Etoro and Trading Crypto Currency

in #crypto7 years ago

I just wanted to throw up a quick post about Etoro and people using it to Trade Crypto.

People get lured in by the 'no fee' trading of Crypto when it comes to using the Etoro platform and they offer trading on projects such as: EOS, DASH, LTC, BTC, XRP, BCH, NEO, XLM, ETH and ETC.

Firstly, you need to understand that when you place a trade YOU DO NOT OWN THAT CRYPTO. You are simply trading with Etoro's liquidity, you cannot withdraw the crypto to your own wallet because you do not own it! You are simply trying to make $ gains when 'buying' or 'selling' the crypto.

This means you can go long or short on your trade since you do not own the actual asset.

Another thing to keep in mind is that the spreads are huge. This means that you are placing your trade at a price much higher than the listed price. For example if the price of Bitcoin is $10,000, Etoro might offer your bid at $10,364 (not actual amount - the actual amount offered on the spread varies).
In essence, your trade needs to see some good percentage gains before you even start making money.

This is great in a bull run, when we see massive gains in short spaces of time because you can place a feeless trade on a crypto asset and potentially get great returns, however, if you aren't in the middle of a bull run then you can get stung pretty hard.

Ill leave it up to you guys, it may be a good option for those who want to just try make a few bucks but be careful. I prefer to actually own my crypto asset but that isn't to say that people don't make great returns on Etoro because that is a real possibility. Much more likely in a silly bull run but still possible even in a normal or bear market. Just be aware that those spreads in a bear market will ruin you.