eToro Ethereum trading has become increasingly popular as an alternative to Bitcoin.
~ 2 min read, updated Sep-18
Ethereum has become a main staple in any trading portfolio due to its high volatility, ie. large price movements. A the above image depicts, just in the last 6 months there has been a price downturn of 66%. These large price movements are a daily occurrence and can be sometimes unpredictable, however if you can read the markets and understand what influences this volatility, then you can take full advantage using eToro’s very intuitive trading platform.
Trading Ethereum vs Buying
Trading and buying Ethereum have advantages and disadvantages, please explore these below:
- Buying Ethereum at full market price can be expensive, whereas when you trade you don’t need to buy a whole Ethereum and can trade a % of, making it more affordable.
- When you buy Ethereum on an exchange, you will need a digital wallet (which adds to the complexities), whereas you don’t when trading.
- When trading Ethereum you can trade long (buy) and short (sell) to take advantage from rising and falling prices, whereas buying just means the price has to go up to make profit. If you started a sell trade 6 months ago, the price has fallen 66%, you could’ve made 66% profit. You cannot do this on an exchange.
- If you buy Ethereum on an exchange and the price goes down, you lose equity, whereas trading on the price falling, you can make profit.
- Trading is a lot cheaper than buying in terms of fees (check out the actual fees for Etoro Ethereum trading here)
eToro Ethereum Trading, so how do you do it?
Registering and depositing on eToro takes just a few minutes due to their easy to use and sophisticated systems. eToro is a CFD platform which stands for Contract for Difference. Basically meaning that you buy/ sell at the current price and the price difference is reflected in your P&L, depending if you went the right direction of the price. It’s very simple to put a trade on and there platform is incredibly intuitive. You can close the trade at any point, hopefully banking your profit.
eToro Ethereum trading is a lot simpler and cheaper than buying. However the key advantage is that you can trade on the price going down as well as up, unlike just buying, which you can only make profit when the price goes up.
I would recommend trying eToro, but 1st on a demo account so you can get used to the platform. Find out more on your eToro Demo account guide here or sign up below if you feel you’re ready for the challenge.
- US residents allowed
- FCA Regulated
- Copy Trading
- Mobile app
- Simple & friendly interface
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
Past performance is not an indication of future results.