eToro, the trading platform that i use and recommend, is finally coming to the U.S. Until now eToro has been available pretty much everywhere else around the world, but had no support for U.S customers. But that is set to change.
eToro is going to bring is cryptocurrency trading to the U.S. This means you'll be able to trade popular cryptocurrencies such as Bitcoin, Ethereum, Ripple and more. Cryptocurrency is very popular in the U.S so it's no surprise to me that they are doing this.
So how will this be any different to what's on offer by other exchanges? Well eToro has a couple of unique features:
U.S customers will be able to take advantage of copy trading features on eToro. Using copy trading, you can automatically copy the trades of other traders. So if you're not an experienced trader, you can benefit from the skills and experience of others.
CopyPortfolios are like a managed fund but contain assets based around a theme. One such CopyPortfolio is the Crypto CopyPortfolio. This portfolio invests in the worlds most popular cryptocurrencies. It's a good way to invest in the entire cryptocurrency space, without having to worry about individual trades or coins. If you believe cryptocurrency has a future, then this type of investment might be for you.
One advantage of CopyPortfolios is that they are put together by experienced investors and the portfolio is automatically rebalanced every month – trying to do this on your own is difficult. And eToro doesn't charge any fees on their CopyPortfolios.
Of course you'll also be able to open manual trades on your own. I'm not sure if eToro will be bringing short trading of cryptocurrency to the U.S – they offer both long and short trading to the rest of the world.
More coming soon
When eToro raised $100 million in funding earlier this year, they said they were going to launch more cryptocurrency related products in the future. They have hinted at supporting more than the current 10 cryptocurrencies on offer as well as launching a wallet. I'll write about the wallet in another post.
It's good to see eToro expanding. They have a really nice web trader, and some excellent copy trading features which I believe are the future of investing. I'm looking forward to seeing what's next.
Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.