Overview
eToro is unique in the crypto space because it adds a social layer to investing. You can discuss strategies with millions of other users, or use the CopyTrader feature to automatically replicate the moves of successful crypto investors. It also offers a dedicated eToro Money crypto wallet for transfers.
The Wild West of Finance
What is Cryptocurrency?
Digital money that isn't controlled by a bank or government. Bitcoin is the digital gold standard, while things like Ethereum act more like a global computer.
Self-Custody vs Exchanges: Storing crypto on an exchange (like Coinbase) is easy but if they go bust, you might lose it. "Self-custody" (like Zengo) means YOU hold the keys, but if you lose your phone/backup, it's gone forever.
High Risk Warning
Crypto is unregulated in the UK. If you invest in crypto assets, you should be prepared to lose all the money you invest. There is no FSCS protection, and refunds are rare if you get scammed. Prices can swing wildly in a single day.
Pros
- ✓ Social Features: Copy top performing crypto traders automatically.
- ✓ Smart Portfolios: Invest in managed baskets of crypto assets.
- ✓ User Friendly: Very intuitive mobile and web app.
- ✓ Regulation: Regulated by top tiers (FCA, ASIC, etc.).
Cons
- ✕ Spreads: 1% flat fee on crypto buying/selling (spread).
- ✕ Wallet Transfer Fees: Fees apply when transferring crypto to the eToro wallet.