When I decided to write this article, I agreed that it would be basic and straightforward for everyone to understand how easy it is to trade cryptocurrencies confidently. If you want to know more about the topic, you can get it from here.
CFD stands for “Contract For Difference, ” enabling us to trade assets without having them under our direct possession. By using a CFD service, we will never need to open an account at the cryptocurrency bank. We can read thousands of success stories around blog sites and social networks where people started only with 100 euros and increased their capital two or three times (and sometimes hundred times) within a few months. So yes, I’m telling you right away: It’s possible!
The sign-up process on any CFD provider is straightforward and almost always takes less than 1 hour.
Your first step: Registration
As we already mentioned, you need a CFD provider to start trading cryptocurrencies so let’s get started with the registration:
To register online, you must be older than 18 years and be from one country where the broker operates (check their FAQ for more information). Once you finish the simple registration process, they will send you an email containing your password. Make sure that you activate this email because if not, you won’t be able to log into your account.
This step is effortless and straightforward, just click on “Fund Account” at the top left corner of the trading platform, and you will see a page where you can deposit money. The minimum amount they accept is 10 USD, or currency with approximately the same value in dollars (for example, 5 euros), but this deposit cannot be made using cryptocurrencies. To make it using another currency go to any currency exchanger website (you can google it) and exchange from one currency to another for a reasonable fee.
Like with any CFD provider, you can open a new or additional order position. This means that we can buy, e.g. 1000 bitcoin cash and open another order to sell it later, so basically, we have 2000 bitcoin cash which sounds like a pretty good deal! 😉 You can set your stop loss and take profit values by clicking on “Orders” at the bottom left corner of your trading platform and then clicking on “Manage orders” (those two buttons are visible only after you create an order). If you click on the price of any asset right below its name, fluctuation graphs will appear and if you want to save them for later use, just press the three dots on the right side.
At the bottom of your trading platform, you will see a price graph for each cryptocurrency that you are trading. The blue line represents the current value of your chosen cryptocurrency, and the green and red lines represent movement in either direction. On top of this graph, an arrow represents today’s high and low points for this specific currency.
So, suppose we choose, e.g. RippleXRP. In that case, it means that if we click on any green bar (green bar means that it is closed higher than before), we will see its exact value when this transaction happened, e.g., we bought XRP at $1,05, then it went up to $1,07 after 10 minutes and then again returned to $1,05 after another 20 minutes. If you click on the green arrow, it will lead you to the detail page of this transaction.
There is a summary on the top right corner of your trading platform with information about your account balance updates. You can see exactly how much money eToro took as fees for every cryptocurrency trade and the total sum they hold for you based on all open orders (long and short). They usually update this amount after each successfully finished order, so you always know where you are with your investments. Once in a while, they also run promotions that allow users to double or even triple their investment, so don’t miss that! – Link to official promotion.
On the left side menu, you will see a list with all your cryptocurrencies and their values. This screen also allows you to change those cryptos, delete them or even create new ones from scratch. If you long for any cryptocurrency on eToro, it means that you are hoping for an increase in its value, so this is how it looks when you go short – if the price goes down, you make money. Otherwise, your loss gets more significant, which is something we do not want. To buy or sell a cryptocurrency, click on “Trade” at the top right corner of your trading platform and choose a cryptocurrency from the dropdown menu – afterwards, click on either red arrow (buy) or green one (sell).