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eToroX Review 

 July 16, 2021

By  Brian Forester

eToroX is a crypto exchange that works with various coins for trading. In this article, we will review it in detail and highlight all the pros and cons of this exchange so you know what to expect from utilizing it.

What is eToroX Exchange

eToroX is a cryptocurrency exchange that has been a leader in the Fintech industry for several years now with its more than 13 million satisfied customers and a huge number of investment tools. This cryptocurrency company works with crypto traders, algo traders, and just individuals and supports and supplies various stablecoins, unlike fiat currencies, for many trading pairs. Compared to other crypto exchanges, eToroX is an exchange that is making significant steps in adopting cryptocurrency. Not without risks, as it is impossible in a company like this, but eToro X exchange is a company valued for a high level of security, transparency of regulated crypto powerhouse, and convenience in use. During the eToro X existence period, its trading volume has significantly grown, which affects its rating between users a lot.

eToroX Limited, as a company, was founded in 2018 by Yoni Assia, who plays a significant role in the cryptocurrency community. eToro X is a regulated DLT provider licensed by the Gibraltar Financial Services Commission under the Investments and Financial Fiduciary Services Act (DLT is short for Distributed Ledger Technologies). eToroX is a limited liability company incorporated in Gibraltar, the main working processes of which are operated there, as well (the Gibraltar Financial Services Commission licenses this crypto exchange in Gibraltar with company number 116348, license number FSC1333b, and its registered office at 57/63 Line Wall Road, Gibraltar). Still, its headquarters is located in Cyprus (with several hundred people working for this company). eToroX Limited is a subsidiary of eToro ltd. (in other words, this is its parent company), and being a part of the eToro group. About eToro ltd. You can read following the link.

Now, when we got acknowledged with a brief eToroX review, we can move to the next part of our article and cover useful features and services provided by eToro X Limited offers its users.

eToroX Exchange Features

There are several services and useful features the eToroX exchange offers its users, and we will start with countries eToroX supports.

Supported Countries

eToroX supports more than 50 countries, including:

  • Russia
  • Columbia
  • Belgium
  • Argentina
  • Iceland
  • Sweden
  • Spain
  • Others.

When it comes to countries eToroX doesn’t support, there are more than 20 such countries, and the USA, US Virgin Islands, Turkey, Canada, Belarus, and many African counties are on this list.

Fees and Limits

No deposit fees are charged on deposits at eToroX, and no one will charge huge withdrawal fees and trading fees every time you make a transaction.

All trading fees, deposit fees, and withdrawal fees operate on a maker-taker basis. A maker, as an individual adding limit orders to the order book, charges fees ranging from 0.1%-0.03%, depending on the size of the order.

In turn, a taker, as a person fulfilling all those added orders from the order book, pays a fee for their services from 0.24% to 0.12% (which also depends on the size of the order). Usually, the exchange charges a lower commission for the maker than for the taker.

When you withdraw currencies from a wallet, you have to pay trading fees and deposit fees, and withdrawal fees. Their amount depends on the coins you’re about to withdraw. For more information about the fee schedule, check the following link.

eToroX Services

eToroX exchange

To utilize various features of the eToroX exchange, you need to have a verified eToroX account. For this, you have to log in to etoro.com, or eToroX. After you create an account there, you can start trading eToro stablecoins and various cryptocurrencies on the eToroX exchange as it’s a reliable and verified cryptocurrency-only exchange.

eToro Wallet

It’s essential to know eToro wallet is available both for people owning devices on such platforms as Android and iOS.

By utilizing eToro software, you get the following opportunities and features:

  • You can convert one crypto-assets into the others.
  • You can receive and transfer crypto assets from other cryptocurrency wallets.
  • You can forward your crypto assets right from the eToro trading platform (which makes this eToro trading platform is convenient in use for many people).

Note that eToro Wallet is considered custodial, meaning you as an owner of digital assets have no solo access to them and to your private keys, as well. In other words, if you think you’re the one controlling your funds in the eToro wallet, know it’s 100% controversial, as it’s the eToro wallet that controls your digital assets of currencies. It means your funds are always at risk of being stolen or utilized by software developers of the eToroX exchange.

Also, it’s essential to remember the balance of coins in your wallet differs from the one you have on the eToro trading platform as it’s an auxiliary product. Keep that in mind while logging into your eToroX account on the eToro exchange (for this, you need to enter your account credentials, including login and password).

What currencies are supported by the eToro trading platform:

  • Ripple
  • Bitcoin Cash
  • Bitcoin
  • Litecoin
  • Ethereum
  • Stellar
  • EURX stablecoin
  • Maker (MKR) stablecoin
  • USDx stablecoin
  • OmiseGO (OMG)
  • Basic Attention Token (BAT)

If you want to send your currencies to other wallets. You can do it only with XRP, Ethereum, and Bitcoin. Remember that before utilizing wallet and exchange services on eToroX exchange.

Payment Methods

When writing an eToroX review, it’s essential to mention currencies eToroX supports, and what payment methods exist on this crypto exchange platform (mind eToroX doesn’t offer margin trading to its users). Note you can deposit only cryptocurrencies into eToroX.

eToroX Stablecoins

eToroX, as a subsidiary of eToro ltd., being a part of the eToro group, has its unique stablecoins. eToroX uses them instead of fiat currencies (for most of its trading pairs) to trade against cryptocurrencies. That’s why eToroX is called a cryptocurrency-only exchange.

There are twelve stablecoins you can utilize to trade on eToroX:

  • CADX (eToro Canadian Dollar) | Total stock: 500,000 tokens
  • JPYX (eToro Japanese Yen) | Total stock: 56,000,000 tokens
  • USDEX (eToro United States Dollar) | Total stock: 500,000 tokens
  • GBPX (eToro Pound Sterling) | Total stock: 500,000 tokens
  • AUDX (eToro Australian Dollar) | Total stock: 500,000 tokens
  • RUBX (eToro Russian Ruble) | Total stock: 500,000 tokens
  • NZDX (eToro New Zealand Dollar) | Total stock: 500,000 tokens
  • CNYX (eToro Chinese Yuan) | Total stock: 500,000 tokens
  • EURX (eToro Euro) | Total stock: 1,000,000 tokens
  • CHFX (eToro Swiss Franc) | Total stock: 500,000 tokens
  • SLVRX (eToro silver) | Total stock: 33,700 tokens
  • GOLDX (eToro gold) | Total stock: 390 tokens

All these twelve types of stablecoin tokens (GBPX (eToro Pound Sterling), RUBX (eToro Russian Ruble), CADX (eToro Canadian Dollar), NZDX (eToro New Zealand Dollar), AUDX (eToro Australian Dollar), CNYX (eToro Chinese Yuan), USDEX (eToro United States Dollar), JPYX (eToro Japanese Yen), CHFX (eToro Swiss Franc), SLVRX (eToro silver), EURX (eToro Euro), and GOLDX (eToro gold)) can be used for trading against cryptocurrencies performing instead of basic fiat currencies (for most of its trading pairs).

Functions of eToro Stablecoin Tokens

We know eToroX created its stablecoins you can utilize instead of fiat currencies if you need to trade against cryptocurrencies. To be more precise, eToro Digital Assets Ltd (one more eToro subsidiary) created these erc-20 tokens (Ethereum tokens, in other words) to have a unique currency that can represent fiat currency. Instead of 1 EUR, eToroX offers one digital token EURX (with the same value), and instead of 1 Cad, utilizing eToroX you receive one digital token CADX. It’s quite simple to understand what digital token represents fiat currency. But how does this work in real life?

eToro Ltd. (being the parent company of the eToro group) plays the role of a Market Maker. It means it acts as a central bank that sells and purchases eToro stablecoins on the eToroX exchange. The purpose of this is to keep the peg to the value profitable for the eToroX platform.

But, as it always happens with trading platforms like these, risks are way too high. If something (anything) on the cryptocurrency market goes wrong, the value of the eToro stablecoin tokens might fall below their peg. It will lead to the situation when you lose control over your funds, and you’ll be unable to do anything about that. It won’t be your sphere of influence anymore. You won’t be able to withdraw these stablecoins from the eToroX exchange account, as that’s how trading platforms work. While utilizing the eToroX platform, keep this in mind, and know even such reliable platforms with a high level of security cannot argue with the market. For more information about risks relating to the utilization of the eToroX platform, check the following link.

Precautions on the eToro Stablecoins

  • As was already mentioned, having an account on the eToroX platform, and utilizing its stablecoin tokens can put your crypto funds and digital assets at risk. If their peg falls down, you automatically lose all your crypto funds without being able to recover them. And whether the peg breaks or not depends on the situation on the market. If the situation is stable, you may be calm, but the problem with markets is the situation may change any second.
  • The situation on the market that happened in 2018 may serve as an illustration of this. In the year 2018, Tether, considered the most stable stablecoin on the market, broke its 1 USD peg, and its price fell up to 85 cents. The rating of the stablecoin was high, and users all over the world would find it as reliable as possible. Still, even such a reliable rating and customer recognition didn’t help the situation. The trading volume of every stablecoin token can accidentally fall due to many factors, and you, as an owner of even small amounts of them, need to be ready for this. Even fiat currencies with their stable rating on the market sometimes can’t maintain this peg (what to say about eToroX stablecoins).
  • For example, such a situation occurred in 1971 with the US dollar when it pegged to gold. Then, it happened again in the year 1997, when the Thai Bhat pegged to the United States dollar. In 2005, the same situation happened with the Chinese Yuan as it pegged to the US dollar, and in 2015, the Swiss Frank pegged to the Euro. As you can see, no currencies (even fiat ones) can be protected from the harsh market realities.
  • It’s essential to get acknowledge with everything relating to the risks with eToro, and its transparency documentation before trading using this platform (note eToroX doesn’t offer margin trading). To know more about the stablecoins themselves and the way you need to manage them most profitably (without paying withdrawal fees (or a single withdrawal fee), and trading fees, and knowing the way the account on this platform works), check the video below. It might (and will) answer most of your questions relating to this topic.

Roughly talking, the main working principle of the eToroX platform is the following: as eToroX has its stablecoin tokens instead of such familiar currency as Euro, Dollar, and others, it places these tokens on the platform. Then, eToroX users purchase these tokens by exchanging their Bitcoin and Ethereum on them (using their credit cards). After this, eToroX utilizing them to keep the peg stable by conducting specific counter transactions.

There are two main questions bothering owners (present or future) of eToroX stablecoins: is something that protects users in case if the value of the eToroX tokens drops and if these tokens have any worth at all? We’ll try to answer both of these questions in the next paragraphs of the article.

Does owners of eToroX tokens are legally protected anyhow?

In short, no. There are no legal instruments protecting owners of eToroX tokens meaning they might lose them, and stay without anything any moment now. As holders of eToro tokens aren’t Market Maker’s customers, instruments controlling it, as well as instruments protecting its customers, don’t extend on them. People, being holders of eToro tokens, can’t repurchase their tokens from any company of the eToro group. Those are the conditions they need to accept.

In other words, if something happens with the market, and you’d like to change your EURX for real Euros, you won’t be able to do it. If something goes wrong with the market and the value of eToro stablecoins drop, you won’t have legal rights to ask for an actual asset.

You might have a verified account on the eToroX platform, it can have the highest level of security, but everything will be in vain if the market decides so. Stablecoins, having the word “stable” in the name, still is a very risky activity, and newbies in the crypto world need to remember about that. It is related not only to the eToro stablecoins but to such tokens as USDC, Tether, GUSD, and others. Although, there is a big difference between eToro stablecoins and others mentioned above: those other stablecoins are traded on markets, and eToroX tokens aren’t. There’s a big possibility it might happen to eToroX tokens one day (and soon enough), but still, it’s just our predictions, and the reality differs from them.

Do eToroX tokens worth anything?

Talking in a nutshell, it’s a moot point. Imagine you’re a holder of eToro tokens, and you want to sell them. It will be possible if someone is wanting to purchase these tokens. If there’s no such a person, the eToroX platform won’t do this itself as it’s not obliged to complete actions like these. Of course, if the market is stable, the Market Maker will try to purchase your tokens through the eToroX platform. The problem is the market can’t be stable all the time, and abnormal market conditions occur more often than normal.

When there are abnormal conditions on the market, the Market Maker has all the rights not to make any offers to sell and purchase stablecoin tokens through the eToroX platform. And if the person holding the tokens can’t sell tokens, they can’t withdraw money they invested in these tokens, so for them, it’s vitally necessary to sell their tokens. But when the market becomes too unstable, eToro can ignore its users’ needs as it will need to care about its welfare.

Summary

As eToroX positions itself as a leading crypto company with a high level of security of its assets, I wouldn’t be so sure about it. No doubts it’s a truly revolutionary crypto exchange with a high level of security. Still, it’s not that safe, and the ones wanting to utilize this platform better divide this platform from its stablecoins.

I, personally, would act the following way: I would utilize eToro stablecoins only for trading purposes and wouldn’t keep them in big amounts on the eToroX platform during long periods. We still don’t know whether eToro stablecoins will be profitable in the future as only time will show this. We can’t risk everything waiting for the prosperity of these stablecoin tokens. It doesn’t mean we shouldn’t be using them. We can, but we need to do it with caution.

eToro doesn’t utilize fiat currency as it created its currency in the form of stablecoin, but the market still doesn’t know whether these tokens are sustainable or not. When it comes to other stablecoins like GUSD or USDT, users find them more reliable as they’ve been on the market for a long period now (and people tend to trust more to something they know, and not something they see for the first time). Time will show the viability of these eToro tokens, but now we need to rely on ourselves only.

As I’ve already said, you can utilize eToro tokens (which you can purchase with the help of your credit card) for trading purposes, but try not to keep them on the eToroX platform for long periods as it can be dangerous (in terms of the profit).

Anyway, keep in mind stablecoins is a risky business, and it might be both worth it or not. It’s up to you whether to trust this platform or not, but we can say the same about everything connected to the crypto sphere. Be wise and professional when it comes to things like these, as it might pay for itself one day.

FAQs

What is eToroX?

eToroX is a trading platform with its stablecoin tokens their holders can utilize for trading purposes. This platform is considered one of the most reliable and profitable platforms on the market and has more than 13 million customers all over the world. eToroX is a crypto exchange perfect for algo traders, crypto merchants, and institutional-grade investors.

Is eToroX wallet safe?

eToroX wallet is considered one of the safest crypto wallets on the modern market. With its clarity, standardization protocols, and several security features of the highest quality it has all the rights to be called one of the best crypto software for both advanced token holders and newbies. For using the eToroX wallet, you need to log in to etoro.com, using your eToroX credentials (including your password and login).

What customer support does eToroX offer?

When it comes to the eToroX customers, the eTorox platform does everything to keep it on the highest possible level. You can always contact the eToroX Customer Service by any social media (as they have managers and contacts almost in every social media), ask your question, and receive an answer to this exact question. Customers can also contact eToroX Customer Service through email (support@etoro.com), or mobile phone (1-888-271-8365). Choose the option you like the most.

How likely would you be to recommend finder to a friend or colleague?

I’d recommend the eToroX platform to my friends or colleagues as I’m utilizing it myself. It’s obvious this platform is new and raw, but in the crypto sphere everything can change any second, and something considered unpromising becomes profitable (and even more). That’s why I recommend the eToroX platform with its stablecoin tokens to everyone wishing to enter the crypto sphere. Just a small piece of advice: try to utilize these tokens for trading purposes as soon after their purchase as possible, and do not keep them on the crypto exchange for long periods (as the market can be very unstable, and your profit depends on it).

Brian Forester


Brian is an experienced journalist and crypto enthusiast. Founder of CryptoCurry - famed for his insightful input on the future of cryptocurrencies and blockchain technologies.

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