eToro is a very popular digital trading platform for Cryptocurrency, currencies, indexes, stocks and commodities. As of now, eToro has over 7 million users worldwide. In this article, we have stressed out on the various aspects of the platform along with the pros and cons.
For a more detailed review about eToro, be with us till the end.
eToro is one of the leading enterprises that stretches out its services in Cryptocurrency. It provides the users with an easy and clean trading platform for investing in the Cryptocurrencies and also a digital wallet that would be required to trade and send funds but does not allow receiving of the funds.
The company offers a wide range of payment methods and easy investment in leading cryptocurrencies including Bitcoin. eToro is suggested for the speculators only due to the fact that you can only trade your assets for fiat currencies and not access them.
Summing Up eToro
eToro is a one-stop destination for almost all types of trading after coming into operation in 2007. It possesses a modern trading system having the ability to interact with other users and thus also termed as the social investment network. Yoni Assia, CEO of the platform intends to disrupt the outdated banking system and help it have a new digital financial age. eToro allows you to trade a selected number of cryptocurrencies.
On February 2017, eToro introduced cryptocurrencies and they have gone through several ups and downs before that. From then onwards they have been proactively promoting and sponsoring the activities in Cryptocurrency all over the world.
Services eToro Provides
eToro is a platform that allows its users to invest in a variety of assets that include stock, currencies, commodities, indices and last but not the least, cryptocurrencies. The unique thing eToro offers in its platform is social trading that enables one to follow and copy other traders.
- Copy Traders & CopyPortfolios: Apart from the liberty to decide where you want to invest in, eToro also supports you in having two other options that are to copy other traders or invest in a CopyPortfolio. CopyPortfolio is a product of portfolio management which is somewhat similar to an investment in a specific index where someone selects a mix of assets for your investments. Investment in this way will auto-copy multiple markets and/or traders that are based on a predetermined investment strategy. There are two types of Copyportfolios for you to invest in:
- Partner Portfolios: It is an investment vehicle that has been created by eToro partners.
- Market Portfolios: These are the top-performing assets from a specific market.
CopyPortfolios are meant to minimise long term investment risk which is done by creating diversified investments. As soon as you invest in a CopyPortfolio, all your capital is managed professionally by the investment committee of eToro. The main aim of the eToro investment committee is to perform an in-depth analysis of each CopyPortfolio’s performance and rebalance automatically.
- CryptoPortfolio of eToro: eToro provides its customers with a special product called the CryptoPortfolio which allows the customers to invest in the most popular cryptocurrencies such as Dash, Ethereum, Bitcoin, Litcoin, Ethereum Classic and Ripple where the nominal investment for the CryptoPortfolio is $5000.
If you are investing in a particular type of Cryptocurrency, you are involved in some sort of risks. But if you are investing in this type of portfolio, you will be able to invest in more than one cryptocurrencies all at the same time and will diversify some risks as well. To be included in the CryptoPortfolio, a Cryptocurrency has to meet certain requirements which are:
- Minimum capital of $1 billion.
- Minimum average trading volume per month of $20 million.
Each Cryptocurrency will have a weight in the portfolio that accounts equal to the size of its market capitalization of a minimum 5%. In any case, a Cryptocurrency could not meet up the minimum requirements then it is automatically removed from the portfolio.
The CryptoPortfolio undergoes analysis and rebalances on the very first trading day of each month.
- Cryptocurrency Wallet of eToro: Great news indeed! eToro has launched their very own wallet for both the operating systems, viz., iOS and Android. The wallet allows customers or users to transfer cryptocurrencies through their mobile devices. Although eToro claims it to be a wallet, it is seen that it is an upgraded interface to the existing platform of eToro. If you are using a true wallet, you will be provided with a private key or unique seed phrase. In case of eToro wallet, you do not get full control over your funds as it does not provide you with any unique seed phrase or private key. What you can do is log in to your eToro account and send or trade-specific currencies with the help of it. But it is to be noted that the wallet does not store your funds but the eToro platform. You also can send funds outside the wallet to any self-hosted wallet.
eToro’s wallet might be a better solution for the beginners but it is recommended that you do not store large amounts of money.
Supported Currencies and Payment Methods
There are only a few cryptocurrencies available as eToro is not a Cryptocurrency dedicated exchange. Having said that, their offerings are pretty decent and more than what other industry offers. The investment is done in the form of CFD. This means that you speculate the price and you do not get to own the actual coins.
Here is the list of cryptocurrencies supported by eToro as of now:
- Binance Coin (BNB)
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Dash (DASH)
- EOS (EOS)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- IOTA (MIOTA)
- Litecoin (LTC)
- NEO (NEO)
- Ripple (XRP)
- Stellar (XLM)
- Zcash (ZEC)
Methods of Deposit
eToro offers a wide range of money deposit options in its platform like:
- China Union Pay
- Credit / debit card
- Local Online Banking
- NEO (NEO)
- Ripple (XRP)
- Stellar (XLM)
- Wire transfer
- Zcash (ZEC)
Note: The minimum first-time deposit is $200. The denomination for eToro account is USD. Thus any amount you deposit will be auto-converted to USD.
The pricing in eToro varies from assets to assets since eToro held a complex amount of trading options. If you are one of the serious investors, you would be in shock if you close closely at the Cryptocurrency trade fees. Bitcoin will cost you 0.70% fee when you will exit a position which is higher than most of the other exchanges. Other coins trade at a rate of 2%-4% fee. You can check out the complete list of fees on the internet.
You should also note that there is a withdrawal fee applicable as well when you attempt to cash out. eToro allows you to cash out only the fiat money and against each withdrawal, you will be charged $25.
There is a separate fee charged for the members who are inactive for 12 months or a year. If you are a long term holder and you are inactive for 12 consecutive months, your account will be debited at $5 per month. It is advised that you log in and check up on your investments quarterly.
eToro Supported Countries
eToro is supported in the following countries:
UK, Argentina, Australia, Austria, Bahrain, Belgium, Brunei, Bulgaria, Canada, Chile, China, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland, India, Ireland, Italy, Jordan, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mexico, New Zealand, Nigeria, Norway, Oman, Paraguay, Peru, Poland, Portugal, Qatar, Romania, Russia, Saudi, Arabia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Thailand, The Netherlands, Ukraine, United Arab Emirates, Uruguay, Venezuela.
eToro was made unavailable for the US investors but lately, an open Beta is made available for the people within the selected US states.
Customer Support and Feedback
While checking through the reviews and feedback posted by various users, it has been found that there are huge negative reviews. But this is also to be considered that all exchanges undergo these sorts of negative reviews. This is because happy and satisfied users barely put up a review while the dissatisfied users share their experience. It is suggested that you go through all the reviews before judging it by yourself.
The customer support in eToro in made available in nine different languages and you can reach them through an online helpdesk. There is absolutely no live chat option or call support.
eToro is a pretty simple, painless and straightforward platform. The signing up takes up less than five minutes and even the steps are devoid of any slow verification methods or confirmations. All you need to do is go to the Sign Up page and add your personal details and finally hit the sign up button.
As soon as you sign up, you will be provided with a questionnaire that will help you assess your trading personality. Quite some information is revealing such as the income levels, investment levels, etc. Well then, it is a part of the standard KYC, unlike the other regulated company.
The whole eToro system is pretty smooth and devoid of any lag or connection problems. All your deposits are done swiftly via all payment methods against no fee. If you want to trade immediately without verification, you can do so up to a maximum trading limit of $2000 which is enough to test the service.
This modern trading platform is used by the watch lists, featured markets and portfolio trackers. Under ten minutes you will be able to open your positions on Facebook and Bitcoin at the same time.
Conclusion – What do we think about eToro?
The eToro platform is an easy to use platform. The interface used by eToro is very responsive, intuitive and packed with the handy specifications. With a decent selection of the Cryptocurrencies, you will be able to receive a lot out of this platform. In less than ten minutes you will be able to trade and open positions in various cryptocurrencies.
With these advantages, there are certain disadvantages of which the major one is you do not hold the actual assets you invest in. If you want to own the actual assets then eToro is not the right place for you. Another disadvantage is the fees which are an overpriced one.
Summing up, eToro is the best place for the speculators and not for the hardcore Bitcoiners.
If you have already tried eToro, we would love to hear your experience right in the comments section below.