eToro vs Crypto.com: Which crypto exchange is better?
eToro narrowly scrapes a victory in our exchange-vs-exchange showdown.
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest
- The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
- The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.
2. You should not expect to be protected if something goes wrong
- The Financial Services Compensation Scheme (FSCS) doesn't protect this type of investment because it's not a 'specified investment' under the UK regulatory regime – in other words, this type of investment isn't recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker.
- The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm or Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
3. You may not be able to sell your investment when you want to
- There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
- Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.
4. Cryptoasset investments can be complex
- Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
- You should do your own research before investing. If something sounds too good to be true, it probably is.
5. Don't put all your eggs in one basket
- Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about cryptoassets, visit the FCA's website here.
Both platforms offer more “pro” trading accounts, with access to more features, but for the purposes of this head-to-head comparison, we’ve focused on their entry-level accounts.
Round 1: Vital statistics
|Offers a debit card
|Go to site
The UK’s Financial Conduct Authority (FCA) has granted both eToro’s and Crypto.com’s applications to be registered cryptoasset firms, which will offer some prospective users reassurance. It doesn’t mean your funds are protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS), but it means both eToro and Crypto.com have committed to adhering to specific FCA regulations.
Round 2: Supported coins
If obscure altcoins are your thing, then Crypto.com’s got eToro beat. Note that eToroX supports additional cryptoassets.
Round 3: Supported fiat currencies
It’s worth noting that eToro does everything in dollars, so when you deposit GBP, that immediately gets converted to USD. You’ll incur a small FX fee of 0.4% along the way.
Round 4: Costs
|1% plus spread
|$5 (min. withdrawal $30)
|Cryptocurrency: Fees vary
|Bank transfer, Debit card, eToro Money
|Credit card, Cryptocurrency, Debit card, SEPA, Faster Payments (FPS), Apple Pay, Google Pay
|Go to site
Crypto.com customers have the option to purchase crypto via their credit card directly but that incurs a rather painful fee of 2.99%. There are several other good reasons not to use a credit card for your crypto purchase (you could lose your investment but will still have to repay the original amount borrowed plus interest, you’ll also incur a cash advance fee, to name just 2).
All in all, we found that Crypto.com is not particularly transparent about its crypto buying and selling fees, while eToro is.
Winner: eToro (…narrowly)
If you were only looking at fees, then Crypto.com might come out on top. There are cheaper platforms than eToro around, but it’s more upfront about the costs involved than most (including Crypto.com, in our opinion). And while both platforms offer an admirably impressive range of features, we think that eToro, with its Copy Trading feature (which lets you replicate the trades of other users who’ve demonstrated success previously) has the edge. Added to this, the volume of negative TrustPilot reviews for Crypto.com may put off those who are relatively new to crypto.
Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
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