Sending bitcoin from your eToro account to an external crypto wallet is a common request among eToro users. While eToro does not currently allow withdrawing bitcoin directly, there are some workarounds that will allow you to essentially “withdraw” your bitcoin from eToro.
In this comprehensive guide, I’ll walk you through the step-by-step process for 2024 on how to transfer your bitcoin from eToro to another wallet. We’ll cover:
- Understanding eToro’s crypto offering
- Why you can’t withdraw bitcoin directly from eToro
- Workarounds to transfer bitcoin from eToro
- Step-by-step tutorials for two methods
- Selling bitcoin on eToro and rebuying in another exchange
- Transferring to a supported eToro wallet and moving funds
- Tips for minimizing fees and taxes
- Frequently asked questions
By the end of this guide, you’ll have a clear understanding of how to move your bitcoin off eToro and into a wallet where you control the private keys.
Overview of eToro’s Crypto Offering
eToro is a leading social trading platform that allows users to invest in stocks, ETFs, currencies, commodities, and cryptocurrencies. eToro attracts many crypto investors due to its user-friendly interface, social features, and competitive fees.
However, there are some key limitations to eToro’s crypto offering that you should be aware of:
- No ability to withdraw to private wallets – The main limitation is that eToro does not allow withdrawing crypto to private wallets where you control the keys. Cryptos can only be withdrawn to a supported eToro wallet.
- No ability to send crypto to external wallets – eToro wallets only support incoming transfers, so you cannot send crypto bought on eToro to external wallets.
- Limited selection of coins – eToro only offers about 15 major cryptocurrencies, far fewer than most exchanges. Obscure altcoins are not available.
- Not ideal for active trading – With limited technical analysis tools, no margin trading, and high spreads, eToro is better suited for casual investors rather than active crypto traders.
So in summary, while eToro offers a convenient way to buy and hold crypto, its lack of private key control and transferability make it insufficient as your only place to own crypto. Read on to learn how to get your crypto off of eToro.
Why You Can’t Withdraw Bitcoin Directly From eToro
Many eToro users are confused by why they cannot simply withdraw their bitcoin to an external wallet like with other crypto exchanges. Here are some reasons why eToro does not allow directly withdrawing bitcoin (and other cryptos):
- Regulatory restrictions – eToro, headquartered in Cyprus, must comply with strict regulations regarding fund transfers and anti-money laundering laws. This makes it difficult to offer seamless crypto withdrawals to private wallets.
- Security concerns – Direct withdrawals increase the platform’s custody risks and liability for lost or stolen funds. eToro favors limiting withdrawal options for security.
- User experience focus – eToro is aimed at casual investors less familiar with securing their own crypto assets. The platform prefers to retain custody rather than deal with user errors sending to wrong addresses.
- Tax reporting requirements – Allowing external crypto transfers would make it more difficult for eToro to track cost basis and report taxes on your behalf.
- Increased support burden – Direct withdrawals would lead to more user errors and a higher support burden for improper transfers, lost keys, hacks, etc.
So in summary, eToro’s withdrawal policy is designed to comply with regulations, maximize security, simplify the user experience, and minimize costs. To move your bitcoin, you’ll need to use a workaround.
Workarounds to Transfer Bitcoin From eToro in 2024
While you can’t directly withdraw bitcoin from eToro to an external wallet, there are two main workarounds to essentially transfer your bitcoin holdings:
1. Sell Bitcoin on eToro and Re-Purchase on Another Platform
The most straightforward workaround is to simply sell your bitcoin on eToro, withdraw the fiat funds to your bank, and re-purchase bitcoin on a platform that allows withdrawals, such as Coinbase or Kraken.
Here are the steps:
- Sell bitcoin holdings on eToro and withdraw fiat funds
- Open an account on an exchange like Coinbase with withdrawal capabilities
- Deposit fiat funds from your bank and re-purchase an equivalent bitcoin amount
- Withdraw bitcoin to your preferred wallet
Pros: Simple process, guaranteed to work, no transfer fees
Cons: Taxable event, subject to spread/fees on both platforms
2. Transfer to Supported eToro Wallet then Move Funds
The second workaround is to first transfer your bitcoin from eToro to a supported eToro wallet that allows incoming deposits, such as EtoroX. You can then move the funds from that wallet to your preferred destination.
Here are the steps:
- Transfer bitcoin from eToro account to EtoroX wallet
- Send bitcoin from EtoroX to external wallet address
- Confirm receipt of bitcoin in your external wallet
Pros: Avoids a taxable event, low fees to transfer
Cons: Extra step, EtoroX only supports certain wallets
Let’s look at detailed walkthroughs for both methods…
Method 1: Sell on eToro and Re-Purchase Crypto Elsewhere
Selling your bitcoin holdings on eToro and re-purchasing on another platform that allows withdrawals is likely the simplest approach for most users.
While this is a taxable event and you’ll incur some trading fees, the process is straightforward and guaranteed to work. You’ll retain full control over your private keys by withdrawing to your own wallet.
Here are step-by-step instructions:
Step 1: Sell Bitcoin on eToro
First, you’ll need to sell your bitcoin holdings on eToro, which will credit fiat funds to your eToro account.
- Log into your eToro account and navigate to your BTC portfolio.
- Open your BTC order ticket and enter the amount you wish to sell, either in BTC amount or as a percentage of your holdings.
- Choose a limit or market order. With a market order, the sale will execute immediately at the current market price.
- Review your order details and confirm the sale when ready.
Once the order executes, the BTC will be sold from your account and converted to the fiat currency of your eToro account at the current market rate.
Be sure to note the total amount received, as you’ll need to re-purchase a similar BTC amount on the next platform.
Step 2: Withdraw Fiat Funds from eToro
Next, you’ll withdraw the fiat funds received from the sale out of your eToro account to your connected bank account.
- Go to your eToro account’s withdrawal page. Select your bank account as the withdrawal destination.
- Enter the fiat amount you wish to withdraw. Note that eToro has minimum withdrawal amounts depending on the currency.
- Check that the amount and details are correct then submit the withdrawal request.
It can take 1-3 business days for the funds to appear in your bank account depending on the bank.
Step 3: Open Account on New Platform
While waiting for the fiat withdrawal, you should open an account on the crypto exchange where you want to re-purchase bitcoin.
Some popular choices that allow withdrawals to your own wallet include:
- Coinbase
- Kraken
- Gemini
- Binance
Make sure to choose an exchange that supports your location and allows connecting your bank account or deposit method.
Complete the account creation process including KYC verification steps. Funding the account will come next.
Step 4: Deposit Fiat and Re-Purchase Bitcoin
Once your fiat withdrawal arrives from eToro, you can deposit it into your new exchange account and re-buy a similar BTC amount.
- Select deposit option on the exchange linked to your bank account
- Enter the fiat amount withdrawn from eToro and submit the deposit
- Use the deposited funds to place a market or limit buy order for BTC
- Be sure to buy a similar or greater BTC amount to what you sold on eToro to avoid capital losses
Buying on an exchange will incur some trading fees, so your BTC re-purchase amount may be slightly less than what you sold on eToro originally.
Step 5: Withdraw Bitcoin to External Wallet
The final step is to withdraw your re-purchased bitcoin from the exchange to the external wallet under your control.
- Navigate to the platform’s withdrawal page and select Bitcoin as the asset
- Enter your wallet’s BTC address and amount to withdraw
- Check for any withdrawal fees and adjust amount if needed
- Confirm withdrawal details and submit
Once submitted, the exchange will process the withdrawal and you should see the BTC arrive in your external wallet within 1-2 hours typically.
Congratulations, you have now successfully transferred your bitcoin from eToro to your own crypto wallet!
Method 2: Transfer to EtoroX first then Move Funds
The second workaround method involves first transferring your bitcoin from eToro to EtoroX wallet.
EtoroX is eToro’s crypto exchange subsidiary that supports depositing from eToro accounts. You can then send the funds from EtoroX to an external address.
Here is the process step-by-step:
Step 1: Transfer Bitcoin from eToro to EtoroX
First, you’ll transfer your bitcoin holdings from your eToro account to your EtoroX wallet, which is free and nearly instant.
- Make sure you have an EtoroX account and BTC wallet already set up
- On eToro, open your BTC portfolio and click “Transfer”
- Enter the amount of BTC you want to transfer or select 100%
- Enter your EtoroX BTC wallet address as the recipient
- Double check address and confirm the transfer
Your BTC balance will be deducted from your eToro account and added to your linked EtoroX wallet.
Step 2: Send Bitcoin from EtoroX to External Wallet
Once in your EtoroX wallet, you can send the bitcoin to any supported external wallet address.
- Log into EtoroX and go to your BTC wallet
- Click “Withdraw” and enter the BTC address you want to send funds to
- Enter the withdrawal amount in BTC or select Max to send the entire balance
- Confirm the details and submit the withdrawal
EtoroX will charge a small network fee for sending to external wallets. The BTC should arrive within 30-60 minutes.
Step 3: Confirm Receipt in External Wallet
Finally, check the balance and transaction history of your external wallet to confirm it received the bitcoin sent from your EtoroX account.
Once the funds are showing in your external wallet, you have successfully transferred your bitcoin from eToro into your own custody!
Tips for Minimizing Fees and Taxes
When transferring bitcoin from eToro to external wallets, you’ll want to minimize any trading fees, withdrawal fees, and taxes to the extent possible. Here are some tips:
- Use limit orders when selling on eToro or buying on the new platform to specify the price you want and avoid taker fees.
- Withdraw during off-peak hours to avoid congested blockchain periods with higher transfer fees.
- Research exchanges to find the one with the lowest trading and withdrawal fees for your location.
- Hold for over a year before transferring to benefit from long-term capital gains tax rates when you eventually sell.
- Avoid transferring at a loss to avoid realizing capital losses when transferring off eToro.
- Consider tax implications before choosing a transfer method – selling triggers capital gains while direct transfers do not.
- Track cost basis so you have records if transfers result in taxable events.
With some planning, you can minimize unnecessary costs when transferring your holdings off of eToro.
Frequently Asked Questions
Is transferring bitcoin off eToro risky?
There is some risk involved when moving crypto between platforms, such as:
- Price fluctuation between selling and re-buying bitcoin
- Entering the wrong recipient address when withdrawing
- Losing access to wallets if you misplace passwords or keys
To mitigate risks, double-check all transaction details and test small transfers first before moving your full balance.
What are eToro’s transfer limits?
eToro allows transferring up to a maximum of $500,000 worth of crypto to EtoroX per month. There are no limits on selling crypto holdings on eToro. Always withdraw amounts in compliance with eToro’s limits.
Does transferring crypto from eToro result in fees?
Selling on eToro and re-buying on another platform will incur trading fees on both platforms. Direct EtoroX transfers only have a small network fee. Compared to other brokers, eToro’s fees are still competitive.
What are the tax implications?
If you sell crypto on eToro and cash out funds, it is a taxable event and you’ll owe capital gains tax on any profits when filing taxes for that year. Direct wallet transfers are generally not taxable events.
How long does it take to transfer bitcoin out of eToro?
Selling and withdrawing fiat can take 1-3 days. Transferring to EtoroX is nearly instant. Allow up to 1-2 hours for crypto withdrawals from EtoroX or another platform to reach your external wallet. The process overall can take up to 5 days.
Conclusion
While eToro does not allow directly withdrawing crypto to private wallets, users can still transfer bitcoin off eToro using sell and re-purchase or temporary transfers to EtoroX. This provides a workable solution for those seeking to hold their crypto off the eToro platform.
The step-by-step processes outlined above allow transferring your holdings to an external wallet where you control the private keys. Just be mindful of trading fees, transfer times, taxes, and other risks when moving funds.
