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Crypto CFD trading at eToro

Your expert
Gyula L.
Fact checked by
Tamás D.
Updated
Mar 2024
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Is eToro a good place to trade crypto CFDs?

If you want to trade crypto, but do so in a safe way at a regulated entity and without having to deal with too much tech, crypto CFDs could be for you. So can you trade them at eToro?

Yes, eToro is great for trading crypto CFDs, as it offers an impressive 74 different crypto CFDs. Read on to learn about the benefits, or simply click to open your account.

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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal

I recommend eToro for crypto trading
Gyula
Gyula Lencsés, CFA
Master of Broker Brilliance | CFD • Forex • Market Analysis

During my years as a trader and broker analyst, I have tried crypto trading both on coin exchanges, and in CFD form at many online brokers. Here's what you need to know if you're eyeing eToro as a place to try crypto CFD trading:

  • At eToro, you can long and short cryptos as CFDs and also use leverage.
  • CFDs are an easy way to trade cryptos: no need to deal with exchanges or wallets.
  • Trading CFDs at regulated brokers gives you more security than most crypto exchanges.
  • eToro is great for crypto CFD trading as it has a wide product selection.
eToro crypto CFD trading at a glance
Crypto CFD
Yes
Cryptos (#)
74
Overall score
4.8 stars

Data updated on March 4, 2024

BrokerChooser score
4.8 4.8 /5
Visit broker
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal

At eToro, you can long and short cryptos as CFDs and also use leverage

So what's the difference between crypto CFDs and “real” cryptocurrencies? The biggest one is that crypto CFDs are a derivative product. This means you don't actually own the cryptocurrencies you want to trade (like Bitcoin or Ethereum); you merely make bets on the price movements of these assets. This is similar to other types of CFDs, which all have their own underlying product, such as stock CFDs or commodity CFDs.

Similarly to other CFDs, crypto CFDs are typically traded using leverage. This means that you can control a much larger trading position than the money you deposited. This can greatly amplify your gains, but also your losses. Read our overview of leveraged CFD trading to learn more.

eToro BTCUSD CFD order panel

Another advantage of crypto CFDs is the ability to short-sell the underlying cryptocurrency. Shorting means betting on the price of the underlying asset to fall. When buying a “real” crypto coin, you can only make a profit if its price increases; this is called a long position. By contrast, the ability to short allows you to profit from a decrease in the price of the underlying coin - though keep in mind that a rising price in such cases will result in a loss for you.

Ready to start trading? Read our general overview of CFD trading tips and strategies, all of which also apply to crypto CFDs.

CFDs are an easy way to trade cryptos: no need to deal with exchanges or wallets

The blockchain technology behind cryptocurrencies and the digital infrastructure built around crypto trading is what makes crypto so exciting and fascinating for a lot of geeky traders; but it's the same aspect that makes crypto trading so intimidating and complex to less tech-savvy investors.

Owning actual cryptocurrencies requires familiarity with basic cryptographic concepts such as public and private keys. Setting up so-called wallets (which can be digital or even physical) to store your coins also requires quite some technical knowledge. And then you need to safe-keep the keys to your wallets or else kiss your crypto coins goodbye. Alternatively, you can keep and trade your coins at a cryptocurrency exchange, but that carries its own risks (more on those below).

By contrast, there's no need to worry about any of these tech aspects when trading crypto CFDs at an online broker. Buying or selling crypto CFDs is no more difficult than buying a simple stock or any other tradable asset. It is also usually easier, quicker and cheaper to withdraw your money from an online broker than from a crypto exchange. Still, if you're interested in how the underlying market works, read our in-depth guide to cryptocurrencies.

Trading CFDs at regulated brokers gives you more security than most crypto exchanges

Whatever you trade, the safety of your funds and assets is always of paramount importance. This is where the benefits of crypto CFDs traded at online brokers are most apparent over “real” cryptos traded on crypto exchanges and in peer-to-peer transactions.

The biggest difference is that online brokers are more strictly regulated; whereas regulation for crypto exchanges and peer-to-peer crypto transactions is, at best, a work in progress. What does this mean for you?

  • Regulations prescribe what a broker can and can't do with your money; how it can promote its products and services; and what technical, financial and legal requirements it must meet to be allowed to operate.
  • Many top-tier regulators also maintain investor protection regimes that compensate clients in the event of broker bankruptcy (usually up to a certain amount).
  • Regulators closely monitor whether brokers follow the rules, and have the power to penalize brokers that fail to comply with applicable laws.

As a result, well-regulated online brokers are less likely to default or be exposed as a scam. We at BrokerChooser only recommend brokers where the majority of clients belong to an entity overseen by a top-tier regulator. If in doubt about a broker, check our scam broker directory.

Such oversight is still largely lacking for crypto exchanges, making the industry more vulnerable to fraud. In a recent high-profile example, FTX, the world's third-largest crypto exchange at the time, imploded in November 2022, the result of allegedly fraudulent activities by the company's leaders. FTX's liquidity problems, compounded by the subsequent alleged theft of almost $500 million worth of crypto tokens from the platform, left crypto traders and equity investors with the prospect that some or all of their money may never be recovered.

Risks of trading crypto CFDs

That said, solid regulatory oversight doesn't mean that crypto CFD trading at online brokers isn't without considerable risk. Trading with leverage is always highly risky, as adverse movements in the price of the underlying asset get multiplied and can lead to sizable losses on your initial investment. This is especially true for crypto CFDs, as cryptocurrency prices tend to be much more volatile than, let's say, stock prices or stock indices.

Because of this, regulators sometimes apply stricter rules to crypto CFD trading - for example, the UK's Financial Conduct Authority banned the trading of crypto derivatives (including CFDs) starting January 2021.

If you do decide to trade crypto CFDs, you can mitigate risk by setting up stop-loss orders, manually lowering leverage (if your broker allows), and making sure you're at a broker that offers negative balance protection.

eToro is great for crypto trading as it has a wide product selection

eToro has 74 different crypto CFDs to trade, which compares to about 10-15 crypto CFDs available at an average CFD broker, at least among the brokers reviewed by BrokerChooser.

Crypto CFD trading fees

Trading crypto CFDs at an online broker involves more or less the same types of fees as trading other CFDs like stock CFDs.

  • The spread is the difference between the bid (sell) and the ask (buy) price. Brokers set spreads on their own, taking into account market liquidity and the price volatility of the asset.
  • An overnight fee must be paid if you hold your position for more than one day.
  • A commission is a flat or percentage-based cost item per trade; it is increasingly rare at online CFD brokers, but more typical (and often much higher) at cryptocurrency exchanges.
eToro crypto spreads
BTCUSD CFD spread
780.0
ETHUSD CFD spread
40.5

Data updated on March 4, 2024

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Author of this article

Gyula Lencsés, CFA
Gyula Lencsés, CFA

Gyula is a former analyst expert and Head of Content at BrokerChooser. With over a decade in finance, he led content creation at BrokerChooser and personally evaluated some of our 100+ listed brokers. He opened real-money accounts, executed transactions, and engaged with customer services, offering firsthand assessments. Prior to BrokerChooser, he managed mutual funds in wealth management, trading stocks, ETFs, bonds, commodities, forex, and derivatives. His goal: simplify the hunt for top brokers in a dynamic investment landscape.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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