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eToro Goes Live in the US: Pros and Cons of eToro USA

Benson Toti

eToro is now live in 32 US states, meaning cryptocurrency investors in America can now trade in a new way. Since launching in late 2018, eToro USA has added 13 cryptos, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Ripple (XRP). Building on the foundations laid down by its international counterpart, eToro USA contains social trading features that make it easier for novices to buy and sell cryptos.

How to Trade Bitcoin et al Using eToro USA

Unlike traditional cryptocurrency exchanges, eToro contains social trading features. Put simply, eToro USA customers can follow the moves of experts and buy Bitcoin like a pro. Using the CopyTrade feature, users can mimic the investments made by professionals at a level that suits their bankroll. In essence, this makes it possible to buy/sell BTC et al without any prior knowledge.

eToro USA vs the Top Crypto Exchanges Online

trading bitcoin in the US with eToro

Cryptocurrency investors can now use eToro in 32 states. Image: AlekseyIvanov/Shutterstock.com

Because eToro USA presents a unique opportunity for American traders, it’s worth running through some of its pros and cons.

eToro USA Pros

Social Trading: The biggest benefit of using eToro is that you can copy other people’s trades. In the same way you’d follow people on social media platforms, you can search through a database of traders, review the profile and assess their stats. Once you find one or more, you can mimic their trades at a level that suits you.

Consumer-Friendly Interface: Another benefit of using eToro is the user-friendly interface. If you use a US crypto exchange such as Poloniex, it can be daunting. eToro has been designed for novices, which means everything from price charts to listing are laid out in a simple way. Beyond that, eToro is a fiat-to-crypto exchange. This means you can make deposits using familiar payment options such as Visa, MasterCard, and PayPal.

Regulated: Because eToro USA stocks, commodities, and cryptos, it has to be regulated. In contrast, even though Kraken Exchange is available in the US, it isn’t regulated by any financial authorities. The reason for this is that, currently, there aren’t any official regulations for crypto exchanges. eToro is different.

A New Way to Trade: As well as its social trading platform, eToro has launched its own blockchain-powered exchange. This is solely focused on cryptos and uses stable coins to offer a more secure way of trading Bitcoin et al in the US.

A Holistic Wallet: In tandem with eToroX, eToro USA now offers a one-stop wallet solution. Using blockchain technology, this cryptocurrency wallet allows eToro Gold+ members to move digital tokens to and from their accounts. As well as holding multiple coins, this wallet provides users with their own blockchain address. This makes on-chain transactions possible and, moreover, it means private keys are stored in a secure way.

eToro USA Cons

Fewer Coins: At this stage, a major downfall of eToro USA is the number of investment options it offers. Although 13 is a fair number, a true crypto exchange such as Binance has more than 100 tradable assets, including Ripple (XRP), Litecoin (LTC), and Stellar (XLM).

ripple xrp not available on eToro USA

eToro USA features 13 major cryptocurrency coins to trade. Image: AlekseyIvanov/Shutterstock.com

Restricted Usage: Because there are still certain regulatory issues at play, some features are reserved for high-volume traders. The main example of this is the eToroX wallet which can only be used by users with Gold membership or above. Additionally, due to local restrictions, you can’t trade crypto CFDs at eToro US in the same way you can in Europe.

High Minimum Deposit: eToro US requires a higher minimum deposit than other US exchanges. For example, if you want to buy Litecoin at Coinbase, you can do so from as little as $10. Because of current US regulations, the minimum deposit at eToro USA is $50 and must me made via wire transfer.

Brand Recognition: Although it’s not a huge issue, eToro doesn’t have the same level of kudos in the US as other brands do. In reality, that shouldn’t affect your ability to trade in a secure way. However, in terms of attracting future investment or publicity liquidity, eToro doesn’t yet have the same level of recognition as Coinbase.

Higher Fees: If you invest in cryptos at Binance, the average fee per trade is 0.1%. In contrast, eToro USA not only charges slightly higher trading fees but additional costs as well. As a general rule, eToro charges $10 per month after a year of inactivity, a $25 withdrawal fee, and trading fees (spreads) as high as 2.9% spread on cryptos such as Cardano.

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. Your capital is at risk.

Featured image: Grey82/Shutterstock.com

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