fbpx
eToro Crypto Tutorial

eToro Crypto Review: Buy & Store Bitcoin with eToro

Written by LouiseElizabeth

12th November 2020

Subscribe to Every Bit Helps

eToro, which is trusted by millions of users, is a user-friendly platform and enabling anyone, anywhere, to buy cryptocurrencies within just a few clicks. With eToro you can purchase cryptocurrencies such as the likes of Bitcoin, Ethereum, and Ripple as actual tokes. Or you can trade CFDs based on the underlying cryptocurrency price. Depending on local regulations in your country of residence, you can do one or both on the eToro platform. Obviously, there is a lot more to eToro than trading crypto, and it has more than 2,000 other financial instruments to choose from if you wanted to expand your trading and investment horizons. 

What is eToro?

eToro is the trading platform which has a nice and simple interface and is more aimed with the beginner in mind. You can buy and sell crypto instantly. There are hassle-free deposits and withdrawals, you can track real market data and follow each coin’s trends. Plus one of the unique features with eToro is the ability to copy other crypto traders. So If you know nothing of crypto and would like to dip your toe in the water, you can also copy more experienced traders.

etoro trading platform

What is eToroX?

Etoro X is the exchange, aimed at the more experienced traders. The exchange is more advanced, there’s a wider range of crypto assets and stable coins, deep liquidity and tight spreads with competitive fees.

what is eToroX Crypto Trading

eToro Wallet

The eToro wallet is secure, fully regulated and supports over 120 crypto assets. With the eToro wallet, you can exchange crypto to crypto and keep on top of your eToro crypto trades.  Plus you can even purchase crypto with a credit card using Simplex.

Now an important question here is where is your private key? Well, the wallet is custodial and eToro state that they secure your private key using market-leading security technologies. 

buy crypto with etoro Wallet

However, you can also use the wallet to receive crypto and also send your crypto across to another external wallet such as a hardware wallet where you’ll have control over your crypto with access to your private keys.

It’s important to note that coins that are transferred from the eToro trading platform to the eToro Wallet cannot be transferred back.

eToro Crypto Fees

When trading cryptocurrencies within eToro, the platform does not charge any trading fees in the way regular crypto exchanges do. eToro does not charge any deposit or trading fees other than something called “spreads”. This is the difference between the buy and sell prices of a certain asset. These fees are clearly set out on the Etoro fees page and are set by each different cryptocurrency available. An example of this is Bitcoin where there is roughly 0.75% spread.

If you are transferring your crypto from the platform you charged a fee which will vary depending on each blockchain provider. Again, an example of these fees are shown on the eToro fees page.

Withdrawing from the platform does incur a fee but this is pretty low at $5.00 and there are no clearance fees.

eToro Fees

How to Withdraw Crypto from eToro

If you want to withdraw your Bitcoin or other cryptocurrencies from eToro, a couple of different rules apply. First, you need to actually own the cryptocurrency. Meaning you must own the underlying asset and not as part of a CFD. You own the asset when you have created a buy order without leverage.

If you want to withdraw to the eToro wallet, the method that you deposited with is important. If you transferred using credit/debit card or PayPal you’ll have to wait for 180 before you can do so. Although this does seem excessive eToro have put this in place to protect themselves from credit card fraud (such as stolen credit cards and chargebacks). Also, there are minimum withdrawal amounts that apply to transferring funds as well as fees. All of which can be found on the eToro fees page.

It’s important to note that coins that are transferred from the eToro trading platform to the eToro Wallet cannot be transferred back.  However you can transfer your crypto between your eToro wallet and the EToroX exchange for trading, plus you can also send from the eToro wallet to another wallet.

Providing you have used the correct deposit method and have above the minimum withdrawal amount available you can withdraw very easily to the wallet. Simply click onto the trade that you want to transfer and on the edit trade screen you’ll see the option for “Transfer to Wallet” if its available. You’ll then have then option to review your transfer which will display the fees as mentioned.

Once your funds have been transferred, they will take at least 1 business day to transfer and appear in your eToro wallet. This is because all transfers are subject to a manual review.

sending crypto from eToro

eToro vs Coinbase

Both eToro and Coinbase are great places to start for those wanting to trade cryptocurrencies. Coinbase is one of the largest exchanges in terms of volume with 35 million users across 100 different countries. Whereas eToro is the world’s largest “social trading” platform with millions of users in about 170 countries. 

Both platforms have a suite of products for different trading levels and also a wallet app for storing cryptocurrencies. Coinbase has Coinbase.com for simple buys and trades, Coinbase Pro the exchange for more experienced traders and then the Coinbase wallet for storing your crypto. eToro on the other hand has eToro the trading platform, eToroX for advanced crypto traders and the eToro wallet for storing cryptocurrencies.

Unlike Coinbase, cryptocurrency is not your only market option with eToro and users have over 2000 instruments to trade with. However, where eToro really stands out is with its CopyTrader feature which is unique to crypto exchanges and trading platforms. Allowing users who would like to try out crypto to follow some of the most experienced traders.

BITCOIN PRICE

Categories

Want to be Notified of New Content?

Ledger Nano X - The secure hardware wallet

Related Posts

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *