Bitcoin has established itself as the leading secure digital currency and the most valuable. The original crypto has become increasingly popular among investors as both a speculative asset and a store of value.
This guide provides you with step-by-step instructions on how to buy Bitcoin on eToro, the advantages eToro offers traders, and additional tips for successful trading on the platform.
Buying Bitcoin on eToro
Follow these steps to purchase Bitcoin on eToro.
1. Access the eToro website and create an account. Click on the “Sign Up Now” tab to begin the registration process. You will also need to verify your identity by submitting your driver’s license, proof of residence, or a valid passport.
2. Once logged in, click on “Deposit Funds” in the left navigation bar of the dashboard to fund your account. eToro supports various deposit methods, including bank transfers, e-wallets, and credit/debit cards. Choose your preferred method and ensure you meet the minimum required deposit.
3. Go to the Discover page and click on “Crypto” at the top of the dashboard.
4. Select BTC and click on “Trade” to initiate the purchase of Bitcoin.
5. Specify the amount you want to spend in USD and the order type, then click on “Buy” to finalize your transaction.
What is eToro?
eToro is a social trading and investment company founded in 2007. It offers intuitive trading for various assets, including stocks, exchange-traded funds (ETFs), commodities, and currencies.
The online broker added cryptocurrency trading in 2013, starting with Bitcoin and expanding to over 80 popular digital currencies and tokens. eToro also offers staking services for some cryptocurrencies with proof of stake in certain areas.
The platform features a user-friendly interface and offers social trading, allowing users to automatically copy the trades of the top-performing traders on the platform.
eToro is regulated by the Financial Conduct Authority and the Cyprus Securities and Exchange Commission (CySEC) in the UK and Europe.
In the United States, the company is registered as a Money Services Business (MSB) by FinCEN and holds money transmitter licenses in various states.
Advantages of Using eToro to Trade Bitcoin
Now let’s look at some advantages of using the platform to trade Bitcoin.
- Accessible and user-friendly interface
- Provides detailed charts, statistics, and news on BTC price trends
- Uses flat fees of 1% for buying or selling crypto
- Offers CryptoPortfolio services and a crypto wallet for crypto investors
- Provides social trading for less experienced investors
Risks Associated with Using eToro to Trade Bitcoin
In this section, we highlight some of the risks you should be aware of before buying Bitcoin on eToro.
- Cryptocurrency prices are highly volatile, which could result in significant losses for investors.
- eToro uses USD as the base currency, meaning if it’s not your local currency, you expose yourself to additional exchange rate risk.
- The platform charges inactivity fees for accounts inactive for 12 months.
How Bitcoin Fees and Limits Work on eToro
The platform charges a 1% fee on the purchase or sale of cryptocurrencies plus an additional spread. The fees are included in the price quoted when ordering.
When initiating a new transaction, the 1% cost for purchasing BTC and the expected 1% cost for selling the asset will be shown as a “loss” on the platform. eToro adds fees to the Bitcoin market price based on the bid-ask spread (the difference between buyer and seller prices).
The minimum amount of Bitcoin you can buy on eToro is $10.
A 2% fee is also charged when transferring Bitcoin to your eToro crypto wallet. The minimum amount of BTC you can withdraw is worth $30. Minimum fees are $1, and the maximum is $100.
How Long Does It Take to Buy Bitcoin on eToro?
eToro offers one of the simplest ways to buy and sell Bitcoin, with a user-friendly interface and robust features.
The time it takes to buy Bitcoin varies due to several factors, including the time it takes for you to open and verify your account, deposit funds, and navigate the trading page.
eToro’s intuitive interface streamlines the registration process and is simple enough to navigate even for beginners.
So, the duration of the purchase depends on your familiarity with the platform. The process can take from a few minutes to an hour, depending on how quickly you can deposit funds and initiate a transaction.
How to Transfer Bitcoin from eToro to a Wallet
eToro offers a multi-crypto wallet to help you manage and securely store your digital assets. Here’s what you need to do to transfer Bitcoin from eToro to the eToro Money wallet:
- Download the eToro Money app on your mobile phone and log in.
- Access the eToro trading platform and click on “Wallet” in the sidebar.
- Click on the asset you wish to transfer, in this case, Bitcoin. You will see all the open transactions you have under BTC.
- Click on the transaction you want to transfer and select the option “Transfer to wallet.”
- Review the transfer details and initiate it by clicking the blue “Transfer” icon.
- You will receive a notification to confirm the submission. The transfer will be processed within five business days, and once completed, your BTC will be in your wallet.
Note that the cryptocurrency transfer process is one-way. Once you transfer your Bitcoin from the eToro platform to your wallet, you cannot send it back to the platform.
Tips for Successful Bitcoin Trading on eToro
Now let’s explore some Bitcoin trading tips that can help you trade successfully on eToro:
- Stay Informed: You need to stay updated on what’s happening in the cryptocurrency sector and monitor upcoming financial events or updates that may affect Bitcoin trends.
- Implement Investment Strategies: The most popular investment strategy for Bitcoin is buy-and-hold. You can also use other investment strategies, depending on your goals.
- Understand the Risk: When investing in a volatile market, remember that associated risks can lead to significant losses. Only invest what you can afford to lose. You can also implement risk management strategies on eToro, such as setting stop-loss orders to mitigate potential losses.
- Educate Yourself: Do your research on cryptocurrency investment and learn as much as possible before diving into Bitcoin trading. eToro offers educational resources through its academy to help you enhance your knowledge of trading and investments.
- Practice: eToro offers demo accounts to anyone signing up on its platform with $100,000 in virtual money. You can practice trading with virtual money without risking real money to build confidence in your skills.
Alternative Platforms for Buying Bitcoin
There are several other platforms besides eToro that you can use to buy Bitcoin. In this section, we highlight some options you may consider.
- OKX: A leading cryptocurrency exchange globally in terms of trading volume. It offers advanced cryptocurrency trading services, including spot and derivatives trading.
- Binance: A global cryptocurrency exchange platform founded in 2017. It supports over 350 cryptocurrencies and digital assets.
- Kraken: A highly reliable platform launched in 2011. It is a leader in the industry in terms of security and offers a good selection of over 200 assets to choose from.
These platforms offer various features and services to cater to different trading needs, from beginner to advanced traders.
DYOR Before Buying Bitcoin or Other Cryptos
eToro provides a beginner-friendly way to invest and trade Bitcoin and other popular cryptocurrencies. It offers useful tools and resources to streamline your investment journey.
The platform’s demo account is an excellent way to practice your trading and get acquainted with the tools and features eToro has to offer.
However, make sure to conduct your own research before making any investment decisions and understand the risks associated with buying Bitcoin or any other cryptocurrency.
Frequently Asked Questions
1. Is it safe to buy Bitcoin on eToro?
Yes, you can safely buy Bitcoin on the social trading platform. eToro is a reputable investment platform with a vast social network of traders worldwide.
The exchange offers a range of payment options to fund your account and buy BTC, including credit and debit cards, bank transfers, and many more.
2. How much does eToro charge to buy bitcoin?
When you buy bitcoin on eToro, transparent fees of 1% are charged, which are added to the market price when you open a new transaction.
It is indicated as a “loss” when you open the transaction and includes 1% for buying bitcoins and an expected 1% fee for the sale. The minimum amount of Bitcoin you can buy on eToro is $10.
3. How to buy and sell Bitcoin on eToro?
You can buy and sell Bitcoin on eToro in a few simple steps. Start by creating an account on the eToro website and proceed to deposit funds once you have verified your profile.
Look for BTC in the “Crypto” tab on the site and initiate a transaction. Then, download the eToro Money crypto wallet to transfer your BTC.
4. Can I buy and send bitcoins with eToro?
Yes, you can buy and send bitcoins using your eToro Money crypto wallet. Once you have purchased your bitcoin on the eToro investment platform, you can transfer it to your eToro crypto wallet.
The wallet allows you to store, withdraw, and send bitcoins to other accounts.
5. Is eToro a safe platform?
eToro is a regulated social trading and investment platform that operates in accordance with regulations set by the Financial Conduct Authority (FCA).
It is trusted by over 30 million traders worldwide and adheres to strict guidelines established by financial authorities, including the Australian Securities and Investments Commission (ASIC) in Australia, the Financial Crimes Enforcement Network (FinCEN) in the United States, and the Cyprus Securities and Exchange Commission (CySEC) in the EU.
However, cryptocurrencies are not regulated in many countries, so users are not insured.
6. Is eToro good for cryptocurrency?
eToro boasts low trading fees compared to other major cryptocurrency exchange platforms. It offers a variety of cryptocurrencies and provides social and educational features that make the investment process easier.
The platform is a good entry point for investors starting out in the crypto space. However, the cryptocurrency market is highly volatile.
You should be aware of the risks associated with investment and conduct your own research.
7. Is eToro legal in the United States?
Yes, eToro is legal in the United States. Any US resident can use eToro as an investment and trading platform, and it is available in almost all states.
The trading platform is registered as a Money Services Business (MSB) by FinCEN and holds money transmitter licenses in different states.
However, some features are not supported in the US but are available in other regions.
8. Which is better, eToro or Binance?
While eToro sells cryptocurrencies alongside other investment assets, Binance is a cryptocurrency exchange focusing on digital assets with a wider variety of cryptocurrencies.
However, eToro is more beginner-friendly than Binance, with a social trading option and demo accounts enhancing the user experience.
Binance is suitable for experienced traders looking for a wider range of digital assets. eToro is an excellent choice for individuals who want to manage a range of investment products and automatically copy successful traders’ transactions.
9. What are the risks of using eToro?
Although eToro has implemented security measures, you could still be hacked if you do not adhere to standard cybersecurity measures.
Additionally, cryptocurrency traders do not have the protection available on eToro for regular asset investors, such as access to financial compensation and insurance.
The decentralized nature of cryptocurrency markets and their high volatility make cryptocurrencies high-risk assets that are likely to incur losses.