Cryptocurrency trading has surged in popularity across the UK, with platforms like eToro offering a user-friendly way for both beginners and experienced investors to buy and sell digital assets. If you're looking to start trading Bitcoin, Ethereum, or other cryptocurrencies, eToro is one of the most accessible platforms — combining a social trading interface with competitive fees and a wide selection of coins.
In this comprehensive, SEO-optimised guide, we’ll explain exactly how to use eToro to trade Bitcoin and other cryptocurrencies from the UK. We’ll cover everything from account setup to trading tips, risk management, fees, and a few little-known features you may not be aware of.
What Is eToro and How Does It Work?
eToro is a global trading platform that offers access to a wide range of financial instruments. For UK users, it's fully regulated by the Financial Conduct Authority (FCA), which offers a level of reassurance many crypto platforms can't match. It combines traditional investing with unique social features, allowing you to copy other traders’ moves or invest in pre-built portfolios.
You can use eToro to invest in:
Cryptocurrencies (e.g. Bitcoin, Ethereum, XRP)
Stocks and ETFs
Commodities like gold and oil
Indices and forex
Unlike some cryptocurrency-only platforms, eToro gives you exposure to multiple asset classes in one place.
Why UK investors like eToro:
It’s FCA-regulated
The interface is intuitive and beginner-friendly
It offers a built-in crypto wallet
You can copy successful traders
You can invest small amounts — even fractions of coins
Getting Started: How to Set Up Your eToro Account in the UK
Here’s how to get up and running on eToro:
1. Sign Up
Go to the official eToro website and select “Join Now.” You can register using your email or sign in with a Google or Facebook account.
2. Complete Identity Verification
To comply with UK regulations, you’ll need to verify your identity by uploading:
A government-issued ID (like a driving licence or passport)
A recent utility bill or bank statement for proof of address
You’ll also be asked a few questions about your trading experience.
3. Fund Your Account
eToro offers several funding options for UK users, including:
Debit or credit card
Bank transfer
The minimum deposit is £50 for UK-based users.
How to Buy Bitcoin on eToro
Trading Bitcoin is straightforward with eToro’s interface:
Log into your account
Use the search bar to type “Bitcoin” or “BTC”
Click the result and then “Trade”
Enter the amount in GBP you’d like to invest
Optionally, set stop loss or take profit levels
Click “Open Trade” to finalise the purchase
You’ll now see Bitcoin in your portfolio. You can sell it at any time by selecting it and choosing “Close Trade.”
Trading Other Cryptocurrencies on eToro
eToro offers more than 70 cryptocurrencies, so you’re not limited to Bitcoin. You can trade coins like:
Ethereum (ETH)
Ripple (XRP)
Cardano (ADA)
Solana (SOL)
Polygon (MATIC)
Avalanche (AVAX)
Dogecoin (DOGE)
You can either search for a specific coin or browse all options by clicking the “Discover” tab and selecting the crypto category. The process for buying is the same as it is for Bitcoin.
eToro Crypto Trading Fees Explained
One of eToro’s standout features is its transparent fee structure. While not the cheapest platform, the fees are straightforward and easy to understand.
Trading Fee: eToro charges a flat 1% fee on all crypto trades, both when buying and selling. This is factored into the quoted price, so you’ll see it clearly before confirming a trade.
Currency Conversion Fee: Because eToro operates in US dollars, your GBP deposit is automatically converted. There’s a conversion fee of 0.5% for most payment methods.
Withdrawal Fee: Withdrawing funds costs a flat £5, with a minimum withdrawal amount of £30.
Money-saving tip: Use Wise or Revolut to convert GBP to USD before depositing to minimise currency exchange fees.
How to Use the eToro Wallet for Crypto
eToro provides a secure crypto wallet app called eToro Money, available for iOS and Android. This wallet gives you more control over your coins and lets you:
Store cryptocurrencies securely
Send and receive crypto from other wallets
Convert between cryptocurrencies
Transfer eligible crypto assets out of eToro
However, not every cryptocurrency on eToro is withdrawable. Some coins are held as Contracts for Difference (CFDs), which cannot be transferred to external wallets. Always check asset eligibility before assuming you can withdraw.
Taking It Further: CopyTrader and Smart Portfolios
One of eToro’s biggest selling points is its social trading functionality, which includes:
CopyTrader
This feature allows you to automatically copy the trades of other successful eToro investors. You can view each trader’s past performance, risk score, and portfolio breakdown before choosing to follow them.
Great for beginners who want to learn by observation or automate their strategy.
Smart Portfolios
Previously called CopyPortfolios, these are themed investment bundles managed by eToro’s analysts. Popular options include:
CryptoEqual (equal exposure to major cryptocurrencies)
CryptoTakeover (focussed on the most promising projects)
You’ll need at least £500 to invest in a Smart Portfolio, making them ideal for longer-term strategies.
Pros and Cons of Trading Crypto on eToro
Understanding the strengths and limitations of eToro is important before you commit.
Pros:
Regulated by the FCA, offering peace of mind
Very beginner-friendly interface
Access to a broad range of cryptocurrencies
Option to copy traders and invest in managed portfolios
Offers a built-in crypto wallet for eligible assets
Cons:
You pay a 1% trading fee on both buying and selling
Currency conversion fees can eat into profits
£5 withdrawal charge
Some coins can’t be moved to external wallets
Limited charting and technical analysis tools compared to specialist platforms
eToro vs Other UK Crypto Platforms
When choosing a crypto trading platform in the UK, it's useful to understand how eToro stacks up against alternatives — but rather than listing features in a table, here’s a breakdown:
Compared to Binance: Binance generally offers lower trading fees and a much wider selection of coins. However, it’s more complex and less beginner-friendly. It has also faced scrutiny from UK regulators, making eToro a safer choice for those who prioritise regulatory clarity.
Compared to Coinbase: Coinbase is extremely simple to use but charges high fees, especially when not using the advanced trading option. eToro offers a more cost-effective experience for users investing in both crypto and stocks.
Compared to Kraken: Kraken is known for its strong security and advanced tools, but its interface can be intimidating for newcomers. eToro wins for ease of use, while Kraken is better suited to experienced traders who value deeper analytics.
Bonus Tip: Cut Currency Fees Using Multi-Currency Accounts
Many UK users miss this trick: using a multi-currency account like Wise or Revolut to convert GBP to USD before depositing into eToro. Since eToro charges 0.5% on currency conversions, this can save you real money — especially if you’re investing larger amounts.
For example, if you plan to invest £1,000, a third-party conversion might cost you less than £2, while eToro could charge up to £5. Over time, this adds up significantly.
Common Mistakes to Avoid on eToro
Trading based on hype: Always do your own research and don’t blindly follow trends.
Ignoring stop losses: Use stop loss and take profit orders to manage risk.
Copying the wrong traders: Look for consistent performance, not just big one-off wins.
Not understanding fees: Make sure you’re clear on the 1% trading fee and currency conversion costs.
Assuming you own the underlying asset: Some assets on eToro are CFDs, meaning you don’t actually hold the coin or stock.
Frequently Asked Questions (FAQs)
Is eToro legal and safe to use in the UK?
Yes. eToro is fully licensed and regulated by the Financial Conduct Authority (FCA). While crypto assets themselves are not FSCS-protected, the platform follows UK compliance standards.
Can I transfer my crypto from eToro to a personal wallet?
Only certain coins are eligible for transfer to the eToro Money wallet. If a cryptocurrency is offered as a CFD, you can’t withdraw it off-platform.
What is the minimum I can invest in crypto on eToro?
You can invest from as little as $10 (roughly £8), making it accessible for all budgets.
Do I pay tax on profits from eToro crypto trades?
Yes. Crypto profits in the UK are subject to Capital Gains Tax. Keep track of all trades for tax reporting.
Can I trade with leverage on eToro?
Not for crypto in the UK. The FCA has banned leveraged crypto trading for retail investors, so crypto positions on eToro are unleveraged.
Final Thoughts
For UK investors looking to trade Bitcoin and other cryptocurrencies, eToro is one of the easiest platforms to get started with. Its user-friendly design, FCA regulation, and additional tools like CopyTrader and Smart Portfolios make it ideal for beginners and long-term investors alike.
While it’s not the cheapest option available, the platform offers a unique blend of simplicity and flexibility. Understanding the fee structure, learning how to reduce costs with multi-currency accounts, and avoiding beginner pitfalls can set you up for a smoother trading experience.
Start small, stay informed, and remember: crypto trading carries risk, but with the right approach, platforms like eToro can make navigating the market more accessible than ever.
Subscribe for more tips! Subscribe to our newsletter
Disclaimer: Smart With Money may receive compensation from affiliate links, advertisements, and partners featured on this site. This compensation does not influence our editorial content, reviews, or recommendations. Our opinions are our own, and we aim to provide accurate and objective financial information to help you make informed decisions.
Additionally, all content provided on SmartWithMoney.co.uk is for informational purposes only and does not constitute financial advice. Please seek independent financial advice before making any financial decisions.