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.
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.
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.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
Candriam excludes 40 percent of all emerging markets
In a report, Bloomberg has used the Candriam SRI Bond Emerging Markets Fund as an example of how active fund...
What is the scope of the CFA franc reform in West Africa
The monetary system of the CFA franc zone, in general, is increasingly challenged, with France being accused of still maintaining...
Europe’s stock exchanges are in an optimal window to buy, says analyst
The declines of more than 3% during some moments of the session led the main stock markets of the Old...
The fintech company Joonko to cease operations after only 12 months of existence
The October 28th press release published by Joonko stated that the Series A financing round with existing and new investors,...
Asabys Partners leads a round of $20 million in Sidekick
Asabys has recently led a successful round of financing in Sidekick, a company specialized in digital therapies. This round will...
Featured7 days ago
Savills IM refinances two Italian assets with one of the first green loans in Italy
Business7 days ago
4 tips to market your small business locally
Business6 days ago
Major reasons why your website might not be attracting customers
Biotech6 days ago
Roche signs its new diabetes business manager in Spain to Isdin