The Complete eToro Review 2022 - Benefits and Drawbacks Revealed

eToro is a market-leading social trading network that allows traders to replicate the trades of experienced investors or gain special benefits for sharing their trading ideas.

eToro is a big worldwide cryptocurrency exchange with over 3,000 tradeable symbols that allow non-US consumers to trade FX, exchange-traded stocks, and cryptocurrency. eToro now provides stock and exchange-traded fund (ETF) trading to US residents in 44 states, in addition to its previous cryptocurrency service.

Pros

• A well-established platform

• Governed by several jurisdictions

• Users can match the actions of prominent traders thanks to unique social trading features

Cons

• Trading in stocks, ETFs, and cryptocurrencies are only allowed in 44 states in the United States.

• Margin trading is not offered to users in the United States.

About eToro

eToro is a well-known online brokerage that provides cryptocurrency and stock trading. When it implemented support for Bitcoin (BTC) in 2014, it was one of the first online trading businesses to allow digital currency trading. Soon after, it added Ethereum (ETH) and Ripple (XRP) support (XRP).

Today, eToro's famous online trading platform supports 40+ cryptocurrencies, offers an enterprise-grade crypto exchange for experienced traders, and provides a multicurrency crypto wallet.

Overview of the Company

eToro, situated in Tel Aviv, was founded in 2007 by Ronen Assia, David Ring, and Yoni Assia. Assia is still the CEO of the firm today.

Initially functioning as a forex online broker under the name RetailFX, the firm then changed its name to eToro and began selling commodities, indices, and stocks. It established itself as the world's top social trading network in 2010 when it debuted its breakthrough social trading function, which enables users to automatically mimic the moves of successful traders on the site.

eToro implemented BTC functionality in 2014, allowing users to purchase and sell CFDs (to non-US users) on the world's top digital currency. Four years later, ETH and XRP joined the platform, and additional digital assets were added in the years that followed. With the introduction of eToroX and a crypto wallet in 2018, eToro jumped headlong into the cryptocurrency market.

eToro is now attempting to establish itself in the extremely competitive crypto exchange industry by constantly enhancing its crypto trading services.

Cryptocurrencies on eToro are available.

eToro and eToroX allow you to trade over 40 different cryptocurrencies. Here are some of the most popular eToro crypto assets:

• Bitcoin (BTC)

• Bitcoin Cash (BCH)

• Cardano (ADA)

• a dash (DASH)

• Ethereum Dogecoin (DOGE) (ETH)

• Litecoin (LTC) (LTC)

• Polka dotted (DOT)

• a polygon (MATIC)

• Solana (SOL)

• Exceptional Lumens (XLM)

Trading Expertise

Customers may deposit fiat cash from a debit card or bank account and begin trading instantly using eToro's easy web-based platform and well-designed mobile app.

Users may examine current prices and buy, sell, or convert cryptocurrency using the simple “Trading” tab. eToro is perhaps most known for its social trading capability, which enables users to replicate elite traders' portfolio holdings and transactions.

Although eToro provides basic market and limit orders, as well as the possibility for non-US users to invest on margin, it lacks some of the more powerful conditional orders, advanced charting features, and cryptocurrency pairings that rivals provide.

eToro

The eToro platform enables qualified users in some countries to trade digital currencies such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) as well as 1inch (1INCH), Aave (AAVE), and Compound (COMP). Eligible customers may also engage in leveraged trading.

The ability to automatically mimic successful traders' deals utilizing the platform's social trading function is perhaps the most interesting aspect of eToro's trading software.

eToroX

eToroX has all of the features you'd expect from an institutional-grade exchange, such as US dollar deposits, margin trading, trading APIs, and quick execution. These characteristics make it an ideal trading platform for both professional and institutional traders.

Fees

eToro's crypto trading costs are minimal in comparison to rivals' prices, however, customers should be aware of currency conversion and withdrawal expenses. It's also worth noting that costs may vary based on where you live.

There are no withdrawal fees for users in the United States, however, there is a $30 withdrawal minimum. eToro imposes a $5 withdrawal fee for withdrawals made outside of the United States.

For deposits and withdrawals made in currencies other than USD, non-US clients must pay a currency conversion charge beginning at 50 basis points (bps).

Transferring cryptocurrency from eToro.com to the eToro Money crypto wallet will entail a cost. Fees vary depending on the coin being transferred.

eToro also imposes a monthly inactivity fee of $10 for accounts that have been dormant for more than a year.

Fees for eToroX

For price takers and price makers, eToroX imposes a transaction fee of 5 basis points (bps). Furthermore, the exchange runs on an inverted maker-taker paradigm, which implies that price takers get a rebate or are charged a lesser cost. However, you must contact the exchange for further information.

Security

eToro is a well-established online trading organization that provides a safe, regulated platform for crypto trading and has been keeping client assets for well over a decade.

The bulk of customer money on eToroX is maintained in cold storage to limit the possibility of cash being lost due to a hack or operational mistake. In collaboration with premier cybersecurity company GK8, the exchange will launch a cold storage Custody as a Service (CaaS) solution.

In addition to storing user cash in cold storage, eToro urges account users to enable two-factor authentication (2FA) as an additional layer of security. Enabling 2FA, on the other hand, is not necessary.

Registering for an eToro Account

It simply takes a few minutes to create an account with eToro. You must first enter a username, password, and email address. After you've confirmed your email address, eToro will ask you a series of questions to establish your risk tolerance and trading experience.

Users of eToro must additionally authenticate their accounts. You will also be required to give personal information, proof of residence, and a valid, government-issued ID as part of this procedure. Identity verification might take several days, and eToro alerts new users once the process is complete.

Once you've established an account on eToro.com, enrolling for eToroX is as simple as a single click, since your eToro account gives you access to both trading platforms.

Customer Support

eToro has distinct customer support departments for eToro and eToroX. Both systems provide help centers and support through support tickets. However, unlike many other cryptocurrency exchanges, phone service is not accessible.

Account managers are also employed by the firm to care about the most active traders (those who have $5,000 or more in equity on the platform) to improve the experience of eToro's most loyal consumers.

Customer Contentment

With over 23 million users, eToro enjoys favorable consumer feedback generally, as seen by the company's Trustpilot score of 4.1 out of five stars from 11,000+ reviews.

4 eToro's app store ratings are also good, with 4.1 stars on Google Play and 3.7 stars on Apple.

The site, however, has received some unfavorable criticism from current and past users. Among the most common concerns are the inability to withdraw cash and the long wait periods for withdrawals. Other consumers have reported unexpected and unexpected expenses.

How eToro Differs From Other Cryptocurrency Firms

eToro is a professional cryptocurrency exchange that allows users to use a variety of complex trading tactics.

eToro, one of the world's top social trading networks, was one of the first fintechs to embrace cryptocurrencies before developing a crypto exchange and dedicated crypto wallet for its customers.

eToro is on its way to becoming a crypto behemoth, owing to its size, 15 years of business expertise, and enormous user base. These characteristics, together with its copy trading function, distinguish it from other cryptocurrency exchanges on the market today. Here's how eToro compares to Coinbase, another prominent cryptocurrency exchange:

Coinbase vs. eToro

• eToro facilitates social trading by allowing users to communicate with others on its platform. Coinbase does not have a social trading option.

• Coinbase supports over 150 coins, whereas eToro supports little more than 40 cryptocurrencies.

• Coinbase is solely dedicated to bitcoin trading and investment. In addition to cryptocurrency, eToro members may invest in equities and ETFs.

It simply takes a few minutes to create an account with eToro. You must first enter a username, password, and email address. After you've confirmed your email address, eToro will ask you a series of questions to establish your risk tolerance and trading experience.

Investopedia is committed to assisting individuals interested in cryptocurrency investment in making sound judgments. We are dedicated to providing our readers with honest assessments of the best cryptocurrency exchanges for investors of all experience levels.

Exchanges were evaluated on a variety of criteria, including security, costs, the number of cryptocurrencies accessible, and more. We also assessed whether the exchange is governed by a centralized authority or is decentralized. Our whole bitcoin exchange methodology is accessible for scrutiny, including the review process and weighted data points.