eToroX is a cryptocurrency exchange launched in 2019, designed to serve as a bridge between the traditional financial sector and the nascent crypto space. It is a crypto subsidiary of eToro, the largest social trading platform.
eToro is led by Yoni Assia, who is a prominent figure in the cryptocurrency community. The head office of the company is located in Cyprus, it employs several hundred people.
Its parent platform, eToro, has been around for more than 10 years, and has gained 10 million subscribers in that time. As one of the few regulated exchanges in the world, it enjoys a reputation for regulatory compliance and security.
eToroX plays an intermediary role between buyers and sellers of crypto assets. This has nothing to do with the exchange between buyers and sellers. It simply reflects the prices that the platform's customers and various market makers create, working in tandem with the site.
eToroX is a cryptocurrency-only exchange. Instead of using fiat currencies to trade with cryptocurrencies, eToroX uses stablecoins. There are 12 different stablecoins available on eToroX.
Thanks to a variety of market makers, the site strives to have a healthy order book, as well as sufficient liquidity to place and execute orders.
To trade on the platform, you should be a fully verified account holder on the parent eToro platform.
You can use the eToroX exchange as a web platform or mobile application. Unlike other exchanges, eToroX does not yet offer the possibility of opening a market order. Instead, it provides its own equivalent in the "Get the Best Price" tab. If you select this option before trading, the system will offer you the best price available for the units you specified.
Trading fees work according to the "manufacturer-buyer" model. Creators-people who add limit orders to the order book charge a commission of 0.1% to 0.03%, depending on the size of their order.
Takers-people who complete existing orders from the order book charge a commission of 0.24% to 0.12%, depending on the size of the order.
There is a fee for withdrawing funds, which depends on what coins you withdraw.
Security is one of the most important characteristics of a reliable cryptocurrency exchange, and this is not eToroX's strongest point. Its security features are limited:
- Two-factor authentication
EToroX users require 2FA to log in to their accounts using a password and an authentication code sent using the selected method.
This applies to the exchange's round-the-clock operational security center, which detects and identifies events in real time, and sends alerts if necessary.
Some of the security features that are noticeably lacking on the platform include:
- Storing funds on a cold wallet
While eToroX claims to store some of the funds in cold storage, some are stored in hot wallets. While this provides convenience in terms of accessibility and ease of use, it is risky as the funds are within the reach of attackers.
- The storage of private keys
eToroX does not effectively protect the private keys of users of its wallet, which can lead to the loss of funds. What makes its use unsafe is the fact that if the system's servers are compromised, attackers can get sensitive data and use it for malicious purposes.
The exchange does not provide sufficient information about how it protects users ' funds. Details about how its 24/7 security system works are not available on the site.
In general, eToroX is not a secure platform. It is only a lightly regulated crypto exchange, within the still evolving legal framework in Gibraltar.
- To own your crypto assets, you need to manage your own private keys.
- Ledger hardware wallets make private key management easy and secure.
- Each unique 24-word recovery phrase creates a new set of private keys.
- Make sure you secure your 24-word recovery phrase properly.