Crypto CopyFund Review
eToro is one of the most popular social networking sites specifically for purposes of trading. Whether that be for forex, stocks, ETFs, indices or commodities, it is a platform that has created a formidable following of loyal clients. If you ask anyone who has used, or who is familiar with eToro, they will tell you that it is like “Facebook, but for trading”. These trading platforms are software that allows people to open, close and manage trades through market intermediaries. eToro and other platforms can more often than not, be built with some added features, which makes the trading experience all the more special. Most trading platforms nowadays are filled with features like, real-time tickers, charting tools, and news feeds, but eToro has introduced a feature that allows traders to copy one another.
The eToro Crypto CopyFund is the type of thing that has never been achieved before now. It offers a fully managed and diversified cryptocurrency portfolio, with 0% fees which promotes longer term investing. The idea for this CopyFund is to bring together cryptocurrencies that have a collective market cap of well over $1 billion, and a daily trading volume of over $20 million.
What is Crypto CopyFund?
Cryptocurrencies are becoming more and more popular everyday, with new cryptocurrencies being released on a daily basis. All of which seem to have tremendous real world capabilities, that are waiting to be integrated into a live environment. Though it is in the past few months that we have really seen these digital assets experience a substantial volatile movement.
Invest in groups of coins
At first the CopyFund started off investing in single coins such as Bitcoin or Ethereum, but now the fund comprises of a list of coins to add to its portfolio. The list includes: Bitcoin, Ethereum, Dash, Ripple, Litecoin and Ethereum Classic.
This is a unique feature because amongst all of the other trading platforms out there, I haven’t seen one that displays a funds performance in graphical form. This gives even the most novice of trader a clearer insight into how the CopyFund is performing as a whole.
Stop at anytime
With CopyFund, you’re not tied down in a contract, there’s no legal jargon that you need to contend with. It’s easy as stopping your investment whenever you want at current market rates.
Let someone else trade for you
There’s no denying that trading, whether that be forex, commodities or cryptocurrencies is easy. Even the professional traders, the ones who have positions at well respected institutions admit to it being difficult. With that being said, you are letting someone else who is more knowledgeable than you do the hard work for you.
Although this is part of the eToro platform, and eToro is seen as a well respected trading platform with thousands of users, the CryptoFund may have hit a snag. That snag being the minimum deposit of $5000, which admittedly is quite steep considering that most new traders deposit a lot smaller than that.
Not to mention, that on eToro’s platform this particular type of fund is registered has a risk profile of 7. On a scale of 1 to 10, with 1 being the lowest risk possible, and 10 being the highest, a risk profile of 7 is something that should be considered. The reason for such a high risk profile is due to the extreme volatile nature of cryptocurrencies, with price swings that range in the thousands of dollars.
All things considered, the CopyFund is a brilliant idea for those who have little trading experience, and want the thrill of ‘investing’ into something that looks to be worthwhile. However, the steep price and level of risk involved could be a recipe that could turn an end result rather sour for some people. With this being the case, I will award the Crypto CopyFund a 3 / 5 rating.