Best Cryptocurrencies on eToro • Ranked • Benzinga

August 17, 2021 John Altcoin 0

eToro offers a wide range of cryptocurrency trading pairs. With so much development going on in the blockchain space, it can be hard to see through the hype and find the long-term winners. That’s why Benzinga has made it easy for you. Here are some of the best cryptocurrencies on eToro.

Bitcoin Versus Altcoins

Bitcoin was the 1st cryptocurrency to leverage blockchain technology. Blockchains are transparent, open networks controlled by thousands of people around the world known as miners. Decentralization is advantageous when governments and corporations are untrustworthy. From full-on corruption to the housing crisis to overinflation, there are a lot of applications where blockchains can do better. 

Bitcoin aims to replace government-backed money as the global reserve currency. But that isn’t entirely helpful if you still have to rely on the same banks and governments to provide exchanges, loans and the rest of the financial system. 

The end goal is to decentralize the entire financial system, allowing people around the world to interact freely and securely over the blockchain-powered internet. Blockchain startups are potentially some of the best investments of the next 50 years, but don’t expect them to go public via a stock offering. Instead, these companies opt to raise funds via a digital currency, which often becomes the required form of payment to interact with their protocols. 

Best Cryptocurrencies on eToro

In 2017, altcoins were largely seen as a scam. Now that the decentralized finance (DeFi) ecosystem is maturing, it’s more clear which projects are to be taken seriously and which aren’t. Here’s a list of 5 solid DeFi projects with cryptocurrencies available on eToro.

  1. Ethereum (ETH): Bitcoin’s blockchain is single-purpose: Record transactions. Ethereum inventor, Vitalik Buterin, decided to take blockchain a step further with Ethereum, the 1st general purpose blockchain. Ethereum’s blockchain is effectively a virtual machine where “smart contracts” can be written to automate anything a developer can dream of. The majority of the DeFi industry is built on the Ethereum blockchain, making it the top pick on eToro.
  2. Uniswap (UNI): Uniswap is a decentralized exchange (DEX) built on the Ethereum blockchain. Uniswap allows users to provide liquidity for others to tap into. Users of the liquidity must pay a small fee to the liquidity providers, which incentivizes them to make the market. Uniswap is also known as an automated market maker or AMM for short. While Uniswap is not the only AMM on Ethereum, it was the 1st and continues to be the most-used protocol on the Ethereum blockchain. 
  3. Cardano (ADA): After leaving the Ethereum project over Vitalik’s decision to take the nonprofit route, Charles Hoskinson created Cardano. Cardano is a proof-of-stake blockchain that aims to steal a chunk of Ethereum’s DeFi market share. This has yet to happen, as smart contracts still aren’t available on the network. Nevertheless, Cardano fans are so hardcore that the network already has a $58 billion valuation. Cardano’s native coin is ADA, which can be purchased on eToro for a little less than $2. 
  4. Maker (MKR): The Maker decentralized autonomous organization (DAO) was one of the first DeFi projects launched to the Ethereum mainnet. MakerDAO is controlled by the holders of its token, MKR. Maker is responsible for creation of the Dai stablecoin, which is entirely decentralized. Unlike USD Coin (USDC) or Tether, which are run by centralized entities, Dai maintains its peg via a decentralized protocol. Dai is the favorite stablecoin of DeFi users, especially with all of the ongoing chatter about Tether’s trustworthiness. 
  5. Polygon (MATIC): Space on the Ethereum blockchain is limited and highly coveted and, therefore, very expensive. Polygon is a sidechain on Ethereum with its own consensus model. While this makes it less secure than the Ethereum mainnet, it’s so much cheaper that many users are willing to make the sacrifice. When the Polygon sidechain launched, a huge amount of money flowed from the Ethereum mainnet onto the Polygon chain. While it’s hard to say whether sidechains will still be useful when Layer 2 solutions come out, Polygon’s 1st-mover advantage as a sidechain and upcoming Layer 2 solution probably means it’s here to stay for the next couple of years. Polygon transactions are paid for using the MATIC token, with the price reflecting demand for the protocol. 

Commissions

Depends on security and leverage

Account Min

$50 for US and Australia; $200 everywhere else

1 Minute Review

eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features

Best For
  • U.S. based cryptocurrency traders
  • Social and copy traders
  • Simple user interface
  • Community engagement and following other traders
Pros
  • 25 cryptocurrencies
  • Expansive network of social trading features
  • Large client base for new traders to imitate
Cons
  • U.S. traders can only buy cryptocurrency

Cryptocurrencies You’re Missing out on

eToro offers a great selection of cryptocurrencies, but there are still a few solid projects missing. Here’s a list of a few cryptocurrencies you might want to consider opening up another exchange account to get your hands on. To save you the work, Benzinga will also show you exactly where you can get them. 

  1. Sushi (SUSHI): SushiSwap began as a fork of Uniswap created by the anonymous developer Chef Nomi. While Sushi originally seemed like a giant scam, it’s arc has caught many UNI diehards by surprise. Sushi now offers a suite of DeFi products that Uniswap doesn’t have. From Bento Boxes to the upcoming non-fungible token (NFT) platform, SushiSwap is a Swiss Army Knife of a DEX. The SushiSwap development team is clearly taking the challenge quite seriously. You can purchase SUSHI tokens on Coinbase. 
  2. The Graph (GRT): Blockchains contain a serious amount of data, and finding the info you’re looking for currently requires a Ph.D in computer science or a centralized 3rd party like Etherscan. While Etherscan is a great tool, DeFi users want a decentralized application that can do the same thing. This is where The Graph comes in — it’s a decentralized blockchain indexing protocol. The main use case is in smart contracts and other decentralized protocols that require end-to-end decentralization. Searching for info via The Graph protocol costs GRT. Demand for this product, and therefore GRT, is likely to go up as the DeFi industry grows. GRT is also available on Coinbase. 



Commissions

Account Min

$0

1 Minute Review

Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs. 

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.

Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.

Best For
  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform
Pros
  • Simple platform is easy to operate
  • Comprehensive mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto for learning about available coins
Cons
  • Higher fees than competitors