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Is eToro good for crypto? Pros & cons uncovered

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Fact checked by
Pedro Braz
Updated
Jul 9, 2024

Yes, eToro is a good option for crypto. Certainly, it has its cons, which we will explore below, but overall is a platform we recommend for crypto investing.

Contrary to more well-known crypto brokers like Binance, Kraken or crypto.com, eToro is regulated by top-tier regulators like the FCA and ASIC.

On the downside, cryptos on eToro are not protected by the FSCS (more details about it here), given the nature of the instrument.

As you probably are aware, cryptocurrencies are unregulated since they are not considered “financial securities”. However, since eToro offers tradable securities (Stocks, ETFs and so on), it must be supervised by financial regulators. This aspect alone gives an additional layer of comfort that your crypto is secured.

Given that, we will discuss the cryptocurrencies available, the fees, the pros and cons, and more! Let’s dig in!

What cryptos can I find in eToro?

You can invest in 130 cryptocurrencies, including Bitcoin, Ethereum and Solana. You can get the full list of cryptos available here. Let me share a screenshot from my account:

eToro cryptos available

Do I own real crypto?

It depends. If you buy a “non-leveraged” crypto, you own the crypto (you are not investing in a derivative). When you invest in real cryptoassets, eToro purchases the tokens on your behalf and registers them in a segregated account under your name.

For example, when I try to buy Bitcoin, I see a “x1” leverage, meaning that no leverage applies:

eToro trading window

As seen on this page, eToro allows its users to trade leveraged cryptocurrencies through crypto “Contracts for Difference” (crypto CFDs). A CFD is a financial derivative that enables you to trade an asset that replicates the market movement of a particular asset without buying the underlying asset.

However, I found no leveraged crypto in my account, which is strange since I am from a country (Portugal) under the eToro (Europe) Ltd subsidiary, which allows its users to trade cryptos with a leverage factor of up to 2x (the maximum allowed per EU regulation).

Nonetheless, this is where crypto availability in eToro stands for:

European Union clients (eToro (Europe) Ltd):

  • Non-leveraged buy (long) crypto positions are secured with real assets.
  • Leveraged and short crypto positions are CFDs.

UK clients (eToro (UK) Ltd):

  • Buy (long) crypto positions are secured with real assets.
  • CFD crypto positions are not permitted according to Financial Conduct Authority (FCA) rules banning the sale of derivatives and exchange-traded notes that reference certain types of cryptoassets to retail consumers.

Australian clients (eToro AUS Capital Limited):

  • Non-leveraged buy (long) crypto positions are secured with real assets.
  • Leveraged and short crypto positions are CFDs.

Clients of eToro (Seychelles) Ltd:

  • Non-leveraged buy (long) crypto positions are secured with real assets.
  • Leveraged and short crypto positions are CFDs.

Clients of eToro (ME) Limited:

  • Non-leveraged buy (long) crypto positions are secured with real assets. Transferring positions to the eToro Money crypto wallet is not currently supported.
  • Leveraged and short crypto positions are CFDs.

Residents of Germany:

  • Non-leveraged buy (long) crypto positions are CFDs.
  • Leveraged and short crypto positions are CFDs.

Residents of France and French territories:

  • Non-leveraged buy (long) crypto positions are secured with real assets.
  • Leveraged and short crypto positions are CFDs.

Residents of Egypt, Estonia, Jordan, Qatar:

  • All crypto positions are CFDs.
  • Non-leveraged buy (long) crypto positions are secured with real assets.
  • Leveraged and short crypto positions are CFDs.

eToro crypto fees

For real crypto, the fee schedule in eToro is quite straightforward: only a 1% fee applies for buying and selling crypto:

eToro crypto fees

For crypto CFDs, the fees are the same:

eToro crypto CFD fees

Want to know more details about eToro’s fees? Check eToro’s fees page.

Does eToro allow staking?

Yes, it does, but it has some limitations.

Just like earning interest on uninvested cash (EUR, USD, GBP), you can also earn “interest” on your crypto. Staking allows you to hold supported cryptoassets, and automatically gain rewards of more of the same asset.

eToro only offers staking in three cryptos:

eToro supported crypto staking

Which limitations can I find in eToro staking?

Firstly, the most obvious one is the number of cryptos that allow you to do that. From the 130 available on the platform, only 3 can be used for staking purposes.

Besides, new UK users, and German and US investors cannot benefit from eToro’s staking services. For Australian investors, staking is only available for Cardano (ADA) and Tron (TRX). For UAE residents, staking is available for Cardano (ADA) only.

Finally, eToro’s staking service does not include cryptoassets held using CFDs or short positions.

Can you transfer crypto from eToro?

Yes, but first, you need to transfer crypto from your eToro account to the eToro Money crypto wallet (you need to install the “eToro money app”). There is a minimum amount to transfer. For Bitcoin, you would need to at least transfer 0.007195429 units (~$400):

Minimum amount of Bitcoin to transfer

Besides, once you transfer crypto to your eToro Money crypto wallet, you cannot transfer the crypto back to the eToro platform.

So, within the eToro crypto wallet, you can:

  1. Send crypto to other wallets: You only need to select the amount to send and input the recipient’s public address by typing in the public address or tapping the camera icon to scan the recipient’s QR code;
  2. Receive crypto assets from other wallets: Select the “Crypto” icon at the bottom of the screen to find the crypto you wish to receive. Then, copy your public address, which you will share with the person who is sending the coins.

eToro Crypto Wallet is not available in every country where eToro operates. You can find the full list of eligible countries here. Some notable exceptions include France and the Netherlands.

Pros and cons

Pros:

  • Variety of cryptocurrencies: eToro supports a wide range of cryptocurrencies (130), allowing users to diversify their portfolios.
  • Staking opportunities: If you own Cardano, Tron or Solana, you can earn rewards for holding these assets;
  • Regulated platform: eToro is regulated in several jurisdictions, which can provide a layer of security and trust for users.
  • User-friendly interface: eToro offers an intuitive and easy-to-navigate platform, making it accessible for beginners.
  • Social trading features: The CopyTrader feature allows users to replicate the crypto trades of successful investors, providing a learning opportunity for newcomers.
  • Educational resources: The platform offers a wealth of educational materials, including tutorials, webinars, and market analysis.
  • Integrated wallet: eToro provides an integrated wallet for storing cryptocurrencies securely.
  • Demo account: eToro offers a demo account to try the platform before depositing.

Cons:

  • High fees: eToro’s crypto fees, including spreads (1%) and withdrawal fees, are higher compared to other cryptocurrency exchanges.
  • Limited control over private keys: Users do not have control over their private keys if they keep their assets within eToro.
  • Lack of advanced trading features: The platform may not offer the advanced trading tools and features that more experienced traders might seek.
  • Limited customer support: I have contacted customer support in the past, and it may take more than 3 business days to get a response.

Bottom line

eToro crypto trading is designed to cater for all types of investors. In particular, beginner investors will benefit the most from their user-friendly platform.

Their wide portfolio of crypto available should be more than enough to allow you good exposure to the crypto market.

All in all, eToro stands out as one of the most competitive options.

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About the author
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Franklin Silva
Co-Founder & Fintech Analyst

Franklin has three years of experience in Wealth Management as a Fund Research Analyst, has passed the CFA level II, and is the host of the "Edge Over Hedge" YouTube channel.

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