Is eToro good for crypto? Pros & cons uncovered

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:

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:

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:

For crypto CFDs, the fees are more specific to the nature of the CFDs (spreads and overnight fees):

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

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 (~$630):

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.
• 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.