How to Withdraw Crypto on eToro: Everything You Need to Know

Imagine, after weeks of trading on eToro, you've built up a sizable crypto portfolio. Now you're ready to withdraw some of your earnings. But here comes the big question: How exactly do you withdraw cryptocurrency on eToro?

Withdrawing crypto from eToro isn’t as straightforward as on other platforms like Coinbase or Binance. Here's the catch: You can’t directly withdraw crypto from eToro unless it’s transferred to the eToro Money wallet first. This can be a bit of a surprise to users expecting a simpler process. But once you understand the flow, it becomes easier to manage.

Here’s a step-by-step breakdown of how to withdraw your crypto from eToro, along with the key limitations and details you need to be aware of:

Step-by-Step Withdrawal Process

1. Verify Your Account
   Before you can withdraw any crypto, your account must be fully verified. eToro requires verification of your identity, which typically involves uploading documents such as proof of address and ID verification. Without a verified account, your withdrawal request won’t proceed.

2. Sell Crypto Assets (If Necessary)
   If you hold crypto in your eToro account that you want to cash out (not send to another wallet), the first step is to sell your crypto assets back into fiat (USD, EUR, etc.).
   Important note: eToro does not allow direct withdrawal of crypto without converting it to fiat first, unless you're transferring to the eToro Money crypto wallet.

3. Transfer Crypto to eToro Money Wallet
   If you’re looking to withdraw actual cryptocurrency (like Bitcoin, Ethereum, etc.) rather than fiat currency, you must transfer your holdings to the eToro Money wallet. This is eToro’s proprietary wallet that allows you to store and manage your crypto outside the trading platform.
   Here’s how:

   • Open the eToro trading platform.
   • Go to the “Portfolio” section and select the crypto asset you want to transfer.
   • Click on “Transfer to Wallet.”
     Note: Not all crypto assets on eToro can be transferred to the wallet. Check if the specific cryptocurrency you hold is eligible for transfer.

4. Complete the Transfer
   Once your crypto has been moved to the eToro Money wallet, you can withdraw it to any external crypto wallet. Simply open your eToro Money app, select the crypto asset, and choose “Send.” You’ll need the public address of the external wallet to complete the transaction.

5. Fees and Timeframes
   Withdrawing crypto on eToro comes with certain fees, and timeframes can vary:

   • Transfer fee: Transferring crypto from eToro to the eToro Money wallet typically incurs a small fee. The fee structure is dependent on the cryptocurrency being transferred.
   • Withdrawal fee: Once your crypto is in the eToro Money wallet, withdrawing it to an external wallet may also come with a network fee.
   • Processing time: Transfers to the eToro Money wallet usually take 1-3 business days, while sending crypto from the eToro Money wallet to an external wallet can take up to 7 days, depending on the network congestion.

Limitations and Considerations

• Not All Cryptos Are Transferable
  eToro offers trading on a wide variety of cryptocurrencies, but not all of them can be transferred to the eToro Money wallet for withdrawal. For example, more exotic or less liquid assets may be locked to the platform, meaning you would need to sell them into fiat before withdrawal.

• Minimum Withdrawal Amounts
  The minimum withdrawal amount on eToro varies depending on the asset. Ensure you have enough funds in your wallet to cover the withdrawal fees and meet the minimum thresholds.

• Country Restrictions
  eToro's crypto withdrawal features may not be available in all countries. Depending on your location, you may face restrictions on how and where you can send your crypto. It’s crucial to check the platform’s terms and conditions based on your country of residence.

Why You Might Choose to Withdraw (or Not)

There are various reasons why you might want to withdraw your crypto from eToro:

• Security: By transferring your crypto to an external wallet, you have more control over your assets and can secure them as you see fit.
• Flexibility: Withdrawing to an external wallet gives you the freedom to use your crypto for other investments, payments, or transferring to exchanges with different features.
• Tax Planning: In some cases, holding crypto in a personal wallet rather than a trading platform can have tax implications. Always consult with a tax professional to understand how crypto transactions might affect you.

However, some users choose not to withdraw their crypto because:

• Fees: The withdrawal process can become costly due to multiple fees (transfer fees, withdrawal fees, and network fees).
• Ease of Trading: Keeping crypto on eToro allows you to easily trade or exchange assets without worrying about the technicalities of external wallets.

Comparison with Other Platforms

Let’s compare eToro’s crypto withdrawal process with other major platforms in a table for clarity:

Feature	eToro	Coinbase	Binance
Direct Crypto Withdrawal	No (requires eToro Money wallet)	Yes (direct to external wallet)	Yes (direct to external wallet)
Fees	Varies by crypto, plus transfer	Network fees only	Network fees only
Timeframe	1-3 days (to eToro Money wallet)	Instant (to external wallet)	Instant (to external wallet)
Crypto Options	Limited for withdrawal	Full support for all cryptos	Full support for all cryptos

Final Thoughts

The process of withdrawing crypto from eToro is a bit more complicated than with some other platforms. While eToro excels as a user-friendly trading platform, the withdrawal process, particularly when dealing with cryptocurrencies, can feel restrictive. The need to transfer to an eToro Money wallet first adds an extra layer that some users may find cumbersome.

However, eToro’s model offers a secure and regulated environment, which might be a trade-off worth considering for beginners or those who prioritize platform reliability. Ultimately, the decision to withdraw your crypto will depend on your individual needs, goals, and tolerance for fees.

Pro Tip: Always check the latest terms and conditions on eToro’s website before attempting a withdrawal, as the process and fees can change over time.