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.
The unemployment rate in DR Congo could skyrocket
The difficulties and bankruptcies generated by COVID-19 have had a devastating economic and social impact in Africa.On the private sector...
Alantra increased its income in the first quarter of the year
Alantra's net profit fell 13.5% during the first months of the year to $5 million (€4.5 million’). However, the company's...
Three Valencian startups selected for EIT Health’s Headstart program
EIT Health, selected 89 initiatives throughout Europe, to take part in the Headstart program. The companies will be able to...
The Corona crisis could bring momentum to the Swiss crowdfunding market
In 2019, almost $624.8 million (CHF 600 million) was brokered in Switzerland via crowdfunding platforms. That means the market continued...
Containment boosts electronic invoicing in Belgium
Forced to work at a distance, many companies have taken advantage of this period to make the leap to electronic...
Business7 days ago
The importance of empathy-based marketing
Crowdfunding3 days ago
The Municipality of Milan launches a call to co-finance civic crowdfunding campaigns
Crypto6 days ago
Is the Bitcoin course in a phase of consolidation?
Featured5 days ago
The economic woes on the stock markets could be long-lasting