If you're interested in conquering the crypto market, you're in the right place. By now, you probably have heard about bitcoin and all the potential benefits that come from investing in this currency.
This article will shine some light on how to trade it using one of the most popular trading platforms out there – eToro.
eToro is a reliable and popular crypto trading platform offering a selection of different cryptocurrencies, including Ethereum, XRP, and Bitcoin (BTC), among others. But the platform is so much more than a simple marketplace – it's a social investment network connecting investors and allowing them to learn from each other, exchange strategies and ideas, and observe more experienced traders, which is a terrific thing for new investors, who are just entering the trade market.
Is it worth it to invest through eToro? You can find the answers to that question in our extensive eToro Review.
Meanwhile, let's take a closer look at what buying bitcoin looks like for eToro traders and what you should know before you make your first transaction.
Can I Buy Bitcoin Through eToro?
eToro platform allows its users to purchase bitcoin, among other cryptocurrencies, like Bitcoin Cash, Ether, XRP, Dash, API3, Stellar, and many more. So the short answer is yes, you can invest in bitcoin using eToro.
The whole process is very simple as well. All you need to do is open an eToro account, link your bank account to your new eToro account, and transfer funds to it. From there, you're able to invest in and sell bitcoin through the desktop platform or convenient mobile app.
And the important thing is that you don't have to be an avid investor to start trading via the platform. If you still need to learn the ropes, eToro enables you to open a demo account with $100K in virtual funds, so you can practise and hone your skills before putting real money on the line.
Additionally, the eToro account comes with some great copy trading options, so you can learn from the more experienced traders and earn money in the process. Here's how to start trading on the platform in x easy steps.
Step-by-step Guide to Buying Bitcoin on eToro
The process of buying bitcoin through the eToro platform is straightforward and doesn't take very long. These are the steps you need to take to become an eToro bitcoin investor.
- Open an eToro account and transfer the money you want to invest from your bank account to your eToro wallet. If you already have an account, log in.
- Click on the Cryptocurrencies page and go to Discover. You'll see the list of various cryptocurrencies.
- Select bitcoin. You should see it as the first cryptocurrency on the list.
- At this point, you can click on the item (bitcoin icon) to be transferred to the information page. There you can access all the essential stats, charts, and analysis, so you can make the most informed purchase.
- Alternatively, you can click on the ‘Trade' button, and you will be transferred straight to the order panel, where you can buy bitcoin.
- Once you're in the order panel, you will have two main options – to order or to trade. The quicker approach is to trade, as this means you will simply buy bitcoin at the current price. Ordering is for more patient buyers, as it allows you to set a price target you want bitcoin to reach as well as the number of coins you wish to buy. Your order will be fulfilled once bitcoin hits the target price you've set.
- If you decide to trade, you should choose how much you want to invest. It's easy, and you can switch between ‘Amount‘ and ‘Units,' so it's more convenient for you to set the desired parameters.
- Manipulating the ‘Amount' allows you to set how much USD you want to invest. You can enter the amount manually or use the +/- buttons to select the correct amount. To start trading, you need to invest a minimum of $10. Remember that it is required to have funds in your eToro account. If you haven't made the bank transfer yet, you won't be able to place your order.
- You can also decide how many bitcoins you want to buy by manipulating the ‘Units' amount. It's worth knowing that via eToro, you can buy bitcoin in smaller quantities, as you're not required to purchase a minimum of one whole unit. Instead, you can buy a percentage of a unit, investing as much as you're comfortable with.
- Once you're done selecting the amount of bitcoin, you will need to click on the ‘Open Trade‘ or ‘Deposit Now‘ button, depending on what type of order you're placing.
- In case you don't have enough funds in your account to complete the transaction, you'll be transferred to the Deposit panel, where you can deposit funds.
- That's it! Once you've completed all these steps, your transaction will be accepted, and you'll become a bitcoin investor.
One thing to keep in mind is that you can only place orders if your profile has been approved prior to that. The approval process takes place during setting up an account when you're asked to provide some personal information like proof of your identity and address. This is a necessary step if you want to become a trader via the eToro investment platform.
Let's talk about deposit method options available with eToro. The two primary methods via which you can transfer funds to your account are ACH bank transfers or debit card deposits, but that's obviously not the end.
There are plenty of options you can choose from. Depending on your country, this list may include:
- Klarna / Sofort Banking
Undoubtedly, buying bitcoin with eToro is convenient, but is it profitable? What are the fees you need to pay in order to build your eToro money crypto wallet?
How Much Does It Cost to Buy Bitcoin on eToro?
As with most reliable cryptocurrency brokers, you will need to pay some fees when making transactions with eToro. The good news is that the platform does not charge high transaction fees.
This broker charges a 1% buying or selling fee. You will see the fee already included in the price in the form of the “loss.” When it comes to what eToro charges in other fees, you don't need to worry.
eToro does not charge any crypto wallet fees for sending or receiving transactions, while their conversion fee amounts to 0.1% and is set according to eToro market rates. You can expect to pay a $5 fee when making a withdrawal, as well as a $10 monthly fee if you have been inactive on your account for 12 months. So if you're planning not to use eToro anymore, make sure you close your account beforehand.
You can learn more about eToro fees by clicking on this link.
Transferring Bitcoin From eToro to Your Crypto Wallet
Buying bitcoin is step one, and transferring your currency to a secure crypto wallet would be the next best thing you want to do (unless you want to withdraw it immediately). In the case of eToro, the wallet they offer is called eToro Money.
Although unlike with other cryptocurrency exchanges, having a crypto wallet is not mandatory, and you can store your bitcoin on your account, it is recommended to use it. If security is one of your priorities (and it should be), then storing your crypto assets in your eToro Money crypto wallet is the right move.
How to safely approach crypto transfer?
First, there are some pieces of information worth knowing before you make any transfers. One of the most crucial things to keep in mind is the fact that you can only transfer your digital currency from the platform to your wallet, not the other way around.
What this means is that once you've made a crypto transfer, you can't transfer your bitcoin back to your trading account on the eToro site. What you can do is convert the currency to another currency or transfer it elsewhere.
eToro Money is a mobile app available for iOS and Android devices. All you have to do is download it to your phone, and you can log in using the username and password from your eToro account.
To send bitcoin from your eToro account to the wallet, you should do the following:
- Go to your Portfolio.
- Click on the cryptocurrency you'd like to transfer.
- You should see the list of your open trades for said cryptocurrency. Pick the trade you want to transfer to your currency wallet.
- Click on ‘Edit Trade‘ and then on ‘Transfer to Wallet.'
- Review the details of your transfer. If you're happy with everything, click ‘Transfer.'
- You should receive a notification that the transfer process has been initiated. On your trade line, you will see ‘Pending Transfer.' Until the transfer is completed, you can cancel it.
It might take up to five business days to process the request for transfer. You may also be asked about additional documentation in some cases. You also can expect that after your request has been processed, it can take an additional couple of days for your currency to appear in your wallet.
Bitcoin Transfer Requirements and Limits
- The eToro Money crypto wallet may not be available in your country. You can check the list of countries where this service is available here.
- Some transfer limits apply to new users. The equity you have after the transfer has been completed cannot be smaller than the total deposits made using a certain payment method.
- You can only transfer bitcoin (BTC) that is backed up by real crypto. CFDs are not suitable for currency transfer.
- The currencies that are supported by the eToro Money crypto wallet at the moment are Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Stellar, and Tron (Tron is only available for US users). You will find the updated list of transferable currencies on the eToro site.
Bitcoin Transfer Fees
Bitcoin transfer fee right now is 2%, with a minimal fee being $1 and a maximum fee amounting to $100. You can find the relevant information about transfer fees by clicking on this link.
How Long Does It Take to Buy Bitcoin on eToro?
It doesn't take long at all to close a transaction on eToro. If your account has been verified and you have transferred funds to it, buying bitcoin can take only a couple of minutes.
How Secure Is eToro?
eToro is considered one of the more secure trading platforms on the market. They are implementing various safety measures, applying SSL encryption to protect your personal information from getting leaked. eToro is regulated by tier-1 financial regulators, like FCA or CySEC, to ensure the safety of users and the highest standard of services.If you want to learn more about eToro safety protocols and the quality of their services, we recommend reading our eToro Review 2023, where our expert dives deeper into how this platform operates and what you can expect after creating your account on the eToro platform.
Benefits of Trading Bitcoin on eToro
What are some of the biggest benefits of using eToro to buy and sell bitcoin?
- Solid resources to learn how to trade (for example, through the demo account and copy trading) for new investors.
- Small fees for withdrawals, transactions, and transfers.
- Many detailed charts and analyses to help you make the best trading decisions.
- Secure currency wallet available.
- Risk management tools to better protect your investments.
- Great security measures.
- Easy learning curve.
- Straightforward sign-up process.
- Solid range of various cryptocurrencies to build a versatile portfolio.
As you can see, buying bitcoin through eToro is not a complicated process, and it's safe to say it comes with lots of benefits. New users can use the resources and community of eToro traders to learn the ins and outs of investing and observe the market's trends.
Once your account has been set up, investing becomes very easy and time-efficient. You can buy bitcoin on eToro in real-time or place orders for when bitcoin hits your BTC price target.
You can invest as much as you're comfortable with, as there's no requirement to buy a minimum of full bitcoin. And you can safely store your currency in the eToro crypto wallet. If you want to start investing in bitcoin, eToro is a great platform to do so.Check our site for more brokers' reviews, so you can know who to trust when it comes to your investment endeavours.