How long does it take to buy crypto on etoro

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Buying Bitcoin for the first time? Find out if eToro’s a good way to do it.

eToro is a popular international stock broker that allows U.S. customers to trade cryptocurrencies. If you’re looking to buy Bitcoin, it may be a good option — depending on where you live and what your priorities are. Here are some questions to take into account.

1. Is it easy to use?

For beginner investors, eToro’s platform is not as intuitive as other options on the market. For example, if you want to just buy Bitcoin, eToro doesn’t offer the kind of simple instant buy feature you’ll find with many other exchanges.

It does offer a practice trading account so you can experiment with fake money and test out different investment strategies. And the eToro academy has some useful information. But it is patchy, and several stories haven’t been updated recently.

To open an account with eToro, you complete a questionnaire about your risk tolerance, income, and level of financial knowledge.

2. How easy is it to deposit and withdraw money?

Comparing cryptocurrency exchanges can be frustrating because they all have different fee structures and deposit/withdrawal options. There are a couple of ways to deposit U.S. dollars with eToro — including credit and debit cards and bank transfers — and all of them are free, which is unusual.

However, eToro charges 0.5% on crypto transfers up to a maximum of $50, meaning you pay to move your tokens off the exchange. Non-U.S. customers also have to pay a $5 withdrawal fee when they withdraw money. And there’s a $10 a month inactivity fee for people who haven’t accessed their account in a year.

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3. What are the trading fees?

Trading fees vary depending on the cryptocurrency you buy. For Bitcoin, eToro charges a spread of 0.75% — so to buy $500 worth of BTC, you’d pay $3.75 in fees. Given that eToro does not charge you to deposit money, this is pretty competitive.

However, the fees for other cryptocurrencies can be more expensive. At 5%, Tezos (XTZ) is the most expensive, but fees on other popular coins hover between 1.9% and 3.9%. This is not super expensive, but you’ll find cheaper options on our list of top cryptocurrency apps and exchanges.

4. How secure is it?

eToro says it follows the highest standards in protecting customer assets, but its website is light on details. Several top exchanges tell users about the specific measures they take — such as what security audits have been carried out, or that they require employee background checks.

In contrast, eToro says it can’t share more information for security reasons. It does keep most crypto assets offline in cold storage, which makes it difficult to hack. And it also says it keeps client funds in a segregated account, giving some protection in the event that eToro goes bankrupt. U.S. customers who keep dollars on eToro have additional FDIC insurance against platform failure, though this does not apply to any crypto assets.

What’s disappointing is that eToro does not carry additional third-party insurance on crypto assets. Given that a number of cryptocurrency exchanges have been hacked, some platforms that want to keep your Bitcoin extra safe take out specific insurance against crime such as hacks.

5. What coins does it support?

eToro supports around 30 cryptocurrencies for U.S. customers. If you’re only interested in buying Bitcoin, you won’t need a platform that offers a wide variety of coins. However, if you do want to branch out into altcoins (any crypto that isn’t Bitcoin), you’ll find several popular tokens, though the range is still relatively limited.

6. Can I earn interest?

eToro does not give customers the option to earn interest on Bitcoin. Certain exchanges do this through lend/earn products that use the interest earned on decentralized loans to pay competitive rates to investors.

It does, however, let customers stake a handful of coins. Without getting too technical, here’s how staking works: Certain tokens pay rewards to investors who are willing to “stake” — i.e. tie up their coins — and contribute to the wider security of the network. Bitcoin can’t be staked.

7. Does it operate in my state?

One limitation to be aware of is that eToro does not operate in all U.S. states. If you live in Delaware, Nevada, Minnesota, Tennessee, New York, or Hawaii, you’ll need to look for another exchange.

eToro is available in over 100 countries, but the services and fees differ from country to country. American customers cannot trade stocks on eToro, and advanced options, such as leverage trading, are not available in the U.S.

8. Are there additional features?

One big eToro attraction is its “copy trading” feature. Users can follow traders they like and even automatically copy their trading moves. It’s easy to look at the gains or losses of individual traders and — with a $200 minimum — mimic the trading decisions of investors you admire. Be careful who you follow though — traders who make high profits may do so by taking more risks.

Should you use eToro to buy Bitcoin?

If you’re only looking to buy Bitcoin and hold it, two aspects of eToro are concerning: the monthly inactivity fee, and the lack of details about security. You can mitigate this to some degree by moving your funds to an eToro wallet, but there are other — easier — options out there. Check out our list of cryptocurrency reviews for more alternatives.

The copy trading and practice account are both interesting features for those who want to broaden their crypto investments. But copying someone else isn’t a substitute for researching individual cryptos and making your own informed decisions.

Crypto Exchange PlatformseToroCoinbaseMain platform featuresUser-friendly brokerage and social trading platform, ability to interact with other traders, can buy funds using PayPal (outside the U.S.)Beginner-friendly exchange with an intuitive interface, can withdraw funds to PayPalFees$5 withdrawal fee for non-U.S. customers, $10 fee after a year of inactivity, conversion fees for non-USD deposits (learn more at eToro Fees)0.50% per trade, 3.99% for credit card purchases, 1.49% for Coinbase wallet or bank account purchases, and wire transfers are $10 for deposit and $25 for withdrawalNumber of cryptocurrencies supported27+120+Security features2FA verification, cold storage, FDIC-insured USD balances, multi-signature facilities, and private keys, KYC2FA verification, biometric fingerprint logins, KYC, FDIC-insured USD balances, cold storage, AES-256 encryption for digital walletsTypes of transactions supportedBuy, sell, market orders and limit ordersBuy, sell, send, receive, and exchangeMaximum trading amount$50,000 per transaction and $200,000 a day send limits for most coins, including BTC.Limits vary based on your payment method and region. $25,000 a day ACH transfers for U.S. customers.

eToro vs. Coinbase: Features

Coinbase is accessible to users in over 100 countries and 49 U.S. states, whereas eToro supports more than 140 countries and 45 U.S. states. Coinbase isn’t supported in Hawaii, while eToro users can’t live in Hawaii, Minnesota, Nevada, New York, or Tennessee.

Both offer a digital wallet and one platform with options for advanced accounts. Coinbase Pro and eToroX allow advanced users to access more tools and trade types for a potentially lower cost. 

  • On Coinbase, you can deposit funds via a credit card, debit card, PayPal, digital wallets, Automated Clearing House (ACH), or wire transfer. In contrast, eToro supports bank accounts (ACH), wire transfers, and debit cards for U.S. customers. However, international users, particularly Europeans, have many funding options.

On eToro, U.S.-based residents can only trade crypto, but international traders can invest in exchange-traded funds (ETFs), commodities, and stocks. However, more assets may soon be available for U.S. users. The top eToro features include:

  • Crypto CopyPortfolios: The portfolio management product uses a predetermined investment strategy. Users must invest a minimum of $2,000 to $5,000, depending on the portfolio, to automatically copy the portfolio. 
  • CopyTrading: See real-time trades made by public investors, follow, and copy traders with a minimum investment of $500 per trader you want to copy. 
  • Demo account: Play around with $100,000 in mock money to mimic market transactions and see how you do before investing real funds.

Both platforms offer a digital wallet. eToro provides a hot wallet for verified eToro platform users. It supports over 120 cryptocurrencies and allows users to store, receive, buy, transfer, or convert more than 500 currency pairs. Unlike eToro, the Coinbase wallet is a standalone hot wallet, and you don’t need to have a Coinbase account to use it. Coinbase lets you store digital collectibles, all ERC-20 tokens, BTC, BCH, ETH, ETC, and LTC. 

Coinbase is a simple platform, and its features reflect that. Coinbase accounts provide: 

  • The ability to earn crypto by watching short videos
  • A coin watchlist with in-app or mobile phone notifications 
  • A newsfeed of cryptocurrency and industry updates

eToro vs. Coinbase: Supported Currencies

eToro features many trading pairs due to its larger list of fiat currencies supported whereas Coinbase has fewer fiat currencies supported. Coinbase accepts fiat currencies like USD, GBP, and EUR. By comparison, you can withdraw eToro funds in USD, EUR, GBP, AUD, RMB, THB, IDR, MYR, VND, PHP, SEK, DKK, NOK, PLN, CZK.

On the other hand, Coinbase supports trading of more cryptocurrencies. Both platforms offer popular crypto, but Coinbase provides more up-and-coming altcoins. eToro supports the trading of over 27 coins. Coinbase has over 120 tradable crypto currencies. However, you still won’t find NEO, MIOTA, or TRX on their list. The 19 eToro cryptocurrencies include: 

  1. Bitcoin (BTC)
  2. Ethereum (ETH)
  3. Bitcoin Cash (BCH)
  4. Dash (DASH)
  5. Litecoin (LTC)
  6. Ethereum Classic (ETC)
  7. Cardano (ADA)
  8. IOTA (MIOTA)
  9. Stellar (XLM)
  10. EOS (EOS)
  11. NEO (NEO)
  12. TRON (TRX)
  13. ZCASH (ZEC)
  14. Tezos (XTC)
  15. Maker (MKR)
  16. Compound (COMP)
  17. Chainlink (LINK)
  18. Uniswap (UNI)
  19. Yearn.finance (YFI)
  20. Dogecoin (DOGE)
  21. Aave (AAVE)
  22. Algorand (ALGO)
  23. Decentraland (MANA)
  24. Enjin (ENJ)
  25. Basic Attention Token (BAT)
  26. Polygon (MATIC)
  27. Shiba in millions (SHIBxM)

eToro vs. Coinbase: Security

Both platforms have proved their security levels are up to task. The exchanges offer U.S.-based customers Federal Deposit Insurance Corporation (FDIC) insurance on cash balances up to $250,000. eToro and Coinbase operate under the Financial Conduct Authority (FCA). But eToro also complies with Cyprus Securities and Exchange Commission (CySEC) and Australian Securities and Investments Commission (ASIC) regulations.

Coinbase offers two-factor (2F) authentication via the Google Authenticator app or short message service (SMS), whereas eToro provides an optional 2F authentication through SMS. While Coinbase says 98% of its coins are stored in air-gapped cold storage, eToro is split. It stores some crypto funds in hot wallets and some in cold.

eToro and Coinbase wallets provide multi-signature security. Coinbase offers fingerprint biometric access, while eToro says it provides distributed denial-of-service (DDoS) protection and standardization protocols. 

eToro vs. Coinbase: Fees

Coinbase and eToro use different fee schedules. On Coinbase, you’ll pay a maker-taker fee that is normally 0.50% of the trade. However, if you are trading large amounts, the fees shrink as trade size increases. Funding methods my also incur various fees with credit cards being the most costly.

On eToro, traders don’t pay a commission, but they pay a flat 1% fee to buy or sell crypto. eToro also charges other fees, such as a conversion fee for converting different fiat currencies to USD, a $10 monthly inactivity fee on accounts that show no activity for 12 months, and international users pay a $5 fee to withdraw funds. But, unlike some exchanges, eToro only charges the spread when you buy the asset and not again when selling, whereas Coinbase charges a maker-taker fee on buying and selling.

Which platform is cheaper for you will depend on your funding method and which coin you purchase. Etoro’s spread fees can be enormous on some cryptocurrencies while Coinbase may charge high funding fees.

FeeseToroCoinbaseBank accountFree1.49%WalletFree Fees calculated at transaction timeDebit/credit cardsFree 3.99%ACH transferFree Free Wire transferFree $10 deposit, $25 withdrawalCrypto conversion0.1%0.50%Purchases1%0% to 0.50%Trades1% 0% to 0.50%Other feesFiat currency conversion InactivityNone

eToro vs. Coinbase Pro: Ease of Use

Although both platforms are easy for beginners to use, eToro expects traders to have basic knowledge of investing in crypto. Some of the transaction types and available options can be unfamiliar to new users. In comparison, Coinbase keeps it simple with a straightforward interface that allows you to buy or sell. 

As an exchange for casual investors, Coinbase offers a comprehensive knowledge base and an online support portal. Users can even watch video snippets to earn crypto. eToro provides fewer educational opportunities with a simple help center. As a social trading platform, it offers a busy community forum where you can ask (or answer) questions.  

The mobile apps for Coinbase and eToro reflect the web browser experience and receive decent third-party online customer reviews. Coinbase receives slightly more favorable comments than eToro.

What Are eToro and Coinbase?

Coinbase and eToro are online trading platforms that allow users to buy or sell cryptocurrencies. Coinbase is an exchange focusing solely on cryptocurrency investments, whereas eToro functions as a brokerage offering non-U.S. customers investing options, such as stocks, ETFs, or commodities. 

People use cryptocurrency exchanges to buy or sell coins or track various coin activities. eToro also offers a demo platform where beginners can mock-participate in the market without an actual financial investment. 

How Do eToro and Coinbase Work?

Both trading platforms have similar sign-up processes, including requirements for verifying your identity and address. However, Coinbase focuses on simplicity in trading, meaning outside of buying and selling crypto, reading the news feed, or checking your watchlist, there’s not much else you can do. 

In comparison, eToro is a social trading platform. A social news feed lets you follow other traders, set crypto alerts, comment on other people’s posts, and interact like you would on a social media platform. Plus, you can check out or copy popular investors or search for traders based on various parameters, such as a risk score. On every eToro user profile page, you’ll find details about the user’s portfolio and stats showing their risk score and past performance. Traders can also opt out of having a profile page if they prefer not to share this or other information. 

Is eToro Cheaper Than Coinbase?

eToro is less expensive than Coinbase and charges a one-time spread on your crypto purchase. You pay it upon execution of your trade, and when you sell, this amount is adjusted accordingly. The eToro spread on coins ranges from 0.75% to 5%. 

In contrast, Coinbase charges a spread plus a fee based on your payment method for each transaction. So, if you buy Bitcoin on eToro then sell it a week later, you’ll pay a one-time spread of 0.75%. On Coinbase, you’ll pay a maker-taker fee of 0.50% (lower for large trades) for buying and again when selling plus a possible funding fee.

Should I Use eToro or Coinbase?

Coinbase is strictly a beginner’s platform for people unfamiliar with investing or cryptocurrency concepts. It supplies user education, and the application offers minimal transaction types. New users with zero experience can figure out how to buy crypto. 

Unlike Coinbase, eToro doesn’t offer much user education. Instead, the platform provides a rich, social trading experience and expects traders to understand industry terms. The application has a bit more going on, and complete beginners may struggle to understand terms like “leverage.” Active traders with some experience are a better fit for eToro. 

Methodology

We compared Coinbase and eToro by looking at the overall ease of use and functionality of their browser-based sites and mobile applications for beginners and active traders. Next, we broke down specific features and how those impacted the trading experience. Lastly, we looked at fee structures, security measures for the platforms and wallets, and supported currencies, deposit methods, and transaction types. 

Written by Jane