There are two main ways eToro’s 10 million+ users can gain investment exposure to the exciting world of cryptocurrencies: you can either buy any of our 12 types of cryptoassets directly on the platform, or trade against their prices in our markets (plus take advantage of crypto crosses, such as ethereum vs bitcoin). To better understand your options, we have outlined the differences between the two approaches, as well as the advantages of each. After all, as we say at eToro: “Crypto needn’t be cryptic.”
Trading Cryptoasset Prices Using CFDs
Over five years ago, in 2013, eToro took its first foray into crypto trading when we launched our bitcoin market. Here you can open and close positions on the price of bitcoin via a Contract For Difference (CFD) just like you can with our currency or forex markets, equities markets, and other asset classes. Simply put, a CFD is a form of derivative trading. CFD trading enables investors to take a position on a range of financial instruments without owning the underlying asset, and is exempt from stamp duty (though not free of all tax). The main feature is being able to go long or short with leverage.
Those who use CFDs can also benefit from “leveraging”, as mentioned above. This is the ability to increase the potential profits you can make against the initial outlay, in exchange for increasing the risk. Therefore there is a potential for bigger losses. This feature can make CFDs particularly appealing for short-term traders.
You can now trade many other cryptoassets on eToro in the same way you can bitcoin. However, the only users who can trade CFD leverage positions are our platinum clients. We have CFD markets for all 12 of the cryptos we currently offer – including for ethereum, XRP, stellar, NEO, ethereum classic, dash, and litecoin. (A CFD position for other cryptos only exists as a short / sell option or buy position with a leverage of 1:2). We’ll be looking to add more to our crypto category as the industry continues to grow.
Additionally, you can follow the best-performing crypto traders on eToro and copy their trades. Further, it should be noted that on 1 August 2018 the new rulings about CFDs, as outlined by the European Securities and Markets Authority (ESMA) – Europe’s markets watchdog – came into force. The ESMA measures are designed to protect less experienced investors from incurring heavy losses on complex financial instruments; now, with Negative Balance Protection, investors using CFDs cannot lose more than they have invested. This is an element that was already offered by eToro.
Since launching the bitcoin market in 2013 eToro has dedicated a vast amount of time and effort to expanding our cryptoasset trading capabilities. We have quickly acted on customers’ requests to have the ability to actually buy and sell world-leading cryptoassets, as well as trade against their valuations. As of September 2017 users have been able to purchase all cryptoassets outright, directly from the eToro platform. And in early 2018 we offered to convert customers’ positions from CFD to the underlying asset.
A key difference with buying the assets, as opposed to trading CFDs, is that you will own the coin, token, or asset – you are not just trading against its fluctuations in price. This means, once eToro has launched this capability, users will be able to transfer certain assets to an online wallet or ledger hard drive, exchange it for other cryptos, or even use it to pay for goods and services.
When you purchase coins on eToro you will benefit from all the usual high-quality security and technical infrastructure that is applied across the platform. This includes robust identification checks and fast online verification.
In terms of storage, when you buy cryptos on eToro, we hold them for you in our cold storage (offline) facilities – therefore it is not something you need to worry about. And soon eToro will be offering a digital wallet to facilitate the movement of cryptocurrencies both in and out of the platform.
However, it’s important to note that the trading features we have across our CFD markets will not apply. For example, you can’t set a stop-loss or take-profit limit and look to sell your coins when its price reaches a certain point automatically.
There is no leverage, either, using this approach. This is one of the reasons that short-term traders looking to make quick profits may prefer the CFD markets, while longer-term investors could want to own the actual coins.
It’s important to make clear that if a user either adds leverage to his or her crypto position – i.e. 2:1 (though, again, only platinum clients can use this facility through bitcoin, ethereum, stellar and EOS) – or short sells, that is a CFD. Otherwise, you will automatically buy the crypto outright.
Additionally, you can invest in the eToro Crypto CopyPortfolio, which is effectively a portfolio of real cryptocurrencies combined in one investment strategy.
Here’s a list of the current list of cryptoassets you can trade on eToro: bitcoin, ethereum, XRP, bitcoin cash, EOS, litecoin, stellar, cardano, ethereum classic, dash, iota, and NEO.
In Summary: Two Ways To Trade Cryptoassets On eToro
Crypto CFD markets
Do I actually own the investment asset?
Can I use leverage to increase my potential profits?
Yes – X2 leverage available for bitcoin and ethereum, as well as EOS and XLM
Can I use the eToro take-profits feature?
Can I use stop-loss?
Can I transfer my CFD positions to coin purchases?
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Cryptocurrencies can fluctuate widely in prices and are therefore not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. The content is intended for information and educational purposes only and should not be considered investment advice or an investment recommendation. Your capital is at risk.
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…
XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata
Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //
The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.
As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021.
“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.
He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”
Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”
Mr. Yamagata has been…
My Crypto Heroes Announces Issuance of MCH Governance Token
Tokyo, Japan, 24th November, 2020, // ChainWire //
My Crypto Heroes is happy to announce the issuance of MCH Coin as an incentive to players in the My Crypto Heroes ecosystem, aiming to allow them to craft a “User-oriented world”. The MCH coin is available on Uniswap with a newly created pool with ETH.
My Crypto Heroes is a blockchain-based game for PC and Mobile. It allows users to collect historic heroes and raise them for battle in a Crypto World. Officially released on November 30th, 2018, MCH has recorded the most transactions and daily active users than any other blockchain game in the world.
What is MCH Coin?
MCH Coin is being issued as an ERC-20 Standard Governance Token. The issuance began on November 9th, 2020, with 50 million tokens issued.
Of the funds issued, 40% are allocated to a pay for on-going development and as rewards for advisors and early investors. 10% are allocated to marketing and the growth of the ecosystem, and 50% are allocated to the community. The Distribution Ratio of the MCH Coin is subject to change via a governance decision.
The MCH coin will be used as a voting right as part of the ecosystem’s governance, with 1 coin being 1 vote. It will also be used for in-game utilities and payments. Additional information can be found here:
During December 2020 the first governance…