eToro Fees, Crypto Exchanges, and You
So you want to start trading cryptocurrencies? Is paying eToro fees the only way, and how do you begin your crypto journey?
You need first to purchase some crypto with your fiat money. This is where centralised exchanges come into play, such as eToro.
You deposit your money into the platform and can now purchase Bitcoin or altcoins. Most platforms charge a percentage fee when buying or selling coins; the eToro fees are 1% when you open or close a position. While this seems like a low percentage at first, it can quickly build up if you make lots of trades. Another example is Bitcoin.com which has fees of 0.04 to 0.4%, a much better rate than eToro fees.
Most exchanges have features including spot trading, leverage trading, trading bots, charts and chart tools, crypto lending, mining, and staking.
Spot trading is your traditional method of trading coins in which you are doing straight swaps from one coin to another. Leverage trading is trading with a larger size than what you have in your portfolio. To a beginner, this sounds like a fantastic strategy to make massive gains. In reality, it should only be used by experts who know how to handle risk management properly, as you can quickly lose money.
Trading bots are computer algorithms where you set the parameters and rules and a bot trades on your behalf.
Charts are where you can see the price history of a coin, and tools help you confirm a bias of where you think a trade will go.
Crypto lending is an opportunity to let people use your crypto in return for rewards - yes, you get your crypto back, and if you do it through a reputable exchange, there's less worry about security or being scammed.
Mining uses your computer or phone's computing power to work out calculations to allow transactions to be processed.
Finally, staking is setting aside some crypto, like lending except it goes into a pool to be used as liquidity rather than directly to another person. This also allows you to gain passive income rewards.
Some exchanges have other features, but these are the main ones you will encounter. Picking the right exchange for you is vital when trading cryptocurrencies. You need to factor in what you want to use the platform for while minimizing costs and maximizing profits. This can be done by avoiding exchanges with high costs, such as eToro fees.
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Author: Fin MacGregor
I first found crypto through a YouTube video back in 2018, since then I have delved head first into the space, researching different DeFi Protocols and coins. I love crypto because it opens up the doors of financial freedom to anyone who spends the time to learn.