eToro is one of the best-known online trading platforms. It is nowadays a very popular site among cryptocurrency traders too! eToro enabled crypto trading since 2017 and you can buy Bitcoin, XRP Ripple and many more crypto from eToro . This article is an eToro review. We’ll go through all the key features and give our opinion of the platform as well. This eToro beginner’s guide will help to decide if the platform meets your requirements and needs.
eToro review – a reliable operator
eToro has established itself as a well-known trading brand in the past decade. You can spot eToro ads from Premier League matches and other popular events. The company has always had a strong focus on online trading. The first steps were taken already in 2009 when eToro’s WebTrader platform was launched.
In 2010, eToro brought OpenBook software to the market, which became very popular. It was the first social trading platform on the planet. This software also included the popular CopyTrader feature, which we’re going to check a little bit later.
Cryptocurrencies were launched in the spring of 2017. The crypto selection included the most popular virtual currencies, such as Bitcoin, Ethereum, Litecoin and Ripple XRP. Crypto trading has become more popular every year.
eToro is a brand well-known worldwide. It has over nine million customers from 140 different countries. The head offices are located in Limassol, Tel Aviv and London.
eToro Beginner’s Guide: how to register
Next, let’s dive into the eToro platform!
Opening a new account is fast and simple. Click the link below and you’ll land to the eToro front page.
>> Try eToro now!
Disclaimer: 75% of retail CFD accounts lose money.
Click the Join now button on the front page and a registration form opens. Fill in all the necessary information and wait for the confirmation e-mail, which should arrive in your inbox immediately. Confirm your registration and you are good to go!
You can access all of eToro’s features after registration. A great way to test the platform safely is to use Virtual Portfolio, which can be activated under your profile image (see the picture below).
There’s a dropdown menu on the top left corner of the site, which allows you to choose between real and virtual funds. You can test eToro with a $100.000 virtual portfolio.
Trading with a virtual portfolio can be a great way to try your investing career, especially if you don’t have much experience from before. Some traders test their systems for months or even years before throwing in real money.
If you want to take full advantage of eToro’s social platform and deposit real funds, you need to go through the standard KYC process. You can perform this by clicking the Complete Profile button on the left menu bar.
eToro offers stocks, currencies, commodities and cryptocurrencies
The best feature of eToro is the simplicity of the platform. It is very easy to use, and you find all relevant markets quickly. There are more than enough options to trade even for more experienced traders.
Below is a screenshot of the trading page at eToro.
As you can see, it’s possible to invest in crypto, ETFs, stocks, indices, commodities and currencies. You can also use leverage depending on the market you are trading at. It’s possible to trade for example euro against the U.S. dollar with a 30:1 leverage.
As mentioned earlier, it’s not a bad idea to start testing your strategy with a virtual portfolio. You can try stop-loss limits, leverage, commodities or anything you want with a risk-free $100K portfolio.
eToro review – what is social trading?
eToro is a social trading platform. What does this mean in practice?
The platform enables interaction between users. When you click at any trading instrument, you can see what other eToro traders think about it. You can add your buy or sell opinions to the mix as well.
One of the best-known features of eToro is called CopyTrader. You can access this by clicking Copy People link from the left menu. The image below is a screenshot of this feature.
This feature works just like the name suggests. You can copy the selections professional traders are making at eToro. The platform has millions of users, which means there are also lots of money-making professionals.
Click the profile of any trader to view their stats and the profit margins on the platform. Typically, each trader has a focus on certain instruments. Some trade stocks, some trade commodities and some trade cryptocurrencies.
You’ll also find Popular Investors from this page, who are the most copied traders on eToro. You can also become one of these traders and earn a bonus on top of your investment profits.
“When they are copied by other people, Popular Investors earn fixed payments and up to 2% of their annual assets under management (AUM). These payments are in addition to any profits made from their own trading.”
It’s also possible to invest in managed portfolios. This feature is called CopyPortfolio. The idea is a bit similar to CryptoTrader, but you can diversify your investment automatically between different instruments or traders.
One portfolio could include investments from ten different traders (via CopyTrader) and invest to U.S. tech stocks with a certain weight. The idea is close to ETF investing, but here you can build any kind of portfolio you like.
With CopyTrader and CopyPortfolio features, an amateur investor can follow profitable money managers from all over the globe.
eToro crypto – Bitcoin, XRP Ripple, Ethereum and many more!
Next, it’s time to look at the cryptocurrency offers at eToro.
As mentioned earlier, crypto trading was enabled in the spring of 2017. There are currently 16 different cryptocurrencies including the biggest names on the market: eToro offers Bitcoin, Ripple, Ethereum as an example. The latest additions are Tezos (XTZ), Binance Coin (BNB) and Zcash (ZEC).
You can access crypto trading by clicking Trade Markets from the main menu and then selecting Crypto from the top menu of the page.
Buying cryptocurrencies at eToro is a bit different compared to traditional crypto exchanges. For example, if you buy Bitcoins from Coinbase or Binance, you have the actual coins in your possession. For example, you can withdraw them to your Ledger Nano X hardware wallet. The downside of this is that you have to manage your cryptos and carry the risk of theft, hacking and accidents (like losing your wallet).
eToro is using something called a CFD – Contract For Difference. This is how crypto investing works in all similar online trading platforms. When you buy cryptos using a CFD, you don’t buy the underlying asset. Instead, you are making a bet of the price performance.
If you go long on Bitcoin, you are placing a bet for the price to go up. If you short Bitcoin, it’s the opposite. If the price moves in your direction, you make profit accordingly.
There are a couple of advantages in using CFDs. The most important one was just mentioned in the previous chapter: shorting. This means you can make money even when the price goes down! If you buy cryptos in a traditional way, you can only hold them in your wallet. If you think the market is going to crash, you’d have to sell your coins and trigger a taxable event in the process.
Using leverage is another great advantage since it can multiply your profits. For example: if you use a 5:1 leverage and your investments go up 10%, you make 50% profit.
The downside of the leverage is obvious: it can also trigger much higher losses. Leverage should be only used by professional traders and you’d always consider a tight stop-loss limit. This means your investment would be sold automatically if the price starts to move in the wrong direction.
Since you don’t hold any cryptos at eToro, there are no withdrawals either. You are just trading the price of the underlying asset to go up or down. The good thing is that you don’t have to worry about the risks of storing your cryptos.
If you are an experienced crypto investor and you want to hold your crypto and know how to store them properly, eToro is not your choice. You’ll get better deals and wider selection by going to Binance.
But, if you are also interested in trading other financial instruments, eToro has them all under one roof.
We like the fact that eToro has been around for a long time. This trading platform was launched over ten years ago and it has become a well-known, global brand. eToro has soon ten million customers, which tells a lot.
eToro has also built a very user-friendly interface. It’s easy to navigate inside the platform and find the trades you want – also in the mobile version. We also like the social trading features, which can help you grow your portfolio by following the most professional traders out there.
There are also plenty of guides for newbies available, and not to forget the $100,000 virtual portfolio.
>> Click here to register at eToro
Disclaimer: 75% of retail CFD accounts lose money.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
You’ll find some frequently asked questions below.
eToro has been in the market for over ten years. It is a regulated service with millions of users. eToro is using the latest technology to prevent fraud and there is also 24/7 support available. We rate eToro as a safe service.
There is no registration fee or monthly fee for using eToro. You can also test your trading skills with virtual money first. eToro is charging small fees when you make trades. Click here to view the market hours and fees for eToro.
eToro (Europe) is authorised and regulated by the Cyprus Securities Exchange Commission (CySEC). eToro is also regulated in the UK by the Financial Conduct Authority (FCA) and in Australia by the Australian Securities and Investments Commission (ASIC). So yes, eToro is legit.
You can buy all the most popular cryptocurrencies from eToro including Bitcoin, Ethereum, Ripple XRP, Bitcoin Cash and many more. Click here to see the entire cryptocurrency selection.
No, you can’t. This is because you invest in cryptocurrencies via CFD instruments. You don’t actually buy the underlying asset but rather place a bet on the price movement. Your investment’s value goes up or down based on the cryptocurrency price movement.