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eToro: A new social trading platform for US traders

Cryptocurrency

eToro is a fintech start-up that has made significant waves in the financial trading sector. Since 2007, eToro has helped to usher in a new form of financial trading, one that is 100% social and fosters engagement and debate among investment enthusiasts from around the world.

From the moment of its launch in the UK and Australia, eToro has been considered a well-regulated social trading platform by some of the most reputable jurisdictions.

eToro has thrived significantly with its UK and Australian trading arms, which has created a strong base from which to launch its US offering.

Late last year, that ambition was realized, with eToro being permitted to launch its cryptocurrency trading platform and crypto wallet to US traders in digital currencies.

Now, eToro’s US platform is just as well-regulated as its British and Australian sister platforms, registered with FinCEN as a Money Services Business. FinCEN promotes legitimate and secure financial transactions throughout the US. It safeguards against money laundering and other fraudulent activity, so it’s clear that American investors are in safe hands when registering with eToro in the US.

Dubbed the “smarter way to invest in crypto”, eToro’s crypto trading community allows members to connect with fellow users and share strategies and insights on the burgeoning crypto scene.

Real-time news on all major cryptos is published on the eToro news feed, while members are able to indulge in crypto copy trading – automatically copying the crypto portfolios of eToro’s top-performing members.

Markets and products available

Those who sign up to eToro in the US will be able to have instant access to buy and sell 15 leading cryptocurrencies:

  • Bitcoin (BTC)
  • Bitcoin Cash (BCH)
  • Ethereum (ETH)
  • Dash (DASH)
  • EOS (EOS)
  • Stellar (XLM)
  • Ripple (XRP)
  • Ethereum Classic (ETC)
  • Litecoin (LTC)
  • IOTA (IOTA)
  • NEO (NEO)
  • Cardano (ADA)
  • Tron (TRX)
  • ZCASH (ZEC)
  • Tezos (XTZ)

Five of the largest crypto coins by global market capitalization are available to trade through the eToro platform in the US and store in eToro’s integrated eToro cryptocurrency wallet, which makes it easy to transfer new cryptocurrency holdings from the trading platform and store them securely.

This is not the limit of eToro’s plans either. In 2020, it plans to expand its range of assets and services to become more in line with its European and Australian offerings.

What is the eToro trading platform like?

One important aspect of the eToro platform is that it goes to great lengths to protect its users and offer a safe, reliable place to invest in cryptocurrencies. eToro’s US platform always encourages users to look for security signs on their web browsers prior to trading. Meanwhile, all client funds deposited into eToro are kept safe in tier-one banks.

Furthermore, the eToro US support team is available around-the-clock 24/7, so users always have someone to turn to if they have an issue or require advice. Regulated trading platforms such as eToro are under heavy scrutiny of organizations such as FinCEN.

Financial trading is not automatically the “scam” that some claim it to be. In fact, you’ll often find that those stating its illegitimacy are losing money themselves by trading without a strategy. The eToro platform incorporates risk management tools that help to limit losses and enable users to safely withdraw funds at any time.

Another key benefit of the eToro system is its browser-based trading platform, which is easy on the eye and very intuitive, even for beginners to cryptocurrency trading. Its clean design ensures impressive functionality, both on desktop and on mobile with its exclusive app. The platform has a left-hand menu, where users can keep track of their investments within a single click by hitting the “Portfolio” tab.

It’s also possible to set up a “Watchlist” of cryptocurrencies that users may be interested in trading in the near future. Via the Watchlist, users can monitor the price activity, the asset’s recent profit or loss and the general market sentiment towards it based on the activity of other eToro members.

Finding specific cryptocurrencies to research and invest in has been made quick and easy too thanks to eToro’s built-in search bar. It is predictive, so once users start typing in the name of the cryptocurrency they wish to invest in, a drop-down list of potential assets will be displayed.

Once users are ready to trade a particular crypto coin, placing orders on the eToro platform is also straightforward. It’s possible to set stop-loss orders to limit losses, but as yet it is not possible for eToro members in the US to utilize leverage to maximize potential profits on assets traders are particularly confident about.

Browser-based and app-based trading available
One-click overview of cryptocurrency portfolios
Get the sentiment on prospective cryptocurrencies from other eToro members
No leverage currently available to limit potential losses

Getting to grips with eToro’s CopyTrader system

Those new to financial investing online, let alone cryptocurrencies, should dip their toes into the water and sample the benefit of eToro’s CopyTrader functionality. It is perfect for those that don’t have the time to sit watching the crypto markets move hour-by-hour.

CopyTrader allows you to copy the trades of featured eToro users that have adopted the most profitable trading strategies in recent weeks.

You might think that leveraging the expertise of other US-based eToro users is somewhat cheeky, but don’t worry. The most copied users receive additional payments as part of the platform’s Popular Investor Program.

CopyTrader is another way that eToro has managed to build such a vibrant community of financial investors that are “in it together”.

Using CopyTrader is simple:

  • Select a profitable eToro investor whose crypto portfolio you wish to copy
  • Set the amount of your own funds you wish to dedicate to replicating their trades
  • Hit the blue ‘COPY’ button
  • If the portfolio starts to make a loss, you can stop copying it at the click of a button

eToro trading fees revealed

  • No account setup or deposit fees
  • $0 withdrawal fee ($50 minimum withdrawal amount)
  • $50 minimum first-time deposit for new account holders
  • Competitive crypto trading spreads start at just 0.75% of trade value upwards

Consumer safety and security

eToro’s public stance is also to never share customers’ private data without prior permission. Ultimately, as with any financial trading, users should only set up an eToro account and only trade cryptos with money they are prepared to lose.

Now is an exciting time to become an eToro member

For some time, eToro has pioneered cryptocurrency trading on the leading digital assets, as well as some of the most intriguing newcomers to the crypto space. With plans afoot to launch more cryptocurrencies and additional assets such as stocks and commodities in the months ahead, eToro is an exciting fintech community to watch. Unsure where to begin? eToro even offers a forward-thinking CryptoPortfolio function, allowing new members to invest in a diversified and balanced portfolio of the best performing cryptos. Better still, funds are managed by eToro’s professional investment experts to help maximize returns from day one.

For the non-US platform visit here: etoro.com

Disclaimer - OBN is an informational website which aims to give the latest blockchain related news to the readers. Articles on OBN should not be considered as investment advice. Trading cryptocurrencies is a high-risk investment, every user is advised to consult an expert before making any decisions.