
You can find out more about the Crypto CopyPortfolio here