eToro's Crypto Graduation Effect

The real constraint is that eToro makes crypto easy to start, but not compelling to stay. Its crypto product is built around CopyTrader, a simple interface, and multi asset convenience, while charging a 1% spread and offering less of the workflow that serious crypto users grow into, like deep order books, margin, algorithmic tools, and professional execution.

• eToro is designed like an investing app with crypto inside it. A user can buy stocks, ETFs, and crypto in one account, follow traders in a social feed, and copy portfolios automatically. That is a strong onboarding wedge for beginners, especially outside the US.
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• Binance and Kraken are built more like trading engines. Binance offers 350 plus pairs, advanced order types, margin, options, futures, staking, and tighter fee tiers for high volume users. Kraken has built around professional traders, emphasizing speed, liquidity, and products layered on top of its exchange core.
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• This migration matters economically. eToro generated $931M of revenue in 2024 with equities, crypto, and interest income all contributing, but specialist exchanges monetize the heaviest crypto users more deeply because the most active traders do more trades, use leverage, and keep more of their financial workflow on the platform.
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The next phase is that the gap narrows only if eToro keeps adding products that retain maturing users before they leave. Its moves into options, tokenized equities, staking, and broader recurring revenue are all steps in that direction, while Kraken and Binance are also expanding outward, which raises the bar for becoming a true all in one trading platform.