eToro Review: Is this the best crypto exchange right now?

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eToro has been in business for quite some time as the company kicked off operations in 2007. However, the company only stormed the U.S market in 2018 even though the company has been in operating since 2007. Although popular for its online brokerage and investment platforms in other countries, It has a crypto trading arm that extends to the U.S alone.

Besides supporting over 25 cryptocurrencies, the platform is also popular for its impressive community of active users and low transaction fees.

While eToro provides fairly priced crypto exchange services, its crypto trading prices are relatively higher compared to other popular crypto exchanges out there. Read as we give you a more detailed review of this platform.

About eToro

Yoni and Ronen Assia founded what is today known as eToro in 2007. Today, the company has metamorphosed into a global brand that offers both forex and crypto trading services. 

Thanks to its years of impressive services, eToro has become an industry giant. As of right now, the company has expanded its services to support digital asset trading in the US. Similarly, the platform offers unique services including Copy Trading, which allows newbies to earn while they learn.

If you’re interested in a platform that lets you trade digital assets effortlessly, you’ll love eToro.com. 

Pros

  • Great User Experience through platform engagement
  • Users gain access to copy the trading strategies of other top-notch traders.
  • Transferability of crypto holdings to other platforms.
  • Provision of easy-to-understand educational content and resources.
  • Room to test out strategies through the paper trading feature.

Cons

  • Expensive purchase fee on all altcoins on its exchange platform.
  • Its distinct revenue model makes you pay higher fees upfront for transactions.
  • Still unavailable In several states in the U.S.
  • Software structure restricts the transfer of crypto back to the platform upon transfer to the wallet, a daunting user experience.
  • Customer Service gap

 

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Crypto assets are highly volatile and unregulated. No consumer protection. 

Who is eToro designed for?

The ideal eToro users are new crypto enthusiasts excited about learning via the application. One of the best things about eToro is its exciting user community and social features providing up-to-date information on coins.

Its community-based model offers dialogue and helpful conversations that provide useful information and support for newbies. The common philosophy at eToro is the power of imitation to produce mastery

One thing we love about eToro is that it supports features that allow users to master the strategies used by its top-rated crypto traders, while simultaneously compensating said users when others copy theirs.

This compensation serves as an incentive for expert traders to come on board, with the possibility of earning up to 2% of their balance for mentoring others to profit.

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For the “non-crypto beginner” with no interest in being an influencer, seeking the most cost-effective trading fees and other trading assets, eToro would not be the go-to exchange platform. Many other low-priced crypto trading platforms will serve as a better fit.

eToro Commissions and Fees

The price structure on crypto exchanges particularly built to serve beginners, like Coinbase, can easily confuse. eToro tackled this confusion barrier by clearly stating its fees (termed “spreads”), for the selling of crypto coins.  These spreads vary from coin to coin and fluctuate based on the market. Unlike other competitive platforms where a spread is paid upon buying or selling a coin, on eToro, the pricing model is a bit different 

As you pay for what is called a “round trip” in advance on eToro, it leads to a spread payment on both the purchase and eventual sale of the coin of choice. These multiple payment fees might not matter to you if you plan on retaining your purchased coins on the platform

For long-term investors who intend to ‘hold’, the spread fee paid on advance coin sale is considerably lower due to the market value of your coin at the time of purchase. An obvious disadvantage of the platform is the users’ inability to send coins from previously withdrawn users’ wallets, back to the trading platform. Even when the wallet involved is the parent eToro wallet.

This platform limitation implies that you have to pay yet another spread fee to another platform when you eventually sell. Spread fees can go as low as 0.75% for Bitcoin to up to 5.0% for Tezos. Meaning BTC spread fees equal 0.35% to and fro. 

Compared to what you’re charged on other platforms, you’ll agree that is a considerable free. Nevertheless, if you think this is too much, feel free to purchase altcoins from other platforms to save costs.

Other eToro Fees

Besides these spread commissions, any other payment request from eToro can be reported as fraudulent. You are not charged any fees to make withdrawals, but eToro has a $30 price cap on minimal withdrawals. 

A 0.50% transfer fee is charged to move funds from the eToro platform to the eToro wallet, proving eventually to be the best route to get coins outside of the platform. Similarly, eToro’s crypto-to-crypto conversion rates cost 0.1%.

eToro Platform and Technology

Some of the brokerage features of the eToro platform include; customized charts, watch lists, and even news feeds. But its standout feature remains its community, paired with its automated trading models 

CopyTrader and Popular Investor

The CopyTrader is interrelated but not the same as the Popular Investor. Users who opt-in for the CopyTrader can copy strategies of skilled trading experts called Popular Investors on the platform. The exciting part is that you don’t need to pay any fees to these popular investors to get access to their trades. They receive their financial incentives straight from the platform. And, you can also apply for the position 

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A similar offering is the CopyPortfolios which grants you access to copy eToro’s crypto portfolio, making eToro a free automated crypto trading advisor..

Social Trading Community

There’s a continuous inflow of user-generated content in the form of comments and thoughts on the eToro feed providing a social edge. This content comprises everything from thoughts and conversations around crypto, markets, and investments in general.

Clicking on each coin takes you to a tailormade feed providing relevant user-generated information on that specific coin. At best though, they help newbies make more informed trading decisions and analyses. But should not be solely relied on when making defining trading decisions.

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Crypto assets are highly volatile and unregulated. No consumer protection.

eToro Club

The eToro Club is eToro’s way of creating a loyalty program and rewarding participants. It is a paid membership program, accompanied by amazing features.

The degree to what features you can enjoy as a member of the club is proportional to your balance, which is a total of your “raised equity”, or the amount spent buying securities coupled with your cash holdings over time. Membership is unlocked once you hit the $5000 mark in amassed digital assets or total cash on the eToro account.

Some of these premium membership features incuse;

  • Mentorship and support from trading experts.
  • Market-niched newsletter and expert analysis reports.
  • Webinars
  • Early bird access to their products, services, and features 
  • Mobile applications

eToro has two different apps on its platform meeting different functions:  Its eToro Money Wallet and its eToro crypto trading applications.

Available both on iOS and android, the crypto trading app covers the operations of the website. While its wallet is built to aid sending, receiving and conversion of cryptocurrencies. Worthy of note is that the eToro wallet is the only opportunity users have to take coins outside of the parent platforms. Transferring crypto assets to physical wallets is the best-known way to secure them.

Its provision for taking coins off its platform serves as a bit of a moat against its competitors who all never allow asset transfer. This however comes with a charge.

If you need an exchange platform that easily accommodates the buying of crypto and its subsequent transference elsewhere then you might want to consider Gemini. As they offer a stipulated amount of free transfers and a more subsidized trading fee.

See also  KuCoin Review: An In depth Review of the Top Crypto Exchange 

eToro Range of Offerings

eToro boasts of over 25 crypto coins. Without a doubt, the platform provides users access to more than enough features and resources to help a complete newbie navigate his way Into the crypto space. Although more advanced crypto traders would rather go for another platform with a wider range of coins.

Common coins you’ll find on the eToro platform include;

There are plans to move beyond crypto services  to other brokerage services, via assets like ETFs and stock 

eToro Research and Education

There’s an avalanche of resources any newbie can leverage to learn not just about coins but the crypto and Blockchain market in general. Without mincing words, there are enough resources to serve beginners, intermediates, or advanced users.

These resources range from digital guides or videos that cover a wide array of topics. For insights, valuable information, or news covering the latest in the crypto market, keep an eye out for eToro’s News and Analysis section.

Double worthy of mention is eToro’s Paper trading feature. This could be likened to trading the forex market with a demo account. Beginners can leverage this to improve their trading knowledge. 

eToro Customer Service and Security

To reach out to customer service assistants, users can forward an email or chat directly. However, keep in mind that the eToro customer care chat number is currently available to only eToro club members, with the general phone number configured to redirect users back to chat. Possibly very annoying.

This means nonclub members have streamlined access to just the email customer care service. For security, cash assets on the platform are protected via FDIC-insured banks. Crypto assets are secured through both online and offline storage, monitoring tools, and two-factor authentication

Lastly, no eToro staff has the authority or access to take user-owned crypto from storage.

Our verdict

Even though eToro currently supports only 25 cryptocurrencies, they have some of the most competitive trading fees in this industry. Coupled with that, they offer a variety of features including Copy Trading, which is designed to allow newbies to earn while they learn. We also love the intuitive design of the platform which makes it easy to navigate.

If you’re looking to get started trading Bitcoin, Ethereum and other digital assets, you won’t go wrong giving eToro a try.

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Crypto assets are highly volatile and unregulated. No consumer protection.

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