Introduction
The rise in the value of Bitcoin led to the emergence of new cryptocurrencies trying to compete with it in terms of market capitalization and value. Ethereum (ETH) currently ranks second in crypto market capitalization, making it the most traded altcoin and Bitcoin’s primary competition. Ethereum is traded on crypto exchange platforms like Etoro, which facilitates the buying, selling, and exchanging of cryptocurrencies. This article will guide you on how to buy Ethereum on eToro.
Investing in cryptocurrencies opens up a world of possibilities, and Ethereum (ETH) has emerged as one of the leading contenders in the market, giving Bitcoin a run for its money. With its strong market capitalization and widespread adoption, Ethereum has become a lucrative investment option for individuals seeking exposure to the world of digital currencies. It currently ranks second in overall crypto market capitalization.
If you’re interested in acquiring Ethereum and exploring its potential, eToro, a renowned crypto exchange platform, provides a seamless and user-friendly experience. In this guide, we will walk you through the step-by-step process of buying Ethereum on eToro, empowering you to take advantage of this exciting investment opportunity. Let’s swoop in and go through the world of Ethereum!
Highlights and Key Takeaways
- eToro is a social trading and multi-investment platform that enables users to trade and invest in cryptocurrencies, stocks, and other commodities.
- The platform allows users to interact and copy the trade options of experienced and successful traders through its distinct ‘Copy Trading’ feature.
- To ensure the safety of funds, every user on eToro must be verified before trading. eToro facilitates the buying and selling of cryptocurrencies like Ethereum through its open and close trading options.
- To buy Ethereum on eToro, you have to sign up, verify your account, deposit funds, and make your purchase.
Understanding eToro’s Platform
eToro enables traders and investors to access over 3000 financial assets, including cryptocurrencies, stocks, ETFs, indices, currencies, and commodities. The platform allows users to invest with or without leverage and utilizes a wide range of tools, which makes it suitable for both new and experienced investors. The platform offers four different types of accounts, which include:
- Personal Retail Account: This account is used mainly by new non-professional investors.
- Professional Account: This account provides access to more features.
- Corporate Account: Corporate accounts on eToro are used by legal entities for business purposes.
- Islamic Account: This is used by Muslim clients.
Brief Overview of eToro
eToro, founded in 2007, is a social investment and multi-asset brokerage platform that enables trading and investment in various financial instruments, such as cryptocurrencies, stocks, and commodities. The platform’s user-friendly interface, copy trading features, and access to diverse markets contribute to its growing popularity.
Below are some unique features of the platform;
- eToro enables its users to socialize with other traders on the forum.
- In addition, when using the platform, you can view the profiles and strategies of other traders and also copy their tactics.
- It gives users access to a $100,000 demo account.
- eToro is regulated by various financial bodies established by governments in the states in which the platform operates.
Benefits of Buying Ethereum on eToro
Purchasing Ethereum can be a hassle if you do not use the right platform. Some platforms that do not have the requisite security protocols often make users fall victim to scammers. This is why you need to choose a good platform. If you are looking to buy Ethereum, eToro is a great choice. The platform supports over 120 cryptocurrencies and also allows you to exchange more than 500 currency pairs from within its wallet.
eToro’s user-friendly interface makes it easily accessible for both new and old traders. Also, the platform allows users to buy Ethereum by following and copying successful investors’ trades with the CopyTrader feature on the forum. This is useful if you are new to trading and investing. Below are some of the reasons you may want to consider buying Ethereum on eToro;
- The platform has a friendly interface.
- You can mimic the trades of other investors.
- You can buy Ethereum on eToro fractionally.
- eToro has no hidden transaction fees. The fees are always expressly stated.
- Eligible customers have access to free insurance.
- It maintains high cyber security standards.
Step-by-Step Guide to Buying Ethereum on eToro
If you intend to buy Ethereum on the platform, and you have no clue how to go about it, this section will help you navigate the platform with ease and show how to buy Ethereum on eToro. Please follow the steps outlined below:
Step 1: Set up your account.
Step 2: Complete the verification process.
Step 3: Deposit funds.
Step 4: Make your Ethereum purchase.
Setting Up an Account
On the official eToro website, navigate to the ‘Sign Up’ button on the homepage and click on it to start the registration process.
Fill in the required details, such as your username, email address, and desired password. You can also choose to sign up using your Facebook or Google account.
Ensure you read and understand the platform’s policies and guidelines before accepting and proceeding to create your eToro account. Click on the ‘Create Account’ tab to complete the registration process.
Once you do this, a confirmation email will be sent to the email address you provided. Follow the instructions in the confirmation email.
To verify your account, you will be required to provide some personal information. This includes your date of birth, home address, and phone number. The provision of the above information complies with regulatory requirements to protect your eToro crypto account from fraud.
As part of the verification process, you will also need to provide proof of identity and your address by uploading a government-issued ID such as a passport, driver’s license, or utility bill to verify your identity and protect your eToro crypto account.
Depositing Funds
After creating and verifying your account, the next step is to deposit funds into your eToro account. On the home page, find the “Deposit Funds” option and choose your preferred payment method. eToro supports buying Ethereum and other currencies with credit/debit cards, bank transfers, and e-wallets.
If you prefer to use the bank transfer option, select that option, and eToro will provide you with a bank account number and transaction reference code. You can then proceed to your bank, bank website, or app to transfer funds from your bank account to your eToro account.
E-wallets, such as Netellar and PayPal, are compatible with Etoro. Follow the instructions on the platform to link your preferred e-wallet with eToro. After selecting your preferred payment method, enter the amount you wish to deposit into your eToro account.
eToro charges a certain amount in processing deposits, so constantly review the deposit fee before proceeding. Also, cross-check the amount and payment method, then click on “submit,” “deposit,” or “pay.” eToro might redirect you to an external payment gateway, but this should not cause you to worry.
Once the deposit is completed, a confirmation message will be sent to you, and the amount will be visible in your eToro crypto account balance.
Purchasing Ethereum
On the eToro website, navigate to the cryptocurrency page by clicking on ‘Discover’ and then selecting ‘Crypto.’ You can either scroll through the long list of cryptocurrencies or use the search option to search for Ethereum or ETH. When you find Ethereum, you can view the price, price history chart, and other relevant details.
To buy Ethereum on eToro, click on the ‘trade’ ‘invest’ or ‘buy’ button. When trading Ethereum, you will need to select a trading pair, which could be a fiat currency or cryptocurrency. To place an order, you will be required to select an order type.
There are two types of orders on eToro. A market order executes the trade at the current market Ethereum price, and a limit order will only perform the trade at a specific price or better.
After choosing an order type, the next step is to set the amount of Ethereum you want to purchase. The amount could be either in Ethereum or a fiat currency of your choice.
To secure your profit, you can set a take profit order, which allows you to sell your Ethereum automatically at a specific market price.
Proceed to confirm your order by clicking on Open Trade.
Navigating Through eToro’s Unique Features
Some unique features enabled eToro to move to the cutting edge of the financial industry. One of these features is social trading. Another feature is its user-friendly interface, which makes it suitable for both old and new users.
Exploring Social Trading
Well, the CopyTrader feature, also known as social trading, allows you to copy successful traders’ strategies. You can browse through successful eToro crypto traders’ profiles to see their earnings and positions and easily replicate their trade positions and strategies. Strategies include the amount of leverage used, target profit, stop-loss value, and the timing for closing a particular trade.
To copy a successful trader on the platform, follow the steps outlined below;
Step 1: Search for traders based on their performance, assets, and risk score.
Step 2: Choose a preferred trader’s profile.
Step 3: Set an amount for the copy and an amount for stop loss to mitigate risk.
Step 4: To execute the copy, click “copy” to begin copying the traders’ strategies.
How to Sell Ethereum on eToro
Selling Ethereum on eToro is done by closing a trade. You need to be logged into the platform to do this. If you have Ethereum on the eToro platform, follow the steps detailed below to execute a sell order.
Step 1: Locate the “portfolio” option, then find Ethereum in your portfolio by either scrolling through the cryptocurrencies listed or by using the search tab.
Step 2: Navigate the cryptocurrencies list to Ethereum or use the search option
Step 3: Click the red “X” next to the trade position you wish to close. Once this is completed, the fiat currency value of the Ethereum will be added to your eToro account balance.
Using the Virtual Portfolio
One good feature of eToro is that it allows users to practice investing with a demo account. This means that if you are new to investing, you would have a great opportunity to refine your skills by creating and using a demo account. Your demo account will be credited with $100,000, and you can discuss strategies and learn from experienced investors. The best part is that you will learn at your own pace and with no risks.
How Much Does It Cost To Buy Ethereum on eToro?
eToro charges a single 1% fee when you buy or sell any cryptocurrency on the platform. In addition to this, the Ethereum network might charge a gas fee for processing the transaction. The gas fee is not fixed.
There are two types of fees on eToro: trading and non-trading fees. Trading fees could either be a commission, a financing rate, or a spread. Below is some necessary information you need to note:
- A commission on eToro is either charged per trade or based on traded volume. A financing rate (also known as an overnight rate) is charged when you hold your leveraged positions for more than one day. The spread, on the other hand, is the difference between the buy price and the sell price.
- eToro charges Non-trading fees. If you do not log into your eToro account for more than one year, the platform will deduct a monthly fee of $10.
- eToro also charges a currency conversion fee for deposits and withdrawals in currencies other than the USD. Deposit fees also apply when you send money to your eToro crypto trading account from your bank account.
Conclusion
It is important to trade with trusted brokers because they are regulated by reputable regulatory authorities, thus ensuring compliance with strict rules and regulations. These regulations ensure that your funds are safe and not misappropriated. eToro provides a comprehensive platform for both new and seasoned traders. With its unique features, it is a well-rounded choice if you are looking to invest in Ethereum.
FAQ
Can I Buy and Sell Ethereum On eToro?
Yes, eToro allows you to buy and sell Ethereum (ETH) using various options, such as bank transfers, credit cards, and e-wallets.
Can I Buy Ethereum On eToro Without Verification?
No, you cannot buy Ethereum on eToro without verification. eToro requires every user to provide proof of identity and proof of address using a government-issued ID, passport, or utility bill. This is to comply with regulations and secure your funds from theft.
Does eToro Charge Fees for Buying Ethereum?
Yes, when you buy Ethereum on eToro, the platform charges a 1% single fee.
Do You Own Crypto On eToro?
Yes. When you purchase cryptocurrencies like Ethereum on eToro, they belong to you until you choose to dispose of them by selling them.
Is My Money Safe in eToro?
Yes, your money is safe in eToro. eToro is regulated in countries like the UK, USA, and Australia. To ensure funds are secure on eToro, the platform utilizes advanced encryption, together with an optional two-factor authentication, to provide extra protection.
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