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What is platform eToro?
The eToro platform has a wealth of experience in trading assets, including cryptocurrencies. Learn more about theExchange eToro in its general lines.
General
eToro is a brokerage platform with over 20 million users worldwide. Founded in 2007, theExchange eToro offers cryptocurrency trading services but not only. The platform also allows you to trade currencies, commodities, stocks, etc. However, cryptocurrencies are eToro's main success factor and account for more than half of its revenue. All under one interface, eToro allows you to invest in the following activities:
- 2705 shares
- 49 currencies
- 58 cryptocurrency
- 13 indices
- 32 raw materials
- 264 ETFSs
The platform describes itself as " one of the most important social investment networks in the world and aims to revolutionize the way people invest and improve the financial literacy of investors. "
The peculiarity of eToro is that it offers CFD trading on cryptocurrencies. TO about sixty cryptocurrencies are available on eToro. The stock exchange is popular with both beginners and experienced trading alike. For starters, eToro offers training, social trading and copy trading services to learn from the best experts. In addition to an easy to use and comprehensive website, eToro has developed a mobile application that offers more flexibility to users.
History
As already mentioned, the origin of the The eToro platform dates back to 2007. At the time it was simply a classic online trading platform for educational purposes. EToro's goal was already to make trading more accessible to the masses. In 2009 eToro launched a trading service called Webtrader, designed for both beginners and experts.
In 2010, eToro innovates and launches the world's first social trading service. Thanks to copy trading, every user can imitate the orders of the best traders to learn. The platform won the award for Europe's most innovative fintech company.
In 2012, eToro launches the mobile application on Apple and Android in 2013 it introduces trading of Bitcoin and shares, as well as trading of currencies and commodities.
But the important year for eToro is 2017. It is at this time that eToro innovates again and adds the trading of other cryptocurrencies in addition to the Bitcoin among which :
The ecosystem eToro
Like other platforms, eToro offers much more than just cryptocurrency trading. Discover the different components of theEToro ecosystem.
Cryptocurrency trading
The eToro platform allows you to invest in cryptocurrency Find out how.
Cryptocurrencies available on eToro
EToro currently offers 59 cryptocurrencies for trading. Among these cryptocurrencies are the largest curves in terms of capitalization such as:
- Bitcoin (BTC)
- Ripple (XRP)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Classic Ethereum (ETC)
- Litecoin (LTC)
- Dash (DASH)
- Cardano (ADA)
- Zcash
There are also many tokens that work with the method Blockchain Ethereum how :
- Polygon (MATIC)
- Creator (MKR)
- Decentralization (MANA)
- Engine (ENJ)
- Shiba in millions (SHIBxM) (equivalent to one million SHIB tokens)
Il complete list of angles available on eToro is available on the site.
CFD trading in cryptocurrencies
As already mentioned, eToro also offers CFD trading on cryptocurrencies. What does it mean? CFD stands for Contract for difference ". In fact, a crypto CFD is an asset that tracks the price of a crypto. If the price of the cryptocurrency in question rises, so does the price of your asset. In practical terms, CFDs allow you to betting on the price of a cryptocurrency Up or down. CFD trading is very popular with investors because it allows you to invest in Bitcoin without buying it, for example.
Another reason why CFDs are popular is that they allow you to make money even when the price of a cryptocurrency drops. This would be impossible if you were to buy a cryptocurrency.
" We limit your risk so as not to limit your potential. You will never lose more than the amount invested for each position. CFDs are complex instruments and come with a high risk of losing money quickly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You need to know if you understand how CFDs work and if you can afford to lose your money. "EToro
CFDs have many advantages, but they are not without risk. Indeed, the platform clearly shows these risks and warns its users. The broker transparently states that 68% of retail investors have lost money when trading CFDs.
If you own Bitcoin, trading with CFDs (and with eToro in general) is not for you. This is because with crypto CFD trading you buy an asset that replicates the price of a crypto, but not the crypto itself.
68% of retail investor accounts lose money when trading CFDs with this provider.
Trading in non-cryptographic assets
Il EToro platform offers the possibility of trading on other assets as well, such as:
Basic products such as:
- Oil
- Copper
- Natural gas
- Gold
Currencies such as:
- The dollar
- The euro
- GBP
Actions like:
- Amazon
- Netflix
- Mela
- Microsoft
- Spotify
- McDonald's
In other words, on the same interface, you can trade Bitcoin and gold and buy Apple stock. for instance! You should also know that the platform does not charge any fees for the purchase or sale of stocks and ETFs if your first deposit is at least $ 50. As a reminder, an ETF is a basket of stocks. Another special feature is that eToro allows you to buy fractions of shares, which is quite rare with other brokers.
Copy trading
Do you want to be as successful as experienced traders who live off their investments? With eToro, you can learn from the best!
The platform offers a "training" service for traders. Copy trading ". As the name suggests, this module allows you to "copy" orders placed by professional traders to learn and earn. The Copy Trading tab allows you to access the profiles of different traders. You can see their performance and choose the one or ones you want to copy. The minimum deposit to use this service is $ 200.
CopyPortfolio
This is another service set up by eToro and is very popular with investors. The CopyPortfolio The CopyPortfolio is a collection of the baskets of stocks with the best performance in a specific sector. This simplifies the management of your portfolio and gives you the opportunity to diversify your businesses quickly and easily.
A training module
Since the beginning of its history, eToro has always focused on the need to train and educate investors. It is therefore not surprising that, 15 years after its inception, eToro is one of the most popular platforms for learning about cryptocurrencies and trading.
For example, for a risk-free introduction, eToro offers the option to use one virtual wallet. This wallet contains virtual funds for demonstration purposes only. You can try out different types of orders and get some experience before you bet your money.
Stakeout
Il staking it's a way to make cryptocurrencies work for you. By placing your funds in crypto for a certain period of time, you will receive a percentage of the earnings. Stacking approaches the principle of saving at interestwhich is well known in traditional finance. The exchange offers the possibility to bet on Cardano (ADA), Tron (TRX) and Ethereum (ETH). The percentage of interest received depends on the level of membership (see below).
Club eToro
The platform offers several account levels which give access to exclusive benefits. The different levels of membership are as follows:
- Platinum
- Platinum +
- Diamond
If you are part of the Platinum + and Diamond internal circle, you will be able to participate in exclusive events sponsored by eToro.
How to trade cryptocurrencies on eToro?
You want to get in Cryptocurrency trading with eToro ? So, take a look at the steps you need to take to take your first steps in the bag.
To open an account
The first step, as with any other platform, is the opening of the account. To do this, you need to fill in a standard identity form which requires the following information: username, email and password.
Account protection
Il Platform eToro implements processes to ensure a high level of security. This is possible thanks to the use of firewalls and data encryption. Furthermore, eToro uses a double authentication system (2FA). In particular, with this additional security, to access it is necessary to provide a code received via SMS in addition to the password. This way, you limit the risk of your account being hacked.
Check your account
After registration, the platform will verify your account and your identity. To this end, they will ask you to provide supporting documents such as an ID and / or proof of address.
Deposit of funds
Before you start trading cryptocurrencies, you need to fund your own EToro account. It's easy to do! Just go to the "Deposit" tab in your personal area. The exchange requires a minimum deposit to start trading. In France the minimum is 50 dollars.
You can make this money deposit in several ways, such as:
- PayPal;
- Credit card ;
- Other banking services like Neteller, Rapid Transfer, etc.
It is important to note that the platform only trades in dollars. If that doesn't stop you from depositing euros, be aware that your money will automatically be converted into dollars, resulting in conversion fees.
Trade
To do cryptocurrency trading If you want to trade cryptocurrencies, just go to the "Markets" tab in the left column. Once you have selected the cryptocurrency market, you will have access to all available corners. Again, remember that the platform only trades in dollars. Thus, when the order amount to be filled is displayed in dollars.
The exchange allows you to trade CFDs on the cryptocurrency and includes tools to optimize orders. For example, you can use leverage (up to two times). This allows you to maximize your profit and therefore minimize your investment. To guarantee these leverage effects (which also work in the event of a loss), eToro offers the possibility of using stop loss or take profit mechanisms.
What are the commissions on eToro?
Il EToro platform implement the tax function below:
- Non-dollar conversion or deposit fees. As explained above, eToro only manages dollars and therefore will convert your euros. This involves the application of exchange fees. These fees are lower if you use a bank transfer (0,5%) than if you use a credit card (1,5%) to fund your eToro account.
- Withdrawal fee. This is a flat fee that is applied when withdrawing funds from the platform. In 2022, eToro lowered this fee to just $ 5 per withdrawal.
- Inactivity fee. Unusually, eToro charges a fee for prolonged user inactivity. In particular, if you have not logged into eToro in the last 12 months, the platform will deduct $ 10 per month from your balance.
- Transaction fees. This commission is based on the purchase or sale of a cryptocurrency and is equal to 1%. This commission is directly included in the price of the cryptocurrency.
- Night custody fee. If you place an order at night, especially after 17:00 pm New York time, a fee applies. This rate is tripled if it comes to the weekend. The amount of these fees varies. You will find it clearly indicated at the bottom of the order description window.
Regulation of the eToro platform
Il EToro platform it is not a cryptocurrency exchange strictly speaking, but rather a broker. As a brokerage platform, it is therefore subject to regulations.
Established in many countries, eToro multiply certifications such as:
- In Europe. The eToro platform is certified by CySEC, the Cypriot commission for exchanges and securities.
- In the United Kingdom. The eToro broker is subject to the regulation of the FCA, the Financial Conduct Authority.
- In Australia. The eToro platform is regulated by ASIC, the Australian Securities and Investments Commission.
EToro users in France can only trade cryptocurrencies in the form of CFDs.
How safe is the eToro exchange?
As explained above, theExchange eToro poses several barriers against identity theft and robbery. For example, you can use the double authentication system. But above all, remember that eToro does not allow you to own cryptocurrencies The only thing you can do is trade CFDs. In other words, there are no cryptocurrencies to steal on eToro! There is therefore no risk of losing one's assets.
At the moment, the eToro platform has not been the subject of any major cyber attacks.
