How to Trade Cryptocurrency on eToro: Walkthrough Guide

eToro provides exposure to cryptocurrency trading while simultaneously offering you the benefit of social trading functionality. Automate your trading style and learn from true experts.

For beginners, trading cryptocurrencies through eToro is super easy and through social trading you can be a winner by copying professional traders. We’re going to give a complete insight on how trading at eToro works, how you can submit your trade and how to copy other traders.

What Is eToro?

eToro copy trading

Founded in 2007, eToro is a CFD broker and has been the world’s leading social trading network for a decade. The potential of cryptocurrencies has not been lost on eToro and they now offer trading on 9 different cryptos. Not only does this give eToro’s 6 million registered users the opportunity to trade cryptocurrencies, but it gives potential crypto investors an interesting platform to gain exposure to these assets.

TotalCrypto.io Terminology
CFD: Stands for ‘Contract For Difference’.  In a nutshell, this means that you will not directly own or have to store cryptocurrency. Instead you are buying and selling contracts that are backed by the crypto you are investing in. This means you have all the exposure to the cryptocurrency price, with just one single account and don’t need to bother with complicated storage considerations.

Not only is eToro fully regulated, it allows you to copy the cryptocurrency portfolios of the most successful traders on the platform. Many find this feature particularly useful and it certainly sets eToro apart from the crowd.

The Benefits of eToro

  • Get exposure to cryptocurrencies on a fully regulated platform.
  • Good customer support.
  • No need to store your cryptocurrency investments in crypto wallets. This means you can just focus on making profitable decisions.
  • Social trading enables you to copy the portfolios of successful traders

 

eToro CFD broker logo

eToro Key Facts

  • Established Track Record – Etoro was born all the way back in 2007.
  • Popular – with over 6 million registered users, eToro has quite the trading community.
  • eToro is Different – eToro mixes things up by offering social trading opportunities. You get the chance to see the strategies of trading experts and follow them. Thousands of people on eToro copy these professional traders.
  • Insurance – Balances on eToro are covered by the Financial Services Compensation Scheme. This means that customer balances are insured for up to £50,000.
  • Deposit Methods – Supported deposit methods and minimum deposit limit is $200 > $500 depending on method:
    • 🇬🇧 Credit / Debit card (Visa, Mastercard, Diner’s Club), Neteller, Skrill & Webmoney.
    • 🇭🇰 China Union Pay
    • 🇩🇪 Giropay (Sofortüberweisung) 
    • 🇱🇺 Webmoney
    • 🇷🇺 Yandex
    • 🌍 Wire Transfer
  • Deposits – €2,000 max deposit for unverified accounts.
  • Tradeable Cryptocurrencies – Ripple, Dash, Neo, Ethereum, Stellar, Bitcoin, Ethereum Classic, Bitcoin Cash & Litecoin.
  • Leverage – eToro doesn’t offer any leverage for crypto trading.
  • Customer Support Methods eToro Friends, Facebook and email.

Like The Idea Of Copying Successful Investors Crypto Portfolios? Get Started On eToro Now!

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

Sidebar Walkthrough – A Dashboard Dissection

Before discussing specific trading functions, we would like to walk you through eToro. You will be presented with the following dashboard screen after you make your account. Take a look below to get a better understanding of each of the sidebar options.

eToro CFD broker dashboard screen

Watchlist

The default display screen is your ‘Watchlist’, which is a selection of markets you keep track of on a regular basis. You can scroll down this list and press the “+ADD MARKETS” button. A pop-up window will display where you can choose “Crypto”. You will then be presented with a list of tradable cryptocurrencies that can be added to your watchlist.

Bitcoin investor with binoculars graphic

As of March 2018, the cryptocurrencies you can trade at eToro are:

  • Bitcoin Cash (BCH)
  • Bitcoin (BTC)
  • DASH (DASH)
  • Ethereum Classic (ETC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • NEO (NEO)
  • Stellar (XLM)
  • Ripple (XRP)

By default, your list will only contain two cryptos (Bitcoin and Ethereum) and various stocks, commodities, currencies, etc. You can remove entries from this list; click the one you want to remove and then press the checkmark dropdown in the top-right corner and click “My Watchlist”.

Additionally, if you press the “Add to new list” button you will be prompted with the option to create another list. This feature would be great if you trade more than just cryptos on eToro and you want to segment your lists accordingly.

Watchlists aren’t only for markets…

Customise your watchlist on eToro CFD broker

Scrolling down will bring you to a section where you can track “People”. You will see a “+DISCOVER PEOPLE” button underneath your current list. Pressing this button will bring you to the “Copy People” tab (another sidebar option). However, this part of your watchlist does not just display people; it will also contain any CopyFunds you wish to follow.

Treat the watchlist section of your dashboard as a way to keep an eye on the various crypto markets. More importantly, use it as a way to track the performance of various cryptocurrency traders and investment funds. Since it’s still a newer industry sometimes the newer eToro members turn out to be very profitable. You can’t trust copying someone with little history. Instead, once a trader has a proven track record, you can convert them from your watchlist to your portfolio.

People vs. CopyFunds

People – individuals with public eToro profiles. When you click on them you will see their news feed, bio and follower count. The “Stats” tab gives a breakdown of their trading performance by month and year. Under the “Portfolio” tab you can see the trader’s portfolio which includes their open positions, entry points, amounts invested and profit/loss. The “Chart” tab displays a chart that simulates the performance you would’ve seen if you copied the trader with a $10,000 investment.

Following people's trades on eToro cryptocurrency CFD broker

CopyFunds – thematic portfolio management products, which give you the power to act as your own little “hedge fund” (even Berkshire Hathaway can be copied here). These portfolios give you greater diversity which serves as a simple way to give yourself complete exposure to the crypto industry. The options are limited for crypto markets but there are a few, such as “CryptoFund” (numerous coins) and “Crypto-currency” (BTC/ETH).

eToro cryptocurrency CFD broker copyfund

Portfolio

The Portfolio tab presents a screen where you can manage all your trade positions. You must complete your profile and make a deposit to begin trading or else nothing will show here. The Portfolio section will display any of your copied trades and your manually opened positions.

You will be able to view:

  • Market you’re trading (the particular crypto)
  • Units purchased/sold
  • Amount invested
  • Net profit
  • Profit/Loss percentage
  • Current value

eToro CFD broker cryptocurrency portfolio

Many features and filters exist within this section. You can view your trade history, see pending orders, share through social media, etc. If you’re influential enough, your portfolio can also be broadcasted throughout eToro for the purpose of getting others to copy your trades.

News Feed

eToro CFD trading broker bitcoin news feed

eToro is a social trading platform. Their “News Feed” section operates similar to a social media website. People can post their thoughts and technical analysis. You can search for specific cryptocurrencies to see what people have to say.

Don’t make investments solely based on the analysis provided by users you find in your news feed. However, if what someone’s shares catch your interest, you can go to their profile to see their trading performance with the option of adding them to your watchlist or copying their portfolio.

Trade Markets

Clicking this tab will bring you to a section that displays all the different trade markets available in eToro’s platform. The first option is “Crypto” which will present the nine cryptocurrencies that are currently tradable. You will see the current buy/sell price for each and the percentage change over the past day.

eToro CFD broker cryptocurrency trading screen

As you can see in the image above, Bitcoin would cost $8,343.58 to buy. If you wanted to sell, you would get the rate of $8,180.04 per coin. On the current price, there is a $163.54 spread which means your cost to open and close the position is roughly that amount.

Calculate Your Trades Before You Begin! 

trading strategy chess image

A $163.54 spread at those rates suggests an open & close fee of almost two percent. This means the price of Bitcoin would have to move in your favour by more than two percent for you to close your position at a profit. If the trade moves against you, the loss will be the amount of the move plus the two percent it cost to make the trade.

You can open a position from this section of your dashboard by clicking the “Buy” or “Sell” button for whichever crypto you want to trade. Refer to our section below “How to Trade Crypto at eToro” for more guidance.

Note: eToro has a page which details “Market Hours & Fees” where you will see that Bitcoin has a 1.5% spread and Ethereum has a 2% spread. However, they mention there that “The spreads are the minimal spreads and are not guaranteed.” Thus, you should always manually calculate the spread before opening a position because the spread tends to widen when there’s major volatility in the respective crypto’s price.

Don’t bother trading high spread coins (BCH, ETC, XLM – all 5% minimum spreads) because you’ll be stuck holding your trade for a while to turn a profit. In fact, if you copy a person that trades these, it might be wise to only take on their other positions.

Copy People

Here you can find people with successful trading experience and copy their portfolios to automate your trading strategy. Select the dropdown for “WHO INVEST IN” and pick “Crypto” at the bottom of the list. You will now be shown a library of crypto traders on eToro.

eToro CFD broker copy people

For best results, we recommend you change the “GAINED AT LEAST” setting to “100” as crypto trading comes with high profit potential. You will notice that this gives you many different traders with ROIs of 100% or more. Some traders even have 400% and higher returns. We also suggest that you set the minimum copier count to HIGH (over 500) so you only copy trades that others find comfortable.

Invest in CopyFunds

This section will give you a few portfolio fund options for cryptocurrency trading. eToro does not currently show them by default; you’ll have to search for crypto and select the options that come up. For instance, you can copy “CryptoFund” and take a position in many different cryptocurrencies.

The big benefit of investing through a CopyFund is the lack of personal management required. These portfolios are managed by top traders and you can participate without paying any management fees regardless of your holding time.

How to Trade Crypto at eToro

You can start a trade from either the Trade Markets or Watchlist section of your dashboard. Under Trade Markets, press “Buy” or “Sell” to open a position on a particular cryptocurrency. Within the Watchlist section, press “S” to open a short or “B” to open a long. Alternatively, if you go to a cryptocurrency’s info page you can press the “Trade” button and select whether you want to buy or sell.

How to buy and sell Bitcoin on eToro CFD broker platform

Note: eToro does not offer anything above 1x leverage and they do not currently offer a stop loss function.

To trade:

  • Enter the amount you want to risk
  • Select a “Take Profit” (1000% maximum)
  • Press “Open Trade”

Once submitted, eToro will place your order and your position will now be active. You can also press the “Trade” dropdown button and select “Order”. By doing so, you can set where you will open a position (whether long or short) if the price reaches it. This feature is key for maximizing your profits when day trading crypto at eToro.

Not sure where to place orders to get in at the best position possible? Read our technical analysis guide for beginners to get an understanding on how to strategize your entry points.

Keep track of your newly opened position in your Portfolio page. From there, you can click the gear symbol and make use of a few different options. You can close the trade, write a post about it, view the chart or set a price alert. Since stop-losses are unavailable at eToro, we recommend you use the price alert function and close your position manually if the market reaches your intended stop price.

Trading Seems Complicated. Where Can I Get Help?

hong kong in the fast lane image

There is a steep learning curve when it comes to trading, so we have prepared a few resources to help get you in the trading fast lane.

It is exceptionally important that you know what you are doing before placing your first trade. It’s real money after all. Don’t forget the golden rule: You should never invest money that you cannot afford to lose.

Conclusion

eToro’s social trading features certainly set it apart from the crowd. TotalCrypto does like the idea of following successful cryptocurrency investors, copy trading and how easy eToro makes it to get involved in cryptocurrency. The platform is certainly well designed and user friendly.

However, it would be nice to have more cryptocurrencies to choose from and we do hope eToro will increase the number of cryptos offered. We find the spreads for Bitcoin Cash, Ethereum Classic and Stellar to be too high and feel there are better options for trading these cryptocurrencies. On balance, we are happy to recommend eToro to TotalCrypto users and certainly think it is one of the strongest cryptocurrency CFD brokers out there.

Further Reading - 3 Cryptocurrencies You Can Invest In At eToro:

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