Multi-asset brokerage and social trading firm, eToro, has taken steps to slash its fees in a bid to raise cryptocurrency awareness. In the course of boosting awareness, eToro will focus on the benefits of cryptocurrency and blockchain technology as a way of encouraging the involvement of more investors. In keeping with this, eToro announced Tuesday that it has cut down the spread of all assets that are listed. The firm went ahead to say that it would make buying and selling of digital assets more affordable as a way of getting more retail traders to participate.
Background Information on eToro
eToro is a Cyprus-based virtual currency investment platform which is very popular among crypto-asset traders in Europe. On eToro, traders convert fiat currency, such as the US dollar, British pounds, and euros, to cryptocurrency. eToro also enables them to convert from cryptocurrency to fiat currency. Furthermore, the platform allows users to perform crypto-to-crypto conversions. By doing so, the firm is increasing cryptocurrency liquidity both in Europe and around the world. Headquartered in Cyprus, the company has regulatory licenses to operate in Israel and the United Kingdom. Furthermore, the trio of David Ring, Ronen Assia, and Yoni Assia jointly founded the company. It currently lists 11 digital currencies on its platform, including Bitcoin (BTC), EOS and IOTA (MIOTA).
What is Spread?
Spread is the price difference between immediate purchase (or bid) and immediate sale (offer). In other words, spread is the difference between the selling price and cost price. One may also call spread the profit of a company. As a transaction facilitator, eToro charges customers for using its platform. That way, eToro can increase its spread. However, in finance, spread doesn’t just serve as a shorthand for transaction charges, but it also helps to gauge market liquidity. No doubt, trading cryptocurrency is an expensive, risky activity.
Much as transaction fees vary from platform to platform, most exchanges charge users for carrying out transactions on their platforms. For instance, Coinbase charges $2.99 USD per transaction that is below $200 USD. In addition, it charges a 1.49% variable for transactions above $200 USD. While users who perform occasional transactions may not have a problem with that, it deters cryptocurrency investors who perform frequent small transactions.
In a press release, eToro‘s Co-Founder and CEO, Yoni Assia, reaffirms the company’s commitment to raising blockchain technology and cryptocurrency awareness among investors. The company’s head admitted that cryptocurrency is very volatile and not recommendable for investors. He nonetheless stated that it can play a role as “a diversified long-term portfolio.”
This article should not be taken as, and is not intended to provide, investment advice. Users are ultimately responsible for the investment decisions he/she/it makes based on this information. It is your responsibility to review, analyze and verify any content/information before relying on them. Trading is a highly risky activity. Do consult your financial adviser before making any decision. Please conduct your thorough research before investing in any cryptocurrency and read our full disclaimer.
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