Trading in Ethereum, or any other financial asset like crude oil, offers many opportunities. However, it can be difficult to navigate between brokers, spreads and sky-high management fees. That’s why managing your own investments based on price variances makes sense for many trading beginners.

Using the increasingly popular financial instrument called a CFD, or contract for difference, you can open a buy or sell position based on the current price of Ethereum in a matter of seconds.

Ethereum CFDs are based on the price of Ethereum at the time of purchase. When the Ethereum price rises, so does the value of your buy position on Ethereum. You can decide to stop your position and take the profit, or wait to see if the price will rise further. If the price dips, you can decide to stick out your buy position until the price recovers, or stop your position and take a loss to the capital you invested. Alternatively, if you believe the price will drop, you can open a sell position.

With eToro, you have access to:

• Multiple successful Ethereum traders you can learn from
• Live discussions on our Ethereum trading page regarding market trends
• A $100K practice trading account called the virtual portfolio
• Email updates on the markets
• Blog posts, live hangouts and video tutorials on how to trade

The eToro platform has over 5 million users, with varying levels of experience in the market. Investment discussions and portfolio allocations are open to other users, as is the ability to automatically copy successful traders. Because many first-time investors are not yet familiar with the markets, eToro also provides new users with $100K of virtual funds to practice with until they are ready to start investing.

Forex investments are particularly volatile, making this type of trading very popular for investors looking for quick results. However, most professional investors recommend diversifying between several types of instruments, in order to properly manage risk levels.

At eToro, you can invest in currency, commodity, index, stock and ETF CFDs on our easy-to-use platform. If you aren’t sure of the best way to invest in a specific type of instrument, you can use our People Discovery tool to find traders who specialize in that instrument and learn from them or copy them directly.