Last week I have tried out eToro and investing in crypto through that platform. What is good – and what is bad?

Deposit and Withdraw
I can deposit with card, bankaccount, Paypal and Neteller. This is very good because I like to pay with Paypal. Without any fee I can send money to PayPal and send money to eToro. Minimum deposit is 50 USD. That is okej. 5USD in withdraw fee – ProBit has 4 USD and Binance about 1,5-2 USD.

ID
Yes you need KYC to begin trading.

Crypto or CFD
When you buy crypto in eToro it can be in real crypto OR in CFD. It depends what you want to do.
SELL-position = Open a sell-position and your value will go up when BTC goes down. Here it is CFD.
BUY – position = Open a buy-position and your value will go up when BTC goes up. Here it is reall crypto.
WITH LEVERAGE – If you want to buy with leverage x2 it is in CFD.

In eToro you can maximum trade with x2 in leverage because they are following a EU-law that restrict how risky a trade can be for a non-proffessionall.

x2 is risky but still – I think it is low. I rather see bigger options even if it is extremly risky. It is up to you to decide…

No forks
If you buy crypto i eToro you need to follow the market closely. Because you can not be sure that you get any extra tokens in forks. Both becuase you maybe invest in CFD – not real crypto – and beacuase that they only have about 15 cryptos.

Spread…
In eToro you dont pay any fee for trading – only spread. But the spread is enormous if you compare to Binance. Here it is 0,75-2,75 %.
A spread at 2,75 % is HUGE…

Positiv with eToro

I think the platform is extremly userfriendly. I can also find it in my langue and that is not so common. I only know some few platforms where I can buy crypto and all text is in swedish.

I also like the easy way to invest in crypto. Here in sweden a lot of banks has stoped transfering money to coinbase and kraken and bitpanda and so… But they dont stop me to put monney to Paypal or eToro. 🙂

I also like the easy way go long or short – with or without leverage.

And I always trade my fiat-to-crypto or crypto-to-fiat. That makes i a lot more easy to calcualte my taxes.

Negative with eToro

The spread is high! In stocks and funds it is much much lover.
Then it is only 15 coins to choose at. So this is not a place where I can find small cool coins – only 15 of the top 30. Btc, litecoin, Ada, Eos and so on.

And maybe the most – it is not real btc. So I can not use it to claim airdrops or forks.

Will I stay there – yes with some of my money. But for one reason. I am a contentwriter and now I am writing about eToro to my customers. Some day I will write about other platforms and I move my money.

I still think it is good that CFD is a way to invest in crypto. All ways that raise the level of adoption is good. But how many really understand crypto are going to eToro???