Are you interested in buying Bitcoin? Need help with how to buy Bitcoin safely? This article can guide you, showing you how to buy Bitcoin on the eToro brokerage platform.
1st Method: Buy Bitcoin on eToro
The easiest way is to become an owner of BTC coins. Find out how to buy Bitcoins on eToro below.
What is buying Bitcoin on eToro?
This is the most classic way to buy Bitcoin. It’s even the only way on crypto exchanges. Concretely, this corresponds to buying Bitcoin coins yourself. Following this purchase, you become the owner of Bitcoin cryptos.
Although this way is the simplest, you should know that it is only sometimes available on brokerage platforms. Indeed, in France, a broker must obtain a license from the Market Authority (AMF) to sell Bitcoin directly. The license corresponds to being registered as a PSAN, i.e., Digital Asset Service Provider. That’s good; in 2022, the eToro brokerage platform obtained PSAN registration!
Many investors favor this way of buying Bitcoins. For what? It allows you to acquire and store Bitcoin crypto. Therefore, you have control over your Bitcoins and can keep them for as long as you want. By purchasing BTC coins outright, you can use them as a store of value.
eToro
- Number 1 copy trading platform
- Integrated social network for traders
- Trading cryptocurrency CFDs
eToro
How to store your Bitcoin?
To store your Bitcoins, you need a crypto wallet. There are two types of crypto wallets. On the one hand, you have “cold wallets,” whose leaders are Ledger and Trezor. These wallets store your cryptos offline and are therefore protected against cyberattacks. They appear as USB keys that you must plug in whenever you want to use your cryptos. The eToro platform can be used with a cold wallet.
The other category corresponds to “hot wallets.” These are wallets that store your cryptos online. These are most often mobile applications or extensions. In general, crypto exchanges and brokers have their hot wallets. This is particularly the case with eToro. This makes the process easy since you find the platform and its wallet under a single interface.
How to buy Bitcoin on eToro?
Are you now wondering how to buy Bitcoin directly on eToro? Follow the next few steps.
Step 1: Create an account
First of all, you need to register on the eToro website. Go to the eToro homepage and click the “Start Investing” button.
The registration form is concise. You need to indicate:
- A username;
- An email address;
- A password
Also, check both boxes to accept the mandatory terms and policies, then submit.
Finally, eToro sends you an email containing a link to confirm your address.
Step 2: Follow the KYC process
After step 1, you will receive another email confirming your eToro registration. However, the registration process needs to be completed. You must follow the KYC (“Know Your Customer”) procedure. Therefore, KYC is a mandatory procedure for eToro and you as a customer. As the name suggests, eToro needs to know a little about you.
You will, therefore, need to answer a few simple questions to determine your investment objectives and your level of trading experience.
In addition, you must provide identification and proof of address to confirm the information provided. After verification of the data by the eToro teams, the creation of your account is complete.
Step 3: Make a deposit
Now, you need to fund your account. In this way, you are making funds available to purchase Bitcoin on eToro. On your eToro account’s home page, click the “Deposit Funds” button on the left. A new window opens.
Complete the deposit parameters, namely:
- The currency (USD, EUR, GBP, or AUD);
- The amount;
- The means of payment.
The funds are added to your account once the deposit has been processed (the time frame varies depending on the payment method used).
Step 4: Buy Bitcoin
You are at the final step to buying Bitcoin. The easiest way to find the page dedicated to Bitcoin trading is to type “Bitcoin” or “BTC” in the search tool.
You will see the line corresponding to Bitcoin (BTC) appear. You will be taken to an informative page about Bitcoin by clicking on the line. You will find the Bitcoin price graph and an “Invest” button on which you must click. To go faster, click the “Invest” button directly on the Bitcoin line during the search.
Now is the time to set up your Bitcoin purchase. Make sure you are under the “Purchase” tab and adjust the settings. To buy Bitcoin outright, use 1x leverage. The indication “Real Cryptocurrency Trade” confirms that you are purchasing the underlying asset. To finish, click on “Open position.”
2nd Method: Buy Bitcoin CFDs on eToro
The second way to buy Bitcoin on Toro is to trade Bitcoin CFDs. Find out how to buy Bitcoin CFDs on eToro below.
What is CFD trading?
The acronym CFD stands for “Contract For Difference.” In French, this translates to “Contract for Difference.” Although the term is difficult to understand, two essential concepts emerge: contract and difference. But then, what is a CFD?
A CFD is a trendy trading instrument among specific traders. The CFD reproduces the price of an asset identically. However, it has no intrinsic value; it cannot be owned in its own right. By trading CFDs, the trader establishes a contract (or a bet) on differences (or variations) in the price of an asset.
Let’s take an example. By trading Bitcoin CFDs, you enter into a contract with eToro. You are betting on an increase or decrease in the price of Bitcoin. You will make money if you are right. On the other hand, the “traded” asset is virtual. It is a CFD. Also, you do not own Bitcoin and cannot store it in a wallet.
Binance
- Low fees
- One of the largest crypto exchanges
- Fee discount for using native BNB
Binance
What are the benefits of trading Bitcoin CFDs?
CFD trading is prevalent because it allows traders to bet on an asset’s decline and make money when its price falls. In addition, as with the eToro broker, CFD trading comes with leverage effects that allow you to amplify your gains. In addition, it allows you to benefit from the volatility of an asset without having the constraints of its management. For example, with Bitcoin CFDs, you do not need a wallet.
On the other hand, CFD trading is more technical than simply buying “real” bitcoins. Also, this type of investment is aimed at an informed public. In addition, given the leverage effects, which can also amplify your losses, it is recommended to use Stop Loss type mechanisms to control your investment. CFDs also allow you to buy other cryptos, such as Shiba Inu.
How to buy Bitcoin CFDs on eToro?
To buy Bitcoin CFDs on eToro, follow the same steps as above. You must first:
- Create an account;
- Follow the KYC process;
- To make a deposit.
Continue with step 4 to access the Bitcoin trading page. Still under the buy tab, now choose x2 leverage. Very important: you now see that it says “CFD Trade.” You, therefore, no longer buy BTC directly but rather in CFDs.
For added security, it is recommended to set a Stop Loss. Thus, your position will be automatically closed if you lose more money than the amount indicated in Stop Loss. Conversely, you can also define a Take Profit. This time, you cash out the winnings as soon as they reach the desired amount.
3rd Method: Buy Bitcoin on eToro via social trading
The third way to buy Bitcoin on eToro is to take advantage of the possibility of social trading with eToro. This is one of the broker’s strong points. Find out how to buy Bitcoin CFDs on eToro via social trading below.
What is social trading?
The eToro broker has built its reputation based on social trading. But what is social trading? The platform offers its users the opportunity to exchange and share best practices. Even better, the broker allows you to “copy” the winning investments of the most successful traders. This is called “copy trading.” On the same principle, “copying” can also be done at the portfolio level, which we call “copy portfolio.”
The broker recently added a new string to its social trading bow with crypto portfolios. The platform now offers several crypto portfolios for investors. The composition of each portfolio is different. For example, some portfolios simply group two cryptos, while others mix more and even mix cryptos and stocks. Such an investment allows you to buy Bitcoin while diversifying your investment.
“We have seen an increasing number of customers looking for an easier way to access cryptocurrency investments to build a portfolio in the future. They asked us how to split their investments between the two largest cryptocurrencies traded on eToro, so we launched an automated, rebalanced investment strategy to simplify their investments in this exciting new asset class.” – Yoni Assia, co-founder and CEO of the eToro platform.
How to buy Bitcoin on eToro via social trading?
eToro lists thousands of traders who can be copied through Copy Trading. Go to the dedicated page to view the profiles of the available traders. You have several filters to narrow down the selection. In particular, if you want to invest in Bitcoin, choose “crypto” in the “who has invested in” filter. You can also search for a trader based on:
- Geographic location;
- The minimum return he obtained;
- The reference period;
- The risk score;
- Etc.
You thus obtain the list of traders who match your criteria. Click on a profile to get more information. In particular, you want to look at the composition of its portfolio. The portfolio may consist exclusively of cryptos or a mixture of cryptos and other assets.
For example, the trader below owns mainly Bitcoin, Gold, and Zoom stock.
Consulting the profiles lets you choose the trader who best meets your expectations. Then click the “Copy” button and choose how much you want to invest in this copy. Once copying is active, this trader’s trades will be automatically imitated in your wallet.
Crypto.com
- Free crypto card
- Reputable exchange
- Competitive fees
Crypto.com
