The process of buying and selling Bitcoin or any other cryptocurrency on the eToro platform is easy to understand.
To begin the process, simply login to the overview page of the cryptocurrency you wish to trade and click on “Trade”:
Trade BTC on eToro.
Through the overview screen on each cryptocurrency, it is possible to access the Feed, Statistics, Charts and Financial Analysis options.
Using a platform like eToro has very clear advantages to those who do not want to go through the process of buying and storing cryptocurrencies. In addition, CFDs allow you to profit from any kind of price movement, be it up or down.
At eToro you can trade various asset classes from stocks, indices, forex, commodities, ETF’s and of course cryptocurrencies, there are 16 cryptocurrencies in total listed!
Available cryptocurrencies at eToro
Available cryptocurrencies at eToro.
EToro’s trading tools offer its traders several advantages, such as:
Simplicity of profit from rising or falling prices;
Ease of market entry.
Below, we will take you step by step to make it easier to understand the process of buying and selling eToro cryptocurrencies.
3.1 – How to Buy Bitcoin on eToro?
If you believe that the price of a particular cryptocurrency will increase, then you should open a buying position.
This is called “going long”. This way, you will benefit from a positive price movement of a cryptocurrency in the period that your position is open.
On the other hand, you will enter into a loss situation in case the price of the cryptocurrency in question decreases in value.
Opening a buy position at eToro
Opening a buy position on eToro.
When opening a position, you can also define several trading parameters:
Stop Loss: a stop loss, if you wish to defend yourself against an unfavourable price change: the position is automatically closed when it reaches the set amount;
Leverage: a part of the position that represents a credit given by the broker, which increases the potential profit but also the risk;
Take Profit: the amount of which you believe your profit is sufficient to close the position and therefore profit from your trade.
3.2 – How to Sell Bitcoin on eToro?
If you believe that the price of a particular cryptocurrency will go down, then you should open a sell position.
This is called “going short”. This is an advantage of eToro, which allows you to profit not only from positive market movements, but also from market declines.
If you believe that the price will fall, then you can profit by opening a short position.
In this way, you will benefit from the negative movement in the price of a cryptocurrency for as long as your position is open. On the other hand, you will lose if the price rises.
Opening a BTC Sell Position at eToro Broker
Opening a BTC Sell Position at eToro Broker.
This is why, at eToro, you can profit when the price of a cryptocurrency is going up and down.
This is particularly useful in this market where volatility is high and trends are fickle.
This is one of the advantages of this platform over most exchanges, such as Binance or Coinbase, where all the profit depends exclusively on the price increase.