Is it Possible to Generate Passive Income from the eToro Crypto CopyFund?

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Those of us who want to generate enough money to lead a comfortable, happy life are always on the look-out for ways to make autonomous cash. Cryptocurrency investments might be considered too volatile for many traditional financial investors, but there are some excellent opportunities to be found given that these digital assets are still incredibly immature trading markets.

One global trading and investing social network is seeking to allow newcomers to cryptocurrency investing to mimic the investments of more experienced crypto traders. Since 2013, eToro has been allowing its members to trade the price movements of cryptocurrencies in the form of Contracts for Difference (CFDs). This means that traders of crypto CFDs never physically own the currency and simply open trades based on where they think the price of a specific crypto coin will go next.

More recently, eToro has set up a new Crypto CopyFund, designed to give cryptocurrency trading beginners a flavour of what it’s like to trade six of the most popular digital assets currently available. The Crypto CopyFund is a diversified portfolio, focusing solely on Bitcoin, Ethereum, Litecoin, BCH, Ripple XRP, Ethereum Classic, Dash and Stellar. The fund is managed daily by eToro’s very own investment committee, with the aim of giving newcomer investors complete confidence that their initial investment is being handled professionally to generate maximum returns.

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The Crypto CopyFund committee decides how much of your investment is proportionally designated to each crypto asset. A minimum of 5% is allocated to each cryptocurrency within the CopyFund. At the beginning of each month, the fund is rebalanced, depending on the price moves of the previous month or the potential dangers in the weeks ahead. Unfortunately, daily limits are set on how much you can invest each day. There is a minimum investment of £5,000, however, so this crypto investment fund is certainly only for those who are serious about generating passive income with their personal wealth.

The Crypto CopyFund is not the first CopyFund to be offered to eToro members. There are dozens of other CopyFunds available, comprising of CFDs on stocks, indices and commodities. Whether you like the idea of investing in major global banks or some of the leading innovators in technology and telecommunications, the Market CopyFunds act like your very own private pension fund, overseen by the eToro investment committee. As for the Crypto CopyFund, at the time of writing, the fund has made a generous 152% return on investment in the last 12 months. If you had invested the minimum £5,000 into your eToro account that would equate to a profit of £7,600 in just one year.

It’s important to conclude this article by reinforcing the fact that financial investments such as these always carry an element of risk. It is possible to lose money on your initial investment. Cryptocurrencies are volatile markets and can deliver quick profits and losses in equal measure. Nevertheless, eToro is fully regulated by the UK’s Financial Conduct Authority (FCA), as well as the Cyprus Securities Exchange Commission (CySEC), so if you are prepared to invest with your eyes wide open, it’s a secure place to begin your cryptocurrency investment portfolio.

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