Looking to get into cryptocurrency trading? Well eToro is one of the worlds most popular trading platforms for cryptocurrency. In this post I'm going to break down how to get started trading bitcoin on eToro and what I believe is the smartest strategy.
I've been trading Cryptocurrencies on eToro for the past couple of years and have been using eToro for copy trading for many years before that. It's my favorite broker mainly because they have really powerful copy trading tools which are perfect for crypto trading:
Making winning trades on your own can be difficult and the sad reality is that most people end up losing money. But what if you could copy trades made by more experienced and profitable traders. Well now you can thanks to copy trading. Copytrading lets you automatically copy every trade made by other traders. When a trader opens a trade, your account will open the same trade. When they close that trade, your account will close it too.
On eToro you can copy thousands of traders who are more experienced and have had a profitable trading history. You can even browse through the trades they have made in the past and see how profitable they have been and how risky their trades are.
I think copy trading crypto is a great way to learn more about trading and invest in crypto at the same time.
To copytrade crytpos, just use eToro's filter tools to find traders who primarily trade cryptocurrencies.
66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Buy and Hold
Another good option is to simply buy and hold Bitcoin. Most people who try and profit from the rise and fall or cryptos end up losing money. Only the top traders are able to make money this way. So the best thing you can do is simply buy some and hodl it until the price rises.
On eToro you can open a long Bitcoin position and you won't be charged any fees. This means you can keep the position open for a long time.
To buy Bitcoin on eToro, just click the “buy” price and enter the amount you want to purchase. You can also set a take profit and stop loss. So if the price drops rapidly you can close the trade to preserve most of your capital.
You can also setup eToro to open a buy (or sell) order when the price hits a certain target. This is great for more experienced traders who have a trading strategy.
It is possible to short Bitcoin on eToro but I don't recommend this for most people. Shorting any asset is difficult and I believe shorting cryptocurrencies to be even more difficult. Only experienced traders should attempt this. So if you do believe the price of Bitcoin is going to fall, you can profit from that happening on eToro. Just remember that it's a risky move I wouldn't recommend it.
Practice Trading Bitcoin
eToro is free to join and all account holders get $100k in virtual money to practice trade with. So even if you're not ready to drop real on money on trading, you can still try your hand at practice trading. You can also use this money for Copy Trading. So if you like the sound of copy trading, but aren't sure how it works and how profitable it can be, you can try it out using virtual money.
You can get a free practice trading account here.