- eToro launches a feature allowing users to convert crypto from external wallets to fiat currency.
- The new feature initially supports Bitcoin (BTC) and Ethereum (ETH) conversions to GBP and EUR.
- eToro highlights this as a way for investors to secure profits amid potential market volatility.
eToro, the popular trading and investment platform, has just rolled out a new crypto-to-fiat exchange feature for its users. In their latest announcement, the platform stated that customers can now transfer their cryptocurrency holdings from external wallets directly to their eToro accounts, convert these digital assets into traditional fiat currencies, and then either withdraw the funds or reinvest them into any other investment instrument offered on the platform.
According to eToro, the initial rollout of this feature will focus on users who hold Bitcoin (BTC) or Ethereum (ETH) in wallets outside of the eToro ecosystem, such as on other exchanges or in self-custody wallets.
These users can now move their Bitcoin and Ethereum to their eToro wallets and easily convert them into their local currency within their existing GBP (British Pound) and EUR (Euro) accounts.
How Does the New Crypto-to-Fiat Feature Work on eToro?
The process of withdrawing the converted funds into a crypto wallet on eToro and converting them to GBP or EUR sets the stage for several options for investors. These options include withdrawing their investment as cash directly to their bank accounts, spending the money using their linked GBP or EUR accounts within eToro, or utilizing the eToro debit card for everyday purchases.
It’s worth noting that, at this initial launch phase, this new feature is exclusively available to members of eToro’s Diamond Club category. The platform will also apply a conversion fee ranging from 0.6% to 1% for each transaction.
Doron Rosenblum, eToro’s EVP of Business Solutions, believes this latest feature is perfectly suited for the new generation of investors who are seeking alternative ways to manage and utilize their cryptocurrency assets. Rosenblum emphasized that eToro, as a comprehensive multi-asset platform, is well-positioned to help this category of investors put their crypto to work, explore a wider range of investment opportunities, and further diversify their overall portfolios.
Why is eToro Introducing This Feature Now?
In addition, Rosenblum views the new crypto-to-fiat feature as a crucial off-ramp for investors, particularly given that many crypto assets have recently reached near all-time high values. He pointed out that this situation could lead to significant market volatility, and this new feature would enable users to secure their profits and strategically diversify into other asset classes available on the eToro platform.
eToro currently boasts a substantial user base of over 38 million individuals worldwide. Notably, Europe remains its largest market.
The investment platform recently received Cyprus Securities and Exchange Commission CySEC authorization, which allows it to provide crypto services across all member states of the European Union under the Markets in Crypto-Assets Regulation (MiCA) framework.
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