How to Buy Ethereum on eToro – Comprehensive Guide
Ethereum (ETH) is the world’s second-largest cryptocurrency and is a key component of the decentralized finance (DeFi) ecosystem. Investors interested in Ethereum can easily buy and sell ETH through user-friendly platforms like eToro, a leading social trading platform that doesn’t require prior trading experience.
In this guide, we’ll walk you through the four easy steps to buy Ethereum on eToro. Plus, we’ll discuss why eToro has become the go-to choice for countless crypto enthusiasts looking to invest in this exciting digital asset.
Introduction to Buying Ethereum on eToro
Ethereum has become one of the world’s most widely used cryptocurrencies, second only to Bitcoin (BTC) in terms of market cap. As the backbone of the DeFi ecosystem, Ethereum has caught the attention of investors looking to diversify their portfolios and gain exposure to new opportunities.
eToro offers an easy and regulated environment for investors to buy, sell, and trade Ethereum. Unlike many cryptocurrency exchanges, eToro caters to both beginners and veteran traders, providing a simplified process for purchasing ETH without the need for technical know-how.
One of the key advantages of using eToro for Ethereum trading is the platform’s commitment to regulatory compliance. According to eToro’s regulation page, the platform is regulated in multiple jurisdictions, including the US, UK, Australia, and the Middle East.
With its low minimum investment requirements and intuitive interface, eToro has become popular for those seeking exposure to Ethereum’s growth potential.
Step-by-Step Guide to Buying Ethereum on eToro
For seasoned investors or those new to the world of crypto, learning how to buy Ethereum on eToro is a straightforward process that can be broken down into a few simple steps:
Step 1: Opening an eToro Account
The first step in buying eToro Ethereum is to create an account on the platform. eToro’s registration process is simple and can be completed in minutes. To begin, head to the eToro website and click on the “Join eToro” button.
You’ll then be prompted to provide an email address and choose a username. Following this, eToro will ask for some personal information, like name and address. eToro also employs two-factor authentication for account security – so you’ll be asked to provide a mobile number for verification.
Step 2: Completing KYC (Know Your Customer)
To comply with regulatory requirements, eToro requires all new users to complete the Know Your Customer (KYC) process. This process involves verifying your identity by uploading a copy of a government-issued photo ID, such as a driver’s license or passport. You’ll also have to provide proof of address by submitting a recent utility bill or bank statement.
Step 3: Making a Deposit
Once your account is verified, the next step is to make a deposit. eToro supports various payment methods, including bank transfers, credit/debit cards, and e-wallets like PayPal, Skrill, or Neteller (availability may vary by region).
The minimum deposit amount is $10. However, many investors opt to deposit more than $10 to allow flexibility for future investing and trading fees.
Step 4: Placing an Ethereum Order
With funds now in your account, you can proceed to buy Ethereum. Use the search bar to search for “Ethereum” or “ETH,” and click on the “Trade” button. This will open the order window where you can enter the amount of ETH you’d like to purchase, designated in dollar terms. eToro supports both market orders (immediate execution) and limit orders (execution at a specific price).
Review the order details carefully, including the investment size, ETH price, and any applicable fees. You can also set a stop-loss and take-profit level if you wish. Once you’re ready, click “Open Trade” to execute the order.
Step 5: Optional Setup of eToro Ethereum Wallet
After you buy Ethereum on eToro, you can choose to store your ETH in the eToro Wallet. This is a separate app that allows you to securely store and manage your cryptocurrencies outside of the main eToro trading platform.
To set up the eToro Wallet, you can manually initiate a transfer from your eToro trading account or download the eToro Wallet app to create a new wallet. The eToro Wallet app is available on both iOS and Android devices.
Transferring Ethereum to eToro Wallet
If you decide to use the eToro wallet, you can easily transfer your ETH holdings. This process can be started by heading to the “Portfolio” section of your eToro account. Once there, select the ETH trade you wish to transfer and click “Transfer to Wallet.”
As one of the best crypto wallets on the market, the eToro Wallet allows you to send your ETH holdings elsewhere if you wish. However, it’s important to note that there’s currently no way to transfer your ETH back to the main eToro platform once it’s in the eToro Wallet.
Why Choose eToro for Ethereum Investing?
When considering the Ethereum eToro process, several key factors stand out, making it a popular option for crypto traders worldwide. These include:
User-Friendly Platform for Beginners
One of the main reasons why investors choose to buy Ethereum on eToro is its user-friendly platform, designed with newcomers in mind. Unlike many crypto exchanges that can be overwhelming for novices, eToro features a simplified, intuitive interface.
This means even those with limited crypto knowledge can navigate the platform easily and participate in ETH investing. The platform’s clean layout and clear instructions reduce the learning curve for beginners – and eToro even has a library of educational content called “eToro Academy” to help new investors get up to speed quickly.
Investment Diversification Options
Another reason investors choose eToro for ETH investing is its comprehensive range of investment options. This means users can construct well-rounded portfolios with ease.
Why is diversification important?
Diversification is crucial in investing because it helps mitigate risk by spreading your capital across different asset classes, sectors, and investments. As outlined in an article from Bankrate, a well-diversified portfolio can reduce risk while not sacrificing returns. Additionally, diversification allows investors to take advantage of varying market conditions and opportunities that may arise.
In the United States alone, eToro users can access over 3,000 tradable stocks, covering a wide range of industries, as well as over 300 exchange-traded funds (ETFs). Additionally, eToro’s crypto selection includes not just Ethereum but also popular assets like Bitcoin and meme coins like Dogecoin (DOGE).
For investors outside the US, eToro further expands its offerings to include currencies, commodities, options trading, and more. Ultimately, this extensive range of assets enables users to easily diversify their portfolios, mitigating risk through exposure to different asset classes.
Automated Trading Tools and Features
Those wondering how to buy Ethereum on eToro may also find the platform’s suite of trading tools and features appealing. One such feature is CopyTrader, which allows users to replicate the trades of successful crypto investors on the platform automatically.
By using CopyTrader, beginners or those lacking time for in-depth market analysis can easily benefit from the expertise of others. Moreover, CopyTrader removes the need to develop trading strategies from scratch.
Additionally, eToro’s charting tools and customizable watchlists equip users with the resources to make well-informed trading decisions. Furthermore, eToro offers a free demo account, allowing new traders to practice and test their skills with virtual funds before investing in real crypto.
Fractional Investing and Low Minimums
Investors looking to get rich off crypto may be interested in fractional investing. Fractional investing allows users to buy “fractions” of an ETH token, even if they don’t have enough capital to purchase the whole token.
This flexibility means users can start small and gradually scale their positions. Additionally, with a minimum deposit of just $10, eToro makes Ethereum investing accessible to a wide range of individuals – regardless of their income level.
Understanding eToro’s Fee Structure
When buying eToro Ethereum, it’s essential to understand the platform’s fee structure. eToro charges a flat 1% fee for all crypto trades, including Ethereum purchases. This fee is added to the market spread, which is the difference between ETH’s buy and sell price.
The spread varies depending on market conditions and is not imposed by eToro. For example, if the existing market situation includes buy orders for ETH at $3,620 and sell orders at $3,630, the spread would be $10 – or 0.28%.
To estimate the total cost of an Ethereum purchase, investors must consider both the spread and the 1% eToro fee. Let’s assume an investment of $500 in Ethereum. Using the example above with the $10 spread (0.28%), here’s how to calculate the fee:
- eToro Fee: 1% of $500 = $5
- Spread: 0.28% of $500 = $1.40
- Total Cost: eToro Fee + Spread = $5 + $1.40 = $6.40
In this example, the total cost of purchasing $500 worth of ETH on eToro would be $6,40. Consequently, your position will initially be in the red since the price of ETH will need to rise slightly to break even (after considering fees).
Deposit, Withdrawal, and Trading Fees
eToro’s fee structure for depositing, withdrawing, and trading depends on the asset. Deposits in USD are free, but deposits in other currencies may be subject to conversion fees.
Withdrawals incur a $5 fee, with a minimum transfer amount of $30. Investors must consider these fees when planning their investment strategy, as they can impact total returns.
Ethereum Storage and Transfer Fees
As highlighted earlier, eToro offers free storage on its platform and in the eToro Money wallet app. However, transferring ETH from eToro to an external wallet will incur network fees.
These fees are based on actual Ethereum network conditions and can vary significantly. When the Ethereum network is congested, fees can be high – so it’s wise to consider this before making a transfer. The Ethereum Gas Tracker from etherscan.io is an excellent way to monitor network fees and estimate the cost of a. transaction. Additionally, eToro charges a coin transfer fee of 2% of the transaction amount. The minimum fee is $1, and the maximum is $100.
| Minimum ETH Withdrawal Amount | $30 (designated in ETH) |
| Transfer Fee | 2% |
| Minimum ETH Withdrawal Fee | $1 |
| Maximum ETH Withdrawal Fee | $100 |
Summary of All eToro Fees
In summary, like all of the best crypto exchanges, using eToro does come with several fees to be aware of. However, the platform’s fee structure is relatively straightforward and significantly cheaper than many options out there.
The key things to remember are:
- 1% flat fee on crypto trades + market spread
- $5 withdrawal fee
- No deposit fees
- $30 minimum withdrawal amount
- 2% fee when transferring to an external crypto wallet
Security Measures for Ethereum Trading on eToro
While the crypto world can sometimes feel untamed, eToro prioritizes secure practices for Ethereum trading. Understanding the importance of user trust, eToro prioritizes both regulatory compliance and advanced security features.
eToro’s Regulatory Compliance
eToro maintains registration and licensing with various regulatory bodies across several jurisdictions, including the FCA (UK), CySEC (Europe), and ASIC (Australia). Additionally, the platform is registered with FinCEN (US) and holds a money-transmitting license in most US states. Although these entities don’t directly cover crypto trading itself, it demonstrates eToro’s commitment to operating a trustworthy platform.
Why is Regulation So Important?
Regulation provides investors with a degree of protection. By operating within a regulated framework, eToro has to follow specific industry standards designed to enhance investor safety. This helps build trust between the platform and its users – promoting confidence in eToro.
eToro’s Security Features
eToro implements two-factor authentication for an extra layer of account protection. Additionally, most crypto assets, including Ethereum, are held in cold storage – which means they are offline and less vulnerable to hacking attempts.
Cybersecurity professionals also monitor the eToro platform 24/7 to protect against data leaks. Finally, eToro also uses SSL encryption to secure all data transmitted between the user’s browser and the platform’s servers.
The Role of the eToro Wallet for Secure Storage
As noted earlier, there are no storage fees when investors hold ETH within the eToro ecosystem. Investors can transfer their ETH to an external wallet, but certain fees will apply (detailed in the section above).
Investors who prioritize safety may consider using one of the best hardware wallets to store their ETH. Hardware wallets are the most secure option for storing cryptocurrencies, as they keep the private keys offline and away from potential online threats.
Selling Ethereum on eToro
Regardless of whether ETH is the best crypto to buy now, investors will likely wish to sell their holdings at some point. However, it’s essential to remember that eToro has a minimum trade size of $10 – meaning it’s impossible to sell off a fraction of ETH and leave less than $10 remaining in the position. To sell Ethereum on eToro, there are four easy steps to follow:
- Access Portfolio: From the main menu, click “Portfolio” to view your holdings.
- Select Ethereum: Choose Ethereum from your listed assets.
- Initiate Sale: Click the red “X” to open the sell order window.
- Customize Order: You can immediately sell at the current market price or set a Stop Loss (to limit losses) or Take Profit (to lock in gains) level.
One of the main tips for effective selling is to consider market timing. Although nobody can time the market perfectly every time, investors must consider whether to sell instantly or wait for a more opportune moment.
Another tip is to consider whether it’s wise to sell the entire ETH position or just a portion. This decision will ultimately come down to risk tolerance and investment goals, but it can make a massive difference in overall returns.
Fractional Ethereum Investments
When investors buy Ethereum on eToro, they can buy “fractions” of an ETH token. This means that instead of needing enough capital to purchase a full token, investors can invest any dollar amount above the $10 minimum.
Here’s how it works: If the price of Ethereum is $3,600, and an investor makes a $100 investment, that will represent a “piece” of an ETH token. As the price of ETH changes, the value of that “piece” will change accordingly. eToro keeps track of these changes for investors – making it an easy way to participate in the crypto market.
How to Buy Ethereum on eToro – Conclusion
In summary, this guide on how to buy Ethereum on eToro has explored the key considerations for investors, from registration to security and fees. With its intuitive interface, low minimum investment requirements, and fractional investing options, eToro makes it easy for both beginners and experienced traders to gain exposure to the world’s second-largest cryptocurrency.
FAQs About Buying Ethereum on eToro
Is it safe to buy Ethereum on eToro?
Yes, eToro is a regulated and secure platform for buying Ethereum. It features security measures like two-factor authentication and encryption to ensure secure crypto purchases.
Can I buy fractional amounts of Ethereum on eToro?
Yes, eToro supports fractional ownership of Ethereum. This means users can invest in ETH even if they don’t have enough to buy an entire token.
What payment methods can I use to buy Ethereum on eToro?
eToro accepts various payment methods, including bank transfers, credit/debit cards, and e-wallets like PayPal, Skrill, and Neteller. However, availability will depend on the users’ region.
Can I transfer Ethereum from the eToro Wallet to an external wallet?
Absolutely – users can quickly transfer their Ethereum holdings from the eToro Wallet to other external wallets. This gives users complete control over their ETH investment.
How much does it cost to buy Ethereum on eToro?
eToro charges a 1% flat fee when purchasing Ethereum. Investors also need to consider the spread, which varies depending on market conditions and isn’t imposed by eToro.
References
- Importance of Diversification (Bankrate)
- What is Know Your Customer? (CoinDesk)
- Ethereum Price Chart (CoinMarketCap)
- Ethereum Gas Tracker (Etherscan)
- eToro Licenses & Regulation (eToro)
- eToro Academy (eToro)
About the Author
Eric Huffman 
Alan Draper 
Viraj Randev 
Kane Pepi