eToro’s Staff was kind enough to answer some urging questions regarding one of its fantastic features: Copy Portrolios.

What Are CopyPortfolios?

There’s plenty of people out there fascinated by the stock market (and making some money) who prefer to invest their funds in diversified portfolios. Beats doing all the work and it involves way less risk, right?  What if you wanted to dabble in crypto with the same strategy? Say hello to CopyPortfolios, which allow eToro users to allocate their funds into managed portfolios. CopyPortfolios do all of the legwork involved in crypto investing, but the features basically boil down to two main traits — allocation and rebalancing.

Allocation: Once you invest that money, where exactly is it going? Using a CopyPortfolio called CryptoPortfolio, for example, your money is allocated into a portfolio that includes an array of cryptocurrencies available on eToro. The coin with the highest market cap (i.e., Bitcoin) receives the largest portion of the portfolio’s total allocation.

Rebalancing: Of course, values shift in any market, including the crypto market. While Bitcoin does not appear to be giving up its throne anytime soon, rebalancing takes into account shifts in cryptocurrency values to reflect the allocation of coins in your portfolio. Rebalancing can occur on a monthly or yearly basis, depending on the CopyPortfolio you choose.

Sounds fascinating, huh? If you want exposure to the cryptomarket, but don’t have the time to get deeply invested, check out the video below to learn more.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.