eToro Review: An Easy Way to Trade Crypto

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Updated: 23rd Feb 2021
Written by Drew Cheneler
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Founded in 2007, eToro is a popular cryptocurrency exchange that has a special focus on social trading. While originally founded in Israel, eToro today hosts offices in the U.S., U.K., and Cyprus.

Many know eToro for its commissionless stock trading, but in recent times the platform gained popularity for its crypto services as well.

For those who enjoy trading both digital and non-digital assets, eToro will prove itself to be the perfect option. Interested? Find out more by reading our all-encompassing eToro review.

eToro Overview

Features:Detail:
Account Minimum: First-time deposit: $200/Afterwards: $50
Fees: Crypto fees range from 0.75% to 4.5%
Account Types:Retail Clients and Professional Clients
Customer Support: Online ticket system, technical support, email
Mobile App: iOS & Android
Availability: 38 U.S. states, +100 countries
Tradeable Securities: Stocks and more than 16 cryptocurrencies
Digital Wallet: Yes (Mobile wallet)

Pros:

  • Support for +16 cryptocurrencies
  • Offers 99 crypto trading pairs in total
  • Great platform for beginners
  • Features both stocks and cryptocurrencies
  • Beginners can learn and make money by copying other traders

Cons:

  • Incredibly high fees for crypto trading
  • Terrible customer support
  • Offers a small number of assets compared to other platforms
  • Slow withdrawals

What is eToro?

eToro is a thriving online brokerage platform that became popular by introducing social trading, a type of trading where investors can copy others and track their performance. Moreover, eToro is also famous for its commission-free trading and simple to use interface.

Simply put, eToro is the first stop in the financial world for those who are just starting out with trading.

Whether it is crypto or stocks, this platform will help you out and provide the easiest and simplest experience possible.

At the time of writing, eToro is available in more than 100 countries. It serves a total of 13 million users worldwide.

Due to regulatory issues, U.S. citizens cannot trade stock CFDs on eToro. American investors are restricted to only trading cryptocurrencies.

How Does eToro Work?

eToro is designed for retail investors who wish to trade stocks, ETFs, indexes, and cryptocurrencies. Users can invest independently and even trade with leverage.

Those who are new can simply follow others and copy trades with the platform’s social trading feature.

Creating an account on eToro is a swift process, and once your profile is completed, you can instantly start trading.

The website’s interface is minimalistic and easy to learn, which creates a great experience for those who have no trading experience.

eToro Standout Features:

  • Social Trading: No idea what to do? You can copy other experienced traders and earn money without any financial knowledge. Apart from being profitable, social trading also helps beginners understand how investing works.
  • Education: eToro has a trading academy and an educational center which can be used to learn about investing.
  • Digital Wallet: The platform features a smartphone-based digital wallet that stores cryptocurrencies.
  • Supported Coins: Supports Bitcoin, Ethereum, Litecoin, Bitcoin Cash, XRP, Dash, ETC, Cardano, IOTA, Stellar, EOS, Tron, ZCASH, Binance Coin, and Tezos.
  • Security: eToro is registered in four high-level regulatory jurisdictions. In terms of account security, the company utilizes features such as 2FA to fend off hackers.

What Coins Can You Buy at eToro?

eToro supports a grand total of 99 trading pairs and 16 unique cryptocurrencies.

The list of supported crypto assets includes Bitcoin, Ethereum, Bitcoin Cash, XRP, Dash, Litecoin, ETC, Cardano, IOTA, Stellar, EOS, Tron, ZCASH, Binance Coin, and Tezos.

The list on eToroX, the company’s crypto exchange, is a bit larger. Besides the assets mentioned above, investors can also find Ontology, NZDX, and NEO on eToroX. However, these additional cryptocurrencies have almost no trading volume.

Learn More: What is Cryptocurrency?

eToro Fees: How Much Does It Cost?

If you have been keeping up with how eToro works so far, that is great! However, things get trickier now that we talk about fees.

Although the platform is well-known for its zero-fees stock trading, the situation is entirely different with cryptocurrencies.

At eToro, crypto trading fees range anywhere from 0.75% to 4.5%, depending on the digital asset that you trade. Here is a list of fees for the most popular cryptocurrencies:

  • Bitcoin: 0.75%
  • Ethereum: 1.90%
  • Bitcoin Cash 1.9%
  • XRP: 2.45%
  • Dash: 2.9%
  • Litecoin: 1.9%
  • IOTA: 4.5%

There are also fees for transferring cryptocurrencies between wallets. However, they mostly vary based on the network fees of a crypto’s blockchain network. At the time of writing, eToro charges 0.0005 BTC per withdrawal, which is roughly $20.

How to Open an eToro Account

Opening an eToro account is quite simple, especially when compared to proper crypto exchanges.

Registering an account works like creating an account on any other website. The only difference is that you must provide KYC information, which might take an hour to get verified.

We suggest that you follow the next eight steps when opening an account:

  1. Visit the official eToro website and click ‘Join Now.’
  2. Find the digital registration form.
  3. Fill the registration form with the relevant personal data. You can also connect and register on eToro with your existing Google or Facebook account.
  4. Optionally, review the terms & conditions and risk disclosure documents.
  5. Click ‘Create account’ or ‘Sign Up’.
  6. Undergo the Know-Your-Customer (KYC) process.
  7. Send the information required to confirm your identity. You must provide a valid passport and a utility bill (or another official document) that confirms your current address.
  8. Fill out the eToro questionnaire. By doing so, your trading interface becomes customized according to your previous investing experience.

After finishing all of these steps, you are finally ready to start buying cryptocurrencies on eToro. For those who are new, the KYC process might seem overly complicated and demanding.

However, this is the standard verification process on all investment platforms due to security and tax reasons.

If your account is completed, you can resume by funding your account via a standard wire transfer. You can also deposit fiat money by using a debit card.

Alternatives to eToro

#1. Coinbase

Coinbase is the second-largest cryptocurrency exchange by trading volume. Based in San Francisco, the company works since 2012 and serves more than 13.3 million users worldwide.

The exchange supports more than 30 cryptocurrencies, and it is the best option for absolute beginners. Learning how to buy cryptocurrencies on Coinbase is incredibly easy and requires almost no effort.

Learn More: Coinbase Review

#2. Gemini

Gemini is another great choice for trading crypto. However, this exchange is tailored more to advanced and institutional traders who know what they are doing.

Do note that Gemini does have a beginner-friendly interface, but for those who are new, we still recommend places like Coinbase or Binance.

Learn More: Gemini Review

#3. Kraken

This exchange is a great choice if you want to access the newest cryptocurrencies and crypto features.

That said, Gemini and Coinbase are still the two best options for crypto investors.

Learn More: Kraken Review

Know Your Options: Best Cryptocurrency Exchanges

eToro Review FAQs

Can You Make Money with eToro?

Everyone can make money on eToro as long as they know what they are doing. Actually, even beginners can make money through the power of social trading.

All it takes to start your personal investment journey is to copy other highly experienced traders and reap the rewards.

Learn More: How to Invest in Cryptocurrency

Is eToro Trustworthy?

As previously mentioned, eToro is a brokerage platform registered in four high-level regulatory jurisdictions.

Millions of users trade on eToro and encounter no serious issues. While inventors may meet the usual hiccups and problems now and then, nothing radical throws new users off.

Is eToro Worth It?

eToro is a great platform where you can trade stocks and cryptocurrencies. However, we must note that eToro is a far better option for stock traders rather than crypto investors.

Cryptocurrency trading charges incredibly high fees, and if you plan to day-trade, that aspect alone should be a deal-breaker.

Is eToro a Scam?

eToro is a legitimate business, but its reputation is not that good. Many users find the company’s customer support to be problematic. Solving an issue takes days, if not weeks.

In some cases, users even report that they have trouble withdrawing their assets. To better acknowledge yourself with the issues, we recommend that you read online reviews from previous customers.

That said, eToro is doubling down on bolstering the customer experience and is a still good option if you want a platform that allows you to trade crypto and invest in stocks.

Is eToro Good for Beginners?

eToro is the perfect platform for beginners, mainly due to its focus on simplifying user interfaces and providing a constant source of educational articles.

You can start building your entire trading career just by reading tutorials or participating in eToro’s trading school.

Bottom Line: eToro Review

eToro is a well-known blockchain platform on which inventors can trade stocks. In recent years, the company decided to add cryptocurrencies to its list of services as well.

Although eToro charges higher fees than the industry’s average, we still find the platform to be a great option for those just starting out.

It might be better to use exchanges like Coinbase or Gemini for those who plan to stick with cryptocurrencies.

But in special cases where investors want to trade both stocks and crypto from one spot, we definitely recommend eToro.

If our eToro review helped you a lot, give the platform a try and trade for a week. You can use that time as a test period to see whether eToro works for you or not.

If the exchange does not suit your taste, simply switch to another exchange that we have reviewed.

Drew Cheneler
Drew Cheneler
Drew is a recognized Credit, Small Business, and Personal Finance Expert. He has been quoted in CNBC, Fox Business News Section, The Huffington Post, Business.com, Moneyunder30, US Chamber of Commerce, and more. He is known for breaking down complex personal finance topics into action-oriented advice, so you can make the most of your hard-earned money.