EToro Review: Is It the Right Crypto Trading Platform for You?

GOBankingRates Score

4.2
Our take: EToro is a social trading platform that enables users to trade a wide array of cryptocurrencies. It has a social trading feature that allows users to copy everything other traders do in real time based on their past portfolio performance and risk score. The trading platform has an intuitive interface and mobile app for traders on the go.
  • Ease of Use
    4.5
  • Availability of Cryptocurrencies
    3.8
  • Mobile App/Digital Experience
    4.5
  • Fees
    4.0
How did we calculate this?

Pros

  • Copy trading is available
  • Low minimum deposit
  • Intuitive interface and app

Cons

  • Unavailable in six states
  • Can't transfer coins from eToro wallet back to eToro trading platform

    What Is eToro?

    Founded in 2007, eToro is one of the world’s leading social trading and multiasset brokerage companies, with over 20 million registered users globally. The broker launched in the U.S. in 2018 and is currently available in 44 states and in Washington, D.C. It’s unavailable in Delaware, Hawaii, Minnesota, Nevada, New York and Tennessee.

    While eToro offers a wide variety of assets, including stocks, exchange-traded funds, commodities and other assets, U.S. users can only trade cryptocurrencies on the platform.

    EToro has registered offices in the U.K., Cyprus and Australia. Although the platform is not currently licensed by the U.S. Securities and Exchange Commission, as noted by NerdWallet, it’s regulated by the Financial Conduct Authority in the U.K., giving U.S. users more confidence in the broker as compared to an unregulated entity.

    How eToro Works

    Like any other online broker, eToro allows users to invest in the real-time markets of various cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, Stellar, Chainlink and Cardano. While these are more high-profile examples, a selection of other options is available for cryptocurrency trading.

    You can even copy the strategies of eToro’s top-performing traders in the hope of having an increased chance of success in the world of cryptocurrency trading. With eToro’s CopyTrader, you can find an investor you might like to copy by looking at their risk score and past performance.

    Who Is eToro Best For?

    EToro is best for cryptocurrency traders who want to learn more about the world of crypto. The platform has a very easy-to-understand user interface and allows you to copy other users’ trades if you do not feel like relying solely on your own research. It’s also suitable for traders who want to diversify their investment portfolio because eToro allows you to invest in a variety of different cryptocurrencies.

    EToro Features

    EToro has noteworthy features every investor and trader should get familiar with. Here’s a look at what it has to offer.

    Copy Trading

    Social trading enables you to follow the financial trading activity of other users on the platform. With eToro’s CopyTrader, you can replicate everything other traders do in real time. You can choose an investor you’d like to copy based on their past portfolio performance and risk score. To copy a trader, you need at least $200 in your account, and you can copy up to 100 traders simultaneously.

    CopyPortfolio

    EToro has ready-made portfolios you can copy. These portfolios contain select assets and are often rebalanced to align with a predetermined strategy. You can invest in a portfolio with a wide array of cryptocurrencies, including altcoins. However, there’s a minimum capital requirement of $2,000 to $5,000, depending on the CopyPortfolio you choose.

    Cryptocurrencies Offered

    EToro offers a selection of cryptocurrencies you can trade on its platform, including:

    • Bitcoin
    • Ethereum
    • Bitcoin Cash
    • Litecoin
    • Dash
    • Chainlink
    • Stellar
    • Cardano

    Trading and Transaction Fees

    When you use eToro to trade cryptocurrencies, you will pay a fee for each transaction based on spread. The spread varies by coin and may fluctuate depending on the market conditions. Here are eToro’s current spread fees for the most popular cryptocurrencies.

    Cryptocurrency Spread Fees
    Bitcoin 0.75%
    Ethereum 1.90%
    Bitcoin Cash 1.90%
    Litecoin 1.90%
    Stellar 2.45%
    XRP 2.45%
    Cardano 2.90%
    Dash 2.90%

    Digital Wallet

    Apart from keeping your crypto on the eToro trading platform, you can open a digital crypto wallet. However, you must have a fully verified eToro account to use the wallet service. As of this writing, the eToro wallet supports Bitcoin, Bitcoin Cash, Ethereum, XRP, Litecoin and Stellar.

    There’s a 0.1% crypto-to-crypto conversion fee 一 this fee applies when you move your crypto from your eToro account to your wallet.

    Is eToro Right for You?

    EToro is a good option for those who want to invest in cryptocurrencies as it allows traders from all backgrounds and experience levels to take part. This includes those who have been involved with cryptocurrency trading for a long time, as well as beginners. Plus, a wide range of features available on eToro make it stand out, such as CopyTrader and CopyPortfolio.

    EToro is a great platform for cryptocurrency traders looking for unique investment opportunities. It’s also easy to use and beginner-friendly, so it’s the perfect option if you’re looking for a way to start trading crypto assets.

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    About the Author

    Lydia Kibet has been writing professionally since 2017. Her passion for helping brands in all aspects of content marketing flows through in the expert industry coverage she provides — personal finance, investing and healthcare. Her work has been featured in The Motley Fool, Investor Junkie, Green Market Report, and Medical News Today. When she’s not writing, she’s either reading, playing guitar or catching up with nature. Follow her on Twitter.

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