Trading Platform Offers Long-Term Crypto Portfolio for First-Time Users

A trading platform says it gives those new to cryptocurrency an opportunity to gain diversified exposure to the market with ease.

The company, eToro, says there is a huge buzz surrounding cryptocurrencies, but many consumers are unsure whether they should get involved — or indeed, how to.

The platform says it offers a simple, smart solution easy onboarding. All new users need to do is sign up and verify their account.

According to eToro, its goal is to open up the crypto markets — and provide access to major currencies such as Bitcoin and Ether — without requiring new users to perform in-depth research into specific coins.

The CryptoPortfolio consists of 14 coins that are weighted by market capitalization. As a result, eToro says that the bigger cryptocurrencies in the industry — Bitcoin, Ether and Litecoin among them — represent a large share of the portfolio. Its methodology places an emphasis on coins that have a market cap that exceeds $1 billion, as well as daily trading volumes of more than $20 million.

How CryptoPortfolio works

Dedicated specialists are responsible for rebalancing eToro’s CryptoPortfolio once every year — and in the event of extreme market scenarios delivering unexpected levels of volatility, a special committee is on hand to make adjustments on an ad hoc basis.

CryptoPortfolio users are not charged management fees, irrespective of how long their holding lasts, and they can liquidate their holding at any time with ease. However, eToro’s spreads are applicable when underlying financial transactions are initiated.

Emphasis on transparency

To help first-time crypto traders navigate the portfolio, detailed statistics are provided that deliver an insight into its performance.

A breakdown of asset allocation is provided so users can see the proportion of their holdings dedicated to different coins. At the time of writing, Bitcoin held a 50% share of the fund, with Ethe and Litecoin on relatively even footing at 5.8%. Bitcoin Cash, Neo and other coins and tokens made up the remaining 25%.

Users can also assess how the portfolio has performed in the past. A bar chart provides an at-a-glance look at whether the CryptoPortfolio made gains or losses over the past 12 months. To help eToro’s community make informed decisions, the trading platform also provides a risk score for the CryptoPortfolio. Prospective users can see the average and maximum risk scores for each month over the past year.

Secure and trusted

In business since 2007, eToro says it has gained the trust of thousands of users over this 12-year period. All funds held through CryptoPortfolio are secured and kept in a segregated account. The company says that privacy is one of its top priorities, and as a result, confidential information pertaining to holdings is never shared without a user’s permission.