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Could eToro’s Partnership with CoinDash Change How We Invest in Crypto?

Could eToro's Partnerships Change How We Invest Crypto?

Right now, there’s a lot going on in the world of cryptocurrencies. Bitcoin’s skyrocketing price has many people ready to invest in crypto.

However, there’s more to investing in cryptocurrencies than trying to come up with more than $15,000 to buy a bitcoin (or much less to get in on Ethereum, Ripple, or Litecoin).

One of the world’s most well-known social trading platforms, eToro, is ready to jump into the world of cryptocurrencies. At least, when it comes to investment exposure to them.

eToro Partners with CoinDash

In an effort to capitalize on the interest in cryptocurrencies, eToro is forming a partnership with CoinDash. The idea is to create an array of products that are block-chain based. This would allow consumers to invest in crypto in a way that isn’t widely used right now.

eToro works by setting up ways for investors to follow their favorite experts and invest the way they do. It’s called social investing, and many people use it as a way to find interesting ideas and ride the coattails of successful investors.

With CoinDash, eToro hopes to provide products for investors. These products would be blockchain-based. On top of that, CoinDesk hopes to get something out of the deal as well. They would like to learn more about token models and portfolio tracking.

This combination could lead to more ways to invest in crypto.

Social Trading Instead of Buying Cryptocurrencies Direct

There aren’t very many ways to earn money with cryptocurrencies if you aren’t actively earning them for your work, mining them, or trying to buy them. These can be time-consuming and tedious. Plus, you often need to provide verification of who you are in order to set up a cryptocurrency exchange.

When you use social trading through a website like eToro, the barrier to entry is lower. You can follow the moves of other cryptocurrency traders and professionals, and invest in funds that come with cryptocurrency exposure. While this isn’t the same thing as buying coins, it can be satisfying to know that you have some crypto exposure in your portfolio.

What About the Drawbacks?

Before you invest in crypto, or in products that allow you portfolio exposure to cryptocurrencies, it’s important to understand what you’re getting into. Realize that you might not own a coin.

It’s also vital to understand that cryptocurrencies are really volatile right now. Some experts believe we could be seeing a bubble. Even if you don’t buy a coin, you can still lose out if the funds and blockchain investment products used by the company don’t do well. Any time you invest, you take a risk. This is especially true when you get into new investment products.

Before you decide that it makes sense to buy one of these blockchain investment products, take a step back. Make sure you understand your own money priorities, and that you understand the risk involved when you invest in crypto products — even if it’s with a respected platform like eToro, working with a company like CoinDesk.

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I’m Miranda and I’m a freelance financial journalist and money expert. My specialties are investing, small business/entrepreneurship and personal finance. The journey to business success and financial freedom is best undertaken with fellow travelers.

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