How to Buy Bitcoin on eToro - A Step by Step Guide
What is Bitcoin?
Bitcoin is the world’s most popular digital currency that enables borderless peer-to-peer transactions and anonymous spending. eToro is a popular platform for trading Bitcoin and other cryptocurrencies. It is a social trading platform where traders can connect, share, and learn to become profitable. In this article, we will show you how to buy Bitcoin on this platform step by step.
What is eToro?
With a staggering count of over 14 million registered users, eToro stands out as a trailblazing company, renowned for its cutting-edge social trading and multi-asset brokerage services. With this platform we can invest and trade cryptocurrencies such as bitcoin, ethereum and so on in a simple and transparent way. This platform is very user-friendly, making it perfect for Bitcoin beginners.
Some of the major benefits of using this platform to buy Bitcoin include:
Easy to get started
You only need $50 to open an account and start buying Bitcoin. This platform has a simple signup process and an intuitive dashboard.
Copy Trading
eToro features a “CopyTrader” tool where you can copy the trades of other investors automatically. This includes copying crypto traders.
You can choose to copy only the crypto trades of specific traders. Whatever crypto they buy, your account will buy automatically at the same time. This can be a hands-free approach to trade Bitcoin on this platform without having to do the research yourself. But there is still a risk of loss, so choose who you copy wisely.
Secure and regulated
eToro is a regulated broker that complies with strict financial regulations. Your money and assets are safe. This platform uses state-of-the-art security measures to protect users and has insurance to cover your funds.
You own the underlying assets
When you buy Bitcoin on this platform, you are buying the actual digital currency. You own it and can buy or sell whenever you want.
Payment methods
You can purchase Bitcoin using several payment methods such as credit/debit cards, bank transfers, PayPal, Skrill, and more.
Step by Step Guide to Buy Bitcoin on eToro
Step 1 – Setting Up Your eToro Account
Creating an account is an important step to buy Bitcoin on this platform. The account setup process is very easy and can be completed quickly.
- Visit the eToro Website
To get started, visit eToro’s website and click “Join Now“
- Enter Your Personal Information
eToro will ask you to provide some personal details like your name, email address, password, and phone number. Choose a secure password to keep your account safe. This platform uses this info to verify your identity and ensure their platform remains secure.
- Read and Accept the Terms and Conditions
Carefully go over eToro’s terms and conditions as well as other legal requirements. By creating an account, you are agreeing to this platform’s policies.
- Verify Your Email Address
It’s highly important that you verify your email address. After the sign up process, this platform will notify you to verify your email address. Just click the link in that email to verify your account and activate it.
- Complete Your Profile
Add some additional info like your date of birth and home address. This platform requires this to comply with regulations and provide you the best experience.
- Verify Your Account
Verifying your identity is the last step. In order to verify that you are who you say you are, this platform will ask you for official identification and documentation proving your address. As a result, all eToro users can trade in a secure environment and fraud is prevented.
Once your account is verified, you are ready to deposit funds and buy Bitcoin on this platform! eToro makes the process simple and convenient for beginners to start building their own cryptocurrency portfolio.
Step 2: Depositing Money into Your eToro Account to Buy Bitcoin
Congratulations on opening an eToro trading account! To start trading on this platform, you must first fund your account. Here are the steps to deposit money into your eToro account:
- Select your deposit method
This platform offers several convenient options to deposit money into your account. You can choose the any of the payment method below:
Bank transfer: Transferring money from your local bank account to your eToro account is frequently done in this way. The transfer is typically completed within 1 to 3 business days. This platform does not charge any fees for bank transfers, however, your bank may charge a small transfer fee.
Credit/Debit card: You can use popular credit and debit cards like Visa and Mastercard to deposit money right away. Although eToro charges a modest fee for credit/debit card deposits, usually approximately 0.5% of the transaction amount, deposits are instantly completed.
Skrill: Skrill is a popular e-wallet that lets you transfer money to your eToro account instantly with no fees. You will need to open a Skrill account and deposit money into your Skrill account first before transferring to eToro.
Neteller: Similar to Skrill, Neteller is another e-wallet option to deposit and withdraw money on this platform with no fees. Deposits are instant but you will need a Neteller account.
PayPal: PayPal is a fast and convenient way to deposit funds into your eToro account with fee charges around 0.5% per transaction. Deposits via PayPal are instant.
- Select the amount and currency to deposit
Enter the amount you wish to deposit and select the currency. This platform accepts USD, EUR, GBP, and several other currencies. The minimum amount per deposit depends on the selected method but is typically around $50-$200.
Please note: Your deposited amount must match the currency of your eToro account. If your eToro account is denominated in USD, you need to deposit USD else conversion fees will be charged by your payment method.
- Enter the details to deposit funds
Depending on your selected deposit method, enter the necessary details to transfer funds from your bank account, card, e-wallet or other sources to your eToro account. For bank transfers, you will need to provide details like account number, routing number or IBAN/SWIFT code. For card deposits, enter your card number, expiry date and CVV code. And for e-wallets like Paypal, Skrill or Neteller, login to your e-wallet account and authorize the transfer.
The deposits you have requested will be added to your eToro balance within 1 to 3 business days (for bank transfer) or instantly for cards and e-wallets. The transferred amount and transaction ID will be shown on the deposit history page. Once the amount has been deposited into your eToro account, you are ready to start investing and trading!
Step 3: Buying Bitcoin on eToro
You have successfully deposited funds into your eToro account. Now what? It’s time to buy some Bitcoin! This platform makes it simple to invest in cryptocurrencies like Bitcoin. Here are the steps to purchase Bitcoin on this platform:
- Open your eToro account and dashboard
Log in to your eToro account. This will bring you to your dashboard which provides an overview of your account balance, portfolio value, watchlists, news feed, and more.
- Search for “BTC” or “Bitcoin”
In the search box, type “BTC” which is the ticker symbol for Bitcoin. This will filter the markets to just show Bitcoin.
- Click “Trade” or “Buy” to purchase Bitcoin
Check Bitcoin in the list of markets, please click either “Trade” or “Buy” to purchase Bitcoin. This will open an order box to purchase Bitcoin.
- Select market or limit order
You will need to choose either a market order or limit order to buy Bitcoin.
Market order: Buys Bitcoin at the current best market price. This is a speedy method of entering the market.
However, there is a chance of “slippage,” which means you could end up paying more as a result of price fluctuation.
Limit order: Buys Bitcoin only if it reaches a price set by you. This ensures you get the price you want, but there is a chance the limit price is not reached and the order is not executed.
For most casual investors, a market order is fine to purchase Bitcoin on this platform.
- Enter the amount of Bitcoin to buy
You need to enter how much Bitcoin you want to purchase in USD.
This platform allows you to buy fractional shares of Bitcoin, so you do not need to buy a whole Bitcoin which currently costs around $30,000 approx. You can begin with minimum of $10.
- Complete your order to buy Bitcoin
Review and confirm the details of your order including the amount of Bitcoin you will purchase and the total cost in USD. Then click “Open trade” to complete your order.
Your Bitcoin purchase will be executed immediately at the current market price and the units of Bitcoin you bought will be added to your eToro crypto portfolio. You can view and monitor the performance of your Bitcoin under “Portfolio” in your eToro account dashboard.
Congratulations, you now own Bitcoin!
Because of this your investment value can change with the price of Bitcoin. You can now choose to buy more or sell your Bitcoin holdings at any time through this platform.
What are the risks of trading Bitcoin on eToro?
So, before you start investing in cryptocurrencies, you should know the potential risks involved. Do thorough research, only invest money that you can afford to lose, and stay up to date with market news to help limit your exposure to risks. While the crypto markets can be exciting, it’s important to go in with realistic expectations about the volatility and uncertainties involved.
Volatility Risk
Crypto market is too volatile, that means prices can go up and down very easy. Prices like bitcoin, can drop by 10% to 50% in a single day. While volatility does provide opportunities for large gains, it also poses risks for significant losses if the market moves against you.
Liquidity Risk
Cryptocurrency markets are still developing and can lack liquidity at times. It could be challenging to buy or sell a position rapidly enough if there aren’t sufficient buyers and sellers. This could lead to losses if you need to get in or out of a trade. Liquidity risk tends to be higher for smaller cryptocurrencies.
Hacking and Security Risk
Cryptocurrency exchanges and accounts are targets for hacking and theft. This platform takes security very seriously, but there is always a possibility that their systems could be compromised and your money or personal information could be stolen. Cryptocurrency transactions are also irreversible, so stolen money is usually gone forever.
Regulatory Risk
Currently, there is little regulation of cryptocurrencies. There is a chance that governments may implement laws restricting or banning cryptocurrency trading and ownership altogether. Cryptocurrency taxation laws are also unclear currently and subject to change. Regulatory adjustments may have a big effect on the cost of Bitcoin and other cryptocurrencies.
Counterparty Risk
When you buy crypto on an exchange like eToro, you must trust that they actually hold the assets they claim to. There is a risk that this platform goes out of business or gets hacked, losing customer funds in the process.
Conclusion
eToro provides an easy and convenient platform for newcomers to invest in Bitcoin and other cryptocurrencies. This step by step process in this article makes your job easy to start your Bitcoin journey on this platform.
First, you need to register with this platform and verify your identity. This platform has a quick signup process but requires basic personal information and documentation to ensure compliance with regulations.
You can start trading as soon your account is verified. This platform offers different payment methods to deposit money into your account. Like bank transfer, credit/debit cards, e-wallets like PayPal, Skrill and Neteller. Choose a method that you prefer based on convenience and fees.
In summary, eToro is a user-friendly brokerage suited for new Bitcoin investors. Their simple and low-cost platform makes it easy to buy Bitcoin and build a crypto portfolio. By following the steps outlined in this article, you will be able to navigate eToro’s interface to fund your account, buy Bitcoin and manage your investments smoothly. Take the first step in your Bitcoin journey today with eToro!
Disclaimer: This post is intended solely for informational purposes and should not be taken as legal, tax, investment, financial, or any other form of advice. Although all the information provided is true to the best of our knowledge, it is advisable to research well before making any kind of investments or decisions in general. The team of ReadingCrypto bears no responsibility in the event of any adverse outcomes.
