Disclaimer: Don’t invest unless you are willing to lose all the money you invest. This is a high risk investment and you should not expect to be protected if something goes wrong. Take two minutes to learn more.
Bitcoin is by far the world’s biggest cryptocurrency, but Ethereum (ETH) has cemented its place in the number-two position, offering a smarter, more sustainable alternative.
As a result, ETH comfortably sits among the top-three cryptocurrencies by trading volume, with countless exchanges offering the ability to trade the token.
eToro is a broker that stands out among this crowd, simplifying crypto trading for even the most inexperienced investors. To get started, you first need to create an account, verify your identity, and deposit some funds using your preferred payment method.
First-time users may need some assistance with this, so we’ve created this detailed guide with images to help you through the process of how to buy Ethereum on eToro.
Steps to buy Ethereum on eToro
While exchanges like eToro put parameters in place to maximize the security of your investments, no cryptocurrency can be truly risk-free. With this in mind, make sure to conduct thorough research before proceeding, and remember that your capital is at risk.
Step 1: Create an eToro account
You must create an account before you can buy Ethereum on eToro for the first time.
To begin this process, visit the eToro website and select ‘create account’ – at this point, you will be prompted to provide your name, residential address and email address.
You will also be required to demonstrate your level of financial experience and knowledge by answering a short questionnaire. Questions may be based on the amount of capital you have invested in the past and what types of assets you have invested in.
Follow the link below to get started and buy Ethereum on eToro. In total, this process should not take more than 10 minutes.
Step 2: Verify your eToro account
Legal and regulatory requirements mean that investment platforms must verify your identity before your account can be officially opened.
On eToro, you will be asked to provide two forms of identification – one as proof of address (such as a utility bill) and one as proof of identity (such as a passport).
You can simply take photographs of the documents with your phone and upload them to the platform. Once this step is completed, eToro will aim to verify your investment account within 48 hours.
Step 3: Fund your eToro account
The final step before you can buy Ethereum on eToro is to add funds to your account. You can do this by selecting a payment method to link to the account – options include credit card, debit card, bank transfer, and e-wallet providers such as PayPal.
eToro’s minimum deposit requirements vary depending on your location – for US users, it is $100.
To add funds, navigate to ‘Deposit Funds’ from the main dashboard, select your preferred payment method, and enter your desired amount. Unlike some other providers, eToro does not charge for deposits.
Your funds should be available instantly, unless you opted to fund your account using bank transfer, in which case it can take up to seven business days to complete.
Step 4: Search for the Ethereum ticker symbol
Once your investment account is funded, you will be able to buy Ethereum on eToro. To do so, simply search for the Ethereum ticker using the search bar. $ETH should appear as the first search result with a ‘Trade’ option beside it.
You can either select ‘Trade’ to navigate straight to the buy order process, or click on the ticker symbol itself to view a dedicated page detailing news, analysis and historical price data for the asset.
If you choose to view the dedicated Ethereum page first, you can proceed to the buy stage afterwards by hitting ‘Trade’ in the top right corner of the screen.
Step 5: Place a buy order
Now you are ready to place an order to buy Ethereum on eToro. There are two key options at this stage – “Trade”, which allows you to purchase Ethereum at its current price point, or “Order”, which allows you to select a predetermined price at which you would like your trade to be opened.
For instance, if Ethereum is trading at an all-time high of $5,000 and you would prefer to buy the dip, you can set your trade at $3,000, and your position will be automatically opened when the coin reaches that price.
Payment options and fees for Ethereum on eToro
| Buy/sell | 1% |
| Custody | Free |
| Overnight | Free |
| Cryptoasset transfer | 2% |
| Deposit | Free |
| Withdrawal | $5 |
| Inactivity | $10/month after 12 months |
| Payment options | Debit/credit card, bank transfer, e-wallet |
Benefits of buying Ethereum on eToro
- Proprietary crypto wallet – The eToro Money Crypto Wallet supports a wide range of cryptocurrencies, and offers high security through its “advanced signature mechanism”. Convenience is also a key feature, as it prevents users from needing to remember secure keys or delve into the complexities of cold storage wallets.
- Low fees – eToro offers a modest 1% flat rate for all buy and sell transactions.
- Social trading – eToro brands itself as a “leading social trading network”, offering features such as copy trading and an in-built news feed akin to many social media platforms.
Risks of buying Ethereum on eToro
- Inactivity fee – Unlike some other market players, eToro charges an inactivity fee of $10 per month after 12 months of disuse. However, the fee will only be charged if there are funds remaining in the account.
- No crypto trading pairs – Unlike competitors such as Kraken, Coinbase and Binance, eToro does not offer trading pairs for cryptocurrency. This can be a useful tool, as it enables investors to trade one cryptoasset for another without needing to use a centralized currency.
- Volatility – Cryptocurrency can be highly volatile, with Ethereum seeing price swings of more than 150% within the past year.
- Lack of protection – Cryptocurrency payments are not afforded the same protections as fiat currencies, due to their decentralized nature.
FAQs
How do I Buy Ethereum on eToro?
Visit the eToro website, create an account, verify your identity and deposit some funds. This process should take less than 10 minutes. You can then search for Ethereum using the platform’s search function, and proceed to open a position.
How do I Sell Ethereum on eToro?
To close or sell an open position on eToro, simply click to view your ‘portfolio’ from the platform’s main dashboard, and click on ‘sell’ next to the position you want to close.
Which is Better eToro or Robinhood?
eToro and Robinhood are both popular trading platforms with a range of benefits and drawbacks. For example, Robinhood offers zero-commission trading for cryptocurrency versus eToro’s 1%, but eToro is considered to be a more streamlined, beginner-friendly platform.
