Investing in cryptocurrencies has captured the imagination of the mainstream.
The surge in Bitcoin prices last year got pulses racing, and investors see dollar signs in their dreams.
It’s hardly surprising that everyone wants in on some crypto action. But crypto assets is a tricky game.
Fortunately, eToro’s Crypto CopyFund provides you with the tools and the rule books to make investing in digital currencies more accessible and less risky – albeit arguably not as exciting!
With digital coins being launched at a rapid rate, it is difficult for investors to know which coins will make a tidy profit and which will fail.
To do that you either need a crystal ball or technology that protects your investment as the market changes.
Crystal balls are not reliable. eToro’s Crypto CopyFund is the better solution.
Who Is eToro And Can They Be Trusted?
The company was established in 2006, by brothers, Ronen and Yoni Assia together with partner David Ring.
Today, eToro is one of the most trusted cryptocurrency exchanges out there and brokerage around 850 cryptocurrencies for 5 million customers. The cryptocurrency exchange is particularly ideal for newcomers to crypto trading.
eToro provides an excellent educational program, a comprehensive trading platform and one of the largest communities of financial traders.
Accounts range from $50 to $1000, but they also have a free practice account users can trial before subscribing.
For more details, read our eToro Review.
What Is eToro’s Crypto CopyFund
The principle intention behind eToro’s Crypto CopyFund is to make it easier for online traders to have access to the broader cryptocurrency market and guidance from experts in the industry.
Each CopyFund is featured investment instruments compiled around an idea, theme, market or preset algorithm.
Unveiled in November 2016, the CopyFund is the first of its kind and presents anyone with interest in investing in cryptocurrencies to take a bite of the pie. As a financial instrument, the platform strengthen’s eToro’s status in securing a place among cutting-edge cryptocurrency exchanges.
The abundance of cryptocurrencies, together with the recent collapse of the market, has deterred people from investing in digital coins.
Furthermore, the complexities surrounding the technology make it difficult for investors to understand exactly what they are investing in.
These are issues eToro’s Crypto CopyFund addresses.
The platform provides investors with a secure way of investing in the market and is steered by the company’s investment committee who actively manage the CopyFund.
This can have pros and cons for subscribers.
For investors that prefer old-school methods of hiring a broker to handle their affairs will embrace CopyFund. If you’re confused by technology, you don’t need to make decisions.
However, if you intend to take an active interest in the digital currency game and don’t put your trust in financial “experts” you probably won’t be satisfied with eToro’s CopyFund.
So weigh up the pros and cons; eToro claim the CopyFund “offers a diversified and balanced portfolio focusing on cryptocurrencies with a market cap of at least $1 billion and an average daily trading volume of over $20m throughout the month.”
However, the daily investment amount is limited and determined on a first-come, first-served basis. This could hamper investors in the west that are almost half a day behind traders elsewhere in the world.
There are also subscription fees to consider and depending on the size of your investment, could significantly dip into your spending pot.
Investing in cryptocurrencies can be confusing, and with so many influences affecting the price of virtual coins, the entire shebang requires an all-around knowledge and an eagle eye to determine what may affect prices and which currencies to back or pull out of.
eToro’s CopyFund is managed by professional traders that have the time and experience to monitor the cryptocurrency market.
The system also uses a sophisticated algorithm which has specific indicators that tell experts where to allocate funds.
The CopyFund is also equipped with tools such as Panic Mode which alerts investors on the potential for market crashes so you can withdraw your funds and reallocate it to safe havens such as precious metals.
What Are The Options Of Trading On eToro
eToro currently offers four options in their Crypto CopyFund; Quarterly Gainers, Top Active Traders, Trending Traders Moderate Risk and Positive Copiers Trend.
Each fund is given projected gains together with the risk score.
These figures naturally change over time as the markets either stabilise or rock. The fund you choose will depend on what you are looking for from your investment.
Investors looking for low-risk funds and short-term gains should opt the Quarterly Gains package.
The fund follows 50 traders that have a record of consistently making profits quarter-on-quarter.
The fund is recalibrated every three months to include the best performing traders of the last 12 months and drop brokers that do not fit the standards set by the algorithm.
The gains are lower, but the risk of losing on your investment is significantly lower.
Top Active Traders
A good option for low-risk takers, but more prepared to take a gamble in return for higher gains.
The fund follows the same principles as the Quarterly Gain funds but includes brokers that occasionally make riskier trades.
Positive Copiers Trend CopyFund
Although this fund is slightly more risky than the previous two, the gains are better, and it does not rely on algorithms.
The fund’s market experts monitor trends in the eToro network and the broader field. Investments follow coins that are trending, but with a focus on tokens that show long-lasting signs.
Trending Traders Moderate Risk
Trends are useful to watch in the stock market, and this fund does precisely that – which is where eToro’s finance managers earn their corn. The Trending Traders fund is the riskiest of the four options, but of course, has the highest returns.
The danger with this option is if eToro’s committee gets duped into a pump and dump scam which the cryptocurrency market is prone to.
However, government regulation should put an end to that; at least in theory.
eToro´s Crypto CopyFunds have managed investment solutions which are supported by a digital community on hand to provide expert advice and personal experiences and to make investing in cryptocurrencies as easy as possible.
These insights are invaluable for any trading, and especially new ventures like cryptocurrency. For newbies, they are worth a pop to get you started