Along with the development of the cryptocurrency market, there are more and more crypto exchanges. In order not to become a victim of scam brokers, you need to consider many factors to choose a safe, reliable and suitable trading platform. Among cryptocurrency exchanges today, eToro is one of the most popular brokers. So, should you trade cryptocurrencies on eToro? Let’s find out in the article below.
Table of Contents:
eToro Rules and Security
regulation
eToro is regulated and licensed by FCA (UK), CySec (Cyprus), ASIC (Australia). eToro is a fintech enterprise operating under the close supervision of the world’s leading leading financial sector management organisations. Therefore, eToro is considered a reliable exchange for investors.
Obtaining certifications from the world’s leading regulatory bodies from the FCA or a CySEC license gives you peace of mind about the authenticity of this broker and international standards.
Investor protection policy
- As an FCA-regulated financial services provider, eToro (UK) traders are covered by the Financial Services Compensation Scheme (FSCS).
- For traders under the management of eToro (Europe) Ltd, their funds are protected by the investor clearing system.
- To ensure the security of client funds and data protection, eToro also uses the latest encryption technology and security systems to protect its servers from any intrusion.
- Segregated Accounts Mechanism: eToro keeps client money and assets in separate accounts so that client money and assets are always separated from the company’s assets. This segregation of funds is monitored internally and externally.
- Negative balance protection
Crypto Wallet – eToro Money
The cryptocurrency market is growing, so the need for cryptocurrency security is also more focused.
eToro Money is one of the most secure digital wallets available, with many high-level security features against unauthorized access, including multi-signature functionality, DDoS protection, and standardized protocols. Once the coins are in the wallet, they are stored on the blockchain (hot wallet).
eToro interface and platform
Unlike most brokers, eToro is currently one of the few that does not use the MetaTrader platform but instead uses its WebTrader social networking platform. eToro’s interface is friendly and easy to use, even for those learning cryptocurrency trading for the first time. You don’t need to install software and trade directly on your web browser.
The interface of eToro is like a social network like Facebook, Twitter, simple and easy to use. In addition to trading, updating prices, analyzing charts, you can also communicate with like-minded investors (cryptocurrency) and share opinions on the News Feed tab.
In addition, the mobile application is also fully integrated with the same features as the web platform, providing trading solutions anytime, anywhere for traders.
eToro Fees
When trading on eToro, you could benefit from zero commissions. This is a good point in favor of this world broker over others. Instead, eToro’s prices are made entirely with overnight spreads and commissions.
Like any best trading platform, eToro charges spreads. This is a commission that eToro collects based on the difference between buy and sell prices, which can fluctuate in times of high volatility.
While most other brokers charge a spread on both buying and selling an asset, eToro only charges a spread, first charged when you buy the asset and adjusted when you sell it.
Typically, the spread is between 0.75% and 2.5%, depending on the cryptocurrency you choose to invest in.
And the spread is charged when closing a position.
eToro Training
eToro offers several tools that traders can use to improve their cryptocurrency trading, decide which coins are worth investing in, and make buying decisions over the sale.
Some of our favorite educational and trading tools available through eToro include:
- Virtual Investment Account: On eToro’s virtual account, you can execute real-time market buy/sell orders, hone your trading skills, and test the efficiency of your strategies. The chart in the virtual account is similar to the real account. Therefore, you can learn to observe the market, practice trading without worrying about losing real money.
- eToro Club: eToro Club offers users additional educational benefits such as exclusive marketing newsletters or invitations to live events. Access to the eToro Club does not incur additional costs and has multiple membership levels ranked according to the total value of the assets in the portfolio.
Copy Trading-Unique feature that sets eToro apart from other platforms
CopyTrader and CopyPortfolio are two prominent products in eToro’s strategic arsenal that competes with other exchanges. These features are all free. So investors don’t have to pay any commission except for spreads like any other broker.
Typically, a trader must monitor trades, manage orders, emotions, psychology, capital management and risk management. They need to perform many tasks and spend a lot of time before investing. However, not everyone has enough knowledge and experience in the financial market.
With CopyTrader and CopyPortfolio on eToro, trading becomes easier. Specifically:
- CopyTrader: Copy trader is a feature that helps investors copy all the investment and trading activities of another user account. You need to choose an investor with effective trading results and a suitable trading strategy and click copy. Right after that, your account copies each investor trade you select. If the trade is profitable, you also earn as a percentage of your capital relative to the professional investor’s account.
- CopyPortfolio: When you invest in a cryptocurrency CopyPortfolio fund, your capital is professionally managed by eToro’s investment committee. The performance of each CopyPortfolio is thoroughly analyzed and automatically rebalanced to maximize its earning potential. As a result, an individual cannot change the investment strategy used on each Copy Portfolio fund. However, it must be carefully studied and agreed upon by many people and with the analytical intervention of high technology. This ensures greater security for investor accounts.
All trades are 100% public on eToro, trading history and monthly trading results on eToro (continuously updated and accurate).
Therefore, you can invest some money to copy the trades of professional crypto investors or participate in a cryptocurrency investment fund with a wide variety of coins and have good returns.
This represents an advantageous opportunity for both copywriters and professionals. Copiers don’t have to research the market, make money from the cryptocurrency market, and easily inherit their experience and techniques with very low risk. Professional investors and investment funds receive an extra fee from eToro, incentivizing users to make profitable trades.
If you are an experienced trader and have an effective trading strategy, you can join the “Popular Trader” program and earn extra income for yourself. Good investors with many copiers receive incentives such as VIP accounts and bonus policies from eToro to encourage them to continue making proper investments and create value for other members.
However, it would be helpful if you also remembered that any investment has potential risks. You can allocate your capital, copy multiple investors with different ratios, and place a stop-loss order if that investor loses. The copy order stops automatically.
Is eToro good for trading cryptocurrencies? The advantages of eToro over other platforms
eToro is one of the reliable cryptocurrency exchanges for investors around the world, loved and trusted by many people due to its friendly and easy-to-use trading platform. The most notable feature is copy trading and CryptoPortfolio for clients who want to invest in cryptocurrencies but don’t have much experience and time to research and follow the market.
At the time of writing, there are 43 cryptocurrencies (coins) traded on eToro, including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), Dash (DASH), Litecoin (LTC), Ethereum Classic (ETC), Cardan (ADA), Binance Coin (BNB), etc.
In addition, you can also trade cryptocurrencies in the form of crypto pairs, virtual-fiat pairs, virtual commodity pairs. Specifically, there are 14 cryptocurrency pairs, 63 cryptocurrency pairs – Fiat Money and a virtual commodity pair to choose from.
Advantages of trading cryptocurrencies on eToro:
- When you buy cryptocurrencies without leverage, you own the underlying asset, which is kept safe by eToro on your behalf in cold storage (offline) or which you can transfer to an eToro Money wallet.
- However, you can also trade CFDs on cryptocurrencies using leverage along with short selling (SELL). This way of trading cryptocurrencies means that you do not own the underlying asset: you earn from its price by going up or down.
- eToro offers a wide range of cryptocurrencies invested in coins, crypto crosses, currency crosses and commodity crosses.
- eToro also offers unique copy trading features (CopyTrader, CopyPortfolio), suitable for those who have little time or experience to trade independently. This allows users to copy the portfolios of professional crypto traders/investors for free without incurring any fees.
- User-friendly interface
- Offer trading on mobile apps
Although the downside of eToro is its relatively high spread. However, compared to its advantages, it does not affect your experience too much, especially if you are a long-term investor.
