The rise of cryptoassets has been unavoidable over the past five or so years. Regardless of if you’ve invested in crypto, by now you have undoubtedly heard the words Bitcoin, Ethereum, or even Dogecoin uttered in polite conversation. And with that level of interest comes countless trading platforms vying for your crypto wallets and attention. A big player in the online investment world is social investing platform eToro. An incredibly popular option in Australia for trading on the US stock market, eToro has also been muscling in on the world of crypto for years. If you’re interested in using eToro to invest in cryptoassets, you are in luck. We have put together this guide to outline how investing in crypto works on the platform.
Disclaimer: AFSL 491139. Capital at risk. See PDS and TMD
What Is eToro?
Launched in 2007, eToro is a global social investing and multi-asset investment company. It offers an online platform for everyday users to invest stocks, currencies, commodities, cryptoassets and ETFs online. Outside of its ease of use, one of its biggest strengths (and what has eToro uniquely positioned within the crypto space) is its ‘social trading’ feature. Much like with its stock trading communities, eToro provides a platform for investors and traders to share their knowledge and provide invaluable knowledge to newcomers and day traders alike.
When thinking of the eToro social platform, think Facebook or LinkedIn – but purely about stocks and cryptoassets. If you want to learn more about eToro and the various tools and services available on the platform, check out our guide to using eToro in Australia.
Investing in Crypto With eToro: What To Expect
eToro provides a powerful yet user-friendly platform that gives investors (from beginners to experts) an all-in-one solution, from the ability to quickly purchase cryptoassets to storing them in an eToro wallet that can be managed anytime, anywhere.
After setting up your account, you can then browse the investment platform to find live trends and current trading data. By far the most popular social trading feature of eToro is the CopyTrader system. This allows you to copy the trades of other eToro users automatically. Find investors to follow easily through the social newsfeed and a Popular Investor program. Top performing crypto traders are always sharing their thoughts and providing insight on a familiar feeling social timeline, which can really shatter some of the barriers to entry many newcomers face when looking to dip their toes in the crypto game. See what the most successful investors are doing with their portfolios on eToro, and plan your strategy accordingly.
While eToro is unmistakably convenient and easy to use, it’s important to note that eToro is not an exchange. Prices and fees may be less competitive than other specialised cryptocurrency exchanges. So, if you’re looking to exclusively trade in crypto, you may want to consider other options. However, if you are someone who already has a diversified portfolio and wants a simple way to combine those investments and add cryptoassets, eToro has an excellent user interface to do so.
New users can even get the benefits of a free demo account preloaded with $100k USD to learn the basics and test strategies before risking real money.
Disclaimer: AFSL 491139. Capital at risk. See PDS and TMD
What Cryptocurrencies Can I Trade On eToro?
eToro users have access to over 50 of the most popular cryptoassets on the market, including Bitcoin, Ethereum, XRP, Cardano and more. We’ve gone through some of the larger assets available through eToro below. But you can see for yourself on the eToro Crypto Discover page here.
- Bitcoin (BTC): The largest cryptocurrency by market cap, considered to be the first wide-scale implementation of blockchain technology.
- XRP by Ripple Labs (XRP): This popular cryptocurrency enables real-time payments with greater transaction speeds and lower costs, and is already in use by many well-known brands.
- Ethereum (ETH): This leading cryptocurrency has received international recognition from technology giants such as Microsoft and Intel. In addition to payments, Ethereum also supports “smart contracts.”
- Bitcoin Cash (BCH): A ‘hard fork’ designed to be a solution to the transaction backlog Bitcoin was experiencing, Bitcoin Cash’s block size is eight times that of Bitcoin.
- Cardano (ADA): Inspired by Ethereum, Cardano differentiated itself with a dual-layer structure running each layer separately, as opposed to Ethereum, where both layers are intertwined.
- TRON (TRX): Tron aims to create a decentralised alternative for digital content distribution via one of the largest blockchain-based operating systems in the world.
- Tezos (XTZ): Tezos’ ICO in September 2018 was one of the largest in crypto history, raising a record-breaking $232 million.
- Chainlink (LINK): This tradable token is used to pay for transactions on the Chainlink network, a decentralized platform which enables smart contract agreements between oracles, or outside data sources, and the blockchain.
- Polygon (MATIC): This open-source protocol aims to be a hub for connecting compatible blockchain networks to the Ethereum network, leveraging its security and speed, via smart contracts.
- Dogecoin (DOGE): Originally created as a satire, but quickly gaining popularity on social media, Dogecoin is named for an internet meme featuring a Shiba Inu dog.
Disclaimer: AFSL 491139. Capital at risk. See PDS and TMD
How Do Fees Work On eToro?
It’s free to create a new eToro account, with zero management fees taken on any trade or investments. However, trading on the eToro platform occurs in USD. If you deposit or withdraw in a foreign currency other than USD, a conversion fee will apply. eToro charges a A$5 fee for withdrawals and the minimum withdrawal amount is $50. Learn more about eToro fees here.
eToro also offers a premium membership service called eToro Club which offers five different tiers. Club members gain access to crypto staking. It is not a paid service, and instead, eligibility is based on the amount of funds in your account, starting from $5,000 USD.
What Payment Methods Are Accepted?
eToro supports a wide range of payment methods including bank transfer, credit/debit card, PayPal, POLI, wire transfer, and more. Once you select your currency on the deposit page, the full list of options will be presented to you.
Is eToro Safe?
eToro has been in business since 2007, and today over 20 million registered users around the world entrust eToro with their money. They are a regulated company and as such must fully comply with all requisite rules and regulations. In Australia, eToro is regulated by the Australian Securities and Investments Commission (ASIC). The company keeps users’ data safe with encryption and firewalls. Users also have the option of two-factor authentication on their account.
When trading in crypto as an investment strategy, there are always risks to consider. The cryptoasset market is notoriously volatile. This should always be kept in mind before making any investments. However as a platform, eToro has proven itself for more than a decade to be a safe and trustworthy place to invest in confidence.
Disclaimer: AFSL 491139. Capital at risk. See PDS and TMD
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