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Comprehensive Review of eToro Exchange (2021)

67% of all small investors lose money when trading CFDs with this provider. Crypto Investment is offered by eToro (Europe) Ltd. Custody is provided by eToro GmbH. Your capital is exposed to risk.

 

Richard Bradley
Verified writer

Fact checked

Updated Sep 13, 2021.
What changed?
What changed What changed?
eToro
8.5.0
(729 User Reviews)
User-friendliness
9.0
Functions
7.9.0
Fees 83
8.3.0
Trust 89%
8.9.0
Help & Support
8.7.0

Meet Our Reviewing Team

Richard Bradley
Verified writer

Richard Bradley is a writer and editor who has published in several online publications specialising in cryptocurrencies and stock trading. He focuses on topics that include investing, price analysis and blockchain developments. He is passionate about the promise of blockchain technology to democratise the global financial system and its potential to become a driving force for social and political change around the world.

Best Crypto Exchange Brokers 2021

Broker Rating Cryptocurrencies Special features A list of features that provide a given broker with a competitive edge. Regulated by A list of features that provide a given broker with a competitive edge. Warning & Ad Disclosure A list of features that provide a given broker with a competitive edge.
Rating
8.5 Nexo review
Cryptocurrencies
89 crypto pairs
Special features A list of features that provide a given broker with a competitive edge.
No deposit fees for all payment methodsCheap method to buy Bitcoin instantly.One of the few providers that offer PayPalVery user-friendly trading for beginners
Regulated by A list of features that provide a given broker with a competitive edge.
EUUSAUKAUS
Rating
8.9 Nexo review
Cryptocurrencies
89 crypto pairs
Special features A list of features that provide a given broker with a competitive edge.
the largest range of functions of all brokers (savings plan, crypto index)very clear, easy to understand, modern designthe provider (support, payment methods)many coins, also metals, shares, and ETFs
Regulated by A list of features that provide a given broker with a competitive edge.
AT
Rating
7.2 Nexo review
Cryptocurrencies
89 crypto pairs
Special features A list of features that provide a given broker with a competitive edge.
many cryptocurrencies, also smaller coinsDirect payment to own wallet possibleUp to 500 euros without verification with IDIntuitive operation
Regulated by A list of features that provide a given broker with a competitive edge.
NL

Buy with eToro. Here’s how

  1. Create an account
  2. Verify (a few questions)
  3. Deposit money (many deposit methods)
  4. Find the instrument you want to invest in
  5. Buy

The most important facts about eToro

eToro is a trading platform where you can trade traditional assets (stocks, gold, etc) and cryptocurrencies.

>70% of all traders on eToro make a loss. Therefore, we do not recommend trading cryptocurrencies. However, eToro is a good alternative to buy cryptocurrencies for a “buy & hold” investment strategy.

This is because the prices and fees are very good for a provider with direct buying.

eToro – The largest social trading platform

eToro is a provider where you can trade securities and cryptocurrencies at low prices. eToro puts a lot of emphasis on making it easy to get started. However, not only beginners are in good hands with eToro, but also professional traders. This is because eToro is primarily a platform for trading “CFDs”, which are derivatives that also allow trading with leverage.

eToro recognised the potential of cryptocurrencies early on to support its vision of making the global markets accessible to everyone, so everyone can trade and invest easily and transparently.

A special feature is the possibility of social trading. With social trading, one’s trading statistics can be made public, and the strategy of others can be copied. With copy trading, you look for other traders who have had a good performance in the past and can automatically make the same trades for the future. At the push of a button. At this point, it should be mentioned that past success is not an indicator of future performance.

What are CFDs and how are they different from normal cryptocurrencies?

eToro offers a range of cryptocurrencies for purchase (see above). But while you can actually buy Bitcoin, Ethereum, and a few other coins and theoretically send them to your wallet, many other cryptocurrencies are only available as CFDs. CFDs are derivatives that only reflect the price of the underlying asset. You can use them to buy at the price of certain asset classes without actually holding the asset.

Besides some cryptocurrencies, eToro also offers many other assets as CFDs.

Pros and Cons: eToro special features

eToro is one of the largest social trading platforms in the world where you can also buy cryptocurrencies.

Things we didn’t like:
Some coins can only be purchased as CFDs. 67% of all small investors lose money when trading CFDs with this provider.
Crypto Investment is offered by eToro (Europe) Ltd. Custody is provided by eToro GmbH. Your capital is exposed to risk.
Not recommended if you want to have coins in your wallet.
Richard Bradley
Verified writer
quote

Richard Bradley is a writer and editor who has published in several online publications specialising in cryptocurrencies and stock trading. He focuses on topics that include investing, price analysis and blockchain developments. He is passionate about the promise of blockchain technology to democratise the global financial system and its potential to become a driving force for social and political change around the world.

Top 3 Crypto Exchange Brokers 2021

The newly launched eToro Wallet is a new addition to this popular social trading platform.

The wallet can be used by any existing and verified member of eToro as it is synchronised with the site’s accounts.

With this wallet app, users can buy or sell assets, transfer assets between wallets, or exchange one crypto for another.

They can also use the wallet as an easy place to keep their digital coins safe. The biggest advantage of the eToro Wallet is its ease of use and security. You need not worry about security as the wallet is managed by the eToro servers. eToro is known for its industry-leading security standards.

43 crypto pairs
Pros:

• Easy to set up
• Supports the German language, just like the eToro platform.
• High level of security
• Direct buying and selling of cryptocurrencies in the wallet.
• It is synced with the user’s existing eToro account for easy access.
• 120+ supported coins

Cons:

• Custodial Wallet – you do not own your private keys

Bitpanda from Austria is an innovative provider for the direct purchase of cryptocurrencies.

Bitpanda is a provider with a so-called “hosted wallet”.

At Bitpanda, there is a separate online wallet for each currency.

43 crypto pairs
Pros:

• the largest range of functions of all brokers (savings plan, crypto index)
• very clear, easy to understand, modern design
• the provider (support, payment methods)
• many coins, also metals, shares, and ETFs

Cons:

• source of funds necessary for sales over 10,000 euros

A relatively new broker from NL. At Coinmerce there are also many smaller cryptocurrencies available for direct purchase

Coinmerce is a broker, which means you don’t buy cryptocurrencies like on an exchange, but directly from the provider.

When buying cryptocurrencies on Coinmerce, you can choose whether you want to use the provider as a “hosted wallet” or whether you want to pay out cryptocurrencies directly to your wallet.

43 crypto pairs
Pros:

• many cryptocurrencies, also smaller coins
• Direct payment to own wallet possible
• Up to 500 euros without verification with ID
• Intuitive operation

Cons:

• Still relatively small, new provider
• Cryptocurrencies supported by Coinmerce

Recomended brokers 2021

According to their website support forum, this is “for security, regulatory compliance and fraud prevention”. The limits are based on several factors that include the payment method you used, how old your account is, your purchase history, and more. These limits are calculated automatically.

etoro ee
eToro
Register now
bitpanda blue
Bitpanda
Register now
coinmerce blue
Coinmerce
Register now

Experience report on eToro

If you’ve been reading up on cryptocurrencies for a while, you’ve probably come across eToro, because eToro spends a lot of money on marketing. I have tested many crypto exchanges, here is my experience report on eToro.

1
1. registration

This link takes me to an overview page with the prices of various cryptocurrencies. On the bottom left there is a blue button for registration. The following registration window asks for the typical data for registration with any other website.

2
2. deposit money

After registering and verifying the email address, I am taken to a similar page, the blue “Register” has become the “Deposit Money” button. Before I can buy anything, I have to deposit money. I click and get these options to fund my eToro account with euros:

Here you can already see the first special feature of eToro. eToro is virtually the only provider to offer PayPal as a deposit method. In addition, there are several other common payment methods, including credit cards, Sofort Überweisung, and the good old SEPA bank transfer. None of the listed payment methods are associated with extra costs. This is also a special feature of eToro that I have not seen with any other provider.

3
3. verification

I choose PayPal and want to send 150 euros. But the minimum amount is 200 euros. All right. When I make the deposit, the euro amount is shown in dollars. Will they be converted directly? The dollar exchange rate for the conversion is 2 cents worse than Finanzen.net shows me.

Instead of being directed to PayPal as expected, eToro asks me questions about personal data, financial education, and even income. The reason given for this is legal requirements because trading in complicated financial products is also possible on eToro:

I dutifully answer all possible questions. Then I have to upload a photo of the front and back of my ID. That works without a problem. At 90% I stop the question marathon because they now ask for an invoice with my address on it for cross-checking and I don’t have one at the moment.

Now I realise that I didn’t have to answer all the questions, because I can also buy cryptocurrencies with a 90% complete profile:

4
4. buy cryptocurrencies

I type “bitcoin” into the search and I am shown these options:

The top option is real bitcoins (not CFD), however, I notice I can only buy them with dollars. I didn’t want to do that, because there were fees for the euro/dollar exchange. There is a BTCEUR pairing, but you don’t buy real coins there, you just bet on the price with a CFD. I swallow the euro/dollar conversion pill and buy real bitcoins. The rest is unspectacular: I choose the amount and click “open trade”.

I have now bought Bitcoin on eToro.

eToro – Conclusion

  • Registration and verification are very simple. However, it was not obvious how many questions I had to fill in before I could buy. Obviously, the rules are a little less strict for amounts under 2,000 euros.
  • Buying is super easy
  • The prices offered are competitive, as we discovered in a long-term test.
  • However, the conversion from euros to dollars comes into play with fees. I had about 1.5% less bitcoin than I would have had on an exchange.
  • I would recommend eToro if the purchase is to be made particularly quickly because eToro is the only provider that offers a deposit option without extra costs (PayPal, Sofort Überweisung) that are credited directly to the account.
  • For larger amounts, it is better to sort by prices including fees in our comparison calculator.
  • For traders, eToro can also be a good choice, because, besides cryptocurrencies, you can buy stocks, commodities, and foreign exchange on eToro, even with leverage if desired.
  • eToro is a multi-asset platform that offers investments in stocks and crypto assets and trading CFDs.

 

CFDs are complex instruments and have a high risk of losing money quickly due to leverage effects. 67% of retail investor accounts lose money when trading CFDs with this provider. Consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Past performance is no indication of future results.

Cryptocurrency trading is offered by eToro (Europe) Ltd. and is not suitable for all investors. Your capital is exposed to risk. Custody is provided by eToro GmbH.

Richard Bradley
Verified writer

Richard Bradley is a writer and editor who has published in several online publications specialising in cryptocurrencies and stock trading. He focuses on topics that include investing, price analysis and blockchain developments. He is passionate about the promise of blockchain technology to democratise the global financial system and its potential to become a driving force for social and political change around the world.

Best Crypto Exchanges
1.
eToro
2.
Bitpanda
3.
Coinmerce
Crypto Prices (USD)
Bitcoin
$62331.78
+0.6%
Ethereum
$4175.86
+0.53%
Binance Coin
$482.19
+0.12%
Cardano
$2.16
+0.35%
Tether
$1
+0.01%
Solana
$206.33
+0.88%
XRP
$1.11
+0.48%
Polkadot
$43.77
+0.38%
Dogecoin
$0.27
+0.32%
USD Coin
$1
–0.01%
Coinbase
(729 User Reviews)

Cryptoasset investing is unregulated in most EU countries and the UK. No consumer protection. Your capital is at risk. CFD crypto trading is unavailable for clients residing in the UK and US. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.