eToro Crypto Review

At first glance, eToro is one of the best destinations for crypto, ETF, and CFD traders. It allows traders to access these investment vehicles for as little as $10. It may even offer crypto traders some promotional rewards. And let’s not forget about its social trading aspect. At eToro, beginners can copy the crypto trades of more knowledgeable and experienced traders.

Is eToro really the best crypto trading destination? Let’s dig deeper.

eToro’s Strengths

eToro’s copy-trading platform is innovative. It is the first truly successful copy-trading platform allowing beginners to rack up profits the way professional traders do.

eToro’s worldwide reach is impressive. Launched in 2007, it has been offering stocks, ETFs, and cryptocurrencies trading to clients in 140 countries. The US online trading market is perhaps the most difficult to crack for international operators. US financial authorities are keen on making sure that no rogue brokers get to the monies of US traders.

eToro offers stocks, ETFs, and cryptocurrencies to US traders as well, though its services are not available in all states yet. New York, Tennessee, Minnesota, Nevada, and Hawaii have not allowed the broker to offer their residents real cryptocurrency trading. The broker does not offer margin trading to US clients.

Before committing to copy the trades of their more skilled peers, beginners can take the eToro platform on a test spin with a $100,000 virtual money deposit.

eToro’s Weaknesses

eToro’s selection of tradable assets is limited. The broker only features around 200 ETFs and more than 30 cryptocurrencies. Investors who buy cryptocurrencies at eToro can move their digital assets into their personal wallets, but they can’t move them back into their eToro accounts.

Although the minimum required deposit is only $10, traders who want to use the copy trading features must deposit at least $200.

What You Need to Know about eToro

How can you trade anything with a $10 deposit? At eToro, users can trade fractional shares, so you can even make a $10 investment. The $10 minimum deposit requirement only applies if you make your deposit through a debit card or a bank account transfer.

eToro Fees and Limits

The broker charges a 1 percent fee on cryptocurrency sales and purchases. If you buy $100 worth of bitcoin, you will pay the broker $1 in fees.

When you transfer cryptocurrency from your eToro account to your wallet, you don’t have to pay fees. Keep in mind, however, that the blockchain fees apply, meaning that you will receive slightly less crypto than you send, depending on the prevailing fees of the moment.

To create a crypto wallet, eToro may require you to have a minimum amount of the crypto at hand.

You can only move $50,000 worth of crypto to your wallet in one transaction. The daily limit is $200,000.

The broker allows crypto-to-crypto conversions. The conversion fee is 0.1 percent, and the lower limit on conversions is $20. The higher limit is $10,000 per transaction.

US-based traders cannot engage in crypto-to-crypto trading, but they can take advantage of the conversion feature.

At eToro, there are no commissions on stocks and ETFs. When you sell a stock, the broker takes care of the regulatory transaction fees for you. When you trade stocks and ETFs, the broker makes money through the spread. The spread can range from .075 percent to 5 percent, depending on the market.

eToro Crypto Selection

The broker currently supports more than 30 cryptocurrencies.

How to Copy Other Traders

eToro’s main selling point is its social trading feature. To copy the moves of a trader is as simple as finding the trader and clicking a button to copy the trades. Investors can even use a stop loss with the copy feature to limit their losses if their copied trades are losers.

For the time being, the copy feature is only available for the crypto markets.

To gain access to the feature, traders need to have at least $200 in their eToro account. If you are an eToro client, you can copy 100 other traders simultaneously.

You don’t even have to follow others’ trades to benefit from social trading. You can view the portfolios of other traders, together with their detailed stats, without copying their trades.

eToro Support

The standard support eToro gives its clients does not impress. The two available support channels are email and support tickets.

Speaking to support staff is also possible, though only for eToro Club members. Those with more than $5,000 worth of equity in their eToro accounts can talk directly to a representative.

Conclusion

If you are a cryptocurrency trader, eToro is certainly a destination you should consider. The social trading feature allows you to cash in on the efforts and expertise of others. The crypto selection of the broker is better than what many other brokers offer you. The fact that eToro operates in the US legally is also a considerable advantage.