In this article I will evaluate Etoro in detail and all the things you need to know about Etoro
eToro is an exchange that plays an important role in the world of CFD and cryptocurrency trading. eToro has led the fintech revolution for over a decade and built a reputation as the leading trading platform for assets such as stocks, cryptocurrencies, etc.
The company started to establish as a common trading platform but has now added cryptocurrencies and other trading tools to keep up with market changes and growing demand. Today, more than 6 million users have registered on the eToro platform.
Risk Warning: CFDs are complex instruments and risk losing money quickly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFD works and whether you can afford a high risk of losing money.
Etoro Review - Basic information of Etoro
| Agency | eToro |
| Regulations | CySEC (Cyprus) |
| Minimum deposit | 200 usd |
| Demo account | Yes |
| Property insurance | CFD, ETF, Forex, cryptocurrencies, stocks, commodities, indices |
| Lever | 20:1 |
| Exchanges | Website, mobile application |
History of eToro?
eToro was founded in 200, before cryptocurrencies were even introduced. It started with three entrepreneurs who dreamed of making transactions more accessible, no matter where you are or who you are. At the same time, they want to reduce their dependence on banks and other traditional financial institutions.
eToro started out as an online trading platform with charts representing financial instruments and an intuitive interface. In 2009, eToro launched its trading platform, WebTrader, with a range of professional tools for traders of all skill levels.
A big step came in 2011 with OpenBook, the world's first social trading platform. This includes the new CopyTrader feature, which allows people to copy successful traders. In 2012, eToro added shares to its other assets, like currencies and commodities.
The eToro mobile application launched in 2013 for both Android and Apple, expanding the reach of the platform. This is also when eToro dips into cryptocurrency, helping to trade Bitcoin through CFDs.
In 2015, the platform updated the interface for a more creative and intuitive experience. In 2016, eToro added CopyPortfolio, a managed portfolio of various assets or leading traders in a market strategy.
Finally, in January 2017, eToro expanded its reach in the cryptocurrency world by adding cryptocurrency trading support to the platform. It started with a range of popular cryptocurrencies, including Ethereum, Litecoin and XRP.
Which cryptocurrencies does EToro support?
Compared to other platforms, the options for cryptocurrencies supported on eToro are relatively limited. This is the result of its nature as a general trading platform, as opposed to a platform focused solely on cryptocurrencies. You can even shorten or own the most popular cryptocurrencies. Supported options include Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin and Ripple.
Cryptoassets are highly volatile unregulated investment product. No EU investor protection. Your capital is at risk
The chart above is just a reference image. Current market prices can be found on the eToro platform
What makes eToro stand out from other platforms?
One of the biggest things that eToro stands out from other platforms is the number of investment and trading options available. Thanks to a variety of ways to invest and trade, users can leverage the same platform for their cryptocurrency trading needs as for traditional assets.
The social elements of eToro also make it unique. An example is CopyPortfolio, which is a long-term themed investment in the form of a managed portfolio of assets and leading traders with a predefined strategy. The ability of successful traders to copy investments is also very creative, like the popular investor program.
What additional trading tools does EToro provide?
This platform aims to educate traders as well as provide them with a platform to invest. Unfortunately, nearly all of these tools are directed at traditional asset transactions as opposed to cryptocurrencies. However, they can be useful for those who want to expand their portfolio to include more than just cryptocurrencies.
After signing up, eToro users get a virtual money account with $ 100,000 so they can work based on strategies and skills before investing any real money. It also provides many other tools to help with practical trading, such as economic calendar.
Just enter the date and time zone you want to see and assets you trade. The calendar will then show how events are likely to affect your property. In addition, it provides regular market analysis including great details as well as a quick overview, so you can use as much or as little information as you want.
What is CFD and what role does it play in cryptocurrency trading on eToro?
CFDs are a derivative trade. With CFDs, investors can predict whether the global financial market will move up or down. This can be done with cryptocurrencies as well as indices, stocks, fiat currencies, treasury and commodities.
The important thing to note about CFD trading is that you will not buy or sell the underlying assets, in this case cryptocurrency. Instead, you sell or buy certain units of that asset based on your prediction about whether the price will go up or down.
When the tool increases or decreases in your favor, you will receive many existing CFD units that you have sold or purchased. You make a loss when the instrument is not up and down in abnj's predictions. CFDs require caution because losses may exceed deposits.
On eToro, trading CFDs and cryptocurrencies goes hand in hand. As mentioned earlier, eToro first entered the cryptocurrency world by offering Bitcoin trading via CFD in 2013, making it one of the earliest playgrounds in the world of cryptocurrency investing. .
CFD trading continues to play an important role on eToro because many crypto-related transactions are still CFDs instead of dealing with real assets.
Starting September 3, 2017, investors who bought cryptocurrency on eToro actually own assets as the basis for the transaction. Before that, they owned a CFD, not assets. In addition, eToro provides actual cryptocurrency trading.
What is CopyPortfolio for cryptocurrencies?
CopyPortfolio was added to the eToro platform last year. This feature is available for cryptocurrency trading as well as traditional fiat transactions. This creates a single tradable asset made up of carefully selected assets or traders of a predefined strategy.
The eToro Investment Commission consolidates CopyPortfolios and balances them periodically. There are a number of Cryptocurrency CopyPortfolio available for selected investors.
One of these is simply called Crypto-currency and brings exposure to Ethereum and Bitcoin. During the crypto price hike in May 2017, the fund was up 66%. In the first three months, that fund generated more than 125 percent of the profits. Another option is called Crypto CopyPortfolio.
This is a recent CopyPortfolio made up of a balanced cryptocurrency portfolio containing Bitcoin, Ethereum, Ethereum Classic, Litecoin, Dash and Ripple.
What is CopyTrading?
Another interesting option on eToro that you can use for cryptocurrency and fiat investment is CopyTrading . This is the ability previously mentioned to copy the traders you choose. Traders are likely to become a popular investor if they have a low risk score and bring stable profits.
They then receive a reward for sharing their investment. By leveraging CopyTrading and copying an investor including cryptocurrencies in your portfolio, you can become an expert in the market without having to research yourself too much.
Who can use eToro?
eToro can be used by anyone, as long as it is legal to do so in their country. eToro keeps an active list of countries where the platform is blocked due to changes in regulations that conflict with trading laws. This means that people in the United States, Canada, Cuba, Japan, North Korea, Iran, Syria, Turkey, Serbia, Albania and Sudan cannot legally use eToro.
Does EToro have a minimum trading scale?
eToro provides tools that investors and traders of all experience levels can take advantage of, so they try to minimize the use of minimum trades. However, you must have $ 200 to join CopyTrading and invest a minimum of $ 5,000 for CopyPortfolio.
The minimum number for manual positions is based on the tool. For currencies (like cryptocurrencies) and commodities, it's only $ 25. For stocks, it is $ 50. Finally, for ETFs and indices, it is $ 200.
For those who signed up on April 2, 2017 or later, the size of a minimum transaction depends on the level of exposure, in the form of leverage multiplied by the amount of investment. For cryptocurrencies, this minimum sum is $ 200.
The minimum for ETFs and stocks is $ 500, for commodities is $ 2,500, and for indices and Forex is $ 5,000. As an example of this contact-related policy, if you open a cryptocurrency trade with leverage of x1, you must invest at least $ 200. However, if you choose to invest $ 100, you must have a minimum leverage of x2.
Ph. EToro
As an exchange, eToro makes a profit from the various fees it charges. On eToro, there is no charge for opening a transaction, instead it is a fee based on the spread. It has a list of minimum spreads for each cryptocurrency and those rates are not guaranteed.
The team points out that fees may vary based on market conditions and liquidity. Daily spreads are as follows: 1.5% for BTC, 5% for BCH, 3% for DASH, 2% for Ethereum, 5% for ETC, 3% for LTC, 5% for NEO, 5% for XLM and 3% for XRP.
| CRYPTOCURRENCIES | MARKET TIME | DAILY RESOLUTION | COST DIFFERENCE | SELL | BUY |
|---|---|---|---|---|---|
BTC
Bitcoin
|
24/7
| 1.5 % | -0.471233 | -0.471233 | |
BCH
Bitcoin cash
|
24/7
| 5 % | -0.14 | 0 | |
DASH
Dash
|
24/7
| 3 % | -0.039452 | 0 | |
ETHEREUM
Ethereum
|
24/7
| 2 % | -0.036712 | -0.036712 | |
ETC
Ethereum classic
|
24/7
| 5 % | -0.001726 | 0 | |
LTC
Litecoin
|
24/7
| 3 % | -0.006575 | 0 | |
STILL
STILL
|
24/7
| 5 % | -0.012383562 | 0 | |
XLM
Sao
|
24/7
| 5 % | -0.0000416 | 0 | |
XRP
Ripple
|
24/7
| 3 % | -0.000022 | 0 |
Due to the nature of cryptocurrency trading, it is available 24/7 and there are no fees for overnight or weekend transactions. Instead, eToro only charges users who hold Ethereum or BTC positions with leverage or to shorten cryptocurrencies. The team points out that different fees may vary.
Reviews and reputation of eToro customers - Etoro Reviews
Users and platform reviewers often agree that eToro is easy to use. It is intuitively designed, so people with no trading experience can get the information they need and make trades. You can use the platform on a PC, Mac, Android or iOS device, always take advantage of its intuitive functionality and display information related to cryptocurrencies and other assets through charts and more. again.
In general eToro has a good online reputation, a large and well-established company so you can make sure your money is safe there. Complaints from people online are generally about the merchants they have copied that are not working as well as they think they will. This is not the fault of the traders themselves, trading is a complex job as everyone experiences losses as well as profits.
Other issues revolve around eToro advertising so much that you can buy Cryptos with them, when in reality you don't actually own the assets. The same is true for all brokers of this type, if you want to own cryptocurrency assets then you will need to buy them on an exchange that offers this, like Remitano or Binance .
How do you deposit and withdraw money on eToro?
There are many methods of sending money to eToro, so you can choose the method that best meets your needs, keeping in mind that different methods have different minimum deposit amounts. You can choose to send money via bank transfer , domestic bank transfer, Visa, MasterCard, NETELLER, PayPal , Yandex, Webmoney UK, Skrill and other services.
To withdraw money, you must fill out a form and then usually receive money via PayPal, bank transfer or your credit or debit card. To withdraw money, you will need a copy of your signature, a copy of your color passport and proof of address.
Is EToro safe? Is Etoro safe?
To give users peace of mind, eToro takes steps to provide security. The entire company is fully regulated and complies with the instructions of FCA and CySEC. To help traders make responsible decisions, it provides a range of tools for all levels of experience, such as guidance for the first steps and risk management features. eToro also takes precautions to ensure customers' money and personal information is safe. Traditional funds are still guaranteed in European banks of level 1.
With all that in mind, you should remember that there are no regulations on cryptocurrencies. Because of this, if you are involved in cryptocurrency trading or other crypto-related investments, there will be no insurance from investor compensation programs in the UK or Cyprus.
The lack of rules also means that if you have a complaint, you cannot apply with your financial monitoring service. Despite this, eToro is proud to work to resolve issues as seamlessly as possible. In addition, there are many social platforms where you can register complaints, which may affect other users.
Summary of Etoro reviews
At the end of the Etoro review here, you can register for an account and use the demo account for a more intuitive look.
eToro is a multi-asset platform that offers both equity and cryptocurrency investing, as well as CFD asset trading.
Please note that CFDs are complex instruments and risk losing money quickly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether or not you understand how CFD works and whether you can afford the high risk of losing money.
Cryptocurrencies are highly volatile unregulated investment products. Does not protect EU investors.
