The crypto trading platform eToro is preparing to launch a new feature that will enable users to automatically copy every trade made by its top traders.
The team at eToro says CopyTrader, which has already launched in the U.S. in October, will create a marketplace where consumers have the opportunity to find and emulate the winning trading strategies of crypto traders on the platform. Profiles can be filtered based on a trader’s portfolio, rate of returns and their number of followers.
From here, users can pick the dollar amount that they would like to dedicate to copying a trader. Any subsequent moves that the copied trader makes are automatically replicated in the user’s portfolio at the same time and price. According to eToro, those who use this feature retain full control of their account at all times — meaning they can take over a trade, stop copying a trader or put their assets behind other talent when they please.
Copytrader is the latest social trading innovation that eToro has launched for the wider crypto community — and the company claims it has the edge over competitors like Coinbase. Globally, eToro notes it has tokenized a dozen assets, including fiat currencies, gold and silver — and with more to come in 2020. While both platforms support 15 digital currencies, eToro says it is placing an emphasis on social trading — enabling users to interact with each other and navigate the volatile markets together. The company also claims that other features — such as managed portfolios, social feeds, virtual trading simulators, customizable professional asset charts and detailed gain/loss reporting — cannot be found on Coinbase.
Also launched in the U.S. is CopyPortfolios for crypto — a service where funds are professionally managed by eToro’s investment committee. Here, crypto assets will be continually analyzed and regularly rebalanced at the beginning of each month to ensure that traders using these portfolios have the maximum chance of amplifying their gains. Vital statistics — such as month-by-month performance, the weighting of assets, the average risk score of the fund and the number of investors — are also provided to help new users make informed decisions about their investments. A social feed delivers frequent updates on the decisions made by the investment committee, and comment functionality means lively debate can take place underneath each new post.
According to eToro, its platform also offers a compelling proposition because it has been specifically designed for social trading. The company also claims to offer lower fees when compared to competitors like Coinbase. Whereas eToro only charges fees on the trading spread, its rival also enforces minimum fixed fees and conversion fees — expenses that the company argues can eat into bottom lines considerably.
Founded in 2007, eToro has offered the ability to trade cryptocurrencies since 2013. It now boasts a total of more than 11 million users and is supported across 140 countries, with over $1 trillion in trading volume per year. The trading platform takes pride in delivering real-time news to its community, enabling them to react to the latest developments in the markets and get ahead of the curve. In-depth analysis is also provided through a frequently updated blog that examines movements in fiat currencies, shines a spotlight on the latest initial public offerings, and delves deeper into developments in the cryptocurrency world, such as the launch of Bakkt.
Back in March, the trading platform announced the launch of its platform and crypto wallet in the U.S. — complete with educational resources to inform new users about the opportunities and risks associated with this asset class.
At the time, eToro’s co-founder and CEO, Yoni Assia, said: “When I founded eToro, I envisioned a community where people could trade, invest and share their knowledge in a simple and transparent way. eToro also acts as a bridge between the old world of investing and a blockchain-powered future, helping our users navigate and benefit from the transition to crypto assets for wealth building.”
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