Is eToro one of the best sites to trade cryptocurrency in the UK?

It was mostly gamblers and speculators who were interested in cryptocurrencies when they first appeared on the scene ten years ago. However, much has changed since then. Cryptocurrency trading has almost reached mainstream status, and some financial gurus say that investors should allocate two to five percent of their portfolios to crypto assets. Cryptocurrencies, on the other hand, continue to be extremely volatile, and cryptocurrency marketplaces are evolving at breakneck pace. You’ll need a dependable trading platform with cutting-edge investing tools, an easy-to-use app, and plenty of expert advice if you’re going to invest in them. In a nutshell, you’ll want to invest with eToro.

eToro Introduction

Since its inception in 2007, eToro has been on a quest to democratise traditional investing by allowing anybody to participate in financial markets. As a result, eToro now specialise in crypto trading, allowing clients to diversify their portfolios by choosing among 14 of the most popular coins. Bitcoin, Ethereum, Ethereum Classic, Dash, XRP, Litecoin, Bitcoin Cash, Stellar Lumens, NEO, EOS, Cardano, IOTA, TRON, and ZCash are some of the most popular cryptocurrencies.

EToro is a platform for social trading. As a result, investors can connect and communicate in the same way they would on social media, pooling information and exchanging investment tips and tactics. The user-friendly eToro app includes a newsfeed that allows you to stay up to date on market trends in real time, as well as configurable notifications that notify you of new developments involving coins on your “watch list.”

When it comes to trading, eToro offers a wide range of alternatives. Manual trades can be made utilising the app’s simple and intuitive interface by those who like to do things themselves. EToro even has a nice “virtual portfolio” option that allows you to experiment and fine-tune your methods before you begin.

Those that require a little more assistance can take use of the revolutionary CryptoPortfolio tool. eToro’s investment experts use CryptoPortfolio to build and maintain a diverse and balanced portfolio of top-performing cryptocurrencies. With traditional asset classes, this type of service has been for a long time, but eToro is the first to offer it for cryptocurrencies.

 

EToro Features 

Social trading: EToro’s CopyTrader allows you to instantly replicate and trade other traders’ moves. How it works is as follows: You select an investor to copy, and with the touch of a button, you may begin automatically replicating their positions with the option of a stop-loss level to limit potential losses.

A user can be copied for as little as $200 and as much as $500,000. Users can simultaneously replicate up to 100 traders. Users can access millions of other traders’ portfolios, statistics, and risk scores even if they aren’t utilising CopyTrader. 

Cryptocurrencies offered:

Customers in the United Kingdom can currently trade 18 cryptocurrencies on eToro. Many cryptocurrency brokerages, such as TradeStation and Robinhood, provide less. However, cryptocurrency exchanges like Coinbase and Binance offer over 50 different types of currencies.

Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, XRP, Litecoin, Dash, Stellar Lumens, NEO, EOS, Cardano, IOTA, Zcash, TRON, Tezos, Dogecoin, Uniswap, and Chainlink are presently available for trading on eToro.

Digital wallet:

The eToro wallet, which is available on iOS and Android, is a free digital wallet for storing cryptocurrencies offered by EToro. The cost of converting crypto into fiat currency (i.e., US dollars) and vice versa is 5%, which some users may consider a significant sunk cost. The minimum and maximum transaction amounts are $125 and $10,000, respectively.

Users can send cryptocurrency from the eToro site to their own digital wallet, however eToro warns that coin transfers are one-way, meaning that any coins sent cannot be returned to the eToro trading platform.

Pros and Cons

Pros

  • Simple to use
  • Platform that is both social and regulated
  • The ability to copy and follow other traders
  • Virtual account training is a useful feature.

Cons

  • Not all cryptocurrencies accepted.
  • There is no marketplace for buyers and sellers because it is not an exchange.
  • In the United States, only cryptocurrency trading is permitted.

Security of the eToro platform

During our investigation of eToro’s website and trading platform, we discovered that the company has never been involved in any major scandals. Nonetheless, eToro’s main selling point isn’t security. It’s mainly because, until 2017, cryptocurrencies couldn’t be exchanged or transferred directly through the eToro site. Instead, users entered into a contract for difference (CFD), agreeing to pay or receive the difference if the price of a currency fell or rose.

In other words, eToro did not store any cryptocurrency that its consumers held. There was no need to use security features like cold wallets or multi-sig verification that are common on competing crypto platforms.

eToro fees

eToro’s fee structure is a little unusual and little complicated when compared to ‘standard’ crypto platforms (e.g. Coinbase, Kraken, Binance).

Because eToro is a brokerage service rather than an exchange, it does not charge trading fees like other cryptocurrency exchanges. When selling and purchasing cryptocurrencies with leverage, though, you’ll have to pay “spread costs” (i.e., when borrowing from the eToro trading platform to make a purchase). In other words, you must pay a portion of the sale price if you wish to sell a cryptocurrency. This percentage is derived from the asset’s “spread,” which is the difference between the asset’s “buy” and “sell” prices.

Fees Comparison: eToro VS Coinbase

Fees

eToro

Coinbase

Bank account

Free

1.49%

Wallet

Free

1.49%

Debit/credit cards

Free

3.99%

ACH transfer

Free

Free

Wire transfer

Free

$10 deposit, $25 withdrawal

Crypto conversion

From 0.005 units of crypto

0.50% to 2%

Purchases

0.75% to 5%

0% to 0.50%

Trades

0.75% to 5%

0.50%

Other fees

 None

$0.99 to $2.99 based on the amount

Final Thoughts

Retail traders who wish to crowdsource investing ideas using the power of copy trading, as well as highly experienced active traders who want to be rewarded for sharing their ideas with other traders, would find eToro attractive.

The user-friendly platform may be an added benefit for less experienced traders who require guidance. However, I do not suggest eToro to active or high-volume traders because of the larger spreads and small maximum trade sizes.

In terms of social copy trading and crypto trading, eToro is still our top pick in 2021, and it also received the award for Best Trader Community.