In order to make a quality assessment of the eToroX crypto exchange, this review will focus on several major factors: general overview, user interface, trading pairs, tokenization and security.
eToroX was launched to execute the vision of eToro Group. eToro is the largest social trading platform for over a decade and has over 10M users. eToroX represents a bridge between traditional financial services and the blockchain. eToroX exchange is one of the few regulated exchanges in the world, having obtained a DLT licence from the Gibraltar Financial Services Commission. As such, investors can trade multiple digital assets on a regulated platform.
In order to login to the eToroX exchange, you’ll need to create an eToro account and complete the KYC process. Afterwards, you can enter the eToroX exchange simply by clicking on the “Login with eToro” option.
1. User interface
On your first login, the exchange will be loaded in a default layout which is 100% customizable.
The layout contains the order book, charts, market depth and portfolio allocation.
The icon set on top left corner allows you to change the size and locations of the order book, charts, market depth and more. Here is an example of a layout that has been customized:
2. Trading Pairs
eToroX offers 13 currencies and 43 pairs in total.
Considering the fact that they’re just finished with the Beta phase, they have a wide range of pairs which makes me look forward to their next steps.
3. Tokenized assets
eToroX is in the midst of creating numerous variations of stablecoins and digital assets. This unique proposition is a strength as it enables users to choose between a variety of stablecoins to trade with besides the popular USDX. Currently, those coins are: CADX, CHFX, GBPX, NZDX, JPYX, AUDX, and EURX.
The majority of cryptocurrency exchanges offer only one or two stablecoins that are fully-backed by the fiat currency, but it is rare that they offer 8 stablecoins. This diversity allows users to trade against currencies that they are familiar with or fully understand.
This might be a novel strategy for fostering mainstream adoption, since the fiat-to-crypto gateway has traditionally been a relatively inefficient affair. Given the relative youth of the cryptocurrency market, the availability of numerous gateways in the future could facilitate greater participation from mainstream retail investors.
eToroX seems to be looking towards facilitating interest towards the popular or most traded cryptocurrency, thus justifying the current listing of the 8 assets on its platform so far. This is a similar strategy used by Coinbase at the early stages of the company. Therefore, it may not be a negative point that there is a much lower variety of cryptocurrencies on display as compared to other cryptocurrency exchanges.
eToroX has instituted various mechanisms to ensure that user funds are well-protected and safe.
From compulsory 2FA and using multisig wallets, there is a clear commitment from eToroX to beef up their security by leveraging on the best practices of the industry.
After an evaluation of eToroX platform, here is a short summary of the advantages and disadvantages of the eToroX exchange:
- Variety of digital assets
- Regulated exchange
- Intuitive & customizable user interface
- Limited coin availability. Compared to the average cryptocurrency exchange, 13 currencies is a small number of trading pairs. However, considering the fact that the exchange was released 2 weeks ago, I believe that we’ll see many new assets soon.