Bitcoin is becoming more and more popular as days go by. In 2017 it made headline news because its value became $20,000 per coin and a lot of investors wanted to invest in it. Today, the value of it is not that high, but people still want it because a lot of analysts says that its value will go higher than $20,000.
There are a lot of trading platforms available if you want to trade in bitcoin, but for me, one platform stands out in trading online and that is eToro.
Back then, eToro forex trading would not let you buy a Bitcoin directly on the platform, but today, it has opened its doors to buying cryptocurrency on the digital wallet. This is good news for all those who want to buy a bitcoin because you can buy by just using your coin. Now, let’s discuss what eToro is, how it works and how to sign up.
What is Social Trade
eToro is a social trading platform that lets you trade different commodities and currencies. It’s called a social trading platform because it lets you interact with other traders in eToro just like what you do in social media platforms.
You can trade in traditional currencies that are used on the trading floor, cryptocurrencies like bitcoin, CFD’s, and commodities like gold, silver, oil, copper, natural gas, and platinum. The features are very suited for beginner traders and professional traders. It’s very straightforward and easy to navigate.
This platform was launched back in 2006 in Tel Aviv, Israel. Today, they are registered with different trading regulations and are available all over the world. Millions of active users are now using eToro because of their unique features.
What Are the Special Features of eToro?
eToro can be used by people who have not traded before or people who are trading but don’t know what they are doing. There are a lot of features that eToro have that helps new traders get started and eventually become trading professionals.
eToro trade will let you do practice trading and will let you build your confidence in trading without using any of your capital. It has a practice trading feature that you can use for free after you have signed up so you will know how trading works and so that you will have the “feel” of trading. This feature can be found on your dashboard and says “practice trading.” Later, if you are ready to trade, you can use the “trade for real” toggle on your dashboard.
When you use the practice trading feature of eToro forex trading, it will allow you to have $100,000 imaginary money and will let you practice trade with whatever niche that will suit you. After that, you can get back to your live account immediately and start trading.
Aside from the practice trade feature of eToro, you can also access a lot of educational material on it. You will be given access to videos, webinars, step-by-step tutorials, content with tips on how to understand the world of trading. There are also discussions that you can join if you have any questions on the eToro forums. This is a very important feature for newbie traders that are hungry to know more about the different trading techniques.
eToro Copy Feature
This is the best feature of eToro and is the first of its type. The copy feature allows newbie traders to copy professional traders that they like. When you use the copy feature of the eToro forex trading, it will allow you to copy the trading patterns of the professional trader.
2 Types of the copy feature of eToro:
1. Top Trader Copy Funds – this copy feature will display the best performing and the most experienced traders.
2. Market Copy Funds – this copy feature will combine all the CFD’s, ETFs, commodities, and others in a particular market strategy.
This will allow newbie traders to minimize the risk that they are taking in investing their capital and at the same time encourage growth opportunities which is way different than when you are trading on the actual trading floor.
How To Use The Copy Feature of eToro
1. First, sign-up for eToro and fill up your profile. After that, you should choose the Copy Fund that will fit the strategy you will need or have in mind. In this case, you should choose cryptocurrency.
2. Input the amount that you want to invest by clicking on the “invest” button.
3. You will then have a portfolio that is generated and managed by the eToro investment committee. Each copy fund’s performance is analyzed regularly to make sure that the full potential of the feature is maximized by the user.
Remember that every trading has a risk and there is no guarantee that you will not lose your money in trading, but using the copy feature of eToro trade will reduce your risk of losing your capital and improve your chance of gaining profit.
Signing Up and Security of eToro
We all know that there are a lot of scammers online that will make us wary of making an investment. You do not have to worry about this with eToro because they are compliant with the different regulations around the world.
Signing up with eToro is pretty easy. In order to open a basic account, all you need to do is fill in your name, email, and password. After that, you can use the practice feature of eToro and you will have access to all the information about trading including the training webinars, live videos, and other materials that will help you gain knowledge about the trading world.
After that, if you will decide to start trading, and make a deposit you will need to go through a verification process. You will be asked to provide a copy of your government issued ID, a utility bill, and other information that may be related to your income. This will allow eToro to check if the user is a responsible citizen and at the same time be compliant with AML, KYC and other requirements that are needed by CySec and FCA.
I know it’s a hassle to go through all of this process, but providing these information means that the other traders on the platform are compliant with the same requirements making sure that you are in good hands if you are going to do copy trade. It also means that eToro forex trading is very reliable and your capital is safe. Don’t worry about security breach with eToro because all your information on their system is encrypted and they are within the standards of the authorities that regulate and monitor them.
Types of Trading in eToro
• Regular Trading – this is the easiest way of trading in eTorr forex trading because you will trade only what you have. If you have the initial minimum capital of $200 in your account, then you can only trade with only $200 worth of Bitcoin and you will get that $200 plus the profit that you have made over time if you choose to. It’s very straightforward and simple.
• Leverage Trade – this term is very familiar with traders who have done forex trading before. This is used by companies and investors to increase profits significantly. This feature will allow you to trade without investing the full amount of money that you have on your digital wallet. An example of this is if you want to trade 1 bitcoin with 2 bitcoins so you use leverage trading to borrow one coin for your trade. After that, you would have to repay the missing coin plus a small fee after the trade is sealed. If you lose, eToro will automatically stop trading before losing that 1 bitcoin which is your asset. This type of trading is not recommended for newbie traders. You would have to learn the ins and outs of leverage trading first before you give it a go.
Positions on eToro
When you start trading on eToro it will let you choose if you want to trade with a long or short position. What does this mean?
In long positions, you can profit on price rises while you can also profit when the price falls if you choose the short position. If you are a bitcoin trader, this is an advantage because the value rises and falls drastically at times. If you are in a long position, you can invest when the value is at the bottom and close your trade when it reaches the top value.
Bitcoin trade is not a complicated process if you use eToro when trading bitcoin. The features like practice trade, copy trading and the social feature of eToro are enough to help you become a professional trader over time. All the training materials and assistance are also there to help you get started in trading. You don’t have to purchase trading classes or do a lot of research about trading because everything is provided on the eToro trade platform. Since bitcoin is an exciting commodity to trade why not try opening an account with eToro, try the demo feature and start trading. Maybe in just a few months, you will become a professional trader in eToro.