If you’re relatively new to crypto, trade significant cryptocurrencies like Bitcoin and Ethereum. Need a hand buying ETH? Find out how to buy Ethereum with the renowned broker eToro in this article.
1st way: How to buy Ethereum on eToro
The first way to obtain Ethereum is to buy it traditionally on an exchange platform or broker. Find out how to buy ETH on eToro below.
What is buying Ethereum on eToro?
Traditionally, buying a crypto is the easiest way to obtain it directly. So all you have to do is choose a crypto, buy it, and store it.
This is possible on crypto exchanges, which remains the cheapest way to buy Ethereum or any other cryptocurrency. On the other hand, buying ETH directly is only sometimes possible on brokerage platforms. In France, brokers must be authorized to allow their clients to buy cryptos. To do so, they must be licensed by the Autorité des Marchés (AMF). The broker can thus be registered as a Prestataire de Services sur Actifs Numériques (PSAN).
The eToro broker obtained PSAN registration in 2022. So you can buy Ethereums on eToro through the following methods:
- Buy Ethereum with credit card
- Buy Ethereum with debit card
- Buy Ethereum with paypal
- Buy Ethereum with bank account
- Buy Ethereum with gift card
Most investors prefer this way of buying ETH. Indeed, buying ETH instantly gives you control over your tokens. You can buy and sell your ethers whenever you like. You’re also free to send them to whomever you want and store them as you see fit.
How do you store your ethers?
Before buying ETH, you need a way to store your tokens. You’ll need a crypto wallet if you plan to purchase ethers on eToro. Depending on your needs, you can choose between a hot or cold wallet.
Hot wallets are online crypto wallets. They can be a desktop, mobile application, or web browser extension. Some crypto platforms offer an integrated hot wallet. This is the case with eToro. This online solution is practical; you can buy ETH and store them under the same interface. However, bear in mind that hot wallets are connected to the Internet. As a result, they may be more vulnerable to cyber-attack security breaches.
To store a large quantity of crypto, it is therefore advisable to turn to a more secure storage solution, namely cold wallets. This time, the storage is offline. As a result, funds are better protected, as they are more difficult for hackers to access. On the other hand, using a cold wallet is a little more restrictive. Most of the time, it’s a small device similar to a USB key. Therefore, you must have your cold wallet in hand to access your cryptos. The eToro platform is cold wallet compatible.
How do I buy Ethereum online on eToro?
Let’s look at the main steps involved in buying Ethereum instantly on eToro.
Step 1: Create an account
To get started, you need to create an account on eToro. To do this, click the “Start Investing” button on the site’s home page.
You will then receive an email from eToro, which for sure is one of the best places to buy Ethereum. Follow the instructions in the email to verify your email address.
Step 2: Follow the KYC process
You received another email welcoming you to eToro at the end of the previous step. You are then invited to verify your identity by following the link included in the email. This is eToro’s KYC (Know Your Customer) procedure.
This involves answering a few questions to define your user profile based on your trading knowledge and investment objectives. The platform also asks you to provide a copy of your ID and proof of address.
You’ll also be asked to answer a few questions to define your user profile based on your trading knowledge and investment objectives. The platform also asks you to provide a copy of your ID and proof of address.
Step 3: Make a deposit
Before you can buy Ethereum, you must already have funds in your eToro account. To do this, click on the “Deposit Funds” button in the menu on the left of your account.
In the window that opens, choose your deposit parameters:
- Currency (USD, EUR, GBP, or AUD);
- Payment method (credit/debit card, Paypal, Rapid, bank transfer or Sofort).
The funds are then credited to your eToro account.
Step 4: Buy Ethereum
Are you asking yourself How do I buy Ethereum near me? Well, now you’re finally ready to buy Ethereum on eToro. The first step is to go to the page dedicated to Ethereum. The easiest way to do this is to type “Ethereum” or “ETH” in the search bar at the top of the page.
Make sure you select the Ethereum (ETH) line. If you click on “Invest”, you’ll go straight to the buy page. If you click on the “Ethereum” line, you’ll go to an intermediate page to see the ETH price chart.
Once you’ve clicked on “Invest”, you can set up your order. Make sure you’re in the “Buy” tab (not the “Sell” tab!). To buy ETH outright, keep the leverage at x1.
Once you’ve adjusted the parameters, click on “Open position” to finalize the ETH purchase.
2nd way: Buy Ethereum CFDs on eToro
It’s generally easier to buy ETHs than memecoins like Shiba Inu. In fact, trading Ethereum CFDs is another way of buying Ethereum. Here’s how to buy Ethereum CFDs on eToro.
What is CFD trading?
First of all, what are CFDs? The acronym CFD stands for “Contract For Difference”. We can draw two key words from this definition: contract and difference.
In fact, CFD trading is all about establishing a contract on a price difference. This means you can bet on the price evolution of an asset without actually owning it. For example, you can trade Ethereum as a CFD. In this case, you don’t buy ETH coins outright. Even if you don’t own the ETH tokens, you can bet on the evolution of its price, either upwards or downwards. In this case, you bet on the price difference between the opening and closing of the position. If the price moves in your predicted direction, you win money.
As you can see, CFD trading is different from buying crypto outright. The asset traded in CFDs is virtual; you don’t own it. Consequently, you don’t need a crypto portfolio if you opt for CFD trading.
What are the advantages of Ethereum CFD trading?
CFD trading is a popular instrument with traders. Unlike buying outright, Ethereum CFD trading doesn’t create a store of value. However, it allows you to make money, whatever the market situation. How does it work? CFD trading allows you to bet on a fall in the value of an asset. So you can generate income even in the middle of a bear market!
What’s more, you can trade Ethereum CFDs with leverage. This means you can multiply your potential gains. But beware: leverage also works in the other direction, and you can lose a lot. As a result, this trading mode is reserved for experienced, well-trained traders. We recommend that you learn to use safeguards such as stopping losses judiciously.
Last but not least, CFD trading allows you to invest in cryptos without worrying about practicalities such as storage on a crypto wallet.
How do I buy Ethereum CFDs on eToro?
One of the safest way to buy Ethereum is via CFDs on eToro; you need to start with the same steps outlined for buying tokens outright, namely:
- Step 1: Create an account
- Step 2: Follow the KYC process;
- Step 3: Make a deposit.
Then, continue with Step 4 similarly, i.e., by going to the Ethereum trading page. Again, make sure you’re on the Ethereum buy tab. This time, change the leverage by selecting x2, for example. You’ll notice a major change in the text displayed just below. With x1 leverage, you could read “Real crypto-currency trade” or “You buy the underlying asset”. Now, with x2 leverage, it reads “CFD Trade”. So you’re actually buying an Ethereum CFD.
To better control your investment in Ethereum CFDs, it is advisable to inform:
- A Stop Loss, i.e. the maximum amount you are prepared to lose before the position is automatically closed;
- A Take Profit, i.e. the amount of gain you wish to cash in as soon as it is reached.
3rd way: Where can I Buy Ethereum? Buy it on eToro via social trading
Where to buy Ethereum? There’s also a third way to buy Ethereum on eToro. The broker has built its reputation and strength on its social trading service. Here’s how to buy ETH on eToro via social trading.
What is social trading?
The eToro brokerage platform has been a pioneer in the social trading sector. In fact, the broker makes the most of its community of millions of traders spread across more than 140 countries. This enables platform users to exchange best practices.
The social trading concept is particularly interesting for crypto beginners. This service enables less experienced traders to practice “copy trading” by imitating the transactions of more seasoned traders. This way, you can copy a trader whose profile matches your needs.
Now, you can also copy entire portfolios. Indeed, eToro offers different types of portfolios. A portfolio can be made up of two or more cryptos or even a mix of cryptos and stocks. This predefined package helps you diversify your investment by following an automated strategy.
How do I buy Ethereum on eToro via social trading?
To start using eToro’s Copy Trading service:
- Go to the page listing all the traders who can be copied.
- Use the filters to select the trader you’re interested in.
- In particular, select the filter “who has invested in” and choose “crypto.” You can also specify a geographical preference, a minimum return, and a reference period.
Then, review the available traders. In particular, you can view performance, risk score, as well as the number of copiers and subscribers. Also take a look at the portfolio composition of the investor you are considering copying. For example, the trader below has included ETH in his portfolio.
If you want to copy this trader’s trades, click on the “Copy” button. Then, indicate the amount you wish to invest in this copy and confirm. Your stake will then be automatically invested by copying this trader’s trades.