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.
What is eToro?
eToro is a prominent online trading platform that enables users to buy, sell, and trade a variety of assets, including cryptocurrencies like Bitcoin. It stands out for its user-friendly interface and innovative social trading features, which allow investors to follow and mimic the trades of successful traders. eToro prioritizes security and offers an accessible environment for both beginners and experienced traders, providing tools to make informed investment decisions in the financial market.
How to Buy Bitcoin on eToro?
Are you now wondering how to buy Bitcoin 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.”
Step 5: Track your Bitcoin investment
Once you’ve purchased Bitcoin on eToro, it’s essential to consistently monitor your investment. eToro provides a comprehensive dashboard where you can track your portfolio’s performance over time. Regularly reviewing your investment allows you to make informed decisions, ensuring you’re maximizing potential returns. Use eToro’s alerts and notifications to stay updated on market trends and fluctuations, keeping your strategy aligned with your financial goals.
Other Ways of Buying Bitcoin on eToro
Explore other methods available on eToro for purchasing Bitcoin, offering flexibility and convenience to suit different investment preferences.
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.
eToro
- Innovative social trading
- Transparent fees
- User-friendly platform
eToro
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
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
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.
Fees from Buying Bitcoin on eToro
When buying Bitcoin on eToro, users should be aware of several key fees. The buying and selling fee is set at 1% of the transaction value for both buying and selling Bitcoin. This fee is automatically included in the displayed price when you execute a trade. If you choose to transfer your Bitcoin to an external wallet, there is a 2% transfer fee, subject to a minimum charge, and you will also need to cover the blockchain fee, which varies depending on network conditions.
| Fee Type | |
|---|---|
| Buying Bitcoin | 1% of the transaction value |
| Selling Bitcoin | 1% of the transaction value |
| Transferring to Wallet | 2% transfer fee (minimum charge applies) + blockchain fee |
| Receiving Bitcoin | Blockchain fee only |
| Withdrawal to Bank Account | $5 flat fee |
Is it Safe to Keep Cryptos on eToro?
Keeping Bitcoin on eToro is generally safe due to the platform’s strong security measures, including two-factor authentication and regulatory oversight. However, it is important to note that users do not have full control over their private keys, which can be a concern for some.
For those who prefer to hold their Bitcoin outside of eToro, here are other options:
- Hardware Wallets: Offline storage devices like Ledger or Trezor.
- Software Wallets: Apps like Exodus or Mycelium.
- Paper Wallets: Physical printouts of your private keys.
These alternatives provide more control over your assets.
Our Conclusions
Buying Bitcoin on eToro is straightforward and secure, making it a good choice for beginners and experienced traders alike. The platform’s user-friendly interface and transparent fee structure simplify the process. However, for those prioritizing control over their private keys, consider transferring your Bitcoin to a hardware wallet or another external storage option. This ensures added security and ownership. Overall, eToro offers a convenient entry point for Bitcoin investments with various options to suit different needs.
