Ethereum

Written by Mike Druttman

Fact checked by Nick Zelver

Updated Nov, 2024

First Glance

Ethereum stands out in the cryptocurrency world due to its flexibility and programmability, setting it apart from others like Bitcoin. Its capability to efficiently verify transactions, contracts, and payments has established it as one of the leading cryptocurrencies in market capitalization. Excitingly, eToro, the renowned online investment platform, now offers the opportunity to invest in Ethereum. For those eager to delve into this investment, I have prepared a comprehensive guide. In this guide, I'll share my personal insights, which could prove beneficial as you consider investing in this intriguing asset.

Why I Prefer Trading Ethereum on eToro

My experience trading Ethereum on eToro has revealed several advantages that enhance the trading process:

• Simple and User-Friendly Interface: The platform's design is intuitive, making navigation and trading operations straightforward, even for beginners.
• Low Minimum Investment: With eToro, you can start investing in Ethereum with as little as $10, making it accessible to a wide range of investors.
• eToro Wallet Transfers: The option to transfer cryptocurrencies directly to my eToro wallet adds a layer of convenience and security to my investments.
• Copy Trading Feature: eToro allows the unique opportunity to copy the trades of successful Ethereum traders, providing a learning curve and potential investment strategies for new traders.
• Leverage Trading: This feature enables me to open larger trading positions while committing a smaller amount of capital. However, it's important to note that leverage limits vary based on your country of residence. Additionally, using leverage means you'll be trading crypto CFDs, not the actual cryptocurrency.

Exploring the Ethereum Asset Page on the Platform

When you visit the Ethereum asset page on the platform, you're initially greeted by the 'Overview' section. This default section neatly organizes various elements to provide a comprehensive view of Ethereum as an investment option:

• Graph: This basic graph displays the Ethereum asset's performance, showcasing key figures like market cap, day's range, and 52-week range. For a more in-depth analysis, there's an advanced graph available in another tab.
• About: Here, you'll find a brief description of the Ethereum asset, offering a quick understanding of its nature and significance.
• Latest News: Stay updated with the latest developments related to Ethereum, with news curated by CityFALCON.
• People Also Bought: This section highlights other popular assets that traders are currently investing in, offering insights into market trends.
• Copy Ethereum Investors: Discover the top-performing traders who have invested in Ethereum. By clicking the "Copy" button next to a trader's profile, you can easily navigate to the copy trading window and mirror their investment strategies.
• Discussions: Engage in the vibrant community discussions about Ethereum. This section is akin to social media platforms like Facebook and Twitter, where you can filter conversations to view either top discussions or all discussions. You also have the option to like, comment on, or share posts in your feed.

Useful Crypto Trading Tools on the Platform

During my time trading Ethereum and other indices on the platform, I was particularly impressed by the seamless integration of their trading tools into the interface. This integration means there's no need to switch between different apps or screens, enhancing the trading experience. Here's a breakdown of the tools I found most useful:

Chart: This is the advanced Ethereum live chart I previously mentioned. It's highly configurable, allowing you to view price gaps ranging from 1 minute to 1 week. This feature provides a detailed and customizable view of Ethereum's market movements.

Analysis: This section is crucial for obtaining technical analysis based on market analysts' consensus. It includes:

• Aggregate Buy, Sell, and Hold Signals: A graph showing these signals, derived from the most commonly used technical indicators, offers a quick snapshot of the market's current state.
• Technical Indicators: This subsection provides a live preview of various signals, which are calculations based on price and volume. These indicators are essential for understanding market direction.
• Latest Research: Exclusively available to registered and verified eToro users with a funded account, this section offers valuable insights and research. I strongly recommend utilizing this resource for informed trading decisions. 

The Process of Buying Ethereum on eToro

To purchase Ethereum on eToro, follow these straightforward steps:

• Search for Ethereum: Locate the Ethereum asset on the platform.
• Initiate the Trade: Click on the "Trade" button.
• Enter Investment Amount: Specify how much you wish to invest in Ethereum.
• Execute the Trade: Complete the transaction to buy the cryptocurrency.

By using this method, you are acquiring actual Ethereum cryptocurrency, not a derivative or representation.

Trading Ethereum via CFDs on eToro

CFD (Contract for Differences) trading offers a unique approach to engage with the eToro crypto market. Here’s why I find it appealing:

• Speculative Trading: CFDs allow you to speculate on the price movements of Ethereum without owning the actual asset.
• Gains from Price Fluctuations: You can potentially profit from both rising and falling market prices.
• ROI Potential: Effective trading can lead to a Return on Investment, contingent upon the accuracy of your market direction prediction.
• Accessibility: Note that CFD trading may not be available in some countries.

The process of CFD trading on Ethereum involves:

1. Finding the Asset: Search for Ethereum as the underlying asset.
2. Initiating a CFD Trade: Click on "Trade".
3. Setting Investment and Parameters: Enter the amount you wish to invest and set your trading parameters, including leverage, stop loss, and take profit.
4. Executing the Trade: Complete the CFD transaction. 

Leveraging the CopyTrader Feature for Ethereum Investments

One of the standout features I've appreciated on the platform is the ability to emulate the investment strategies of seasoned crypto investors through the CopyTrader feature. Here's how I utilized it:

• Selecting a Trader: By using the platform's filters, I refined my search to find a suitable Ethereum trader.
• Investment Allocation: After choosing a trader, I decided on the amount I wanted to invest in their Ethereum trades.
• Initiating Copy Trading: With a simple click on the "Copy" button, I began to automatically mirror their trading positions.

Navigating Ethereum Investment on eToro: A Comprehensive Guide

In conclusion, this guide encapsulates everything you need to know about investing in Ethereum on eToro. The insights and tips provided here are applicable to both the web-based platform and the mobile app. Remember to use these strategies wisely in your crypto trading endeavors and enjoy the journey of exploring all that eToro has to offer in the realm of Ethereum investment.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% 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.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice.  The value of your investments may go up or down.  Your capital is at risk.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which hasbeen prepared by our partner utilizing publicly available non-entity specific information about eToro.