eToro CryptoPortfolio (Crypto Smart Portfolios)
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The eToro CryptoPortfolio is the latest news from eToro, one of the absolute leaders in the world of Social Trading.
With the eToro Crypto Portfolio this broker has made investing in the best cryptocurrencies even easier.
Cryptocurrencies, which have been experiencing interesting (and often dizzying) gains in the last years, could not but attract the attention of the expert managers at eToro, who took the opportunity to create a dedicated CopyPortfolio.
77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
eToro CryptoPortfolio – eToro’s twenty-first CopyPortfolio
This has been the comment of Yoni Assia, co-founder and CEO of eToro, at the launch of the CryptoPortfolio:
“We’ve seen a growing number of customers looking for a simpler way to access to cryptocurrency investments in order to build a portfolio in the future. They asked us how to allocate their investments between the two largest cryptocurrency traded on eToro, so we launched an automated, rebalanced investment strategy to simplify their investments in this new interesting asset class.”
With the addition of this latest eToro Crypto Portfolio, we have now a total of 21 CopyPortfolios among which eToro investors can choose from.
Here is a complete list of the eToro CopyPortfolios and their operating logic.
Want to know even more about eToro? Then you should get comfortable and carefully read our eToro review, where you will find all the information you need about each features of this broker.
Are you a resident in America? Then you may be interested in reading our eToro USA guide instead.
How eToro Crypto Portfolio is composed
The eToro Crypto Portfolio is clearly a sectoral fund, dedicated specifically to the world of cryptocurrencies, and belongs to the eToro Market CopyPortfolios macro category. Started with positions on just two crypto coins, now it invests in:
- BitCoin
- Ethereum
- Dash
- Ripple
- LiteCoin
- Ethereum Classic
These digital currencies are those currently being considered by investors as the best digital coins for type of project, volume of exchanges and reputation.
The CryptoPortfolio invests on these criptocurrencies using a Tactical Asset Allocation approach, which aim to distribute the fund’s capital differently on each digital coins, mainly considering their volatility and their potential for growth. The evaluations on the possible appreciation or depreciation of the cryptocurrencies and their volatility are determined by the eToro team, which rebalances the fund every month.
The pros and cons of the CryptoPortfolio are those already mentioned in our eToro Copy Portfolios review, including the minimum deposit of € 5,000.00.
The fund is classified with a risk profile of 7 (you can read here to find out about the eToro risk profile). If we consider the scale ranges from 1 to 10, we can already understand that, with a 7, we are talking about a fund with high volatility (and indeed cryptocurrencies are very volatile).
How to gain with the eToro CryptoPortfolio
The CryptoPortfolio invests in highly volatile assets, which are well suited to short-term speculative investment logic.
Despite this, the type of management and allocation executed by the eToro team makes it more suitable for a medium/long term approach.
The question at this point could be:
Is it worthwhile to invest on these assets with a medium to long term time horizons?
The eToro platform is known to be very helpful when searching for information, in particular the opinions of other active and real traders.
In addition to searching on the web, you can make your own opinion by following what eToro experts say about the cryptocurrencies. You can sign up for free and access all the info even with an eToro demo account.
If we consider that …
- Up to a few years ago, these digital coins were known only in the deepweb
- that only today they are beginning to be known by the general public and to be used for payments from major portals like Amazon
- that for the characteristics of the algorithms that generate them, they will be available in a limited quantity (not all of them)
… then the answer is yes, the eToro CryptoPortfolio can be a very interesting medium-long term investment.
This is an investment that has a large margin of growth, which may well be worth investing some part of your capital.
But beware!
These are very volatile assets. So, on the one hand, the earning potential is good and interesting, on the other hand you have to be ready to climb the roller coaster!
The value of Bitcoin, the most famous cryptocurrency, from May to June 2017 passed from $ 1,700 to $ 3,000, about a + 76% in a month, and then fell to $ 1,800 in July, and rose again to $ 4,000 in August.
Well, that’s what I call roller coasters…
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. 77% 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.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
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 has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
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