eToro is one of the platforms that offer cryptocurrency trading services globally, allowing investors to take advantage of all the cryptocurrency market has to offer. Like many other crypto exchange platforms, eToro has a variety of products and services that are available to traders.
One of the most notable features offered by the eToro platform is the ability to invest in cryptocurrencies through a fund instead of investing in individual cryptocurrencies. This is similar to the investment opportunities provided by investment funds where money is invested in a group of assets.
The eToro crypto fund
eToro makes it possible through the eToro crypto fund which is a managed fund that was launched as a managed fund as one of its pioneer programs. The eToro crypto fund initially started off with two funds but has since then expanded and now includes Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), Dash (DASH), Ethereum Classic (ETC), and Ripple (XRP).
Investing in in the crypto fund vs individual assets
The cryptocurrency market is highly volatile which could be either a good thing or a bad thing. It is therefore important to create a strategic investment plan and that is what the investment platform has been providing to clients. Investing in individual cryptocurrency assets is riskier because it only focusses on one digital currency. This means it is easier to make big losses when single assets are involved.
The crypto fund, on the other hand, involves investing in a portfolio of cryptocurrency assets thus allowing the risk to be spread out. It is worth noting that there is still a lot of volatility involved but it is all about taking advantage of the volatility through medium-term to long-term investments which provide a wide growth margin. The fund is managed by highly skilled analysts and thus maximizes the investor?s returns. Investing on the platform is also easy because the investment pool is handled by managers.
The cryptocurrency market has experienced significant gains over the past one year. The eToro Crypto fund has enjoyed as much as 100 percent gains during that period which demonstrates just how lucrative such investment funds can be.
Disclaimer: Nothing in this article should be construed as financial advice in any way, nor as an encouragement to engage in cryptocurrency trading activity. This article was not sponsored by any entities or companies mentioned in the article. The only purpose of this article is to inform/educate on the topics discussed in the article.
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