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Why you need to know Etoro well before getting started

Cryptos

6 min read

Editorial: I should point out before starting that Etoro is not a bad site in itself (I explain it in the article), but it is a site which is not suitable (according to all objectivity) for complete beginners who want to buy bitcoins. For other people - informed - Etoro can be a good platform provided you know how to use it.

Frankly, this is an article that I have wanted to write for a long time, a very long time in fact. So, I'm starting this article with a little rant, if you'll allow me.

I realize that too many people try Etoro and lose their teeth (to put it mildly). In short, whose fault is it?

Well, the big fault lies with some bloggers and some news sites! Yes, yes, when you type in Google "Buy cryptocurrencies" or a search of the sort...Guess what? More than 80% of the articles praise Etoro...

Seriously, do the research yourself and you'll see. In addition, the worst thing is that systematically, it is the Etoro platform which is placed at the top on the list! Really, it's catastrophic and I could no longer remain silent even if I risk alienating many bloggers.

I mean, ok, we're all affiliates and we can't complain about the commissions (even if most of them are low). That's not the problem here. But it is not because Etoro is very profitable that you should succumb to greedy temptation!

The goal is for us – those who blog – to first publish useful and informative information. And, obviously, in order for us to continue to work properly, we must rely on partner sites. Certainly. But, we must not sacrifice information for simple profit!

For what? Question of ethics my friends! We don't throw beginners who don't even know what bitcoin is into platforms like Etoro! It's scandalous, really, to do this to beginners!

And, should I add that these articles promote Etoro specifically to beginners…?

Finally, after this (it seems necessary) rant, I will explain to you what Etoro is and why you should be wary of it, if you are a beginner.

So, is ETORO recommended for beginners?

You may be thinking that if so many sites are promoting it, it can't be a scam. Actually, no, the Etoro site is not a scam in itself.

It's just an extremely expensive trading site (in terms of fees) and is not suitable for beginners in fact. The problem is there. Exactly there. We offer beginners the opportunity to buy bitcoin on Etoro. They are not going to buy bitcoin on Etoro, they are going to buy CFDs.

This is what outrages me…CFDs? For beginners? Even if the site changed its policy recently saying that when it comes to cryptocurrencies, you still cannot own them.

Yes, in itself, the Etoro site is an online platform based in Cyprus which specializes in CFDs (the famous contracts for difference).

But, wait, what are CFDs?

CFDs, to make it short for you, are a contract between a buyer (me or you) and a seller (eToro) who wants the seller to pay the buyer the difference between the current value and the value of the underlying ( the asset), at the end of the contract. In fact, if the difference is negative, then in this case, it is the buyer who will pay the difference to the seller. And vice versa.

The thing to understand behind this gibberish is that in the end, we are not buying a real financial security. We are only speculating about him.

And so, when we push beginners to buy bitcoin on Etoro…We are simply pushing them to buy CFDs. You realize?

I remind you that basically, these beginners are only looking to buy bitcoin or buy cryptocurrencies. They don't necessarily want to do heavy trading or financial speculation.

Negative opinions on Etoro

Judge for yourself the dire reviews users leave on TrustPilot;

Yes, because beyond bloggers, it is also the problem of mass communication on Etoro. They are very powerful when it comes to advertising. Given the staggering costs they operate, they have a substantial budget.

They do not hesitate to curry favor with the biggest Hollywood stars or even sports or reality TV celebrities. Everything is good as long as it generates an audience, you tell me.

It is therefore, as the article specifies, not so much that etoro is a scam site as the fact that the targeted people do not know exactly what is going on.

*Yes, yes, it’s Alec Baldwin, the American director. Etoro advertises a lot to beginners. They use influencers and celebrities. They are really strong when it comes to advertising.*

Besides, once again, this is also the point of this article, too.

Now, let's look at one of the aspects that is precisely not known to beginners who discover Etoro.

Why is it different to buy cryptocurrencies on Etoro?

The real problem in my opinion and this is therefore what pushes me to write this article with a certain vehemence.

This is because there is, strictly speaking, no crypto wallet on Etoro!

So, I know that they have just launched a pseudo Wallet in which you can transfer (at a huge cost) your cryptos to your wallet. However, even with this there are a certain number of criteria to follow.

See for yourself the explanation given on the Etoro website;

We can already see how high the costs are.

And, above all, we see how complicated it is and that it is NOT AT ALL SUITABLE for cryptocurrencies!

You cannot do what you want with your cryptocurrencies: neither send them nor exchange them! Why then want cryptocurrencies?

Why impose such fees and such sleight of hand to buy cryptocurrencies when you can do it in one click and securely on a platform like Binance for example?

Finally, I'll let you read the explanations in detail...

The last sentence is absolutely scandalous, don't you agree with me?

Why you need to define your strategy before using a platform

As we saw above, CFDs are very difficult instruments to use, particularly for beginners in finance.

Do crypto trading with CFDs, you are exposing yourself to great risks. In fact, to be more precise, you can win a lot as well as lose a lot.

In addition, eToro offers "leverage" which, again, can be just as beneficial as it is devastating. Leverage is a temporary loan that the grinder will grant to the trader. It is a way to be able to trade by radically multiplying your funds.

To give you a concrete example. Let's say you have 1000 euros and you take a leverage of 100, then you will be able to trade for 100,000 euros! Yes, with only 1000 euros, you are thrown into the arena with 100 euros.

For a savvy trader who knows what he is doing, this can be a boon for him. He can then pulverize his gains. Certainly. But, as you already know, more than 70% of people lose on the stock market. And, therefore, with leverage, you lose much faster than trading without leverage.

The only positive thing is that despite a loss, we only lose the capital invested in Etoro. The losing trader is not going to contract a debt for example that he will have to repay. I preferred to point that out just in case.

The final word on Etoro…

Indeed, the goal here is not so much to throw stones at Etoro as to warn beginners.

Well, I think I've been clear enough, right?

So this is how this little post ends.

If you are a beginner and want to buy bitcoin, turn to easy-to-use platforms like Bitpanda for example.

You will have a simple wallet and you can buy cryptocurrency many. These will belong to you and you will not be buying CFDs, but real cryptos.

And if you want to trade, again, go through Binance or a trading platform reputable crypto.

As for eToro, it can be a good platform if you want to try your hand at copy trading for example. The platform remains user-friendly and I myself must admit that I have traded on it a lot of times.

Finally, I would make a dedicated article as we were able to do with our reviews on Capital.com, but I had to warn beginners first..

I hope this article helps you.

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To buy cryptocurrencies (simple way):