Online trading and brokerage company eToro provides a number of 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 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 that makes it possible for any small retail investor to buy small bits of a stock. While bitcoin can be further divided into smaller sub-components such as a satoshi, a share 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 stock. Berkshire Hathaway Class A shares, for example, trade at $296,100. This price is too high for an everyday 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. 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.”
Wayne Ryan, an investor, having a following of over 27,000 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 straightforward to use. Users can view real-time charts of stocks and analyze them using technical parameters. The app also notifies if the price of a particular stock is nearing its resistance levels.
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