eToro Crypto Exchange Review

Recommended Level: All

eToro has established itself as one of the most well-known and easiest to use, trading platforms in the world. Although the company was first introduced to the world in 2006, under a different name and with a vastly different platform than today, it changed gears and direction by introducing one of the world’s first social-investment platforms in 2010. eToro has by no means relaxed at any point, and have clearly made it a top priority for them to ensure that their investment or bitcoin trading platform, is as easy to use, to ensure as many traders, regardless of the level of experience, can access and use their platform.

What sets eToro truly apart from the rest, is the intuitive and unique social trading mechanics, that allow the most experienced and best traders on the market to share their trades, and for the less savvy or those just with less time on their hands, to trade at the same level as these guys, by emulating or copying their exact trades, at whatever investment level they feel comfortable. If you have a certain risk appetitive, you can even set your trades to automatically close once a certain profit target has been reached, or when you no longer feel comfortable being in the market and a certain loss has been reached – giving you complete ease of mind that your investment is at all times safe.

With eToro you have little to worry about, as they do not actually store any Bitcoins or other cryptocurrencies on their platform, making it completely safe from hacks and your coins being stolen – as is often the risk on traditional Bitcoin exchanges.

On eToro what you are actually trading is what is known as a CFD, which stands for Contracts For Difference. This allows you to buy or sell Bitcoin, without the risk of holding the actual asset. It is simply a sort of contract that you engage with eToro in. You have all the same benefits as you would normally have. So if Bitcoin’s price increases, so will your position, if Bitcoin’s price were to decrease, so would your position i.e. how much your portfolio is worth.

Cryptocurrencies Available

eToro offers a very wide range of assets to trade from, but as we are focusing on cryptocurrencies here, I will keep this to the relevancy of what we are actually here for. The cryptocurrencies they support currently are:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Bitcoin Cash (BCH)
  • Ripple (XRP)
  • DASH (DASH)
  • Litecoin (LTC)
  • Ethereum Classic (ETC)
  • Cardano (ADA)
  • Iota (MIOTA)
  • Stellar (XML)
  • EOS (EOS)
  • NEO (NEO)
  • TRON (TRX)
  • Zcash (ZEC)
  • Binance Coin (BNB)

Deposit & Withdrawal Methods

You will have a wide range of payment methods to choose from, as per below:

  • Credit / Debit Card
  • Paypal
  • Skrill
  • Wire Transfer (Bank Transfer)
  • Neteller
  • WebMoney
  • UnionPay
  • Yandex

Other cryptocurrency & bitcoin exchange operators where you can deposit or buy bitcoin with credit cards includes:

  1. Exmo
  2. Changelly
  3. Cex
  4. IQoption

For my version of eToro (Europe), I am presented with the following fiat options for depositing (it is likely you may see other ones that I do, depending on where in the world you are located).

  • USD
  • EUR
  • GBP
  • AUD

There are no deposits fees, but there is a fixed withdrawal fee in place of $25 regardless of the amount withdrawn, and the minimum amount to withdraw is $50. This definitely appears high at first glance, but when compared to a typical 2% deposit fee and a typical deposit of $1,000, this would cost you $20 in deposit fees. So it does not really take much more before this actually becomes cheaper than other platforms.

Transaction & Trading Fees

They earn their profit in a slightly different way than what you may be used to on traditional bitcoin exchange sites. Rather than charging you a fixed 0.25% industry average rate on any buy or sell you do, they charge the difference between the selling and buying price – this is also called the spread. Don’t worry, there is no math involved here, it is already automatically part of the price you see.

As you can see on eToro’s full trading fees sheet, you will álso notice they highlight an overnight fee. As long as you do not increase the leverage, this will not apply to you. Leverage is just another fancy word for them lending you money for certain trading positions.

If you were to add leverage, that is to set it to 2x (default is 1x which just means there is no leverage, i.e. you are not borrowing money from eToro), the fee for doing so would be $3.4 per 1 Bitcoin per night or 0.0425% per night.

Supported & Restricted Countries

It is highlighted in their Terms and Conditions that the following jurisdictions/countries are currently restricted from using their platform:

  • Belgium
  • Canada (including Quebec &Ontario)
  • The Republic of Turkey
  • Japan
  • Brazil
  • The Islamic Republic of Iran
  • Democratic People’s Republic of Korea (DPRK)
  • Cuba
  • Sudan
  • Syria

Security

As the exchange does not operate with traditional cryptocurrency or bitcoin wallets as you are often used to from Bitcoin trading, their risk of hacks and potential losses of funds, is much, much lower than what you are typically used to. This is often one of the biggest concerns that traders have been trading and storing their Bitcoins on an exchange, that the exchange can get hacked and lose all your in the process. With eToro, there are zero risks of your Bitcoins being hacked and stolen by hackers. Furthermore, as the company is an established asset management broker, it needs to adhere to much stricter regulatory frameworks than normal Bitcoin exchanges need to.

eToro Europe and the UK hold their respective licenses in the UK and Cyprus as well as a trading license in the USA.

Customer Support

eToro has done a great job building a very user-friendly trading platform, that enables anyone, regardless of the level of experience, to quickly get started trading their favorite assets, but they are not without their flaws. Their customer services leave much to be desired, and likens that of your typical traditional bitcoin exchange, where there is no direct email support or live chat support, to help you in real-time on their platform. Instead, you are required to raise a support ticket on their website and wait for them to get back to you. While they may be swift at times, needless to say, this can vary depending on the day of the day.

Trading Liquidity

As eToro does not actually do peer-to-peer cryptocurrency trading, their trading liquidity has no bearing or impact on your experience. You will always be able to buy and sell your Bitcoin assets at any given time.

Ease of Use / Traders’ Experience Level

There is little doubt in my mind, that eToro is one of the most intuitive and user-friendly trading platforms on the market. They have obviously spent a great deal of time on fine-tuning their experience, and over the years that I have been a customer, I have noticed the platform improving year on year, making it ever so easier to trade, follow and copy your favorite professional traders’ activities and to instantly buy and sell your Bitcoins or other cryptocurrencies (not to mention the thousands of other assets available for trading on their platform).

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