How to Buy Bitcoin on eToro: A Comprehensive Tutorial

Introduction

Bitcoin has become more popular among crypto traders and investors over the years. As more people try to understand the blockchain industry, the question “What is cryptocurrency?” has become inevitable to those interested in trading digital assets.

Platforms like eToro have positioned themselves to provide much-needed Bitcoin-related transactions, giving users a gateway to join the crypto market. This article highlights how to buy Bitcoin on eToro and explores the trading platform’s unique features. 

Highlights and Key Takeaways

• eToro is a reputable platform for buying and selling Bitcoin.

• eToro offers various features, such as social trading, demo accounts, 24/7 trading, Over 5000 trading instruments, and more.

• Traders need to open an account with eToro and complete a verification process to start investing in Bitcoins.

Understanding eToro’s Platform

Brief Overview of eToro

eToro is a brokerage company that supports social investment and a platform for trading assets, such as crypto coins.

It was established in 2007 to help people execute trades in a simple and transparent manner. So far, the company has 10 offices spread across different parts of the world.

• eToro has become famous over the years thanks to its unique approach to social trading (also known as copy trading).  

• It features CopyTrader software that allows traders to replicate the trading activities of successful investors in real time.

• The platform displays all the relevant data helpful in making informed trading decisions, including portfolio composition, profit percentage, historical trades, and risk score.  

• In addition, eToro has a news feed that operates like that of social media platforms. This feature allows traders to share ideas, insights, and trading strategies, promoting a sense of community among users.

eToro makes it easy for traders to locate investors to copy through its intuitive user interface and innovative features like the Copy People Screen and Editor’s Choice Section.

• Perhaps the icing on the cake is eToro’s Popular Investor program that rewards successful eToro traders for being copied. 

• The payout amount usually depends on the number of copiers. Famous investors receive these payments and any profits they generate from trading.

Benefits of Buying Bitcoin on eToro

There are several perks you can enjoy when you use eToro to buy Bitcoin. The first benefit is ease of use. eToro has a user-friendly interface, which any technology-savvy person can navigate hassle-free. 

• The platform’s social trading features are also advantageous. By allowing you to view the trading strategies used by others, eToro gives you ideas and insights on effective bitcoin trading.

• eToro is a global platform, so it’s accessible to millions of people worldwide.

• The fee structure is transparent. All transaction fees are highlighted on eToro’s official website, making it easier for you to calculate trading costs.

• eToro implements robust security measures, such as cold storage, 2FA verification, multi-signature facilities, and more. These focus on safeguarding your money and personal information. Therefore, you don’t have to worry about malicious people hacking into your account and stealing your Bitcoins.

The platform is multi-regulated, that is, follows and adheres to regulations set by authorities like CySec (Cyprus), FinCen & FINRA (US), and FCA (UK). This enhances trust while offering a safe and transparent trading environment.  

• Numerous educational resources are available for users. You can leverage these materials to learn more about Bitcoin and analyze its performance on trading charts for informed decision-making.

• eToro operates 24/7 on different devices. So, you can buy bitcoin anytime, anywhere, at your convenience.

• Opening an eToro account is free, which reduces your investment costs.

• Various payment options are available, giving you the freedom to choose the method that best suits you.

• The platform has a crypto wallet where you can store your bitcoins. The wallet is protected by sophisticated encryptions, enhancing the safety of your assets. It also lets you access the coins anytime, ensuring you have complete control of your funds.

Step-by-Step Guide to Buying Bitcoin on eToro

Setting Up an Account

Creating an eToro account is easy and involves the following steps:

• Step 1: Go to the official eToro website and click on the ‘Join Now’ icon at the top-right corner of the homepage.

• Step 2: Provide a new username, a valid email address, and create a password.

• Step 3: Read the terms and conditions and check the relevant boxes to confirm your agreement.

• Step 4: Press the ‘Create Account’ button.

• Step 5: eToro will send a confirmation code to your email. Enter the code in the relevant dialogue box to verify your email address.

You will be required to undergo an identity verification process before you can trade or invest in cryptocurrencies with the new account. The mandatory verification process aligns with the “Know Your Customer“ (KYC) policy that compels regulated exchanges like eToro to verify customers’ identities to curb fraud. The verification process is seamless and includes these steps:

• Step 1: Log in to your new eToro account and go to the “Verify” page.

• Step 2: Choose the document you want to upload as proof of identity (a government-issued ID or valid passport) and complete the following instructions. You can submit bank statements, utility bills, tax letters, etc., for proof of address.

• Step 3: Wait for the platform to confirm your submitted information. You should receive feedback within 24 hours or more. Once verified, a green tick will appear next to your username on the user dashboard.

eToro offers demo accounts for users to practice crypto trading with paper funds instead of risking real money. Starting with a paper trading account helps build confidence before switching to a live account. The eToro demo account also provides an ideal platform to learn more about eToro’s features and how to use them to your advantage.

Depositing Funds

After opening an account and completing ID verification, it’s time to deposit funds. Navigate to the deposit page, and select your preferred currency from the available options. eToro supports numerous payment options, including PayPal, credit/debit cards, Skrill, bank transfers, and more. Choose the suitable deposit method and follow the prompts to complete the transaction. 

• Enter the amount you want to deposit. Note that the minimum and maximum deposit amounts vary from one payment option to another. Generally, the first-time deposit is pegged at a minimum of $100 or $500 if made by wire transfer for US users.

• Double-check the deposit details to ensure you provide the correct information.

• Follow the prompts provided by your chosen payment option to complete the transaction. The instructions may vary from one service provider to another.

• Wait for confirmation. If everything goes well, your funds will arrive in the account within a short period.

Purchasing Bitcoin

Now that you have a functioning eToro account, you can transact Bitcoins whenever you want. The interface is user-friendly, so you shouldn’t have any problems navigating it. Here is a step-by-step walkthrough on how to buy Bitcoin on eToro:

• Step 1: Sign in to your account.

• Step 2: Go to the cryptocurrency section and type ‘Bitcoin’ on the search bar to locate it.

• Step 3: Once you select and click on the Bitcoin listing, you will be directed to its trading interface.  

• Step 4: Find the ‘Invest’ button, and click it. Afterward, you will see the ‘Trade’ or ‘Order’ features. The former allows you to buy Bitcoin at the current market price. In contrast, the latter will enable you to place an order that automatically purchases Bitcoin when its value reaches a certain point.

Consider downloading the eToro Money crypto wallet to store your Bitcoin safely. To transfer to the eToro Money Wallet, head to the Portfolio section, choose the ‘Transfer to Wallet’ option, and press the ‘Send’ button. You will get notified when the request is completed.

Navigating Through eToro’s Unique Features

Below, we highlight the top features that make eToro standout from its competitors. 

Social Trading

Social or copy trading is one of eToro’s distinctive and most prominent features. It gives users, especially beginners, a chance to mirror the trades of more experienced traders. As such, the platform has developed several innovative solutions that facilitate social trading and enhance the user experience.

• The eToro webpage is designed to allow any user to see the various trading metrics (e.g., track records, risk score, profits, portfolios) of other traders. The goal is to make the copy-trading process seamless.

• It’s possible to attach a portion of your money to another investor’s portfolio, thanks to the CopyTrading system available on the platform. Therefore, you can copy everything they do automatically in real-time.

• The Copy People Discovery Tool enables you and other investors to view each other’s trading parameters and assets traded and even communicate directly through the trader’s feed. The tool also includes numerous filters which you can adjust to align with your preferences.

• eToro includes  Smart Portfolios that combines different assets or traders under a specific investment theme, helping you diversify your investments and mitigate risk.

Social feeds are a vital component of eToro’s social trading platform. These function like social media platforms and allow you to engage with other investors, share ideas, and discuss market trends. You can follow other traders, like or share comments, and post content. All this helps to improve your trading knowledge.

• eToro’s Popular Investor program incentivizes traders whose trades are copied more. The more other traders copy them, the more perks they receive.

• Popular Investors can be paid up to a 1.5% management fee by eToro and benefit from a spread rebate of up to 100%. This ensures that everyone who takes the time and effort to explore the markets and develop an effective trading strategy is rewarded.

• Top Trader Smart Portfolios enhance the social trading experience by grouping successful investors in various portfolios. Therefore, you can quickly locate traders who generate consistent returns and copy them, increasing your profit probability.

Using the Virtual Portfolio

eToro’s demo account/virtual portfolio feature allows you to practice online trading without risking real cash. The feature is accessible to eToro account owners for free, and once you open it, you are awarded $100,000 of virtual money. This enables you to invest in multiple assets and test the effectiveness of various trading strategies.

• Demo accounts eliminate the fear of making real financial losses since you are operating in a risk-free environment. As a result, you can think clearly and develop more efficient trading strategies to boost your profitability when you go live.

• eToro has designed the virtual portfolio to function under real market conditions, mirroring live price changes and market trends. Therefore, you can have practical experience in trading dynamics.

• The demo account includes over 3000 trading instruments from leading international sectors, allowing you to practice trading across different markets.

Charting and analysis tools are available to help you assess price movements, patterns, and market trends, which can empower you to improve your technical methods. By facilitating skill development and testing of strategy, the tools ensure you transit to live trading smoothly.

• You can practice risk management on the platform. eToro demo accounts allow you to implement leverage, stop loss, and take profit orders. This helps you experiment with different risk levels to see the kind of outcomes they generate. Therefore, it’s easier to decide how to approach the real trading environment when you are faced with risky situations.

• The CopyTrader software is featured in the demo account, so you can use it to copy the techniques of other experienced investors to your virtual portfolio at no personal cost.

How to Sell Bitcoin on eToro

Selling Bitcoin on eToro is a relatively straightforward process as buying. Follow the prompts below to get started:

• Step 1: Open your eToro account by signing in and navigating to the portfolio section. It’s located on the left side panel of your profile.

• Step 2: Choose bitcoin as the crypto you want to trade and click on the ‘Sell’ button.

• Step 3: A new screen showing bitcoin’s live rates will pop up. Review it, specify the amount, and press ‘Sell’ at the bottom of the screen

Your request will be executed as soon as possible, and the fiat money equivalent to your bitcoin value will be added to your eToro account.

How Much Does It Cost to Buy Bitcoin on eToro?

eToro charges a standard 1% fee for the Bitcoin amount you wish to buy. This fee is added to the market price (bid-ask spread) and is often included in the price the platform displays when you open or close a position.

• A “loss” in a position will reflect immediately after you initiate a buy order. This is because the 1% buy fee you pay and the 1% sell fee you will be charged when closing a trade are included in the trading stats.

• Generally, eToro operates in US dollars, so you won’t be charged anything when you deposit US dollars in it. However, you will incur a conversion fee if you fund it with other currencies. The amount depends on the funding provider, such as the bank involved or the credit card provider.

• All withdrawal requests attract a $5 fee. Any withdrawals conducted with non-USD currencies also require you to pay conversion fees. Be prepared to pay blockchain fees applicable for receiving Bitcoins, as well.

eToro Alternatives & Competitors

Moving the Bitcoin to the eToro crypto wallet will incur a transfer fee of 2% of the transaction size. If you fail to log into your account for an entire year, eToro will render your account inactive and charge you $10 monthly in inactivity fees. This fee will be deducted from the available account balance.

• eToro’s cost structure may differ from other cryptocurrency platforms. For instance, Coinbase charges $10 for deposits and $25 for withdrawals performed through wire transfers. These charges are significantly higher than eToro’s.

• Kraken’s trading fees are slightly lower than those of eToro, as they can range between 0-0.26% based on the trading volume. Unlike eToro, withdrawal fees for Kraken are not fixed and can vary depending on the amount, reaching as high as $35.

• Binance charges lower trading fees than eToro, where every crypto trade attracts a 0.1% standard fee for regular users. Deposits for Binance are free, while withdrawal fees differ depending on the blockchain network used.

Conclusion

eToro is a platform worth trying. The cryptocurrency exchange offers many features to accommodate both new and experienced traders looking to buy Bitcoin. Conducting Bitcoin-related transactions is easy, thanks to the platform’s intuitive interface. With multiple innovative social trading features, you can follow and copy the strategies of successful traders to improve your gains.

Furthermore, eToro is a trusted broker that adheres to industry guidelines. That means you can trade in a safe environment that’s devoid of fraudulent activities.

FAQ

Can I Buy and Sell Bitcoin On eToro?

Yes, eToro supports Bitcoin transactions at a cost. Trading-related transactions often attract a 1% standard fee. The buying and selling process is also straightforward, fast, and hassle-free.

Is eToro a Good Place To Buy Crypto?

Yes, it is. eToro is a popular and intuitive platform that facilitates the buying and selling of numerous types of crypto assets. It also has various attractive features, including social trading, demo accounts, 24/7 trading, etc., that will make your investment worthwhile.

Can I Buy Bitcoin On eToro Without Verification?

No, you cannot buy Bitcoin on eToro or use its features without confirming your identity. Verification is standard practice on reputable platforms like eToro that are committed to complying with the crypto industry’s regulatory requirements.

Does eToro Charge Fees for Buying Bitcoin?

Yes, it does. The major transaction fee is based on the bid-ask spread, which is the difference between the purchasing and selling prices.

Is It Safe to Use eToro?

eToro is one of the safest trading platforms around. This can be attributed to the robust security features it applies, including two-factor authentication, cold storage, multi-signature facilities, and more.

Disclaimer: Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Investing.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB.