Dear Happy Investor, do you have an eToro investment account and want to start buying crypto? In this article we will give you inspiration on which crypto to buy at eToro. The fact is that cryptocurrencies are very risky. The long-term potential is interesting, but 95% (or more) of all crypto projects will not survive. On the other hand, due to the early and speculative nature, a small investment can lead to exponential returns.
Below you can read which crypto to buy at eToro from our experience. This is not buying advice, but inspiration so that you can make better choices about the risk. And be warned: more than 80% lose money. It is not suitable for beginners!
Why (not to) buy crypto at eToro
The subject of this article is about buying crypto at eToro as a beginner. Besides eToro, there are many other crypto brokers. eToro is not necessarily the best choice. For example, we buy our crypto via Bitvavo as they offer more crypto coins and lower commissions. And you can also compare eToro vs. NAGA or eToro vs. Binance. However, if you already have an eToro account for stocks and ETFs, then it might simply your investing approach.
Let us look at pro’s and con’s for buying crypto at eToro as a beginner.
- Besides crypto, eToro offers a huge range of assets such as stocks and ETFs
- eToro provides a platform that is user-friendly for every level of trader
- The broker provides education to invest in crypto as a beginners
- You can trade more than 30 – 40 cryptocurrencies
- Low account minimum of $10
- Free digital wallet options to store cryptocurrencies
- Copytrading opportunities with eToro
- The range of crypto is limited as other brokers are providing a wider range
- Fees are 1% which is higher in comparison to other crypto peer platforms
- Margin trading is not available if you are operating from the U.S (something you should avoid at all costs)
- Algorithmic trading strategies are not supported
What are the risks when buying crypto at eToro?
There are many major risks when buying crypto at eToro. The biggest risk is losing all your money. This is possible. Do not underestimate it. The crypto market is revolutionary, but it is also in its infancy. A disastrous crash is still a possibility. This is no different than with investing in stocks. But crypto is very volatile. The uncertainty is greater.
It is necessary to take risk measures when you are going to buy crypto at eToro (or any other broker). The most important one is this: invest only with money that you can lose 100%. This usually means very small amounts. Another important tip is to use max 5% of your total portfolio for buying crypto at eToro. For many novice investors, 3% should be the maximum. And for risk-averse investors, 0% is the best choice.
In addition to these two golden rules, it is important to spread risk. You do this by building a portfolio. Don't put all your money on one cryptocurrency. Spread your chances.
At eToro they offer the possibility to buy a crypto portfolio. If you invest in it, your money will be allocated to 15 – 30 crypto coins, depending on the portfolio. There are a few options. But be careful about the major risks.
Read more about the options for crypto portfolios at eToro.
Which crypto coins can I buy at eToro?
There are 30+ crypto coins available to buy at eToro. As a beginner, you have access to all of them. Hence you should be very carefull which crypto to buy at eToro. Research is very important. To help you a bit, we inspire you with 4 crypto coins that could be interesting to begin with.
They belong to the best crypto coins for long-term.
eToro crypto coin 1. Ethereum
Ethereum is a distributed blockchain network that is open source and simplifies smart contract scripting. Importantly, the platform enables developers to quickly create decentralised applications that run on blockchains. As a result, the platform has exposed the world to many new features and applications.
It's practically impossible to enter the crypto market without first hearing about Ethereum. This one-of-a-kind token contributed to the cryptospace's revolution. As a result, ETH is consistently ranked as the second most popular cryptocurrency by market capitalization. Notably, ETH's popularity in the crypto world is due to a variety of factors.
Dapps are next-generation programmes that are particularly built to operate in decentralised networks. Tor, Distributed Ledgers, and blockchain are examples of such networks. Dapps provide the world with a plethora of new opportunities. As a result, Dapps remain one of the blockchain sector's fastest-growing segments.
As Ethereum selects what upgrades to make in the future, it is important to recognise the platform's concrete positioning within the sector. It isn't easy to conceive a crypto market without Ethereum. Every month, Ethereum achieves its objectives as a secure Dapp launching platform. Nobody can predict which cryptocurrencies will survive the test of time, but if you had to choose two, Bitcoin and Ethereum would undoubtedly prevail. All this makes it our top pick once we can go for it as a long-term investment. Therefore, we consider Ethereum as a crypto currency to buy at eToro as a beginner.
eToro crypto coin 2. Polygon
Polygon, previously Matic, is a framework for developing Ethereum-compatible blockchain networks. Its whitepaper employs a phrase that properly sums up the project's quality to define Polygon's characteristics — "Built by Developers, for Developers."
The network layers are in charge of block generation, local consensus, and transaction collation. It is made up of several independent blockchain networks that serve its user base and community. The last layer, the Execution layer, is in charge of interpreting and executing transactions inside the Polygon network's blockchains. The Execution Layer is divided into two layers: the execution environment and the execution logic. The Execution environment is a virtual, plug-and-play machine implementation. For Polygon's networks, execution logic is defined in Ethereum smart contracts.
Polygon is a framework and a protocol that allows developers to design and link Ethereum-compatible blockchains. It is also simple to deploy, with one-click deployment and modules for developing bespoke blockchain networks. This functionality is quite beneficial for developers. Messages may also be equally exchanged between the Ethereum blockchain and other networks via the Polygon interoperability protocol. Polygon also offers adaptor modules to enable interoperability with existing blockchain networks. The features and use cases make it a new crypto coins with potential to buy at eToro. Note that potential is nice, but Polygon is not yet an established project. It remains to be seen how valuable the network really is.
eToro crypto coin 3. Solana
Solana (SOL) is a fourth-generation blockchain that uses an open infrastructure to increase scalability. This blockchain network employs a number of novel and innovative technologies to give users unrivalled transaction speeds and enterprise-level security. As a result, the network has grown significantly since its introduction in 2017.
Scalability issues continue to plague the crypto market. The early blockchain's reliance on the Proof-of-Work consensus mechanism caused serious congestion issues. Top currencies like Bitcoin and Ethereum were meant to increase transaction fees when network congestion rose. Sadly, this has caused major issues for both of these networks. Ethereum is presently flooded with new projects due to the recent rise in defi coins. Unfortunately, this congestion results in higher fees and longer transaction times for the average customer.
Solana avoids these issues by introducing systems that enable network transaction performance to scale proportionally to bandwidth. Bitcoin, for example, can handle seven transactions per second (tps), whereas Ethereum can handle roughly twelve. Solana is capable of 50,000 tps, according to developers.
Solana was among the best small crypto of 2021. From then on, it has become a potential network for fast online (crypto) payments. Therefore, it belongs to our list for crypto buying at eToro as a beginner.
eToro crypto coin 4. Decentraland (MANA)
Decentraland (MANA) is a play-to-earn real estate metaverse based on blockchain technology. Users may interact with other players in real time while exploring the 3D virtual world. The project's purpose is to enable users to purchase digital plots to develop their own micro-gaming experiences. The project has recently grown significantly as more people have been interested in the notion of metaverses.
A metaverse is a 3D world that is immersive and interactive and comprises other 3D worlds. In 2017, Decentraland was a simplistic 2D pixilated grid when it was launched. At the time, you could purchase a plot of land for as low as $20. Today, properties are selling for millions of dollars. One piece of real estate sold for $2.4 million this year. Fun game…
Decentraland really does have potential, but one has to watch out for the high risks. We suspect it is a nice crypto currency to buy at eToro as beginners. The demand for MANA will increase as long as the demand (for land) on the platform increases. However, it is and will remain a lot of speculation. If it collapses, you are left with a piece of worthless digital land. At least your feet will stay clean then....