In this in-depth review of eToro’s crypto trading platform, we’ll cover:
- What features eToro offers crypto traders.
- Where eToro is available in the U.S., and what coins you can trade.
- The fees for using the platform.
- The pros and cons of using eToro for crypto trading.
- The top eToro alternatives.
eToro is a solid platform for new crypto investors looking to hold basic crypto assets like BTC and ETH, in large part because their fees tend to run lower than many exchanges (especially for low-value transactions). The platform has more than 25 coins available, but you’re limited to withdrawing only six currencies to your wallet. So while you do own the crypto you buy on eToro, it’s not the perfect option if you’re searching for a broker that can act as an onramp to DeFi.
eToro Crypto Overview
eToro is an Israel-based online investment broker and crypto exchange. It does business in the United States as eToro USA LLC, but it also offers trading services in more than 100 countries around the world.
eToro Pros and Cons Explained
eToro Pros
- Easy to use platform. eToro makes trading cryptocurrencies about as easy as it gets. The eToro mobile app and web-based trading platforms are both streamlined and user-friendly, so they’re a nice choice for first-time crypto investors.
- Low account minimum. You only need $10 to open an eToro account in the U.S. If you want to copy the trades of other crypto investors using the Copy Trader feature, you can also get started with just $1,000.
- Low trading fees. There’s a 1% trading fee plus a minimal spread, with no flat trading fee.
- Option to copy other people’s trades. Unlike most trading platforms, eToro offers the ability to copy other successful traders’ strategies, as well as the option to buy into a pre-built portfolio. These Copy Trader and Smart Portfolio features can be a simple way to kick-start your cryptocurrency trading, even if you’re still getting used to the world of alternative assets.
- Easy access to virtual trading. If you’re new to trading crypto, figuring out your trading strategies can be a challenge. Thankfully, eToro lets you test out your own trading strategies risk-free using a virtual portfolio.
- Free non-custodial wallet. The eToro wallet is a simple and beginner-friendly way to manage your own coins and tokens. It’s pretty limited in scope at the moment since it only supports a handful of cryptocurrencies, but eToro’s wallet is a nice free add-on to its retail investor accounts.
eToro Cons
- Very limited crypto withdrawals. With eToro, you can currently only withdraw six cryptocurrencies and you can only withdraw them to your eToro wallet mobile app.
- No crypto deposits. Even if you do withdraw crypto from eToro, you have no way to get it back to the platform because the company doesn’t support crypto deposits. This means you’d need an account at another exchange if you ever wanted to sell your withdrawn crypto.
- Not available in all U.S. states. Investors in five states (Hawaii, Minnesota, New York, Nevada and Tennessee) can’t currently access the eToro trading platform.
eToro Main Features
eToro users have access to a handful of unique features, including:
eToro Trading Platform
eToro account holders can buy and sell 25+ cryptocurrencies on an easy-to-use trading platform (if you’re outside of the U.S., there are over 50 cryptocurrencies available). The firm’s brokerage services support market, limit, stop loss and take profit orders.
Copy Trader and Smart Portfolios
eToro makes it easy to copy other traders’ investment strategies with Copy Portfolios and Smart Portfolios.
Copy Portfolios are not professionally-managed portfolios, but those of top-performing traders on eToro, as well as those of influencers who have agreed to let others copy their trades.
For example, the most popular Copy Trader portfolio is from Kevin Stanley, host of the Crypto 101 podcast.
Personally, I’d be very cautious with these portfolios, viewing them as a way to invest a small amount of money you can afford to lose alongside a well-known investor in order to make learning about crypto more interesting.
Smart Portfolios are managed by trading professionals at eToro. These tend to be less of a hedge fund type portfolio (where the goal is to outperform the market) and more of a market cap weighted portfolio that offers passive investors exposure to crypto assets.
For example, the Crypto-Currencies Smart Portfolio is based on market cap and is rebalanced at the start of each month.
If you’re interested in a more actively-managed type of crypto portfolio, read our Titan Invest review.
eToro Wallet
When you trade crypto with eToro, your crypto is held in your exchange account. But you can also withdraw a handful of coins to the eToro wallet, which is a free, non-custodial software wallet.
Currently, eToro supports transfers of Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Stellar, Tron and XRP.
The eToro wallet is available as a mobile app and it gives you full control over your private keys. Additionally, this wallet offers a crypto-crypto conversion feature, if you want to swap coins.
Virtual Trading
eToro features a free virtual trading platform that can be used for testing your trading strategies. You can use up to $100,000 in virtual money so you can try different techniques without risking any real funds in the process.
What Cryptocurrencies Does eToro Support?
eToro users can currently buy and sell more than 25 cryptocurrencies within the U.S. (50+ cryptocurrencies are available for those outside of the U.S.), including:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Litecoin (LTC)
- Dogecoin (DOGE)
Keep in mind that eToro’s trading platform regularly adds new coins and tokens to its list of supported cryptocurrencies, so this number is expected to grow in the future.
Do You Own Your Crypto Assets When You Trade on eToro?
Yes and no.
If you’re in the U.S., you’re buying the underlying crypto asset. As such, you own the actual cryptocurrency. If you’re outside of the U.S., in some cases you’re buying CFDs, which is short for “contracts for differences.”
A CFD is a complex financial instrument. The basic idea is that when trading CFD assets, you’re not buying the underlying stock, commodity or cryptocurrency — the broker does that for you. Instead, you enter into a contract with the CFD broker (in this case, eToro), who manages your assets on your behalf.
How do you know if you’re buying a CFD or real crypto with eToro?
Again, in the U.S., each of the cryptocurrencies you buy is the actual underlying asset. It’s outside of the U.S. where eToro will alert you before making an investment whether you’re purchasing the underlying asset or a CFD.
Keep in mind, while you do own the underlying asset, you can only currently transfer Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Tron and Stellar Lumens from your eToro account.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
eToro Availability
eToro currently offers cryptocurrency trading in 45 states.
This includes all states except:
- Hawaii
- Minnesota
- Nevada
- New York
- Tennessee
eToro is not open to residents of most U.S. territories, including Puerto Rico, Guam and American Samoa. The platform also cannot be accessed by U.S. citizens living overseas.
Also, be aware that you need to be at least 18 years old and have a Social Security number in order to open an eToro account in the U.S.
Funding Your eToro Account
U.S.-based investors can only fund their eToro accounts with dollars via ACH transfer, wire transfer or debit cards. There’s no way to fund a U.S.-based eToro account with a crypto deposit.
If you withdraw crypto from eToro to your personal wallet, you won’t be able to send it back to the platform for trading.
eToro Fees
eToro’s fee structure is somewhat complex, so let’s take a look at the main fees you’ll be charged to trade on the platform.
Trading Fees
With eToro, you’ll pay a 1% commission fee on every crypto transaction that you place.
In addition to that commission fee, eToro charges a small spread fee on each trade. The spread is the difference between the bid and offer prices on an asset at any given time. Spread fees are common on many crypto exchanges, but how much that spread fee is can vary quite a bit.
eToro’s spread fees tend to be minimal. For purchasing Bitcoin, the spread is near 0.2%. All in all, you’re looking at a total fee of around 1.2%.
There’s no flat order charge, as is the case with Coinbase — a fact that makes eToro a solid platform for those trading smaller amounts of crypto.
Account Fees and Minimums
In the U.S., eToro has a low account minimum funding requirement of $10. You can add funds using either a debit card or via ACH transfer. You can also deposit money via wire, but the wire transfer minimum is $500.
eToro does not have any other account maintenance, cash withdrawal, or cash deposit fees.
Wallet Fees
The eToro wallet mobile app is technically free to use, though you will have to pay a 0.50% fee to send crypto from your eToro investment account to your wallet.
You will also have to pay any network fees that you incur when trying to send crypto to another wallet (note that these fees are determined by the blockchain, not eToro).
There are some fees involved with the eToro wallet’s crypto-crypto conversion feature. eToro currently charges 0.10% per conversion, and most conversions have a $20 minimum transaction requirement.
eToro vs. Coinbase
Coinbase is one of the world’s largest cryptocurrency exchanges. When compared to eToro, Coinbase offers a more well-established exchange that lets you trade a larger selection of cryptocurrencies.
For novice traders who are just breaking into the crypto-sphere, Coinbase makes it easy to get started using its instant buy feature. Coinbase also offers more advanced trading tools, including a fully-fledged crypto trading platform called Coinbase Pro where you can buy and sell crypto at the real market rate.
Coinbase charges a flat trading fee, starting at 99 cents and reaching a maximum of $2.99, for transactions under $200. Since eToro doesn’t charge this flat fee — you’re instead charged a 1% fee regardless of the amount — it’s a lower cost option for smaller investors.
Is eToro Right for You?
eToro is well-established in the stock and ETF brokerage world, though it has just recently made its foray into the crypto industry. But the question remains: is eToro a good trading platform for your crypto needs?
There are some key advantages to eToro, including the company’s innovative Copy Trader and Smart Portfolios features. eToro also has an easy-to-use platform and offers low account minimums, which are great if you’re just getting started.
My main concern with eToro is its restrictions on both crypto withdrawals and deposits.
If you never intend to withdraw your coins to your own wallet for safekeeping, this might not matter. But in a world where most other exchanges let you withdraw and deposit your coins without restriction, this becomes a big downside to trading crypto with eToro.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as a basis for an investment decision.
Copy Trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorized and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. There is no consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
