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Prices are quoted in traditional currencies such as the US dollar, and you never take ownership of the cryptocurrency itself. Cryptocurrency markets are decentralised, which means they are not issued or backed by a central authority such as a government. However, cryptocurrencies can be bought and sold via exchanges and stored in ‘wallets’ . We also took into account platform availability, the number of cryptocurrencies available, and customer support options. For further information about our selection criteria and process, our complete methodology is available.
You’ll pay a markup of 75 basis points for Bitcoin, but more obscure cryptocurrencies can run closer to 500 basis points, or 5 percent. One major feature at eToro is CopyTrader, which allows you to follow and identify other top traders on the platform and copy their trades. Some experienced traders make a living just by trading digital currencies. However, trading cryptocurrency is also very risky and not suitable for everyone. Experienced traders typically use cryptocurrency trading bots to execute their strategies because they tirelessly follow complex trading plans faster and more reliably than a human ever could. Derivatives trading offers much more flexibility than simply buying and selling cryptocurrencies, but it’s also more complex and only suited to experienced traders.
The best way to trade crypto will be whatever suits your long- or short-term investment goals. This is one of the things that makes it attractive to traders, but it also makes it very risky. Double-digit intra-day price swings are common, and drastic shifts can happen in just minutes. Sandwiched between them is where you can click through to derivatives if this is offered in your country. It’s a completely separate market, where people trade futures contracts rather than Bitcoin itself.