eToro for Cryptocurrency: Should You Use It in 2024?

Have you decided to buy crypto in the ongoing bull run? Make an eToro account and start trading immediately at the best pricing.

Popular online trading platform for cryptocurrencies, eToro provides a user-friendly design and creative tools such as social trading and the CopyTrader feature. More than 5,000 financial instruments help diversify portfolios and robust educational tools are available. eToro is a complete answer for anybody wishing to enter the crypto market in 2024 as cryptocurrencies acquire mainstream adoption.

Can You Trade Crypto With eToro?

You can trade crypto with eToro. Founded in 2007, eToro has developed into a top online trading tool that offers an extensive range of financial assets including cryptocurrency. Initially focusing on social trading and stock investments, eToro added several cryptocurrencies in 2018 so that users can buy, sell and trade well-known digital assets like Bitcoin, Ethereum and many others.

eToro's crypto trading functionality is notable because of its innovative instruments and easy-to-use interface. The platform uses a novel tool called CopyTrader to let users replicate real-time successful investor trades. This social trading feature creates a community where traders may exchange ideas and techniques, facilitating beginners' navigation of the complexity of bitcoin trading.

eToro also offers direct cryptocurrency ownership and trading using Contracts for Difference (CFDs), offering flexibility based on users' preferences. Having more than 25 cryptocurrencies on trade and a dedication to security and regulatory compliance, eToro has positioned itself as a dependable option for anyone wishing to join the crypto market in 2024.

Why Invest in Crypto on eToro?

Here are some key advantages of using eToro for crypto trading:

• User-Friendly Interface: eToro's platform is designed with simplicity making it easy for users to navigate and execute trades without requiring extensive technical knowledge.
• Wide Range of Cryptocurrencies: Over 100 cryptocurrencies including major assets like Bitcoin and Ethereum are available for trading allowing users to easily diversify their portfolios and explore various investment opportunities.
• Social Trading Features: eToro pioneered social trading allowing users to follow and copy the trades of successful investors in real-time. This feature can be especially beneficial for beginners looking to learn from experienced traders.
• Low Fees and Transparent Pricing: eToro offers competitive spreads with no hidden fees making it easier for users to understand their costs when trading cryptocurrencies.
• Integrated Wallet: The eToro Money crypto wallet allows users to store, transfer and manage cryptocurrencies securely providing a seamless experience from trading to storage.
• Educational Resources: eToro provides a wealth of educational materials including tutorials and market analysis helping users make informed trading decisions.
• Regulated Platform: eToro is regulated in several jurisdictions providing users with security and trustworthiness when trading cryptocurrencies.

Is eToro Legal in the USA?

EToro is legal in the USA but has some limitations especially concerning cryptocurrency products. Under legislative control in the United States, eToro follows guidelines established by the Securities and Exchange Commission (SEC) and other authorities. Recent events, however, have affected the crypto trading offerings on the platform for American clients.

eToro USA LLC settled with the SEC in 2023 and paid a $1.5 million fine. Offering crypto assets categorized as securities, the SEC charged eToro for running as an unlicensed broker and clearing agent. eToro let American clients trade these assets on its platform in 2020 but it did not register according to federal securities regulations.

eToro has promised to stop providing most crypto assets to U.S. customers as part of the settlement. Only a handful of cryptocurrencies – Bitcoin, Bitcoin Cash and Ether – will be accessible for trade going forward. Customers from the United States can also sell other cryptocurrencies for up to 180 days after the SEC's directive.

This settlement ensures eToro's will to keep running U.S. activities under strict regulatory compliance.

eToro Requirements and Limitations for Crypto Trading

Before beginning to trade crypto on eToro, you should consider specific requirements and restrictions. Knowing these elements will enable you to negotiate the platform efficiently and guarantee adherence to its rules.

1. Supported Countries

eToro runs not all but rather in several different countries. Over 140 countries have it available including Australia, the UK and several European countries. Regulating guidelines, however, prevent multiple countries from using eToro's offerings. Notable countries devoid of eToro include Turkey, Japan and Canada. Furthermore, eToro does not offer services in some states including New York and Hawaii even if they are available in the United States.

2. Minimum Deposit Requirements

Users of eToro have to meet minimum deposit requirements before beginning trading there. While the minimum deposit varies depending on the account type and location normally it ranges from $50 to $10,000. This first outlay lets consumers start trading several assets including cryptocurrencies.

 3. Account Verification

Users have completed an account verifying process before trading to follow Know Your Customer (KYC) guidelines. Usually this entails furnishing personal details including your name, residence, birth date and identity records – such as a driver's license or passport. Verification ensures that eToro follows financial rules and supports fraud prevention.

4. eToro Crypto List

eToro provides an extensive range of cryptocurrencies for trading. Users may currently trade over 100 crypto assets, including well-known options such as Litecoin (LTC), Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP). Nonetheless, depending on your area, the availability of particular cryptocurrencies could change depending on legal regulations.

5. Trading Fees and Costs

Although eToro has no deposit fees, clients should know about trading spreads and withdrawal charges linked with crypto transactions. The platform runs on a spread concept; hence the charge for running trades is the difference between the purchasing and selling prices. Good trading plans depend on knowing these expenses.

eToro Crypto Fees

Here's a breakdown of the key costs involved in crypto trading on the platform:

1. Trading Spreads

eToro operates on a spread model meaning that the difference between the buying (ask) and selling (bid) prices constitutes the primary cost of trading. Cryptocurrency spreads can vary based on market conditions and the asset being traded. Generally, eToro's spreads are competitive compared to other platforms, but users should check the specific spread for each cryptocurrency before executing trades.

2. Withdrawal Fees

While eToro does not charge deposit fees, a withdrawal fee applies when users transfer funds from their eToro account. As of now, this fee is typically around $5 per withdrawal. It's important to factor this cost into your overall trading strategy, especially if you plan to make frequent withdrawals.

3. Currency Conversion Fees

You may incur conversion fees if you deposit or trade in a currency different from your account's base currency. For example, if your account is set to USD and you deposit in EUR, eToro will convert your funds at the prevailing exchange rate, which may include a small fee.

4. Overnight and Weekend Fees

For users engaging in leveraged trading (i.e., using CFDs), eToro applies overnight fees for positions held beyond the trading day. These fees are calculated based on the size of the position and can vary depending on market conditions. Weekend fees may also apply for positions held over the weekend.

5. Inactivity Fees

If your account remains inactive for 12 months or more, eToro charges an inactivity fee of $10 per month. This fee is deducted from your account balance until you resume trading or your balance reaches zero.

How to Buy Crypto on eToro

Here's a step-by-step guide on how to buy cryptocurrency on eToro:

1. Create an Account 

Start by visiting the eToro website or downloading the app. Once there, click "Sign Up" and provide your details, including your name, email and password. After that, you must verify your account by uploading identification documents, such as a passport or driver's license.

2. Complete Profile and Verification 

After registering, the next step is to complete your profile. You must provide information about your financial situation, trading experience and risk tolerance. Once that's done, you must verify your account by submitting proof of identity and proof of address, such as a utility bill or bank statement.

3. Deposit Funds 

Once your account is verified, click the "Deposit Funds" button. Choose your preferred deposit method, a bank transfer, credit/debit card or PayPal, among other options. Then, enter the amount of money you want to deposit and confirm the transaction. Make sure your deposit meets the minimum required amount for your region.

 4. Search for a Cryptocurrency 

After your funds are in your eToro account, use the search bar at the platform's top to find the cryptocurrency you want to buy. You can search for Bitcoin (BTC), Ethereum (ETH) or other supported cryptocurrencies.

5. Click on "Trade" 

Once you've selected the cryptocurrency you want to buy, click on its name for more details. Then, click the "Trade" button to open the purchase window.

6. Set the Amount 

In the trade window, specify how much money you want to invest in the chosen cryptocurrency. You can set the amount of money you wish to invest, such as $500 or the number of crypto coins you want to purchase.

7. Choose Order Type 

Now, choose between a Market Order, which allows you to buy the cryptocurrency instantly at the current market price or a Limit Order, where you can set a specific price you want to buy. If you're new to trading, a market order is usually the simplest and fastest option.

8. Review and Confirm 

Before finalizing the purchase, carefully review the details of your order, including the amount of cryptocurrency and the associated fees. If everything looks correct, click "Open Trade" to complete the transaction.

9. Monitor Your Portfolio 

After purchasing the cryptocurrency, it will appear in your eToro portfolio. You can monitor its performance, view your total investment and make decisions to hold, sell or buy more depending on market conditions.

10. Withdraw (Optional) 

If you decide to sell your cryptocurrency and withdraw the funds, simply click on the cryptocurrency in your portfolio and select "Sell." Once sold, the proceeds will be reflected in your account balance, which you can withdraw through your preferred method.

Do You Need a Crypto Wallet With eToro?

You need not need a separate crypto wallet when trading cryptocurrencies on eToro. For individuals who would rather have a simple trading experience, eToro lets clients buy and keep cryptocurrencies straight on the platform. You can transfer your assets to the eToro Money Wallet if you want complete control. This wallet supports many coins and provides improved security elements like cold storage.

An external wallet is advised for consumers who wish to handle their assets outside of eToro or make transactions elsewhere. An external wallet gives you more freedom and control over your cryptocurrencies even if eToro handles the security of your assets on the platform. Ultimately, the decision relies on your trading approach and the intended usage of your digital resources.

Can I Transfer Crypto Out of eToro?

Yes, you can transfer crypto from eToro, but it requires using the eToro Money Wallet. Here's how it works: 

1.     Open Your eToro Account: Log in to your eToro account and navigate to your portfolio.

2.     Select the Cryptocurrency: Choose the crypto asset you wish to transfer from your portfolio.

3.     Initiate the Transfer: Click on the option to transfer the selected cryptocurrency to your eToro Money Wallet.

4.     Complete Verification: If prompted, complete any necessary verification steps, such as confirming your identity through SMS.

5.     Transfer Fees: Depending on your position size, there may be fees associated with the transfer.

Is eToro the Right Choice for Crypto Trading in 2024?

In conclusion, eToro offers a user-friendly platform with a wide range of cryptocurrencies, innovative social trading features and robust educational resources, making it an excellent choice for novice and experienced traders. While the platform provides convenience and security for holding crypto, users should consider the associated fees and the option to transfer assets to external wallets. If you value ease of use and community engagement in your crypto trading experience, eToro is a strong contender for 2024. Ultimately, assess your trading goals and preferences to determine if it aligns with your needs.