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Social crypto trading hits the US as eToro launches ‘CopyTrader’ feature

Cryptocurrency traders in the US can now copy crypto trades of top eToro investors after the social trading platform launched a “CopyTrader” feature targeting the strictly regulated North American market. Copy-trading for cryptocurrencies is already a common feature in most parts of the world, especially in Europe. Currently, 15 cryptocurrencies can be traded in the US on eToro.

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This picture show a man trading cryptocurrencies.

On Tuesday, October 29, the world’s pioneer of copy trading announced the launch of its CopyTrader(™) in the US. This feature will allow traders based in the country to set their accounts to automatically copy the trades of all the top-performing crypto traders on the eToro platform.

The CopyTrader is one of eToro’s trademark features. It has been the main force of attraction to many traders that have joined platform over the years. Therefore, a launch in the US could see more traders storm into the cryptocurrency market as trading becomes easier.

How does copy trading work?

Copy trading is a trading system that uses technology to replicate the trades or signals of other traders. It utilizes the concept of automated trading in forex. But the difference, in this case, is that, instead of picking trades based on the signals generated by a sophisticated algorithm, you automatically pick trades based on the trades of expert traders on the platform.

With platforms like eToro, traders can carefully choose the ideal profiles of expert traders they would like to follow based on success rates, drawdowns and asset classes, among other classifications. Now, traders will be able to use the trading platform’s CopyTrader to trade cryptocurrencies (as an asset class) in the US. Currently, 15 cryptocurrencies can be traded in the US on eToro, including Bitcoin, Ethereum, and Ripple among others.

The copy trader tab provides eToro users with access to the top-rated crypto investors. They can then proportionally copy the trades of different investors allowing them to diversify their risk allocation to copied traders. The trades are copied in real-time and at the same price, which means there is no time differential risk between when the expert trader places their trade and the time the same trade is copied.

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This picture show a hand holding a Bitcoin, Ethereum, and Ripple coin.
Currently, 15 cryptocurrencies can be traded in the US on eToro, including Bitcoin, Ethereum, and Ripple among others. (Source)

What are the implications of launching this feature in the US?

Top executives at eToro see this as a giant step towards democratizing cryptocurrency trading in the US. Yoni Assia, Co-founder & CEO of eToro, while launching the feature in the US told the media:

“CopyTrader empowers the eToro community to collaborate in improving the experience of investing for traders of all levels of experience. Our traders are able to comment, share, and engage with each other in a way that’s unique across all asset classes. We built CopyTrader to bring the tremendous value of network effects inherent to social platforms into the world of investment advice.”

On the other hand, eToro’s US Managing Director, Guy Hirsch sees the feature being a viably legitimate avenue for wealth building. He said:

“Users who want to leverage the crypto asset class can now simply look for an investor with a proven track record and just hit copy to execute the same trades automatically. CopyTrader allows users with less time or expertise to connect with users who have demonstrated capabilities in the trading space, all on one platform.”

The company inked a partnership deal with renowned actor Alec Baldwin to promote the launch of the CopyTrader feature in the US, further extending eToro’s links to Hollywood. This boosts the continuing mainstream acceptance of cryptocurrencies, which will bring more investors in the crypto world.

Despite Uncertainty The Crypto Market Continues to Grow

In summary, the cryptocurrency industry continues to face various hurdles amid government concerns about regulations, money laundering, and cybercrime. However, the market will continue to grow as alternative methods of investing in the industry hit new markets.

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Trading crypto via platforms like eToro provides a transparent way of investing in the industry and now, even novice traders can capitalize on this avenue by using the CopyTrader feature.

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(Featured image by D’Vaughn Bell via Pexels)

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Nicholas is a financial analyst by profession with extensive experience in investment research and stock market analysis. He runs a growth investing blog CAGRValue.com. Some of his market analyses have been featured on leading investment research sites like Seeking Alpha TalkMarkets, Gurufocus, and of course, Born2Invest. As a private individual investor, he focuses on undervalued plays and growth stocks, but his writing is much broader, covering the stock market, commodities, Forex, real estate, personal finance and disruptive technologies.

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