Is eToro Good for Crypto Trading? Why Choose eToro Over Others?
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Along with the cryptocurrency market development, 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, reputable and suitable trading platform. Among the cryptocurrency exchanges today, eToro is one of the most popular brokers. So, should you trade crypto on eToro? Let’s find out in the article below.
eToro Regulation & Security
eToro is regulated and licensed by FCA (UK), CySec (Cyprus), ASIC (Australia). eToro is a fintech enterprise operating under the strict supervision of the world’s leading prestigious financial industry management organizations. Therefore, eToro is considered a reputable exchange for investors.
Obtaining certifications from the world’s leading regulatory bodies from the FCA or a CySEC license gives you complete peace of mind about this broker’s authenticity and international standards.
Investor protection policy
- As an FCA-regulated financial services provider, eToro traders (UK) are covered under the Financial Services Compensation Scheme (FSCS).
- For traders under the management of eToro (Europe) Ltd, their funds are protected by the investor compensation scheme.
- To ensure the safety 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 customers’ money and assets in separate accounts so that customers’ 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 crypto-asset 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 & 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. The eToro interface is friendly and easy to use, even for those learning crypto trading for the first time. You do not need to install software and trade directly on the 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 views on the News Feed tab.
In addition, the mobile application is also fully integrated with the same features as on the Web platform, providing trading solutions anytime, anywhere for traders.
When trading at eToro, you could benefit from zero commission fees. This is a good plus point of this worldwide broker over others. Instead, eToro’s pricing is done entirely with spreads and overnight fees.
Like every top trading platform, eToro does charge spreads. This is a fee eToro collect based on the difference between the Buy and Sell prices, which may fluctuate in times of high volatility.
While most other brokers charge a spread on both the buy and the sell of an asset, eToro only charges one 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 at the closing of a position.
eToro offers several different tools that traders can use to enhance their cryptocurrency trading, decide which coins are worth investing in, and make buying versus selling decisions.
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 buy/sell orders of the market, 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 comes with no additional fees and has multiple membership tiers categorized by the total value of the assets in the portfolio.
Copy Trading-Unique feature that makes eToro stand out from other platforms
CopyTrader and CopyPortfolio are two standout products in eToro’s strategic arsenal that competes with other exchanges. These features are all free. So investors do not have to pay any fees except for spreads like any other broker.
Typically, a trader needs to monitor trades, manage orders, emotions, psychology, capital management, and risk management. They need to perform many tasks and spend much 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 investment and trading activities of another user account. You must choose an investor with effective trading results and a suitable trading strategy and click copy. Immediately after that, your account copy every investor’s trade you select. If the trade is profitable, you also profit as a percentage of your capital compared 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. Accordingly, an individual cannot change the investment strategy used on each Copy Portfolio fund. Still, it must be thoroughly researched and agreed upon by many people and with the analytical intervention of high technology. This ensures greater security for investors’ accounts.
All trades are 100% public on eToro, trade 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 presents a win-win opportunity for both copywriters and professionals. Copiers do not 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 are paid an extra commission by 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 suitable investments and creating value for other members.
However, it would help 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 crypto trading? The advantages of eToro compared to other platforms
eToro is one of the reputable cryptocurrency exchanges for investors over the world, loved and trusted by many people because of its friendly, easy-to-use trading platform. The most remarkable feature is copy trading and CryptoPortfolio for customers who want to invest in cryptocurrencies but do not have much experience and time to research and follow the market.
At the time of this 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), Cardano (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 crypto pairs, 63 crypto pairs – Fiat Money, and one virtual-commodity pair for you to choose from.
Advantages of trading cryptos on eToro:
- When buying crypto 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 Cryptocurrency CFDs using leverage along with short selling (SELL). This way of trading cryptocurrencies means you don’t own the underlying asset – you make money from its price 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 benefits, it does not affect your experience too much, especially if you are a long-term investor.
eToro has consistently maintained as one of the leading cryptocurrency trading platforms on the market over the years. Backed by a growing team of experts, a reputable and reputable attestation platform, eToro is increasingly trusted and supported by the community of crypto traders. If you are a beginner, try it out on a demo account first or use the Copy Trading feature to invest safely, stably, and effectively before trading yourself.
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