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Sunday, October 1st
Founded in Tel Aviv in 2007, eToro has long billed itself as a social investing platform, which - as markets have evolved - has been appropriately adapted to include cryptocurrencies as part of its exchange. Cryptocurrency, however, is not its primary focus, and eToro supports only 24 coins. With this in mind, how does eToro compare to their specialized competitors?
Sell fees paid upfront
eToro's biggest downside is its high fees, with a flat 1% maker/taker fee for all transactions. Keep in mind, however, that on eToro you pay the 1% sell fee upfront. In essence, if you move your coins outside of eToro, and sell them elsewhere, you lose 1% of your investment. Additionally, eToro's cryptocurrency transfer fees charge a whopping 2% of any position. While it caps out at $100, eToro's transfer fees have the potential to be much higher than competitors, especially if you are transferring a large amount of crypto. In combination with the 1% sell fee paid on purchase, eToro is a poor choice for day-traders making frequent transactions.
Copy the best
Where eToro does shine, however, lies in the "social" element of their platform. Specifically, it allows you to "copy" specific traders moves for your own, ensuring that you are able to benefit from experts, without (yet) being an expert yourself. If you yourself are an accomplished trader, then you can enroll in the "popular investor program" , and receive an annual payment of 1.5% of "copied" assets: assets bought through your recommendation. Keep in mind that enrolling in this program costs $500 per month minimum, and its higher tiers include degree requirements. The ability to copy other traders exists part-and-parcel with eToro's virtual portfolio, in which you can test your acumen in a no-stakes environment. Taken as a whole, we appreciate eToro's mixture of crowdsourced knowledge, and low-stakes tools for testing more complex trading strategies.
Payment for order flow... and you still pay transaction fees
Keep in mind that eToro accepts payment for order flow, meaning that they receive compensation to send your orders to specific market makers. As such, it begs the question as to why fees are higher on eToro, when they are actively selling your buy and sell orders? Considering that other companies who accept PFOF waive transaction fees, eToro's practices are decidedly not a good look.
Limited staking options
While eToro does offer staking through their platform, their offerings are limited to Cardano (ADA), Tron (TRX), and Ethereum (ETH), and U.S. residents cannot participate. Staking rewards are tiered via eToro membership, with more exclusive members earning a higher weekly reward. Also, staking is not available for U.S. participants.
Bad history with GME
eToro has had its fair share of controversy, as it earned ire for changing its terms of service during the 2021 Gamestop short squeeze, and added/enforced stop-losses to non-leveraged buy positions of GME without informing their customers. Keep this in mind as you consider investing in crypto with eToro. Additionally, its associated wallet is very poorly reviewed, with users reporting a buggy and unintuitive experience.
Poor customer service
eToro's customer service is also terrible, which is standard for exchanges and investing platforms targeting retail investors or cryptocurrency enthusiasts. With no live phone support, reviews frequently complain of long verification times, and account lockdowns often involving multiple thousands of dollars.
Best for the novice investor
In sum, while eToro can be an excellent choice for novice investors looking to broaden their knowledge base, or to copy the investment moves of established traders, its associated fees regarding cryptocurrency, low choice of coins and staking options, poorly reviewed wallet, acceptance of payment for order flow, and poor customer support, mean that if you are only looking to work with crypto, you would be much better served elsewhere.
Are you interested in buying cryptocurrency? Want to know what all the fuss is about? Do you want to make sure you're a part of the next financial craze that sweeps the nation? When it comes to cryptocurrency, there's a lot to know - both good and bad. But it's not rocket science.
Obviously, one of the primary reasons that people to get involved in crypto is the potential for financial gain. Cryptocurrencies have experienced substantial price increases in the past, leading to significant profits for early adopters and investors. Conversely, cryptocurrencies have also experience significant decreases in value. With such a volatile asset, the old adage "buy low, sell high" has never been more true.
Another reason people have turned to crypto is for financial freedom: Cryptocurrencies offer the possibility of financial freedom by providing an alternative to traditional financial systems. They operate on decentralized networks, which let you have more control over your money and bypasses the need for intermediaries such as banks.
If you want o to buy cryptocurrencies, then you need to open an account with a crypto exchange. Cryptocurrency exchanges are a sort of marketplace where buyers and sellers can connect and transact with various digital assets. Exchanges typically offer a wide range of cryptocurrencies, which can let you diversify your investment portfolio. There are literally hundreds of crypto exchanges available to you - it's enough to make your head swim.
Good crypto exchanges provide a user-friendly and accessible platform for you to trade digital currencies. They can also display real-time price information, which let you monitor market trends and make informed decisions more quickly. The best exchanges implement robust security measures in order to protect your funds and personal information. They will employ encryption, two-factor authentication, and possibly cold storage solutions to safeguard assets from theft or hacking attempts.
So which crypto exchange is the best? That's a tough question to answer, as exchanges - just like cryptocurrency itself - are currently in flux. Whether you're looking at security breaches, lawsuits and regulatory side-stepping, exploitative data harvesting practices, consistently poor customer service, high-profile collapses such as FTX, irresponsible crypto lending like Gemini, or payment-for-order flow profiteering, the crypto-scene is not for the risk averse, and not for those unwilling to do their homework. However, if you are going to be trading crypto, it is well worth your time to do the research to ensure the security of your investments, and the quality of the exchange you choose to utilize.
If that wasn't enough to make you pause, consider that a whole slew of exchanges are being sued by the SEC and the CFTC. Whatever your position, the future of crypto is being actively negotiated in the U.S, as the SEC and CFTC (Commodities and Futures Trade Commision) wage regulatory battles over the status of cryptocurrency as an unregistered security.
In short, there is a lot to consider when choosing a cryptocurrency exchange. By doing some digging on your behalf, we at TopConsumerReviews.com hope to help you find the right exchange in an increasingly volatile landscape.
Before you start with our list, here are some critical points to keep in mind:
That might seem like a lot to keep in mind. It's natural to feel some anxiety when choosing an appropriate exchange, but don't let it discourage you! Taking the time to find the right exchange can pay (and protect) your dividends down the line. Here at Top Consumer Reviews, we've waded through the best (and worst) of what's out there, and have found the best exchanges for your consideration.
Select any 2 Crypto Exchanges to compare them head to head
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