eToro is now one of the most popular platforms for trading in assets. The trade in cryptocurrencies has been greatly expanded in recent years. Today, we will show you step by step instructions on how to trade Ethereum on eToro . First, step is to open an account on the eToro platform.
Set up account and deposit money
The registration process is very simple. After specifying some data, including phone number and e-mail, which you can confirm immediately, you have access to the functionalities of the platform. On the main page you will find the “Deposit money” button at the bottom.
Of course, before you can buy Ethereum , you have to deposit money. There are different possibilities for this. The first deposit may not be less than the minimum amount of $200. All other payments have a minimum deposit of $50.
If the information is proper, then you can switch to the cryptocurrency portal by clicking on “Markets” and then on “Crypto”. There you will see a list of the largest and best-known cryptocurrencies (currently 16 in number). Simply click Ethereum and the following window will open.
Here you can choose whether you want to buy the cheapest sale immediately or whether you don’t want to pay more than a certain amount. In our example, the Ethereum rate is $184.81 and we do not pay more than $190. We’ve decided to invest $ 1,000. Let’s say there are just 5.5 ETH for $ 184 and the next higher offer is 20 ETH for $190. If we buy immediately (trade), all 5.5 ETH will be bought for $184 and another 1.465 ETH for $190. For one job, as in our case, all 5.5 ETH are bought for $184 and then waited until somebody else offers ether for less than or equal to the set $190.
The Units button alternates between the dollar and the cryptocurrency. If you click on Units button, it will show how many ETHs you get for $ 1,000 at the current price (trade) or for the set limit price (order).
The stop loss button indicates how much you are willing to lose. If you are not lucky, the position will be closed automatically and you will also lose the displayed amount. In our case, the position is closed when it drops to $1000- $314 = $686. The stop loss for eToro must not be less than 25% of the invested money. Assuming our position grows to $ 1,800, the stop loss is $1800- $ -314 = $ 1,486. So in our example, it’s always $314 lower than the highest value we will ever achieve in our position.
The “Take Profit”, indicates at which profit the item should be closed automatically. In our example, $1500. So if the Ethereum price rises 20%, which is $220.8, the position will be closed.
Matching to the theme:
eToro is a multi-asset platform offering equity and cryptocurrency investments and CFD trading.
CFDs are complex financial instruments. Because of the leverage they carry a high risk of losing money quickly. 66% of private investor accounts lose money when trading CFDs with this provider. Please note that you should be informed in advance about the risks of CFD trading as high losses can not be ruled out.
Cryptocurrencies are unregulated and their prices can vary widely. Therefore, cryptocurrencies are not suitable for all investors. The trading of cryptocurrencies is not subject to any supervision by the EU regulatory authorities. Your capital is exposed to risks.
These notes are for educational purposes only and should not be construed as investment advice
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.