*Your capital is at risk.
Trading cryptocurrencies is possible with eToro via CFDs or contracts for difference. With this form of derivative, you can invest in a digital coin by engaging in a contract with this broker.
With CFDs, the broker will replicate the market conditions and your profit or loss with be based on the difference of the value of the underlying asset when the contract has “expired” or ended.
Currently, eToro supports the following cryptocurrencies for trading:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- XRP, by Ripple Labs
- Stellar Lumens (XLM)
- NEO (NEO)
- EOS (EOS)
- Cardano (ADA)
Are there more currencies to be added? Quite possibly. eToro’s platform initially supported Bitcoins only and now has 10 instruments for the Cryptocurrency category.
So if you have a favorite digital coin and it’s getting more mainstream news then it might just be added to eToro’s list of supported assets in the future.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Trading Crytprocurrencies with the eToro Platform
Using the eToro platform is very simple and only requires a few clicks.
On the main platform page, click on “Trade Markets” and then “Crypto”. This will bring you to a list of the available digital coins that you can invest on.
Select the coin that you are interested in to know more about its latest feeds from other users, stats and charts in the social platform.
Click on the Trade button if you wish to invest in this coin.
You will be given the choice of placing a Buy or a Sell order.
If you think that the cryptocurrency’s value with rise then choose Buy but if you think that its value will fall then choose Sell.
If the price of the coin moves in your favor, you can close the position and the amount that you invested including the profits that you made based from the result of the close will be returned to your account.
But the price of the coin moves against you, you may choose to close the position and the amount that you invested including your additional losses based from the result of the close will be deducted from your account.
Each Buy or Sell position that you invested on is a unique and single transaction. That means if you executed a Buy on Bitcoin, it will not be closed if you choose to execute a Sell while the trade is ongoing.
The New eToro Crypto Exchange and Wallet
eToro already has an exchange and a mobile wallet that will cater to cryptocurrencies.
As an exchange, you will be able to buy and sell these digital coins via this broker’s platform. The service has been announced and will be available soon.
Do take note that these services are initially available for traders that are based in the EU countries while other countries will be able to access it in the coming months.
It comes with a free demo account with is preloaded with $100,000 virtual credits so you can test and experiment these new features.
The wallet and the exchange are integrated and you can even convert from one cryptocurrency to another such as Bitcoin to Ripple, Ethereum to Litecoin etc.
If you are trading via CFD’s it means that you will not be owning the coin. The exchange is a completely different service where you convert a fiat currency or cryptocurrency to another currency and vice versa.
If you have coins from other wallets and exchanges such as Coinbase, you can transfer them to eToro’s wallet but your account must be verified first in order do these transactions.
Currently, transferring from the trading platform to the wallet is only enabled for BTC and ETH and is only available for Platinum account holders.
Coin transfer will be extended to other account types gradually.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.