Choosing a safe cryptocurrency exchange is the first crux new traders have to solve before beginning their journey. That’s why Linkingo publishes today’s eToro review to make it less of a headache for you.
This post will examine everything about eToro, including how the platform was founded, how you can start trading with it, fees & limits, security aspects, and customer support. Let’s see for yourself whether eToro is the right choice for you to start exploring the world of digital money!
eToro Review – An Overview.
Founded in 2007, eToro is no longer a strange name to professionals in the finance field. The platform started as a general trading platform. Still, as the markets were changing and demands overgrew, it eventually added cryptocurrencies and other trading instruments. So far, eToro has earned over 13 million users in 140 countries around the world, including the US. It is safe to say that it is a critical player in the world of CFD and cryptocurrencies.
As a long-standing platform, there is no surprise if eToro has a relatively impressive trading volume, despite the COVID-19 pandemic. As seen on coinmarketcap, the average daily trading volume of eToro is $7,927,732.05. It ensures that users can sell their cryptocurrencies whenever they need them and as fast as possible. What’s more, eToro still holds a lot of potentials. In 2020, the exchange’s secondary market valuation hit $2.5 billion. The yearly trading volume also reached its peak at over $1.5 million, 400% higher than that of 2019.
Aside from the website, the eToro trading app is also available for iOS and Android. Users can now enjoy the convenience of trading anywhere, as long as they have a phone and a stable connection.
eToro Review – The People Behind This Exchange.
The people behind eToro are brothers Yoni Assia and Ronen Assia, together with David Ring as FinTech developer. Both of the Assia brothers obtained bachelor’s degrees in management and computer science from the Open University. In 2003, they founded a startup called CDRide. The company successfully won several large contracts, and the most notable was the one with Paramount Park. In 2007, they founded eToro and quickly made it one of the biggest cryptocurrency exchanges.
Aside from that, Yoni Assia is also the inventor of colored coins. It is a class of methods to link existing assets with addresses on the digital coin network.
How Do You Create An Account On eToro?
eToro offers two types of accounts. There is a live account where you can start trading using real money and a demo (virtual) account to test the platform with play money. This feature is handy for new traders who begin with cryptocurrencies.
User-friendliness is one of the things eToro is well-known for. The process of creating an account on this platform is straightforward. All you have to do is access the website and fill in the account application form. The form only requires a username, a preferred password, an email address, and a phone number. Users can as well register with just one click by using Google or Facebook accounts.
After registering, the website will direct them to the safe and secure cashier page so they can fund their accounts. eToro exchange accepts a wide range of payments, including Paypal, Skrill, Neteller, Visa, Mastercard, and many more.
At this stage, users can start trading immediately. However, users can experience faster depositing and withdrawal if they verify their accounts. To do that, they need to provide their passport number and a valid utility bill to prove their physical and identical address. Although eToro allows everyone to trade without this verification step, all the limitations will be lifted once verification. Hence, we suggest you do it as soon as possible to enjoy the most convenience.
eToro Review – User Interface.
Personally, eToro’s UI is a pleasure to the eyes. It has a clean and modern design that allows users to understand the functions at a glance. The only problem is you cannot customize any feature except the watchlist, as the panels are fixed:
The platform has a convenient built-in search which is very predictive. Simply typing the name of a company or a product you want to look for, and you can see the results within a second:
Even if you are a new trader, you won’t have any problem trading on eToro. You can use four types of orders: Market, limit, stop-loss, and trailing stop-loss.
eToro has an intelligent alert function that will notify you whenever an asset reaches your target. When an order is completed, it will also send you a notification.
A thing I like the most about this exchange is that you can see your portfolio reports. It comes in a list of your assets or your pie chart so you can see and evaluate your portfolio for yourself.
One minor flaw, though: Finding the fee chart on eToro can be pretty frustrating for new users. First, you need to click the “Portfolio” tab, then go to “History”. Below the gear icon at the top right, you can view your account statement.
eToro Review – Products & Features.
So far, eToro offers users 16 different cryptocurrencies for trading on the platform. Below, let’s take a look at the complete list:
- Bitcoin (BTC).
- Ethereum (ETH).
- Bitcoin Cash (BCH).
- Dash (DASH).
- Litecoin (LTC).
- Ethereum Classic (ETC).
- Cardano (ADA).
- IOTA (MIOTA).
- Stella (XLM).
- EOS (EOS).
- NEO (NEO).
- TRON (TRX).
- Zcash (ZEC).
- Binance Coin (BNB).
- Tezos (XTZ).
- Uni (UNI).
Aside from that, eToro also stands out for providing users with many innovative features. Let’s walk you through some key ones.
1. Copy Portfolios.
This is the feature eToro just introduced last year. Basically, it forms tradable assets based on carefully selected assets or traders of a pre-existing strategy. There are several options for users so they can choose what is most suitable for themselves. The eToro Investment Committee composes these assets and updates them frequently.
Both cryptocurrency traders and traditional fiat traders can make use of CopyPortfolios to their advantage.
2. Copy Trading.
Copy Trading allows you to check out the track record of other traders and copy them. If a trader has a low-risk score and delivers consistent returns, they can become “popular investors” and receive bonuses for sharing assets.
New users can take advantage of the CopyTrading feature and get exposure to the market without taking many risks.
A CFD, or Contract For Difference, serves as a form of derivative trading. This feature helps investors speculate whether global financial markets will rise or fall. It works the same way for cryptocurrencies.
Please note that once you use CFDs, you will not buy or sell the assets underlying them, which is cryptocurrencies in this case. Instead, what will buy or sell is a certain number of units for that instrument which you predict whether the price will rise or fall.
As the instruments move in your favor, the amount of CFD units you sell or buy is multiplied. On the other hand, every point it moves against you will result in a loss. Due to leverage, CFDs pose a high risk of losing money rapidly. Hence, you should make sure that you understand how this feature works or whether you are willing to risk your money.
4. Digital Wallet.
A digital wallet comes with eToro. Users can keep their cryptocurrencies and convert them into real money. It might be costly to convert crypto into fiat currency and vice versa, though, as the fee is 5%. The minimum transaction is $125, and the maximum is $50,000.
In addition, it is possible to transfer cryptocurrency from the eToro exchange to your digital wallet. However, eToro warns their users that the transaction is one-way, meaning you cannot transfer the coins back to the eToro platform.
eToro’s Trading Fees.
On average, eToro’s trading fees are relatively low. Users won’t be charged when they open an account. However, the platform generates costs according to the spreads. It provides a list of spreads for each cryptocurrency, but please note that they still can vary because of the liquidity and market conditions.
A plus point is that eToro offers free stock and ETF trading. However, non-trading fees are high. The withdrawal fee is $5, and the average non-trading cost is $10 per month after one year of inactivity.
eToro Review – Privacy & Security.
Another crucial factor is security. The exchange has an optional safer two-step login system. Some people can find it troublesome to log in, but it provides more security in return.
Aside from that, the eToro team protects users with some cutting-edge security protocols. One of them is data encryption by default. Thanks to this function, so far, the platform has never suffered any CSRF attack. In addition, eToro also has its own backlog analytic mechanism, which helps in decision making, and a bug bounty program.
How Do You Reach Customer Service?
eToro’s customer support is available in 21 different languages. There are two ways to contact them: Live chat and a ticketing system. Both of these methods are quick and reliable, as they receive positive feedback from customers:
The downside is that you cannot reach the customer service during weekends. What’s more, it might be challenging to find the live chat feature. Under the “Help Center” link, users will find the feature in the FAQ section.
eToro Review – Our Final Verdict.
eToro’s most significant advantage is its variety of features that allow both new and professional traders to enjoy the convenience of trading on a modern, innovative platform.
What makes eToro stand out is the additional features such as CopyPortfolios and CopyTrading, which support beginners to the finest. Furthermore, the platform is highly intuitive. That’s something pleasing for those who want to start with cryptocurrencies. With this exchange, you can start trading without having to worry about the safety of your funds.
It comes to the end of our eToro review. Your opinion helps us complete our next posts, so please let us know if you have any comments!
We look forward to seeing you in our next reviews.