eToro is one of the largest multi-asset trading platforms in the world, supporting numerous forms of real-asset trading, including cryptocurrencies, forex, commodities like gasoline, gold, oil, ETFs, stocks, CFDs, and indices. The platform was originally launched in 2007 for general trading. However, emerging market trends soon made it start supporting other financial instruments like cryptocurrencies. OpenBook, the first social trading platform in the world, originated from eToro. Over the years, eToro has made a footing in over 140 countries and amassed an incredible customer base comprising more than 6 million people!
eToro: Social Trading Platform
eToro disrupted the online brokerage industry when it launched the world’s first social trading platform. The CopyTrading feature prevents you from losing money by copying the trading strategies of thriving traders. It also allows you to connect with other online traders and discuss trade ideas.
Should You Use eToro?
As a well-known fintech company, eToro is regulated by the UK’s Financial Conduct Authority (FCA) and Australia’s Australian Securities and Investment Commission (ASIC). Even though the company does not operate a bank, nor is it publicly traded, it has an overall trust score of 93 out of 99. This makes it a safe investment platform.
The FDIC does not insure funds deposited to eToro. However, the company has a highly secure website and mobile app. If you would like to have an additional security layer for your accounts, the platform does have two-factor authentication.
If you are looking for a unique approach to cryptocurrency trading, eToro can grant it through how you interact with other traders on the platform. This includes the ability to mimic a top-rated trader’s activities, with the platform automatically matching your trades with theirs.
However, you should remember that a trader’s excellent performance in the past does not make them immune to failure in future trades. Nonetheless, you can limit your drawdowns and the total risk you are ready to take. Another way to diversify the risk on the platform is by using its CopyPortfolio feature.
You can also test-drive eToro if you are unsure about it. You will get $100K in virtual currency that you can commit to CopyTrader. Before you make a final decision, also consider how the platform’s options and fees match up to those offered by Robinhood, Binance, and Coinbase, among other cryptocurrency trading sites.
eToro Cryptocurrency Trading Platform
eToro provides two modes of trading cryptocurrencies:
- CFDs trading. This mode involves cryptocurrency “crosses”, which are currency pairs that feature a crypto coin and another crypto (e.g., Bitcoin and Ethereum), fiat currency (e.g., Ethereum and USD), or commodities (e.g., Bitcoin and gold)
- Direct purchase. This mode involves trading exclusively on popular crypto coins like Bitcoin, Ethereum, Dogecoin, Neo, and Dash, among others. This mode is more popular in the US, where CFDs are prohibited. It is also important to note that Ripple coin trading is unsupported on eToro for US customers. This is after the US Securities and Exchange Commission (SEC) sued Ripple Labs, Inc., the coin’s parent company, in late December 2020.
Copy Trading and Portfolios on eToro
CopyTrader is one of eToro’s biggest attractions. It allows you to copy other traders in real-time. You can choose one trader whose entire trades you want to copy, and the platform will automatically mimic their trades.
For each trader you want to copy, you can specify the amount to dedicate to their trades. Additionally, you can control drawdowns by stopping losses. The trader’s open positions will immediately be opened for you.
CopyPortfolio has a similar working mechanism as CopyTrader, except that it allows you to mimic not just one trader but a whole portfolio. It is available in two forms that are both managed through regular rebalancing:
- Top Trader Portfolios. Mimic the portfolios comprising the most sustainable and top-performing traders
- Market Portfolios. Invest in portfolios comprising several investments
Buy or Sell Bitcoin or Bitcoin CFDs with eToro
You should first verify your account to start buying or selling bitcoin or bitcoin CFDs with eToro. You can follow the steps below to buy or sell:
- Sign in to your account and choose “Trade Markets”
- Select “Cryptos”
- From the drop-down box, click “Currency Crosses”
- Out of the new list, select “Bitcoin/Euro” and then “Trade”
- Specify the amount you want to invest
Finish the on-screen instructions to proceed and place your order. All your orders will appear on your account’s “Portfolio” page.
Deposit Funds on eToro
Follow the steps below to deposit:
- Sign in to your account and select ‘Deposit Funds’
- Specify the amount you want to deposit and choose your currency
- Specify your preferred mode of payment
How to Cash Out
You can withdraw a minimum of $30 to your bank, electronic wallet, debit, or credit card. To do this, follow the steps below:
- Sign in to your account and select ‘Withdraw Funds’
- Specify the amount you want to withdraw and choose your preferred mode of payment
- Select ‘Submit’
eToro currently supports 98 cryptocurrency markets, including the following cryptocurrencies:
Bitcoin (BTC), Ethereum Classic/Euro (ETHEUR), IOTA (MIOTA), Ripple (XRP), TRON (TRX), Dash (DASH), Zcash (ZEC), Litecoin (LTC), EOS (EOS), Ethereum Classic (ETC), Ethereum (ETH), Stellar (XLM), NEO (NEO), GRAM, Tezos (XTZ), Bitcoin/Euro (BTCEUR), Ethereum/Euro (ETHEUR), Bitcoin Cash (BCH), Ethereum/Bitcoin (ETHBTC), Ripple/Euro (XRPEUR), Cardano (ADA), Binance Coin (BNB)
eToro offers a mobile-based multi-signature wallet that you can use to store cryptos securely. eToroX, which is a different entity owned by the company and a DLT regulated provider, supports the eToro wallet.
The only way to access the eToro wallet is via the use of the company’s iOS or Android app.
You can use your eToro wallet to send and receive cryptocurrencies to and from other wallets on the platform, convert one currency to another, and transfer crypto out of eToro to your wallet. However, you cannot use the wallet to transfer crypto back to the eToro trading platform.
To send cryptos, follow these steps:
- In your eToro wallet, select the relevant crypto
- Select ‘Send’, which appears as a blue button
- Specify cryptocurrency amount (or select its fiat currency equivalent)
- Under it, specify the wallet address of the recipient. You can use your phone’s camera to scan the QR code if you have one
- In case you want to send funds to a cryptocurrency exchange, you have to specify the destination tag too. The exchange ought to have a relevant deposit/funding section that highlights the importance of the tag
- Select ‘Send’. Depending on the network volume, the transaction will be processed
- Sign in to your eToro wallet and choose the relevant cryptocurrency
- Click ‘Receive’, which is typically a green button
- The screen will display the wallet address, either as several characters or a QR code, which is more convenient
- Enter the address into the sender’s wallet and continue with the transaction.
Unlike other platforms, eToro charges zero commission for stock trades and have zero hidden fees. They only have a single, simple, and transparent fee of 1% for buying or selling crypto.
In addition, eToro charges an inactivity fee of $10 for each year you are inactive on the platform, although simply logging in to your account is considered an activity.
eToro simplifies its trading process by providing its customers with one main account type. You will find it seamless and straightforward to open a standard trading account. It only involves filling in and submitting a simple registration form.
Islamic traders can opt for an Islamic account, which is halal as it does not use swaps (Riba) that are illegal under Islamic law.
The other type of account you can open is a demo one which provides you with $100,000 to test your trading skills. You can upgrade to a real trading account from the demo one at any time.
eToro Minimum Deposit
eToro generally requires a minimum deposit of $200. If you want to partake in the “Popular Investor” program, you should have a minimum deposit of $1,000. However, the amount varies from one country to the other. In the U.S., it is $50, while in Israel, it is $10,000.
Deposits and Withdrawal Fees
As a U.S. customer, you do not have to pay anything to withdraw from eToro. However, your withdrawal amount needs to be at least $30. Traders in other countries pay $5 to withdraw from the platform.
How To Sign up for an eToro Trading Account
Follow the steps below to sign up for eToro:
- Visit eToro’s website and click Sign Up
- Provide your personal details
- Fill in your phone number
- Answer some questions which inform eToro about your trading experience
- Supply your ID, proof of identity, and proof of residence to verify your account
- Deposit funds to start trading