Written by Karen Bryan
The eToro social trading network, which launched in 2007, now has over 6 million registered users.
The benefits of a social trading platform are shared knowledge and communication between users, making eToro a more fun, transparent and social way of online trading.
The eToro platform recently won the Best of Show award at FinovateEurope 2017.
You can set your own Contract for Difference (CFD) on a variety of trades including the Dow Jones and NASDAQ, Exchange Traded Funds (ETFs), currencies or commodities.
If you are not that confident, or knowledgeable, about trading, there is the option to follow successful eToro investors. You can watch other users trading in real time to get a feel for their modus operandi. If you wish you can elect to automatically copy other users trades.
One of the most popular eToro investors is Jay Smith, known as Jaynemesis. Over the last 12 months Jay has turned a profit of over 85%.
Twenty eight year old Jay, a professional gamer, has played in many eSports tournaments e.g. the UK Masters. Jay’s success in eSports honed his skill in developing strategies to use in various fast moving situations. He reckons that these skills have been transferable to his eToro investing strategy.
Jay spends two to three hours a day trading on eToro. He focuses his trades on Cryptocurrencies such as Bitcoin and Ethereum, and tech stocks. He believes in trading in areas in which he is familiar. Jay enjoys joining in the online discussions and sharing his trading experiences with other eToro users.
When Jay first used Bitcoin in gaming, the price was around $12 for a coin. Now Bitcoin’s price is over $1,000 per coin.
I’ve never really understood much about Bitcoin, beyond that it is a digital currency which you hold electronically, so I did a bit of reading to find out more.
There are three ways in which you can obtain Bitcoins. They can be mined by solving complicated mathematical puzzles by computer, they can be transferred between two people, or purchased from a Bitcoin exchange.
On 11 March 2017, the United States Securities Exchange Commission (SEC) turned down an application to list the first ETF to track Bitcoin. Bitcoin’s price had increased to almost $1,300 prior to this decision, as it was anticipated that a successful application would increase the popularity and perceived stability of Bitcoin.
Denial of the application brought about a fall in Bitcoin’s price, which has since rebounded, but not to the high reached before the the application was rejected.
Investors like Jay see this as an opportunity to buy Bitcoins at a discounted price. Jay believes that Bitcoin’s decentralistion, annonymity, lack of transaction fees, ease of use and transparency is particularly appealing to countries affected by high inflation, currency controls and corruption.
Jay also trades in Etherium, a less well known Cyrptocurrency. The value of Etherium recently increased from $12 to $43 within a one month period. Jay has made a profit of over 100% trading in Etherium during the last twelve months.
As with all investments, you need to be aware that you can lose, as well as make, money on the eToro social trading platform.