If you've ever wanted to use online platforms to invest some of your money, it's very likely you've already heard of eToro. eToro was launched in 2007 and has become one of the most popular services for investing online. While you might associate eToro with trading stocks, the platform actually lists a pretty diverse selection of cryptocurrencies as well.
If you want to learn more about what the eToro platform offers, make sure to check out our eToro review.
In addition to the ability to buy and sell cryptocurrencies, stocks and other financial instruments, eToro also offers unique "social trading" features such as copy trading. This feature lets you copy the portfolio of more experienced investors and track how different investors are stacking up against each other.
This guide will show you how to trade Ethereum on eToro.
Trade Ethereum on eToro
At the moment, you can choose from 16 different cryptocurrencies on eToro, and it's reasonable to expect that this number willl increase in the future - the company seems to be taking its cryptocurrency support pretty seriously. Here's the list of the cryptocurrencies that are currently available for trading on eToro:
However, this guide will be focused on trading Ethereum on eToro. We will be showing you a step-by-step example for buying ETH using the eToro platform. Let's get started.
1. Create an account with eToro
To explore the eToro platform, you'll only need to provide your e-mail address and phone number. If you later decide to deposit funds to eToro, you'll need to provide some additional information about yourself to verify your identity.
After this step, you'll receive an e-mail from eToro with a link that's necessary for completing your registration.
2. Complete your eToro profile
After you verify your account through your e-mail, you will be able to log in to your eToro account and explore the eToro platform. If you want to start trading, you'll have to complete your eToro profile by providing some additional personal information - this is necessary because eToro is a regulated company and needs to comply with the relevant AML and CTF regulations. Click “Complete Profile” under your username to get started.
3. Fund your eToro account
Once you're done with completing your profile, you can deposit some funds to start trading Ethereum. Keep in mind that the minimum deposit allowed by eToro is $200 (or equivalent in other currencies). Cryptocurrencies are known for being highly volatile - don't invest more than you're willing to lose!
There's no shortage of ways to fund your eToro account. At the moment, eToro supports seven different deposit options:
- Credit / Debit card
- Wire Transfer
TIP: If you're not yet ready to invest real money in cryptocurrencies, you can take advantage of a great feature provided by eToro called the "virtual portfolio". Through this feature, you will receive $100,000 in virtual money, and you will be able to test out different trading strategies risk-free. If you want to try out the virtual portfolio, go to the "REAL" icon under your profile name and change it to "VIRTUAL".
4. Start trading Ethereum
Once your deposit has cleared, you’re ready to trade Ethereum on eToro! Go to the “Trade Markets” section in the navigation bar and choose “Crypto”.
Here, you will be presented with a list of all the cryptocurrencies available on eToro. In our example, we will be buying some Ethereum (ETH).
After clicking "Buy", you will be able to modify the parameters of the trade in more detail. On the top right, you can choose either "Trade" or "Order". If "Trade" is selected, you will be making a market order (buying at the best price that's currently available). If "Order" is selected, you can specify the price at which you want to buy. "Trade" is the fastest option, and we will be leaving this parameter unchanged.
Now, you have to choose the amount of money you wish to invest. The “Stop Loss” section lets you input the maximum loss you’re willing to take in the trade. If the price of Ethereum falls down to your stop loss, your ETH will be automatically sold to prevent further potential losses.
Under “Take Profit”, you can set the price at which your ETH will be automatically sold to realize profits. If you buy Ethereum at $9,500 and would like to automatically sell it when and if the price reaches $10,000, you would set your take profit at $10,000.
The Stop Loss and Take Profit parameters are fully optional - you can disable them if you wish.
You can also set your leverage, but we’ll be keeping it at 1x (which, in practical terms, means no leverage). Leverage higher than 1x introduces additional risks to your trade.
Once you’re happy with all the parameters, click “Open Trade”.
5. Monitor your investment
You can check the status of your investment under the “Portfolio” section. Here, you can see how much ETH you have and whether your investment is currently profitable or not. If you click the gear icon, you can choose to close your position and sell your Ethereum back into USD. Here's an example of an open Ethereum position on eToro:
6. Explore eToro's other features
Of course, eToro is not just for trading cryptocurrencies. Here's some of the other exciting features offered by the platform:
- Trade traditional financial instruments - choose from stocks, commodities, ETFs and more
- Virtual trading - try out trading strategies risk-free by trading with virtual money
- Copy trading - follow successful eToro users and copy their trades
Trading Ethereum on eToro is very straightforward, as the platform provides a very intuitive user interface. Not only is eToro making a name for itself as one of the best cryptocurrency exchanges, it also provides trading for other financial instruments, giving you the ability to diversify your investment portfolio easily.
If you want to trade cryptocurrencies other than Ethereum on eToro, there’s plenty of options available. Here's the list of the cryptocurrencies that are currently available for trading on eToro: