Breaking down the barriers to entry for crypto trading, eToro has become the go-to platform for buying cryptocurrencies like Bitcoin in early 2018.  You can invest in Bitcoin without a lot of the technical knowledge you might need when using an exchange.

Founded in 2007, eToro now has over 10 million registered users trading more than 1,200 instruments, including Apple, Microsoft, Snap, and Facebook, on the platform. In January 2014, eToro extended their offering by launching bitcoin (BTC) trading, becoming one of the first mainstream trading platforms to embrace cryptocurrency.

 

Features of eToro

Social features are what sets eToro apart from other cryptocurrency exchanges. Users can send messages and share trading info among themselves.

Copy Trading

If you’re new to trading, eToro’s superb CopyTrader feature allows you to copy the activity of a successful trader. A feature called CopyTrader allows users to replicate other users’ trades. The concept is similar to mirror trading, a well-established trader strategy.
You can read more about copy trading on eToro in our Copy Trading section of our eToro Review, here.

CopyFunds – CryptoFund

If you’re investing a large amount of money, eToro’s CryptoFund can be a credible option for investment.  If you have $5000+, you can put it in a fund that tracks many popular cryptocurrencies. This is rebalanced by eToro on the first trading day of each calendar month, so you don’t need to manage it yourself.  You can take a peek at this diversified portfolio of major crypto assets by searching for ‘CryptoFund‘ in the search bar at the top.

crypto fund on etoro

Profile page of eToro’s CryptoFund CopyFund

How to Buy Bitcoin/Crypto on eToro?

Purchasing Bitcoin on eToro differs from other cryptocurrency exchanges. On eToro, things work quite differently. This is because when you buy Bitcoin, for example, you aren’t only buying it, but you’re opening a buy ‘trade’. And each time you buy x amount of Bitcoin, a ‘trade’ is created for that specific amount. Should you buy more, it would create a separate trade. Instead of adding the number of Bitcoins to your balance – it lists all your buy trades.

If you want to open a buy trade, just search for ‘BTC’ in the search bar at the top of the page, then click on the ‘TRADE’ option next to ‘BTC’ to load the ‘trade’ menu, then you select the amount you want to buy, and then click ‘Open Trade’. This immediately opens a buy trade for Bitcoin (BTC).

To view all of your Bitcoin trades, click on the ‘Portfolio’ button on the left menu, then click on ‘BTC’. This will load all of your open trades.

How to Sell Bitcoin/Crypto on eToro?

If you’re new to eToro we have a special note for you here.  Read carefully.

Selling on eToro requires caution – especially for beginners. This is because clicking on ‘SELL’ which is displayed in the trade menu, or the ‘S’ located at the bottom of many pages in the platform doesn’t actually do what many beginners think. It DOES NOT sell the bitcoin(s) you own.

So here’s what to do.
If you want to sell a Bitcoin on eToro, then you need to ‘Close’ the buy trade you own. To do this, click on ‘Portfolio’ on the left menu, then click on ‘BTC’, and then click the ‘X’ on the far right of the trade you want to close. Alternatively, use the cog-wheel icon in the portfolio as shown below:

Closing a crypto trade on eToro

Closing a Trade from the
cog-wheel menu

Long and Short

When you actually close out the trade in this way this is equivalent to selling on an exchange.
If you click on the ‘S’ or ‘SELL’ button this creates a new ‘SELL’ trade. A sell trade would give you profit if Bitcoin’s price went down (this is sometimes called ‘shorting’ Bitcoin). If you accidentally open a ‘SELL’ trade, it would appear as ‘SELL BTC’ on your list of trades. Any ‘BUY’ trades would be displayed as ‘BUY BTC’. Write that on a piece of paper if this is confusing – ‘B/BUY’ means to open a buy trade (or go Long), ‘S/SELL’ means to open a sell trade (or go Short), and ‘Close Trade’ means to close a particular trade.

 

eToro’s Crypto Trading Fees

eToro’s fees are different to exchanges. On an exchange, you pay a small fee when you buy a crypto, and then another when you sell it. On eToro, you pay a larger fee when you open a buy trade and don’t need to pay a fee to close it. When shorting Bitcoin though (through a sell trade), you need to pay a daily fee to keep the trade open.
When you open a crypto trade on eToro, the price you pay is usually higher than the market price; this is called ‘the spread’. When opening the trade generally, this charges you between 1.3-6% of the total trade amount (the more volatile the price, the higher the fee).
When you open a buy trade on eToro, you don’t need to pay a daily fee to keep the trade open, as you own the underlying asset. But if you open a sell trade (where you would earn money when Bitcoin’s price goes down), you will have to pay a daily fee, so be careful having sell trades open for a long period of time.
Overall, we see the spread as a small price to pay for the completely user-friendly approach on the eToro platform.

eToro makes for faster crypto trading than competitors

Coinbase

Once you’ve decided you want to make a crypto trade, all you need to do is deposit and open the trade.  No involvement with Coinbase and their excessive fee structure before transferring to a crypto-exchange.  On eToro it’s sooo much quicker!