Are you looking for a long term investing strategy for eToro? Here are some investing ideas that are suitable for longer term gains instead of short term profits. If you're looking to grow your wealth over a longer term time frame, then these ideas might be for you:
Invest in ETFs
ETFs are seen as a lower risk way to invest in shares. Each ETF is setup to track an index or invest in a themed collection of stocks and bonds. ETFs are usually made up of hundreds and sometimes thousands of underlying assets. This means you can get access to a diversified investment with just one trade.
On eToro you can invest in a range of ETFs. The great thing about eToro is there are no commissions on ETF trades. This means you can buy real ETFs and you won't pay any fees to buy or sell. And there are no ongoing fees. This means you can buy and hold an ETF for as long as you want to advantage of long term market movements.
If you're looking for a long term investment on eToro, then you should definitely take a look at adding ETFs to your portfolio.
Invest a Small amount in Crypto
I view crypto as a high risk investment. But I do believe that crypto will play an important part in the future. Investing your life savings into cryptocurrency would be a stupid idea. But investing a very small amount of your net worth could be a smart play. If you lose it, it won't be a big deal, but if crypto does go on another huge bull run, you could make large gains.
On eToro you can invest in crypto (you own the underlying crypto, it's not a contract) alongside your other trades. This means you can keep a small part of your portfolio invested in crypto and then easily rebalance it into other assets as it gains in value.
Crypto is one of those moon shot investments that you can hold onto for a long time. There are no fees to buy crypto on eToro (as long as you invest without leverage) and there no fees for holding your position open.
Building a Portfolio of Shares
I use eToro to build a portfolio of shares that I believe will be important in the future. eToro supports fractional share investing, which makes it perfect for building a diversified portfolio. You can invest just $50 in a share to open a fraction of it – you don't need to buy a complete share. So if you only have a small amount of capital, you can still spread it across multiple shares.
When you buy a share on eToro, you own the underlying asset. Unlike platforms such as Plus500, eToro is for investing and not just trading. On Plus500, your share trades will expire, because you don't own the underlying asset.
My Tips for Long Term Gains on eToro
- Don't Use Leverage – It's possible to trade using leverage on eToro. Leverage is an advanced trading tool meant for advanced users. If you're just looking to invest on eToro, stick clear of leverage.
- Don't overtrade – Because there is no settlement period on eToro, it's easy to overtrade. Overtrading is an easy way to lose money. Stick to your strategy!
- Use CopyPortfolios – eToro has a feature called CopyPortfolios. These are themed investments. The minimum investment is $5k – so you'll need more money than if you were just to invest in shares or crypto.