eToro might not be the most popular exchange within the cryptosphere, but it’s definitely one with a very interesting history and one of the most interesting propositions within the crypto trading space.
The evolution of eToro
Founded by Ronen and Yoni Assia and partner David Ring, the Tel Aviv-based brokerage quickly started to make a name of itself as being a very versatile trading and investment platform, even though it was launched in 2006, way before Bitcoin appeared.
During its life, eToro saw a great deal of innovations and improvements for its services including the launch of the WebTrader platform in 2009, the launch of OpenBook in 2011 (the world’s first social trading platform), the launch of its CopyTrade feature, its mobile apps for both Android and iOS, and its CopyFunds service in 2016.
One of the platform’s features is CopyFunds and, as its name suggests, it allows traders to create a single tradeable asset that is made up of carefully selected assets or traders of a predetermined strategy. The feature is available for both crypto and fiat trading.
CopyTrading is yet another useful option on eToro. Traders have the ability of copying traders of your choice. Each time a trader has a low-risk score and delivers consistent results, it can become a Popular Investor. As expected, a Popular Investor also receives rewards for sharing wisdom. By taking advantage of CopyTrading, beginner traders can get exposure to the market without having to do massive amounts of research. The option is available for both crypto and fiat trading.
It was in January 2017 that the platform managed to extend its reach within the cryptosphere by adding support for trading crypto.
Considering the fact that eToro has only recently transitioned to cryptocurrency trading, it’s somewhat unsurprising that the options for supported crypto are relatively limited. Some of the most popular options include Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, and Ripple.
Fees and minimum trade size
In order to take part in CopyTrading, any trader has to have $200. For CopyFunds, the minimum investment is set at $5,000. For fiat currencies and cryptocurrencies, or their commodities, the minimum is just $25, and for stocks, it’s $50.
On eToro, most of the fees are based on the spread as the platform doesn’t charge traders for opening positions. eToro also charges fees for users who hold leveraged Ethereum or Bitcoin positions, as well as for shorting cryptocurrencies. More information regarding the fees can be found on the dedicated section.
What sets eToro apart from other similar platforms?
For starters, eToro is one of the most versatile platforms of this sort. It offers a large collection of useful investment and trading options, most of which are not supported by other platforms of this type. What’s more, it’s important not to forget that eToro offers both fiat and crypto trading, and the said trading and investment options are available for both.
This makes the platform very appealing for traders looking to use the same tools both for cryptocurrency and for fiat trading purposes. The option to allow investors to copy other successful traders is also new-age, and so is the Popular Investor program mentioned earlier, making eToro a unique platform in its field.
Even though the platform is not entirely focused on crypto trading, eToro is a very useful tool for anyone looking to invest in crypto. The fact that it does not support a lot of cryptos is definitely an aspect which the team behind eToro will need to address if it wants to thrive in the current crypto market. In short, it’s not the ideal place for investors looking to trade less known cryptocurrencies.