Navigating the Crypto market is always difficult for inexperienced traders. Etoro is one of the exchange platforms that seek to make trading difficult for its users. They offer some features that make it possible for beginner traders to copy the moves of expert traders.
If you are a beginner or expert trader about to trade or sign up, this Etoro review will guide you on the features, pros, cons, safety, and cryptocurrencies available in Etoro.
Etoro is a global trading platform founded in 2007 by Israelis Yoni Assia and Ronen Assia. It started out as a forex trading platform until 2017 when Crypto and other social features were added.
Etoro provides a suitable platform both for beginners and expert traders. Beginners can copy the trading activities of expert traders, while expert traders can groom their followers. Expert traders can earn a profit when others copy their trading patterns.
This favors both parties.
If you are looking for an exchange that offers low trading fees, Etoro might not be the best match for you.
Features of Etoro
- Fees overview – the exchange has a somewhat complicated fee structure. The fees on Etoro varies based on market conditions. Whenever you are buying or selling crypto assets on the platform, you will be charged a 1% fee.
If you want to sell a stock or trade ETF, there is no commission as the broker will foot the bills for the regulatory transaction fees.
The bottom line is that the fees for different transactions vary.
- CopyTrader and Popular Investor feature – Etoro made it possible for users who sign up on CopyTrader to copy the trading strategies of top traders who are fondly called Popular Investors. You won’t be charged any fee for this. If you get to the point where you feel you have honed your trading strategy, you can apply to become a popular investor.
- Wallet options – Etoro has a digital wallet known as Etoro wallet which the users can use to store their Cryptocurrency. The wallet is available on Android and iOS. With the wallet, you can convert your Crypto into a fiat currency. The lowest transaction you can perform is 25% while the highest is $10,000.
For the transaction, you will be charged a 5% fee.
You can transfer your cryptocurrency from the Etoro platform to your external wallet. The limitation to this is that once you transfer out the coins, you can’t transfer them back to the Etoro trading platform.
- Etoro club – some users do register to the Etoro club. Signing up to the club will upgrade you to a premium membership. You will need to have purchased crypto assets worth $5,000 or have a cash equivalent on your Etoro account.
As a member of the club, you will have access to support from expert traders, analyst reports and market newsletters, early access to new products, and services, and also live webinars.
- Account Management – you can access your accounts or wallets through a mobile app. Etoro has two separate mobile apps available for its users. The trading app performs the same function as the website while the wallet app is for sending and receiving tokens.
The wallet app is also used to convert your cryptocurrencies to other coins. Also, if you must transfer your coins out of the platform, it must be through the wallet app. This option of transferring your coins makes Etoro unique among its competitors.
This is because most exchanges don’t allow coins to be transferred outside their platform.
- Customer service – users can contact customer service through email or online chats. You can also go through the help center and check if you will find the answer to your questions. However, club members who enjoy premium membership have access to the phone number on their website.
- Security features – the platform has put so many measures in check to ensure that the users’ assets are well secure. The two-factor authentication keeps user’s accounts away from hackers. There are also state-of-the-art monitoring tools available.
The protocol also uses cold storage to store users’ assets, they equally make use of online storage.
The cash assets of users are held by the Federal Deposit Insurance Corp (FDIC).
Pros of Etoro
- Guide for traders – Etoro is an innovative platform where users have the chance to mirror the activities of experienced traders. This provides a guide and also prevents the new users from encountering losses.
- Great community – due to the relationship between new traders and expert traders, the platform offers a great communal experience. Having access to chat with other users can give you more insight into the world of Crypto.
- Available in different countries – the platform has been in existence for many users with millions of users globally. It operates in over 140 countries and this is a great feat.
- Educational resources – On the platform, you can find useful resources that will further guide you on trades. You will have access to resources that give insight into the cryptocurrency market. This insight favors both beginners and learners because there is no limit to learning.
You will also have access to all the online videos that provide a detailed guide on the correct investment strategies, how to create your profile, and even how to use the Etoro platform.
- Offers virtual trading – with virtual trading, every account holder can open a virtual account. The virtual account will help you engage in practice trading.
Cons of Etoro
- There is Limited service in some U.S States – Etoro services can only be accessible by about 45 states in the U.S and Washington. Some U.S States like Minnesota, Hawaii, New York, and others can’t access actual trading in Etoro. However, all states can access the virtual trading account.
- High Fees – Most coins on Etoro have high fees. Bitcoin is the only cryptocurrency with a relatively low fee on the platform. If you are to trade with Etoro, you will be charged a high fee.
Cryptocurrencies available in Etoro
Etoro only has about 27 cryptocurrencies available on its platform.
Some of the Cryptocurrencies includes:
- Bitcoin Cash (BCH)
- Bitcoin (BTC)
- Ethereum (ETH)
- Stellar Lumens (XLM)
Is Etoro safe for you?
As a trader, whether you are a beginner or an experienced trader, the safety of your assets should matter to you. Etoro is a platform that has placed some measures to ensure that the assets are protected.
With the cold storage option, two-factor authentication, and other security features available on the platform, your assets can be said to be safe.
Ensure that from your side, you do all that is required of you during registration. Another way in which you can easily lose money is by making wrong trading moves. Since members of the platform can sign up as popular investors, be sure that whichever trading strategy is from an experienced trader.
Don’t trust a strategy completely no matter how promising it looks. Do your research properly, and always confirm the state of the market before going on to trade. Doing this will help you further protect yourself from losses.
The best feature available in the Etoro trading platform is the CopyTrader option. Being able to copy the strategies of experienced traders helps you make the right trading choices.
This Etoro review we just did shows that with their strong security measures and unique features, you can try trading with them. However, always invest what you can afford to lose.