When trading cryptocurrencies, finding the right trading platform that fits your requirements is crucial. While there are various trading platforms, eToro is one of the favorites among both traditional asset traders and cryptocurrency enthusiasts. 

In this guide, we’ll take a deep dive into account setup, eToro navigation, and how to buy Ethereum on eToro.

But before we delve into the comprehensive step-by-step guide, let’s have a quick walkthrough of what eToro is and what makes it a top choice for crypto traders. 

Short summary 

eToro is a social trading and multi-asset brokerage platform that allows users to trade various financial instruments, including stocks, cryptocurrencies, commodities, and more. The platform was founded in 2007 and has since become one of the most popular trading platforms in the world, with over 20 million registered users in more than 100 countries.

One of the key features of eToro is its social trading functionality, which allows you to follow and copy the trades of other successful traders on the platform. This feature is handy if you are a beginner trader and might need to gain the experience and knowledge to make informed trading decisions. By following and copying the trades of more experienced traders, you can increase your chances of success in the markets.

In addition to social trading, eToro also offers a range of educational resources and tools, such as webinars, e-courses, and a trading academy to help you improve your trading skills and knowledge. On top of that, eToro offers a range of advanced trading tools and features, including stop-loss orders, limit orders, and real-time market analysis.

Is Ethereum still worth buying in 2023? 

We don’t just purchase assets for the sake of it; we do so intending to generate profits, and asking “whether Ethereum remains a viable investment in 2023” helps ensure you’re acquiring assets with potential returns.

To answer your question, Ethereum is definitely worth buying in 2023, and there are several reasons why. First, Ethereum is a good investment if you’re interested in diversifying your portfolio by investing in cryptocurrencies – buying Ethereum and Bitcoin is a solid diversification.

Secondly, Ethereum is an excellent long-term investment for the next one to three years and is bullish overall. That means we expect prices to rise in the long term. 

According to many predictions, Ethereum also has the potential to be a solid investment in the long term. It’s predicted that the price of ETH could reach a maximum of $18,534. In addition, Anton Kharitonov, an analyst at Traders Union, predicts Ethereum trading at around $6,196.08 by the end of 2025 and foresees its worth climbing to $31,656.34 by 2030.

Lastly, Ethereum is currently (as of October 2023) amid a cumulative drawdown of around 63% since the November 2021 all-time high of $4,891 and is trading at approximately $1,790. However, the last six months have been more positive, with Ethereum up 49%. This leads many to believe you should buy Ethereum while it’s still below $2,500.

Getting started with eToro: How to buy Ethereum on eToro

To get started with eToro, you’ll first need to create an account.

Step 1: Creating an eToro Account

Creating an account is a straightforward process.

  1. Visit the eToro website: simply navigate to the eToro’s official website and click the ‘Join eToro’ option.
  2. Provide details: Fill in all the required information, such as your email address and preferred username, and create your desired password. Alternatively, you can sign up using your Google or Facebook account.
  1. Terms and conditions: Make sure you check the terms and conditions. Remember that it’s essential to read the terms and conditions to understand eToro’s policies and guidelines.
  2. Complete the registration: When you are done, click on the ‘Create Account’ option. A confirmation email will be sent to you’re the email address you just entered. Ensure you verify your account by following the instructions in the email. 

Verifying your identity

After creating an account, you’ll need to verify your account to start inventing. eToro prioritizes the security of its users and requires all users to verify their entity before trading on the platform. This simple process ensures that all users are genuine and your investments are safe.

To verify your identity, you must submit proof of identity documents – which can be uploading both sides of your government-issued ID or a valid passport. You’ll also need to upload proof of address, which can be utility bills, bank statements, or other government tax letters, but keep in mind that these documents should be no longer than three months.

Uploading these documents is a straightforward process. Simply log in to your eToro account and navigate to the ‘Verify Identity’ options within the ’Profile’ option under the ‘Settings’ page.

The verification process will take about 24 hours (according to most user reviews), after which you’ll now be able to trade on eToro. If you encounter any issues, eToro offers 24/7 support. You can reach out to them via email or create a ticket with detailed information on the challenge you are experiencing.  

Setting up security features on eToro

Once you have created an account and verified your identity, the next step is ensuring your funds are stored securely on eToro. Protecting your crypto assets and login credentials is crucial, and eToro takes it seriously. eToro employs robust security measures to ensure your digital assets are secure.

It uses a combination of offline and online wallets for storing coins, 2FA authentication, and enhanced monitoring tools to safeguard and keep track of the safety of your coins. Here are some of the steps eToro takes to ensure your digital assets are safe:

  • Advanced encryption technologies
  • Holding funds in safeguarded accounts and authorized credit institutions
  • Implementing offline and online storage of coins
  • eToro has Security Investor Protection Corporation (SIP) and Federal Deposit Insurance Corporation (FDIC) insurance for US stock and options held in users’ eToro accounts of up to $250,000.
  • eToro stores users’ funds in top-tier banks.
  • Unlike most trading crypto platforms, eToro is regulated by financial authorities across various jurisdictions. 
  • eToro has private insurance that covers investors up to 1 million EUR/USD/POUND in case of insolvency.

Additionally, eToro also places advanced security on your hands through user-level 2FA and account encryption.

To activate 2FA, simply navigate to the ‘Settings’ page and click on the ‘Account’ option. 

From here, you can activate or deactivate 2FA when accessing your account. 

Security tip: However, even though eToro offers all these cool security features, you must take additional precautions to protect your account funds by using strong passwords, keeping your login credentials secret, and keeping your devices up to date to prevent malicious attacks. 

Another security measure to consider is using hardware wallets instead of online wallets. Hardware wallets ensure your digital assets are off the internet and inaccessible to attackers or hackers. 

Step 2: Depositing Funds into Your eToro Account

Now that you have set up your account, you can deposit funds into your eToro account to purchase Ethereum or other crypto assets. To deposit funds, follow these steps:

Navigate to the deposit section: Click on the ‘Deposit Funds’ option on the home page. 

You’ll be presented with a pop-up window where you need to enter your respective payment details. eToro gives you various payment options to deposit funds:

  1. Credit/Debit Card: if you prefer using your card, select the ‘Credit/Debit card’ options and input your card details, that is, card number, expiration date, the CVV, and the billing address.
  2. Bank Transfer: To use direct bank transfer, select the ‘Regular Bank Transfer’ option. eToro will provide you with their bank details, such as bank account number and reference code, which you’ll use to transfer money to your eToro bank account. 
  3. E-wallets: eToro also offers various E-wallets such as PayPal, Skrill, Neteller, and Przelewy 24, among other options. 

Point to Note: Remember that some of the E-wallets will only be available after you have verified your account. So, if you do not see the complete list of options, do not panic; first, verify your account, and you’ll be able to access the complete list of options. 

Step-by-Step Guide to Completing the Deposit Process

  1. Choose your deposit amount: Enter the amount you want to deposit, and ensure you have enough funds for your payment method.
  2. Review deposit fees and transaction details: Take a moment to review your transaction details and make sure all the information is accurate. eToro charges fees for deposits, so make sure you are okay with the fees. 
  3. Complete the deposit: If satisfied with the transaction information, click the ‘Deposit’ button. You might be redirected to a third-party payment gateway to authorize payment, for example if you use PayPal.
  4. Confirmation: After the deposit has been processed, you’ll receive a confirmation message, and your eToro account balance will be updated.

Understanding eToro’s trading platform

Step 3: Placing an Order to Buy Ethereum on eToro

  1. Placing an Ethereum trade on eToro is a straightforward process. Simply locate Ethereum on the listed assets or use the search bar to find it.
  1. Once you’ve located it, click on it to open the Ethereum trading page and click the ‘Trade’ or ‘Order’ option (depending on how you want to make the purchase) to initiate the purchase process.
  1. You’ll be presented with a pop-window. Enter the amount your dollar amount of the Ethereum you want to purchase and click ‘Open Trade’ or ‘Set Order’ to buy Ethereum.  You can also click on the ‘Units’ options to see the amount of Ethereum your USD amount equals. 

Understanding trading on the eToro trading window

On the pop-up window, you have two ways of opening a trade on eToro – Trade and Order option.

Trade option 

When you click the “Trade” button, you are opening a position at the current market price. This means you are buying Ethereum, the asset, at the best price. The trade is usually filled immediately, and you can see the price listed on the page.

Order option

On the other hand, when you place an “Order,” you are instructing eToro to open a buy or sell position on an asset once its price reaches a certain value (Limit). This allows you to set a specific entry point for your trade, which can be helpful if you believe the price will reach a more favorable level. Once the price matches your specified value, the order is executed, and a trade is opened at that price.

Once you’ve made the purchase, you can withdraw your Ethereum into a self-custodial mobile wallet, or for more security, you can withdraw your Ethereum into a hardware wallet where you can hold it until you are satisfied. 

Point to Note: When you buy Ethereum on the eToro platform, you do not directly own the underlying asset. Instead, you are entering into a CFD (Contract for Difference) agreement, which allows you to speculate on the price movements of Ethereum without actually owning it. But in our case, we want to buy and hold the underlying asset, which is Ethereum, so we’ll have to make a transfer of the Ethereum to a crypto wallet to own Ethereum (we’ll cover this in the eToro wallet section). 

How to set stop loss and take profit levels on your Ethereum purchase

As an investor, you must ensure that you minimize your loss and maximize your profits, that is, if you want to keep your Ethereum assets on eToro. On eToro, you can achieve this by setting a stop loss and take profit. 

Setting a stop loss (SL) and take profit (TP) on your Ethereum trades can help you manage your risk and protect your profits. By doing so, you can limit your potential losses and lock in your profits if the market moves against or in your favor, respectively. 

It’s important to note that the maximum take profit on most trades is 1,000% of your invested amount +/- 1,000% of your current profit and loss (P&L). This means you have some flexibility in updating your take-profit levels. 

To set your SL or TP, simply navigate to the portfolio section and click on your Ethereum trade. 

You’ll be redirected to Ethereum’s trading page. Click on the ‘SL’ or ‘TP’ option to set your stop loss or take profit, respectively.

On the pop-up window, you can ‘Update’ your Ethereum trade with your desired SL and TP.

Step 4: Monitoring and Managing Your Ethereum Investment

Now that you’ve purchased your Ethereum and set up your SL and TP, you’ll need to monitor the progress of your assets. Simply navigate to the ‘Portfolio’ page. From here, you can view profit and loss, the price of Ethereum, and more. 

This section provides you with a bird’s eye view of how your Ethereum is performing and allows you to keep track of your positions. 

For the more technical investors, eToro also allows you to do your in-depth research on Ethereum (as well as other assets) and perform technical analysis. These features are available on an asset’s page, in our case, Ethereum.

Another key feature that makes eToro stand out is the availability of a charting tool provided by TradingView – an industry-leading technical analysis tool. With the TradingView integration, eToro allows experienced traders to perform even the most hardcore and advanced technical analysis on assets. 

If you’re a beginner trader interested in learning how to trade, we highly recommend checking our ‘Trading Guide,’ which covers everything about crypto trading. 

Storing and transferring your Ethereum with the eToro wallet

An important aspect of crypto trading is understanding how to store your digital assets and who actually has custody over your assets. 

When you buy crypto, such as Ethereum, on trading platforms like eToro, you do not have custody over your Ethereum. eToro is responsible for storing your Ethereum, which is stored in cold wallets not directly accessible via the blockchain.  

However, suppose you want more control over your Ethereum. In that case, you might consider transferring your Ethereum to a hot software wallet, which simply means it’s always connected to the internet and easily accessible. The eToro wallet is an excellent example of a hot software wallet. 

Although the eToro wallet is easily accessible, we wouldn’t be good crypto enthusiasts if we did not point out one of the significant flaws of hot software wallets. The eToro wallet is also a custodial wallet, meaning that eToro has control over the private keys for your wallet. This leads to the issue of censorship, asset seizure, account closure, or a single point of risk if eToro is hacked. 

While eToro has a good grasp of security measures, it’s essential to keep these risks at the back of your mind. One more thing, as crypto enthusiasts, using custodial wallets goes against the core concepts of crypto, which is why expert crypto traders choose to use hardware wallets.

How to set up your eToro wallet?

The eToro wallet comes as a mobile App, so to set it up, you first have to download the eToro Money app from the Apple Store or Google Store. Once downloaded, sign in with your eToro login information. 

To add a wallet to your eToro Money wallet, tap on the ‘+’ icon at the top right of the screen. You’ll be presented with a list of the available wallets. In our case, since we bought Ethereum, proceed to click on the ‘ETH’ option. 

With the ETH wallet in place, we can now transfer our Ethereum for the eToro platform to the wallet.

How to transfer Ethereum from eToro to your eToro wallet?

To transfer your Ethereum to your eToro wallet, simply navigate to the ‘Portfolio’ page and click on Ethereum. You’ll then be presented with a list of all your purchases (open trades on Ethereum), that is, if you’ve bought Ethereum more than once.

Select the Ethereum you wish to transfer. On the pop-up window, click the ‘Transfer to Wallet’ option to initiate the transfer process.

Next, ensure you review your transfer information, paying attention to the fees associated with the transaction. When it comes to trading fees on non-custodial wallets like eToro, they often have higher fees (2%) as compared to crypto-native exchanges like Binance, KuCoin, or Kraken. Here are some fee limitation figures to look out for: 

  • Coin transfer fee 2% of the transaction size
  • Fee minimum $1 (in units)
  • Fee maximum $100 (in units)

If you’re okay with everything, click the ‘Transfer’ button to transfer your Ethereum to your eToro wallet. 

Here is a 2-minute video from eToro on how to achieve this:

Point to Note: The transfer process from the eToro platform to the eToro wallet is one-way, meaning you cannot reverse or send your Ethereum back to the eToro platform. Plus, the trade will remain active until the transfer is finalized (which takes up to 5 business days.), so if your SL or TP is hit, the trade will be closed. It’s might a good idea to remove the SL and TP to avoid this. 

How to send and receive Ethereum with the eToro wallet?

Sending and receiving Ethereum with the eToro wallet is a straightforward process. 

To send, launch the eToro Money app on your mobile device and tap on the ‘Crypto’ icon at the bottom of the screen.

Select Ethereum and click ‘Send’. Input the recipient’s crypto wallet address and the amount you wish to send.

Next, review the transaction details, and if you’re satisfied, confirm the transaction. 

Here is a comprehensive 5-minute video that takes you through the entire process:

Receiving Ethereum with your eToro wallet is also straightforward. Simply send the sender your wallet address. Once they make the transfer and the transaction is confirmed on the blockchain, your Ethereum balance will be updated in your eToro wallet.

Summary

As a beginner in the cryptocurrency space, getting your hands on your first crypto assets often seems like it takes a lot of work. However, with platforms like eToro, the process becomes straightforward. eToro’s innovative, robust, comprehensive, and multi-function trading platform provides a user-friendly and secure environment to purchase, store, and trade Ethereum. 

By following this guide, you’ll be able to buy Ethereum on eToro, secure you’re eToro account and wallet with advanced security measures, transfer your Ethereum from the eToro platform to your crypto wallet, store your Ethereum in your crypto wallet securely, as well as go through how you can send and receive crypto assets. 

One thing to keep in mind is that security is essential in the cryptocurrency space. Kindly make sure you keep your credentials private from others. And if you want HODL your Ethereum for a more extended period, it might be advisable to hold your Ethereum on a hardware wallet.

In conclusion, eToro is certainly worth considering as your trading platform -it offers more functionality than your standard crypto exchange. Although the fees are slightly higher, eToro gives you peace of mind when you know you use a regulated and secure trading platform.  

FAQ on Buying Ethereum on eToro

Should I buy Ethereum in 2023?

Yes, Ethereum is worth buying in 2023 due to its potential to rise in price and positive price predictions.

Is Ethereum a good long-term investment?

Yes, Ethereum is an excellent long-term investment due to its potential to rise in price and solid diversification.

Can I buy Ethereum on eToro from my country?

eToro is available in over 100 countries, but some countries may have restrictions. Check eToro’s website for more information.

What is the eToro fee for Ethereum?

eToro charges a single, simple, transparent fee of 1% for buying or selling crypto. However, keep in mind the eToro fee for Ethereum is a spread fee, which is the difference between the buy and sell price. The spread fee varies depending on market conditions. You can find out more here.

Can I transfer Ethereum to another crypto wallet?

Yes, you can transfer Ethereum to another crypto wallet. However, you may need to pay a network fee to complete the transfer.

What is copy trading?

Copy trading is a feature on eToro that allows users to automatically copy the trades of other successful traders on the platform. This feature is handy for novice traders who may need to gain the experience or knowledge to make informed trading decisions independently.

Want to learn more about Crypto trading? Visit our Learning center today.