Cryptocurrency Trading with eToro

Cryptocurrency has been making headlines in the past few years – and it’s not hard to see why. The decentralised currency has the potential to completely disrupt the financial industry. 

Want to know how to invest and trade in cryptocurrency? This beginner’s eToro trading guide is a great place to start. We’ll go through the fundamentals and show you how to trade cryptocurrency like a pro on eToro.

Table of Contents

What is blockchain and cryptocurrency? How are they related?


You often hear the words blockchain and cryptocurrency being thrown together. But what in the world is blockchain? And what is cryptocurrency?

Simply put, blockchain groups transactions and information into ‘blocks’ that are chained together. When transactions occur on the blockchain, blocks are automatically added to the chain, which then grows in volume. This technology enables the blockchain to act as a public ledger that can’t be altered, hacked, or cheated.


What is cryptocurrency?


Cryptocurrency is a digital currency that is stored on (and originates from) the blockchain. You can think of them as “tokens” represented by ledger entries to a particular blockchain network.

The first cryptocurrency was Bitcoin, introduced back in 2009. Fast forward to today, there are over 4000 cryptocurrencies in existence. They are regarded as exchange mediums and actively traded as a form of digital currency.

Examples of cryptocurrencies include Bitcoin, Etherum, Litecoin, and yes, even the Elon Musk-backed Dogecoin.


What is cryptocurrency mining? What’s stopping me from mining my own cryptocurrency and becoming a billionaire?


You might have heard of crypto mining before and wondered: why go to all the trouble of trading cryptocurrency when I can just mine (create) my own? 

It’s not that simple. First, we need to understand what cryptocurrency mining really is.

Cryptocurrency mining is the process of consolidating blockchain ledger transactions into blocks. A cryptocurrency “miner” updates transactions on the blockchain for block rewards (cryptocurrency). The best way to understand this is to imagine paying someone to update your account books. But instead of cash, that person gets paid in cryptocurrency.

However, mining cryptocurrency has become less profitable over the years. Skyrocketing difficulty levels have raised the barrier of entry for this once-lucrative pursuit. For many, it’s no longer a feasible method to get into the cryptocurrency game.


How to invest in cryptocurrency?


If mining is no longer an option, what is the best way to invest in cryptocurrency today?

Cryptocurrency asset prices are super volatile. We’re talking double-digit percentage fluctuations within the same day. The asset class appeals to many traders and investors because of the various opportunities it presents.

The easiest way to get involved with cryptocurrency today is via trading.


Cryptocurrency trading on eToro


Personally, we’re a big fan of eToro and how it has made trading cryptocurrency so simple. With eToro, you have two ways to trade cryptocurrencies:

  1. You trade derivatives via Contracts For Difference (CFDs). This is based on future speculation. You don’t actually own the asset, but are trading based on speculated price movements. You can choose to go long (buy) if you think a cryptocurrency’s price will rise in the future or short (sell) if you believe it’s already overvalued. 
  2. You BUY/SELL the individual tokens. You directly purchase, own and trade the underlying asset on eToro. Unlike CFDs, you actually own the cryptocurrency. This means that besides trading, you can also withdraw your crypto to an external digital wallet, gift to friends and family, or even use it to buy a Tesla Model 3.

eToro has 94 cryptocurrencies to trade – more than any other broker. Cryptoassets traded on eToro include Bitcoin, Dash, Ethereum, Litecoin & Ripple, Cardano, IOTA, Stellar, EOS, NEO, TRON, ZCASH, Binance Coin and many more.

eToro’s seamless user experience, multiple deposit methods (including bank transfer, card deposits, and various online payment gateways), and non-existent trading fees make it the perfect cryptocurrency trading platform.

Easily trade cryptocurrency with eToro’s CopyPortfolios


Cryptocurrency can be a precarious asset class to invest in. If you’re new to the game and don’t want to risk losing all your hard-earned savings, you might be interested in eToro’s crypto-focused CopyPortfolios.

These are essentially crypto-based investment funds curated by eToro’s own investment committee. They offer you easy one-click exposure to popular crypto assets. These Crypto-CopyPortfolios are CryptoPortfolio, Crypto-currency, CryptoEqual, and CryptoTakeover.

Please note that the minimum investment amount for eToro’s Crypto-CopyPortfolios is 5,000 USD.


eToro Cryptocurrency trading fees


Trading cryptocurrencies on eToro is commission-free. You don’t have to pay steep trade fees or management fees. Instead, you’ll only have to pay for the spread.

Spread is the difference between BUY/SELL prices of an asset. It’s how eToro makes money. For example, if you BUY Litecoin at 40.00 but the SELL price at that moment is 39.25, the spread will be the difference between the two asking prices: 1.9% (or 75 pips).

Spread varies according to market conditions and volatility. eToro has a minimum spread, starting at 0.75% for Bitcoin, 1.90% for Etherum, and 2.45% for Ripple XRP. You can read the full list of minimum crypto spreads here.


What about deposit and withdrawal fees?


eToro charges a fixed 5 USD withdrawal fee, with a minimum withdrawal amount of 50 USD.

The platform only accepts USD as its online trading currency. Foreign currency deposits and withdrawals will incur a higher-than-usual conversion fee – our only gripe with the platform.

For Malaysians depositing and withdrawing in ringgit, the MYR/USD conversion fee is 200 pips, rounding to about 2% of the total amount.




This content on this website is intended for general informational purposes only and should not be construed as any advice on any specific facts or circumstances.

Share this post


Zero to One Stock Investing Masterclass