eToro Crypto Broker Review 72

eToro is one of the world’s premier online trading platforms, having grown dramatically since inception. eToro now sports a trader base of some 6 million users across 170 countries. 

The brokerage services are provided courtesy of eToro Europe Limited, a Cypriot Investment Firm (CIF), with registration number HE 20058, licensed and regulated by the Cyprus Securities and Exchange Commission (license #109/10). Further, eToro is fully licensed and registered by the Financial Conduct Authority (FCA) of the United Kingdom, with reference #583263, and in Europe it has passporting rights courtesy of the Markets in Financial Instruments Directive (MiFID). Combined, this fully regulated online broker offers a comprehensive set of markets for traders, including cryptocurrency, exchange traded funds, stocks, indices, commodities, and fiat currencies. Our review will focus exclusively on the cryptocurrency options available to traders at eToro.

What Digital currency options are available?

eToro provides traders with access to 6 cryptocurrency assets. These include Bitcoin (BTC), DASH, Ethereum Classic (ETC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP). Traders can dabble in derivatives trading with each of these cryptocurrency options. You simply select your preferred market, click the buy or sell option, and make your trade. For example, if you’re looking to trade Bitcoin, simply navigate to the trading platform and create an account. You’ll be required to enter your first name, last name, username, email, password, telephone number and agree to the terms and conditions. For an easier way to register, simply login with your Facebook or Google details. Once you’re logged in, you will have access to the complete eToro trading platform with a multitude of trading features, resources, banking options, settings etc. For example, you will see the following options when trading BTC:

Trading BTC at eToro

Traders can increase or decrease the amount of the trade by clicking the +/- button alongside the amount option. You can also set your stop loss and take profit, and see what type of leverage is available to you. With CFD trading, higher levels of leverage incur higher levels of risk. There is also an overnight fee which is listed on the bottom of each tradable asset (cryptocurrency option), including a weekend fee. Be mindful of these fees when you initiate trades. As with all cryptocurrency options at eToro, you can buy or sell the respective option based on your preferences. A sell option indicates that you are bearish on the price of BTC, while a buy option indicates that your bullish on the future price. You can open multiple trades simultaneously including BTC, BTC, ETH, LTC, XRP and DASH.

eToro Cryptocurrency Platform

Once you have opened the trade in demo mode, you will be required to complete your profile for eToro management. This is done for security purposes, and also to provide you with customized options best suited to your trading preferences. The trading platform allows you to complete your profile by verifying your information. You will be able to initiate trading with up to €2000 courtesy of eToro. Additional information will be required for security purposes, and to evaluate the suitability of the eToro range of cryptocurrency products to your trading needs. All information is kept under lock and key at all times.

A watchlist allows you to keep a close eye on various markets, and how they have changed in price over time. You will have the option to buy or sell these options and see what trader sentiment is. For example, a majority green line under the sentiment bar indicates that more people are buying the option (bullish) and a majority red line indicates that more people are selling the option (bearish). You can follow the crowd by trading according to market sentiment, or be a contrarian investor and go it alone.

With eToro, you can invite friends to trade cryptocurrency, enjoy the unique CopyFunds feature, copy individual people, or trade the markets as you prefer. Help and assistance is available at all times, with comprehensive eToro trading guides, information on how to withdraw funds, and general FAQs. Each eToro trader has access to a full portfolio. This allows you to handpick your investment opportunities. You will see the total available funds, the total amount of funds that have been allocated to your portfolio, the profits you have generated and your total equity.

What is the CryptoFund at eToro?

eToro Cryptocurrency Fund

eToro is unique in the sense that it offers traders a CryptoFund. This is similar to an mutual fund, except that it contains cryptocurrencies. The eToro CryptoFund is comprised of the following assets in these proportions:

  • BTC – approximately 60.4%
  • ETH – approximately 20.95%
  • XRP – approximately 6.52%
  • LTC – approximately 4.08%
  • DASH – approximately 4.03%
  • ETC – approximately 4.02%

The CryptoFund is a weighted fund which tracks the performance of cryptocurrency overall. Since inception, the fund has generated 29.30%, and it moves largely in tandem with the performance of BTC and Ethereum. This is a great way to diversify your risk when trading cryptocurrency, by investing in the entire fund, not individual – and highly volatile – digital currency options. The precise weighting of each individual component (each of the 6 digital currencies) in the cryptocurrency fund can change at the behest of eToro fund managers based on market considerations. The strongest performance of the fund was recorded in May 2017 when it gained 99.71%, followed close in tow by gains of 76.51% in August 2017.

Deposit Options

eToro accepts a wide range of payments options, including: Visa, MasterCard, Diners Club International, PayPal, Skrill, Neteller, WebMoney, Yandex and others. Each of these payment options is guaranteed safe and secure, courtesy of SSL technology and the highest encryption protocols.

Bottom Line

eToro presents cryptocurrency traders with a unique way to dabble in the digital currency markets. You can trade the CryptoFund or any of the 6 individual digital currency options at your leisure. Be prepared to submit all relevant information before you start trading, and understand how the trading platform works since CFD trades can incur significant losses, or generate substantial profits. Overall, this fully licensed and regulated cryptocurrency brokerage is respected by traders and has become an industry benchmark.

 

Pros

  • Fully licensed and regulated by CySEC, FCA and passporting license with MiFID for Europe

  • 6 digital currency options available

  •  eToro CryptoFund to get a balanced investment opportunity on digital currencies

  • CopyTrader and Social Trading options to follow and copy the trades of experienced traders

  • Experienced trading brokerage with many years in the industry

     

Cons

  • Traders must fully register an account and divulge personal information before practicing on the trading platforms

  • CFD trading is capable of generating significant profits, but also significant losses

  • eToro has an overall review of 2/5 stars on TrustPilot meaning that it has a poor rating among traders

  • Only traders from regulated jurisdictions

eToro Overview
Website: www.etoro.com
Regulation: ASIC, FCA (UK), MiFID
Assets offered: Cryptocurrency, CFDs, Forex
Minimum Deposit: No Minimum Deposit
Deposit Options