Would you like to buy some Bitcoin, Ethereum or maybe Ripple? At eToro you can trade with some of the most popular and famous cryptocurrencies. But, is it a good platform for the purpose?
If you have read some eToro reviews already, then you know the most important thing about it already. At eToro, you do not actually own cryptocurrencies, you only trade with the values of the cryptocurrencies. This is a perfect solution if you only intend to trade in order to make money, but if you want to actually own a Bitcoin. Ethereum, Litecoin Bitcoin Cash, Ripple, or maybe Ethereum Classic, then you need to register at a real cryptocurrency exchange instead.
As you visit eToro, you can see a list of the different cryptocurrencies available. But, you can not only sell and buy cryptocurrencies, you can also get involved in the normal stock market. This makes eToro a platform suitable for all sorts of traders.
If you look at the image above, you will see that there is a big difference between the sell and buy price. This is one of the big minuses with eToro, especially if you compare with a traditional crypto exchange. Take a look at the picture beneath from Binance where you can see the difference between buy and sell is only around 1 Dollar, while it is almost 150 Dollar on eToro.
The difference between sell-price and buy-price makes it (almost) impossible to do day trading at eToro. The difference, which is almost 150 Dollar, is simply too big. But, for a long time investment, this can work out. Since the crypto-market is very volatile, you might do some short time trading still at eToro, but this is first of all ideal if you plan on doing long time investments.
The advantages of buying cryptocurrencies at eToro
Have you ever tried buying cryptocurrencies with PayPal? It is a nightmare! Since PayPal has buyer protection to protect their customers, no people want to sell cryptos to PayPal users, simply because they might claim their money back later. So, buying cryptocurrencies with PayPal is a nightmare. But, you can buy cryptocurrencies at eToro using PayPal. Do you know why? Because you only trade with the values, not with the actual tokens. As a result, you do not own any real values as you use your PayPal money on eToro. This is a major advantage with eToro, making it very quick and easy. And yes, it is easy to get started at eToro!
You can sign up and make your buy your first stocks or crypto’s in a few minutes from now. They will need to receive official papers from you to check up on your identity, but you have a couple of days at fixing this, so no hurry.
Another cool function at eToro is the ability to copy the funds of someone else. If you have a friend who says he makes a lot of money at eToro, why not copy his funds and invest in the same stuff as him? This can be made automatically if you use the CopyFund function.
eToro makes it easy for you to send your money back to your bank account once you are done with trading. Whenever you want to take out some profit, eToro has good solutions for sending the money to your bank account, something that is very important if you want to move your money from the eToro website to your real bank account.
The disadvantages of eToro
I have already written about this, but the big difference between the selling price and the buying price is a minus. It makes it much harder to get a quick profit. If you consider the example above, the difference between the buying and the selling price is more than 1,5%. With other cryptocurrencies, the spread between sales price and buying price can be much more (around 3%). That is a lot in a world where you annual interest in a normal bank is around 1%, but in the crypto world, it isn’t that much. But, it is still too much for someone who wants to do day trading.
It is a disadvantage that you do not own the actual cryptocurrencies you buy. But, for those who just want to make money, this isn’t really that much of a problem.
Do you want to give eToro a try?
Would you like to give eToro a try to make up your own mind and thoughts? Visit the eToro website right now and get started.
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