The cryptocurrency market has experienced significant growth, led by Bitcoin (BTC). As of early December 2023, the total market value of all cryptocurrencies reached $1.59 trillion. Bitcoin currently dominates the market with a share of 51.99%, representing a market value of approximately $827.84 billion.
Bitcoin is a highly valuable cryptocurrency, attracting many investors. To invest in and buy Bitcoin, a safe and reputable platform is necessary. This is where eToro comes in. eToro provides a secure and reliable platform for buying and investing in Bitcoin. Additionally, eToro offers a wide range of educational materials and a vibrant community experience.
This article provides a comprehensive guide for investing in Bitcoin on eToro and outlines the key requirements for using Bitcoin on the platform.
What is eToro?
eToro is a social trading platform that allows users to trade various financial instruments, including stocks, exchange-traded funds (ETFs), and cryptocurrencies. The eToro crypto platform offers an intuitive interface and extensive functionality. This enables users to buy Bitcoin on eToro without the need for personal wallets or advanced technical skills. Users can also copy the investment strategies and portfolios of successful investors worldwide through eToro’s unique social trading platform called “copytrading.”
The eToro dashboard provides access to essential information, including real-time price charts, market trends, and social trading feeds, keeping users informed about the latest market developments. eToro also facilitates peer-to-peer trading, allowing direct user interactions.
While Bitcoin is the most popular cryptocurrency on eToro, the platform also supports other digital assets such as Ether (ETH), Cardano (ADA), XRP (XRP), Litecoin (LTC), and more. This enables users to diversify their cryptocurrency portfolios and explore various investment options.
How to Purchase Bitcoin on eToro
Here is a step-by-step guide to trading Bitcoin on the eToro platform:
Step 1: Open an eToro account
Visit the eToro website and select the “Sign Up” or “Get Started” option. Provide the required information, including your name, email address, and password. Read and agree to the terms and conditions, then click “Create Account.” You will receive a verification email from eToro, which you should open and click the link to confirm your account.
Step 2: Complete profile information and KYC verification
Before buying Bitcoin on eToro, you need to complete the identity verification process. This involves providing additional information such as your date of birth, phone number, and country of residence. Access your eToro account and click “Complete Profile” to verify your identity.
The Know Your Customer (KYC) process at eToro requires you to upload proof of address and photo ID for enhanced security and compliance with regulatory requirements. Accepted forms of identification include a passport or driver’s license, and proof of address can be provided through utility bills or bank statements. Wait for eToro’s confirmation via email before proceeding.
Click the “Verify Account” tab in the eToro dashboard to verify your account. eToro will review and approve your verification documents. Once verified, you can start purchasing Bitcoin and other cryptocurrencies on the platform.
Step 3: Deposit funds
After creating and verifying your eToro account, deposit funds to begin buying Bitcoin. eToro supports various payment methods, including credit cards, debit cards, bank transfers, and popular e-wallets like PayPal, Neteller, and Skrill. You can choose from a wide range of fiat currencies to deposit funds.
On the eToro platform, click the “Deposit Funds” button on the left-hand side of the navigation bar to initiate a Bitcoin deposit. Select your preferred payment method, enter the desired amount, and follow the instructions to complete the transaction.
Note that minimum deposit requirements may apply based on your region and selected payment method. As part of their commitment to security and compliance, eToro may request additional information or proof for certain payment methods when setting up an account.
Step 4: Search for Bitcoin
The next step is to find the Bitcoin page on the eToro trading platform. Hover over the “Trading” tab in the top left navigation menu and click “Crypto on eToro” in the drop-down menu.
On the cryptocurrencies page, scroll to the “By Market Cap” segment and click on the BTC/Bitcoin tab. Alternatively, you can use eToro’s search function by typing “Bitcoin” or its ticker symbol “BTC” into the search box. Choose Bitcoin from the list of assets and click the “Trade” button to access the Bitcoin page.
On the Bitcoin page, you can find detailed information, charts, and other important data about Bitcoin. The platform provides tools for market analysis, tracking Bitcoin’s performance, and making informed trading decisions.
Step 5: Placing a buy order
On the Bitcoin page, click on the “Invest” tab. You can choose between “Trade” and “Order.” Selecting “Trade” allows you to buy Bitcoin at the current market price. Choosing “Order” allows you to place predefined purchase orders that will be automatically executed when Bitcoin reaches the specified target value.
There are two types of orders you can place on eToro: market orders and limit orders. A market order allows you to buy Bitcoin instantly at the current market price. To place a market order, select the amount of Bitcoin you want to buy and confirm the trade.
Limit orders, on the other hand, allow you to specify a price at which you want to buy Bitcoin. The order will be executed if the market reaches your set price. When placing a limit order, enter the desired Bitcoin amount and limit price. Make sure the order details are accurate before confirming the trade.
You can enter your eToro Bitcoin purchase amount in United States dollars or Bitcoin value, depending on your preference.
eToro will execute the order, and your account will reflect the purchased Bitcoin, which you can view in your eToro portfolio.
Step 6: Set up an eToro crypto wallet (optional)
With eToro, you can connect your eToro Money crypto wallet to the eToro app and view all your trades after purchasing Bitcoin. eToro provides a built-in custodial wallet for storing Bitcoin. However, it is generally recommended to transfer funds to a personal, offline, noncustodial wallet for increased security.
Please note that there is no specific Bitcoin purchase limit on eToro, but you can set a limit for each trade in terms of dollar value or unit value.
How to Send Bitcoin on the eToro Platform
Before sending Bitcoin, ensure that you have set up and linked your crypto wallet to your eToro account. Go to the eToro dashboard and click on “Portfolio.” Select “Bitcoin” and then click “Edit Trade.” Follow the withdrawal guidelines carefully to ensure a smooth transfer of Bitcoin to your wallet app, as all transfers are irreversible.
Click “Transfer to Wallet” to complete the transaction. After completing the transfer, you can view your Bitcoin tokens in your wallet app.
How to Sell Bitcoin on eToro
Selling Bitcoin on eToro is similar to buying it. By default, eToro web wallets store Bitcoin tokens, making it easy to sell at any time. When the order form appears, click “Sell” at the top.
In your account dashboard, click on the “Portfolio” button to see real-time price displays of all your investments on eToro. Select “Bitcoin” from the list of cryptocurrencies and click the “Sell” button. Enter the amount of Bitcoin you want to sell, review the order, and click “Open Trade.”
eToro Fees
When buying Bitcoin on eToro, users are charged a 1% transaction fee. eToro does not charge withdrawal fees for U.S. clients. Clients from other countries will pay a $5 withdrawal fee regardless of the withdrawal amount or chosen payment method. For transferring Bitcoin from eToro to Bitcoin wallets, the fee is 0.5% (capped at $50).
eToro also offers the option to transfer crypto assets to the eToro Money crypto wallet for a fee of 0.1%. However, it’s important to review the eToro fee structure before making trades, as it may change over time.
Is it Safe to Keep Crypto on eToro?
Keeping cryptocurrency on eToro requires finding a balance between security and ease of use. eToro is reputable for its security protocols and protects user funds with strong security measures. The company uses encryption techniques, adheres to strict regulatory standards, and stores the majority of user funds in offline cold storage, which is less vulnerable to cyber threats.
However, storing cryptocurrency on any exchange always carries some risks. Events like cyberattacks or system malfunctions can potentially put your assets at risk. To enhance security, users should take additional precautions such as enabling two-factor authentication, using strong passwords, and following security best practices.
Many investors choose to transfer their cryptocurrency holdings to private or self-custodial wallets for increased security. These wallets give users complete control over their private keys. Deciding whether to keep cryptocurrency on eToro or move it to personal wallets requires evaluating your risk tolerance and understanding the trade-offs between convenience and increased security.