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The social investment and trading platform eToro announced they will soon launch its online platform to the U.S. crypto trading methods
, which currently is available in more than 140 locations, will eventually be available in 30 states and two regions with plans to expand further in the U.S. after receiving the necessary regulatory sign-offs.
The U.S. platform will only offer trading on crypto assets at the time of launch, however eToro plans to offer additional asset classes over the course of the next 12 months. In the eToro markets that are currently available, the company's more than 10 million users are able to buy and sell more than 1500 asset classes in markets including bonds, stocks along with cryptocurrencies, fiat currencies commodities, and more.
While eToro is able to support more advanced trade strategies -- which include short-selling as well as using leverage -- the platform's transparency as well as community engagement features make it a great tool that help beginners understand financial markets and to learn to trade.
EToro is equal parts social network, trading platform as well as an educational tool. Anyone who registers on eToro is able to view, comment on and record the trading activity that other users of the network, and also their real-time returns and losses so far (though only by a percentage to protect financial information that is sensitive). While learning from the strategies of their peers Users can decide to use virtual currency in order to be able to train and practice their skills before actual risking their money.
On the other hand, based on a trader's record, other members can copy their portfolio by using eToro's "CopyTrader" feature, which allows for a proportional allocation of funds to match the trader's portfolio, but it also allows the copied investor to automatically execute any trade that the copied investor makes. Additionally the members can also to interact, post comments on and engage with specific individuals, assets or markets, allowing them to participate in the latest discussion and updates concerning their area of interest.
Even though it's limited to cryptocurrency at first, almost all the same features available on eToro's previous global markets will be available within the U.S. And alongside its trading platform it is also launching an online multi-signature eToro account, where users can store, send and receive various coins across a variety of cryptocurrency.
With their eToro logins U.S. users can transfer cryptocurrencies into and from their trading account and are able to convert them easily as well. The wallet's initial support will include Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple and Stellar for U.S. users, but the company plans to make additional currencies to be available in near future.
EToro users can use transactions while sharing their trading actions and portfolio performance with the community with the ability to discuss strategies that are then executed with real dollars
The expansion plan, however, doesn't come without risks. EToro will be entering into a competitive market -- with well-known trading platforms such as Coinbase as well as Robinhood -and is planning to launch a exclusive crypto version in the midst of "crypto winter," where widespread weakness has afflicted the sector.
A large part of the strategy is attributable to the fact that crypto is a lighter lift from a licensing standpoint compared and other investment classes within the highly complex and strict U.S. regulatory environment. But the company's plan to launch its product is also on the company's belief of the immense market opportunity that is available through the tokenization and tokenization.
"We think [the tokenization of assets] is a bigger opportunity than the internet and we have to be in the U.S. when it happens, given it's the financial hub in the world," eToro founder and CEO Yoni Assia, in a interview with TechCrunch.
EToro is taking the long view with its strategy and isn't thrown off by the current weakening of crypto. Assia equated the market softness on the other hand to the dot-com bubble with the result that, despite the crash the internet continued to permeate and caused disruption to the economy in long term. Just like web-based technology Assia and eToro believe that there will be more than enough space for multiple winners in the broader crypto ecosystem.
The company was the first market to be able to support Ethereum and Ripple and believes that , as similar currencies and the future generation of investors mature, eToro will be there to support the two currencies in any way that they need.
"When I founded eToro, I envisioned a community where people could trade, invest and share their knowledge in a simple and transparent way," said Assia. "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."