Many mainstream financial networks haven’t been particularly welcoming towards the concept of cryptocurrency. However, with the growing adoption of cryptocurrency in all walks of life, and its potential to grow better than most mainstream tools, the sector has been attracting the attention of them as well. Yet, amidst all this pessimism and unnecessary caution, eToro has emerged as one venture that has dared to stand out and venture in and support the idea of cryptocurrency.
Established in 2007 by three Israel-based entrepreneurs Yoni Assia (the current CEO), Ronen Assia and David Ring, eToro calls itself a ‘Social Trading and Investing Network’. It allows investors to invest in multiple mainstream and modern portfolios. So, it’s not that standalone cryptocurrency exchange like Binance, Bitmex or Coinbase, but nonetheless allows users to trade in bitcoin and altcoin in much the same way as traditional exchanges would. Currently based in Cyprus, with presence in UK and USA, the company emphasizes on providing better global accessibility for trading various assets to the general public. Since 2017, eToro started supporting some popular cryptocurrency to its trading platform as well. In 2018, it officially announced its entry in the US cryptocurrency exchange market, and also announced it’s in-platform wallet services.
The Service platforms
The company offers its exchange services through various platforms, including iOS, Android and web-portal. Users can choose to trade in their cryptocurrency balance through standalone cryptocurrency services or through general services. One of the most popular social investment services from eToro is Copyfunds which allows users to put long-term thematic investment by managing a portfolio that allows users to trade their assets based on the strategies used by top traders. For cryptocurrency users, there is a unique product known as Crypto Copyfund that allows users to invest in many popular types of cryptocurrency. For using this service, users need to put a minimum of $5,000 worth of investments.
Currently, the platform supports 10 different types of cryptocurrencies including Bitcoin, Ethereum, Ripple, Dash, Litecoin, Cardano, Stellar, Neo, Ethereum Classic and Bitcoin Cash. Only the cryptocurrency with a minimum market capitalization of $1 billion and a monthly trading volume of $20 million is listed in the Crypto Copyfund.
For a trial purpose, users can also make a practice account with $100,000 of virtual money available to practice investment. With this virtual account, users can not just practice cryptocurrency but other traditional commodity derivatives as well.
eToro is legally approved to trade assets in many parts of the world. The company is approved by the CySEC and FCA, which requires it to keep data of all its customers. It uses the most advanced SSL services to secure the data of every transaction.
Registration in eToro is pretty straightforward with users needing to enter their basic profile details and email address. Following this step, you will come across a questionnaire that allows the company to determine your trading personality, based on a question about income levels, investment experience, etc. Users will also need to submit their financial information and KYC details along with government approved documents. Unless you reside in the few restricted countries in its list, you can use eToro from anywhere in the world.
Performing transactions through the platform
Users can begin trading through the platform immediately after their profile details are complete. However, unverified users will only be allowed limited trading. Once you are logged in to the Dashboard, you can start trading cryptocurrency by clicking on the ‘trade market’ tab and from there choose Cryptocurrency from the drop menus. If you want to deal with real currency, click the ‘Real’ button located on the top left button below your username and picture. If you just want to practice, click on the ‘Virtual’ button.
Once you are ready to trade, click the ‘Trade Markets’ tab at the side panel and choose the ‘Crypto Market’ option on the upper side of the page. From there you will be led to an insightful page with the latest data about several cryptocurrency’s market performance against the US Dollars. Choose the cryptocurrency you are willing to trade upon and click on the Buy or Sell button, depending upon what kind of trade you want to do.
If you are an experienced trader, you will get plenty of information through the page about the leverage provide and the profit or loss levels. You can even make certain adjustments you want. If you are a trading newbie, eToro’s automatic system will warn you if you are proceeding to make a risky trade. Once you are confident of the trade, click on the ‘Open Trade’ button to begin trading. Following a successful trade, your asset details will appear on the Portfolio that can be accessed through a panel on the left-hand side. From this area, you are able to do more trades, close your existing trade, view the insights or even set new price alerts for assets that interest you. Several experts consider the eToro platform to be very easy and uncomplicated for trading.
For Bitcoin trades, eToro charges a fixed fee of 0.7%. For other currencies, this can be as high as 5%. The company charges $25 for all cryptocurrency withdrawals.
Support and Customer Care
eToro has a dedicated customer support team that can be reached via various methods including telephone, email, and social media. Their telephone lines are oven on weekdays round-the-clock, which they usually reply to email requests within 24-48 hours. Users can also choose between five languages for support, including English, Spanish, Italian, German and French.
Despite not being a standalone cryptocurrency exchange, experts consider eToro’s experience in the overall global finance sector to be better than even the most established exchanges. With more facilities planned for cryptocurrency users, including wallets and fiat currency exchange support, eToro surely has a lot of room for growth in the future. With the possibility of diversifying investments in different assets, in addition, cryptocurrency, users may find the platform to be very enticing. However, the biggest downside of eToro is the relatively higher fees it charges. Of course, it’s not the most expensive exchange out there, but there are many other competitors who charge quite lower than eToro. Users also need to be aware that with this platform the varieties of cryptocurrency supported are very limited. However, with the ability to invest in multiple assets and the opportunity to learn the market better with a highly reliable demo account, eToro can be very enticing for beginner and intermediate level investors.