Israeli online stockbroker eToro has been gaining a lot of momentum due to its emphasis on crypto trading. Now the company announced that it intends to go public via a special purpose acquisition company (SPAC).
The platform competes with Robinhood, a commission-free stock trading and investing app, which has enjoyed excellent success of late. Other platforms have been slow to adopt newer assets such as cryptocurrencies, which has played right in eToro’s hands.
Last year was a year of resurgence for crypto trading. For the first time, cryptocurrencies got attention from significant trading platforms, various governments, national banks and institutional investors.
eToro has always been a big believer in tokenized assets, creating the crypto wallet,and an on-chain crypto exchange. Additionally, it intends to use blockchain technology to become the first global trading platform.
With that being said, let’s look at three of the best crypto assets you can trade on the app at this time.
Crypto Trading on eToro: Bitcoin (BTC-USD)
Bitcoin is the crown jewel of all cryptocurrencies, which in many ways is back from the dead from its debacle in 2018. Last year was a big change for Bitcoin as it has finally gained mainstream attention.
BTC is up 460% in the past 12 months eclipsing the $50,000 mark. The scarcity, divisibility and portability will continue attracting investors and continuing to push BTC’s price higher.
Bitcoin is currently in its recovery and continuation phase. In the next four to five years, its halving will occur, further boosting its price. Additionally, with greater mainstream adoption at a state level and from the investing world, its price will continue to rise at a healthy pace.
At this stage, it appears that it could be the only financial asset that should outpace Central Bank printing. There are varying price predictions for BTC, from anywhere between $60,000 to $150,000 this year. Therefore, it would be best to invest in Bitcoin on pullbacks.
Ethereum is the second-largest digital asset by market capitalization. Moreover, it’s a smart contract platform that eliminates the need for intermediaries in financial transactions. Its digital currency is called the Ether, which has no hard cap, and a set amount is released each year. ETH has outpaced BTC’s growth in the past year, growing by over 600%.
Due to the constriction in supply, ETH’s price will continue to rise for the foreseeable future. First, the rise of decentralized financial apps suggests that a significant amount of the currency will be locked for smart contract usage. Second, you have its updated platform, called Ethereum 2.0, which calls for locking up a percentage of Ether as collateral.
On top of that, you have the rising institutional interest in Ether, which should continue to push the price higher of ETH in 2021 and beyond.
Cardano is a proof-of-stake cryptocurrency, which is among the largest cryptocurrencies in the world by market cap. It is one of the best-performing crypto assets, with over an 800% growth in the past year.
Its transition to a proof-of-stake algorithm has paid many dividends as ADA has gained more than 1,000% since then.
Cardano has been caught in the recent non-fungible token (NFT) mania. It has updated its protocol which allows for its platform to support NFTs, decentralized finance applications, and stable coins. It plans to become a robust financial operating system through its development of decentralized financial products. Therefore, it has a ton of momentum behind it, which could continue to push its price higher.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.