Buy Crypto on eToro in 2022

What Is eToro?

Do you ask yourself often: What is the crypto to buy today for the long term? If yes, you ultimately find yourself wondering which exchange is the best. Not only that, but how do you determine which fulfills your individual trading needs fully? Should I buy crypto on eToro or would I be better off on another exchange?

eToro, unlike the massive exchange Binance, for example, prides itself on being the world’s leading social trading platform. Social trading represents the feature of enabling one trader to copy the trades, most often automatically. Since its founding in 2007, it has facilitated a full range of traditional investments alongside the most popular cryptos. 

We discuss many of the features as to why eToro would be the only exchange needed.

Ten Features That Make eToro The Best

Social Trading

Let’s consider the example of a hypothetical, excited trader new to the wonderful world of crypto. Their mission is to find the best crypto to buy in 2022. 

This is a tough call even for veteran analysts years into the industry. How do you get a leg up? How do you find a way to get a jumpstart? 

The answer to that dilemma is social trading. By receiving the ability to search for and copy the trades of established experts or tycoons alike, novice investors quickly learn what to look out for in the always-growing crypto market. As a result, they will save time and money.

More Than 20 Million Users

Social trading would mean less if it were 2 million, but 20? In 2018, there were only 10 million users. 

This staggering growth in part owes it to the platform’s innovative offering–social trading.

Get started with your free eToro account today.

Trade Several Asset Classes

Many crypto exchanges excel in trading one or two aspects of only crypto, forgetting the need to diversify against traditional assets too. 

If crypto-only works for you and you’re raking in those 500% returns, great. However, nobody owns an actual crystal ball. Gauging risk and optimal risk-adjusted returns is a profession requiring thorough licensing for a reason. 

eToro provides the best new crypto to buy on the market today in addition to your favorite ETFs, stocks, commodities, derivatives, and fiat currencies. 

Start Small, Grow Big

You can start at $10 and start copying serious traders from $200. The low account minimums lead the industry. 

eToro markets itself directly to the learning or everyday trader. It works wonders for full-time investors too. Yet post-coronavirus, everybody needs a new passive income stream. 

Trading Fees

The commission on crypto trades is currently 1%. This is reasonable given the lesser amount of liquidity (how many active traders) cryptos tend to have versus more traditional investments like stocks. 

No Management Fees

Who could not appreciate this tidbit? Many banks or large brokers charge anywhere between $10 to $15 just for a cash account. Banks tend to charge extra for the option to trade. 

Here eToro offers everything that most of us need for nothing–hard to dislike. The spread between prices grows with less frequently traded cryptos, indirectly increasing your fees. However, this is normal. For example, one of the best cryptos to buy now–Polkadot–will have a smaller spread owing to its rising popularity. 

CopyPortfolios

This is eToro’s way of describing its ready-made, thematic portfolios. Thematic means the investing follows a theme or a central belief driving the stock picking. 

Many novice investors may be unfamiliar with thematic portfolios, yet they have recently become the bread-and-butter to long-term investing. As a result, they tend to outperform the famed, actively managed strategies inherent with the secretive hedge funds. 

It’s a great and inexpensive method of tapping into the world’s core drivers, such as artificial intelligence, blockchain, carbon-neutral, cloud computing, digital assets, and so on. 

Detailed Learning Library

There is no point in googling about which crypto to buy today for the long-term (i.e., Polkadot) if you haven’t yet mastered the basics. 

eToro Academy covers all levels, from beginner to advanced, with an organized library separating crypto from investing from trading. Some may use the latter two words interchangeably, yet they are like two different sciences. 

One key feature to check out is its video library of interviews with some of the top CEOs out there. 

eToro Wallet

This digital wallet focuses on an optimal convenience, security, and utility mix. Users receive the ability to exchange one type of crypto for another, convert crypto to fiat, and trade on the go–all with a mobile app. 

New entrants to the world of crypto sometimes feel lost at the laundry list of complex terms to define: blockchain, proof of work, proof of stake, private key, public key, and so on. eToro boils it down to the core components of what you need, to trade and not stress about the rest. 

A standout feature of the wallet is its private key. In the early days of crypto, it was the number one reason for lost fortunes. 

Free Demo Account

Alongside eToro’s social investing and impressive learning library, another feature converting it from an online brokerage account to a one-stop shop for trading is its free virtual account. No matter your bank balance, placing $10 or $10,000 into cryptos without doing your due diligence first is a recipe for disaster. 

As you learn, using a virtual account to test out your theories or new tricks will do much to boost both your practical skills and confidence. 

Set up your free crypto exchange account here today.

The Pros of eToro

In the ten features above, several positive aspects were listed. Let’s recap them again here. 

Social Investing

Green and veteran traders alike find social investing an indispensable tool for learning and making money–bottom line. The possible investment strategies appear limitless. New strategies appear by the week. So whether you want to copy Warren Buffett or follow the best metaverse trader, you’re covered. 

Diversification

Diversifying between crypto and traditional assets remains a critical component of the well-made, long-term portfolio. For example, adding Bitcoin to a classic 60:40 portfolio improves its risk-adjusted returns. Risk-adjusted means increased return per unit of the added risk, as shown in the Sharpe (total risk) and Sortino (downside risk) ratios. 

Veteran crypto traders tend to review the best crypto to buy and how different cryptos relate to one another. For example, how does Polkadot relate to Bitcoin or Ether?

eToro Wallet

In the early days of crypto trading, many retail investors felt wary of diving into this growing market due to the complicated process it took to own crypto. In addition, the learning curve of private and public keys, digital wallets, blockchain addresses, and more kept crypto novices uneasy. 

eToro Wallet deserves a second heading in this article. It brilliantly solves this issue by providing a one-stop-shop service to buy crypto on eToro. All you need to do is sign up, log in, and trade. If you want to learn more of what’s in the hood, eToro offers an entire library of learning resources. 

eToro Academy

Self-teaching yourself how to invest or trade is not easy without a degree in finance. So instead of googling for hours trying to figure out how it’s done, eToro provides, at no additional charge, structured learning materials for your rapid success. 

Top of the learning list stands the many CEO interviews providing glimpses into how they think, evaluate, decide, and reposition. These are all critical skills for crypto trading. 

Thematic Investing

Like Polkadot, when you find the absolute best new crypto to buy now, it still may not be advisable to invest all of your money. Many professional investors follow the core-satellite model. This means much of your savings, say 60%, remains in the “core” portion of your asset holdings–such as a trending, thematic mix of major tech stocks. 

“Satellite” on the other hand, refers to those Polkadots. These are the high reward, high-risk ventures able to cover your next vacation to Hawaii or Paris. 

The Cons of eToro

While superb on many counts, the platform suffers from two minor setbacks that should be addressed in the near future. 

Customer Service

Most customer service requests seem to flow through the web-based ticket (email) system, with additional live chat functionality available to members. With crypto investing, this is the standard offering. 

However, eToro targets more conservative or newer investors as well. Therefore, they should endeavor to offer phone support as soon as possible. 

Additionally they give updates for the best new crypto to buy and current market trends.

Inactivity Fees

It sometimes happens that people open accounts and forget about them. Since eToro went out of its way to offer a fantastic service, why not provide courtesy emails to get back into the game? 

We disagree with charging $10 per month after a year of inactivity. However, active or casual investors need not fear, as the odd login prevents this charge. 

Choosing eToro Platform

Why would you open two brokerage accounts? Some of the world’s major banks remain reluctant, still, to offer comprehensive crypto support. Instead, it would help if you considered bypassing those unnecessary delays with a regulated option such as eToro. 

The above examples make it pretty clear why to buy crypto on eToro. This well trusted platform is safe, secure, and user-friendly.

It boils down to convenience. So what does a new trader need to do or learn to succeed? eToro provides an excellent mix of stocks, cryptos, commodities, and fiat currencies alongside a vibrant community supporting one another through social investing. 

For more information please see our eToro Review article.