Is eToro Good for Beginners

eToro, a popular cryptocurrency trading platform, lets you mimic other traders with their CopyTrading feature. But is it good for beginners?

With eToro's popular CopyTrading feature, you can mimic the moves of top-performing traders.

But is it actually a good option for beginners? Or is it just hand-holding?

Find out whether eToro is a good fit for beginner traders in this guide. Plus, see which fees they charge and how it compares to other beginner-friendly platforms.

What is eToro?

eToro was founded in 2007 with the goal of making trading more accessible. In 2010, they introduced their popular CopyTrading feature, which allows you to mimic trades of top-performing traders.

Since then, they've become the world's leading social trading platform.

In 2017, eToro began supporting cryptocurrency trading in the U.S. For international traders, they offer a wider range of securities like stocks, currencies, and ETFs.

How Does eToro Work?

eToro makes it easy to buy and sell cryptocurrency. You can trade wherever you are through their desktop site or mobile app.

Plus, with their CopyTrading feature, it shouldn't take long for beginners to learn the ropes.

Here's how it works:

1. First, you look through the top traders. Each trader profile includes metrics like a Risk Score, portfolio composition, historical performance, trade frequency, and average holding time.

   You can also talk to any of these traders by posting comments on their public walls.

2. Then, choose traders to follow. You're able to follow up to 10 traders at a time.

3. Finally, set parameters, if you wish. To mitigate risk, you can choose to stop copying any trader if the value drops below a certain percent. There is a $200 minimum for copy trading, and a $500,000 max.

What Cryptocurrencies Does eToro Offer?

eToro has over 20 cryptocurrencies to buy, sell, and trade:^[1]

• Aave, Algorand, Basic Attention Token, Bitcoin, Bitcoin Cash, Cardano, Chainlink, Compound, Dash, Decentraland, Dogecoin, Enjin, EOS, Ethereum, Ethereum Classic, Filecoin, IOTA, Litecoin, Maker, NEO, Polkadot, Polygon, Ripple, Shiba, Solana, Spark, Stellar, Tezos, TRON, Uniswap, Yearn.finance, ZCASH

eToro Features

eToro has a range of features that are great for beginners, especially their CopyTrader program, Smart Portfolios, and Virtual Portfolios. Let's look at them in detail.

CopyTrader:
With eToro's CopyTrader feature, users can mimic the trades of other traders. Metrics like risk score, monthly and yearly performance, portfolio composition, number of trades, and number of followers make it easy to choose who to follow.

Copyable traders can also post comments and communicate through a public feed.

Copy Top Traders on eToro with CopyTrader™

Click Here to Copy Top Traders

eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.

Smart Portfolios:
The Smart Portfolios feature expands on eToro's CopyTrading. There is a higher minimum investment of $5,000, but it allows you to minimize risk by investing in a portfolio of cryptocurrencies, rather than following a single trader.

There are currently 5 crypto-based portfolios to choose from:

• BitcoinWorldWide
  
• FuturePayments
  
• CryptoEqual
  
• Crypto-Currency
  
• CryptoPortfolio

Virtual Portfolios:
You can practice trading cryptocurrency without risk using eToro's Virtual Portfolios. They'll give you $100k of virtual money to practice with.

You obviously can't earn anything this way, but it's a safe way for beginners to get a feel for trading and using the platform.

Get $100,000 Virtual Portfolio to Experiment

Click Here to Get $100,000 Virtual Portfolio

eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.

Educational Resources:
If you want the latest crypto news, you can take advantage of eToro's Weekly Crypto Roundups, available on eToro's blog to keep you up to date.

They have detailed financial guides and video tutorials for new traders trying to understand the crypto space, and tips on how to trade on the platform.

eToro Club:
eToro's tiered VIP club offers a variety of benefits. You'll get access to exclusive newsletters, reports, and webinars, as well as dedicated account managers, and customer service perks.

There's no requirement to join the base tier at Bronze, but you won't enjoy any benefits until Silver, which requires $5,000 in equity. The tiers go up to Diamond, which requires $250,000 in your account.

eToro Fees to look out for

eToro charges a single 1% fixed fee when you buy or sell crypto. This fee is added to the market price and applies for each side of the crypto transaction, both when opening and closing a position.^[2]

There are also a range of other fees not associated with trading:

• The minimum investment is $50

• The minimum withdrawal is $30

• There is a $5 withdrawal fee in countries other than the U.S.

• eToro charges an overnight fee per night for leveraged positions held overnight

• eToro charges a $10 inactivity per month if your account has no activity for 12 months

• Cryptocurrency transactions, including transferring funds, incur a fee, which varies depending on each blockchain provider

How to Create Account on eToro

It's easy to open an account with eToro. You should be able to do it in just a couple of minutes. Start by visiting their website or downloading the app on your mobile device.

Pick a username, choose a password, and put in your contact information.

You'll need to verify your identity with one of the following before you can start trading.

• Valid U.S. passport
  
• Valid driver's license
  
• Valid state ID

Deposit $100 and Get $10

Click Here to Deposit $100 and Get $10

Expires 12/31/2023

For a limited time, you can get $10 when you deposit $100 in your eToro account. Here's how:

1. Sign up for an eToro account
2. Deposit $100
3. Explore stocks, ETFs, and crypto

You'll automatically receive $10 directly to your account balance. eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.

How Does It Compare?

eToro vs Coinbase
Coinbase is certainly one of the best-known cryptocurrency exchanges operating today. They offer a wider range of cryptocurrencies for trade than eToro does, though eToro does still have a fair number.

There are a lot of perks to trading on Coinbase. For beginners, it's extremely easy to use—in fact, that's why it's so successful—with one of the most intuitive crypto trading apps available. They've got a wallet, a card on the way, and a range of educational offerings that let you earn crypto while you learn crypto.

What they don't have that eToro does is the social aspect. If that appeals to you, then stick with eToro. It's arguably a more dynamic, better long-term strategy for learning if that's what you want to do.

However, if you're looking to do your research elsewhere, it doesn't get much easier than starting with Coinbase.

		CoinbaseRobinhoodWebull
	eToro	Coinbase
	OFFER Deposit $100 and Get $10 - Learn More	SPECIAL OFFER Earn $5 in bitcoin on your first trade on Coinbase - Learn More
	Benefits and Features
Stock Trading	$0; 2000+ stocks & ETFs	No
Options Trading		No
Minimum Deposit	$10 ($200 to start copy trading)	$2
Cryptocurrencies Supported	74 (24 in the US)	200+
Countries Supported	Over 100	Over 100
Fiat Currencies Supported	USD, EUR, GBP, JPY, AUD, CAD, CHF, NZD, ZAR, RUB, CNH, NOK, SEK, TRY, MXN, SGD, PLN, HUF, CZK, RON	USD, GBP, EUR
Digital Wallet	Yes	Yes
Transaction Fee	1% fee for buying or selling crypto. 0% commission for buying or selling stocks and ETFs.	Greater of Minimum Flat Fees or Variable Fees (1.49%+) by Location and Payment Method. Minimum Flat Fees: < $10: $0.99 $10.01 - $25: $1.49 $25.01 - $50: $1.99 $50.01 - $200: $2.99
Copy Trading	Yes	No
Limit Orders	Yes	No
Margin Trading	Yes	No
Crypto Loans	No	Invitation only
Bank Account Purchase Fee	No	1.49%
Debit Card Purchase Fee	No	3.99%
Wallet Purchase Fee	No	1.49%
Mobile App	Yes	Yes
ACH Transfer Fee	No	No
Wire Transfer Fee	No	$10 ($25 outgoing)
Crypto Conversion Fee	0.10%	up to 2%
Other Fees	Crypto transfer fee: 0.0005 units - .25 units; $10 monthly fee after 12 months inactivity	Instant Card Withdrawal: up to 1.5% + minimum fee of $0.55
Address Allowlisting	No	Yes
Anonymity	No	No
Biometric Login	No	Yes
Cold Storage	Yes	Yes
Two-Factor Authentication	SMS	SMS or Google Authenticator
Withdrawal Limit	$30 minimum	$50,000 / day
	Deposit $100 and Get $10 Buy $100 in Crypto and Get $10 Bonus Invest $500 in Crypto Smart Portfolio and Get $50 Bonus	Earn $5 in bitcoin on your first trade on Coinbase Buy and Sell Cryptocurrency Learn Crypto, Earn Crypto
Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. eToro: eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk. Coinbase: Pricing information from published website as of 04/13/2021.

eToro vs Robinhood
You've probably heard of Robinhood, an investing app where you can trade commission-free. In addition to a limited range of cryptocurrency, users can purchase stocks, options, and ETFs, which means it has more options than eToro, at least for customers in the U.S.

While Robinhood is easy to use, and their commission-free trades may be appealing, they don't have anything like eToro's CopyTrading platform or social network. They do have a range of educational resources for new investors.

Investors looking to learn, and who are more interested in crypto than other securities, probably want to choose eToro over Robinhood. Those interested in trading more traditional ones like stocks and ETFs won't find the option on eToro just yet.

	eToro	Robinhood
	OFFER Deposit $100 and Get $10 - Learn More	OFFER Get a Free Stock (worth between $5 and $200) - Learn More
	Benefits and Features
Stock Trading	$0; 2000+ stocks & ETFs	$0
Options Trading		$0
Minimum Deposit	$10 ($200 to start copy trading)	$0
Mutual Fund Trading		No
Cryptocurrencies Supported	74 (24 in the US)	ETC, ETH, BSV, BCH, BTC, DOGE, LTC, COMP, MATIC, SOL, SHIB, AVAX, ADA, LINK, XLM, UNI, USDC
Fiat Currencies Supported	USD, EUR, GBP, JPY, AUD, CAD, CHF, NZD, ZAR, RUB, CNH, NOK, SEK, TRY, MXN, SGD, PLN, HUF, CZK, RON	USD
Digital Wallet	Yes	No
Transaction Fee	1% fee for buying or selling crypto. 0% commission for buying or selling stocks and ETFs.	No
Copy Trading	Yes	No
Limit Orders	Yes	Yes
Crypto Loans	No	No
Bank Account Purchase Fee	No	No
Debit Card Purchase Fee	No	No
Mobile App	Yes	Yes
ACH Transfer Fee	No	No
Wire Transfer Fee	No	No
Crypto Conversion Fee	0.10%	No
Anonymity	No	No
Biometric Login	No	TouchID or FaceID
Cold Storage	Yes	Yes
Two-Factor Authentication	SMS	Yes
Withdrawal Limit	$30 minimum	$50,000 per business day
	Deposit $100 and Get $10 Buy $100 in Crypto and Get $10 Bonus Invest $500 in Crypto Smart Portfolio and Get $50 Bonus	Get a Free Stock (worth between $5 and $200) Commission-Free Trades Commission-Free Options Investing
Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. eToro: eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk. Robinhood: Pricing information from published websites as of 04/18/2020.

Bottom Line

eToro has a lot to offer for beginners. Whether you're brand new to crypto or have been a casual trader for a while, eToro presents an opportunity to level up your game.

Thanks to their CopyTrading feature, you can mimic the most successful traders automatically. And whether you engage with the community of traders there or just lurk like so many of us do, there's a lot you can learn from your peers if you take the time to listen.

Give it a try. There's no rule that says you have to buy anything. Poke around, see what people are up to, and soon enough you'll be ready to take the next step in your crypto journey, whatever it might be.

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