EToro Review: Strengths and Weaknesses of its cryptocurrency trading and how it fares compared to other similar companies.


A company that is continuedly reinventing the traditional money management industry to make financial opportunities available to everyone, that is where e-Toro stands. EToro is known for pioneering the social and copy trading feature that allows users to automatically copy the trades and strategies (CopyPortfolios, previously known as CopyFunds) of professionals and leading traders in cryptocurrency, an asset class known for its inherent volatility. Aside from cryptocurrency, users can also buy a variety of financial assets, which they can trade like stocks, currencies, commodities, exchange-traded funds (ETFs), and indices. While the company has its fair share of strengths, it still has some weaknesses in its cryptocurrency offerings.

1. Key takeaways in eToro Cryptocurrency trading

· Users of the platform can begin their own cryptocurrency trading for as low as $50

·      Investors can copy the trades and moves by professionals and leading traders in the community

·      eToro's platform is user-friendly and intuitive

·      Fees (in the form of spread) that range from 0.75% - 4.9%

·      Cryptocurrencies users can buy, trade, and invest in eToro are Bitcoin, Ethereum, XRP (by Ripple Labs), Litecoin, and many others


2. eToro in a Glance


Account Minimum

$50

Minimum Trade Size

$25

FEES (varies by cryptocurrency)

0.75% - 4.9%

Minimum for Copy Trader

$200

Promotion

None as of this time

Number of Traded Cryptocurrencies

More than 20 cryptocurrencies

Traded Cryptocurrencies

Bitcoin, Ethereum, XRP, BAT, LTC, ADA, ENJ, MIOTA, XLM, EOS, NEO, TRX, ZEC, BNB, XTZ, ALGO, DASH, AAVE, COMP, MANA, and others

Crypto-to-crypto trading pairs

Not available for customers in the US

Website Transparency

Information is readily available on the website

Mobile App

Highly rated apps compatible with both iOs and Android

Platform

Very Intuitive

Customer Service

Email and Chat support

Regulator

FCA and CySec

3. What is e-Toro

E-Toro is an FCA and CySec regulated social trading and multi-asset brokerage company. It was founded in January 2007 and is based in the United Kingdom. E-Toro is counted as one of the leading figures in the global fintech revolution that is gaining more traction and becoming more popular and established. During its starting years, e-Toro was a graphics-intensive forex platform that adapted to the changing environment, specifically to crypto trading. E-toro is a company that has a platform that allows users or investors to trade and invest in top financial instruments that include but are not limited to stocks, cryptocurrencies, currencies, commodities, exchange-traded funds (ETFs), and indices. With its innovative and intuitive platform, its leading social trading network status is cemented, gaining more than 20 million users across 100 countries, with millions living in the United States alone. But so far, customers based in the United States can only trade cryptocurrency on the platform due to some issues not yet sorted out. Regardless, EToro is looking to expand in the US and make more offerings available to US customers.


4. eToro's Cryptocurrency Trading Strengths and Weaknesses

Strengths

·      Allows customers to trade more than
15 cryptocurrencies like Bitcoin, Ethereum, XRP, and Litecoin among others

·      Low minimum investment of $50 to fund an account and start trading

·      Social trading and CopyPortfolios that allows users to copy the moves of successful and accomplished traders in the community.

Weaknesses

·      Service is only available to customers residing in Washington D. C. and 44 out of the 50 states of America

·      While eToro offers other asset class offerings to customers in other countries, US customers are limited to trading cryptocurrencies.

·      The range of spreads (difference between the buy and sell prices of certain assets) for trading cryptocurrencies is relatively wide compared to others.

5. EToro features you should be aware of



Social Trading and Copy Trader

EToro's social and copy trading feature allows users to automatically copy the trades and strategies of professionals and leading traders in the community. Users just need to choose the trader or professional in the community they want to copy. And with just a click, they can automatically begin mirroring the moves of those traders and professionals. This copy trading feature can be used for a minimum amount of $200 and a maximum amount of $500 000.

Cryptocurrencies that users can trade

          Unlike other brokerages that offer cryptocurrency access for only a few cryptocurrencies, eToro has an offering of more than 20 cryptocurrencies that users can trade. Cryptocurrencies that eToro users can trade are Bitcoin, Ethereum, Bitcoin Cash, XRP (Ripple), Dash, Litecoin, Ethereum Classic, Cardano, IOTA, STELLAR, EOS, NEO, TRON, ZCASH, BinanceCoin, Tezos, Maker, Compound, Chainlink, Uniswap, Yearn Finance, Dogecoin, Aave, MANA (Decentraland), Enjin, Basic Attention Token, MATIC (Polygon), and Shiba (in millions).

Trading Costs

          Like others, eToro also charges some fees through spreads, but unlike others, eToro charges fees round-turn, meaning one for buying assets and another one for selling them. These spreads vary for every cryptocurrency, with Bitcoin trades having a 0.75% spread and 4.9% for Maker and MANA (Decentraland).

Hassle-Free Payment

          In eToro, users can easily buy cryptocurrency. Users do not need to go to establishments because eToro accepts payment via a wide variety of payment options, including credit cards (Visa, Mastercard), PayPal, Skrill, WebMoney, Yandex, etc. Buying using these options does not also require users to pay deposit fees.

Education

          Education is not the strong suit of eToro. The platform is easy to use; however, beginners who are still threading their way can only watch video tutorials and beginner's guides in the eToro Academy to educate themselves. Though there is a news and analysis section, new users cannot be expected to digest all of this. But on the bright side, their demo account is good to let those who want to participate in this kind of trading experience what crypto trading is. It is also an excellent way to let them learn without investing real money.

Real-Time insights

The latest crypto market research and news are available to eToro users, which provides insights and information about the behavior of the market that they could incorporate in their crypto trading strategy.

Customized risk Management

Users of eToro can always opt for their own strategy if they want to tweak the use of Copy Trading. EToro enables its traders to customize their risk management by setting the parameters for stopping loss and taking profit, making their strategy more flexible in protecting their investments.

Advanced Cryptocurrency Exchange

One of the best features of this is the eToroX, a professional crypto exchange. This feature provides services for corporate and institutional-grade crypto traders. There is deep liquidity and tight spreads here as well. Moreover, there are also a unique set of tokenized assets.

Money Crypto Wallet

EToro has its own digital wallet, a convenient tool for storing, receiving, and transferring crypto. This digital wallet is an intuitive one that users will have no hard time navigating. It is regulated by GFSC and has several high-level security features, so users are assured of a secured transaction. When necessary, users can easily and quickly recover their eToro Wallet through their unlosable security or private key, making things more secure and safer. On top of these, the eToro crypto wallet supports more than 120 cryptocurrencies. Users can also change any of the crypto pairs to other crypto assets.

6. Is E-Toro Safe

Safety and security mainstream concerns for those who involve themselves in financial endeavors, and eToro know this. This broker is a safe partner for investors. The company operates in accordance with the regulations of different regulators such as FCA, CySec, and ASIC, which guarantee that there are safeguards and measures in place to protect investors.

7. Final Take

A beginner who wants to start crypto trading but is still clueless or new to it can view eToro as a good starting point for its good offerings and delightful features. Despite the relatively wide range of spreads in cryptocurrencies, eToro is still a good choice for its low account minimum. In addition, it is also safe so you can relax that you are making trade in a regulated company.

Cryptocurrency trading, like any kind of asset class, needs strategy, research, and good prediction, and these things might be overwhelming for new crypto traders. But through eToro, people who want to take part in the trade of this asset class will have an easier and more straightforward starting point. The platform is intuitive, and the mobile app is highly accessible. People who want to trade crypto can also use the demo account to feel the process. The company's copy trade feature is especially beneficial since new users can mirror those more successful traders in the community.

Like any other investment, cryptocurrency trading has its risks; that is why users should always be aware of the proper management of their investments. Practice responsible trading and keep researching and being aware of the latest happenings in the "field." However, no matter how good a feature is, always remember that cryptocurrency is something known for volatility, no matter how thorough your research is. So, tread carefully.