How to Buy Bitcoin on eToro 2023: Comprehensive Guide
Learn the simple steps to buy Bitcoin on eToro, a leading trading platform renowned for its user-friendly interface and diverse asset offerings. This guide provides a comprehensive approach to purchasing Bitcoin on eToro, ensuring a seamless experience even for novice traders. Benefit from eToro's advanced security measures, engaging social trading features, and real-time crypto tracking to optimize your Bitcoin investment journey.
When it comes to trading Bitcoin, finding a reliable platform is crucial. eToro, an innovative social trading platform, has become increasingly popular among both traditional and cryptocurrency enthusiasts. This comprehensive guide on how to buy Bitcoin on eToro will walk you through the process, from creating an account to managing your investments, ensuring you can confidently trade this digital asset.
eToro is a user-friendly platform for both novice and experienced crypto investors, with secure features such as 2FA and encryption.
eToro is popular for users looking to trade cryptocurrencies, stocks, commodities, forex, indices, ETFs, and other assets all from one convenient platform.
Learn how to purchase Bitcoin on eToro by funding your account, placing the trade, monitoring investments & setting up a custodial eToro Wallet.
Increase success in cryptocurrency trading through copy trading, staying informed & utilizing risk management tools when diversifying a portfolio.
👉 Sign Up to eToro and Diversify Your Investments!
This article will walk you through account setup, provide a brief guide on eToro navigation, and cover the process of buying Bitcoin. If you prefer video format, here is a great video from eToro showing the process in 30 seconds starting from the “Buy Bitcoin” step:
Getting Started with eToro
Embarking on your Bitcoin and trading crypto journey with eToro couldn't be easier. You don't become one of the largest trading platforms in the world and remain at the top of your game since 2007 without offering a second-to-none platform.
As a highly reliable platform, eToro boasts fantastic reviews and ratings from happy users across multiple review sites. They offer some unique features such as their widely popular social trading (CopyTrader) platform and Smart Portfolios. With its user-friendly interface and solid security measures, eToro is an ideal choice for both novice and experienced crypto investors alike.
To get started with eToro, you'll first need to create an account. This entails providing a username, email address, and password, or opting to sign up with your Facebook or Google account. Once you've registered, you'll need to go through the identity verification process and set up the necessary security features to protect your account and digital assets.
Creating an eToro Account
Creating an eToro account is a simple and straightforward process. Upon visiting the eToro homepage, you can either provide a username, email address, and password, or choose to start an account using your Facebook or Google credentials. After completing the registration form, your application will need to be verified before you can proceed.
Once your application has been approved, you'll be able to deposit funds and commence trading on eToro. Funding your account is hassle-free, as eToro accepts a variety of payment methods, including credit cards, bank transfers, crypto transfers, and e-wallets.
eToro takes the security of its users seriously and requires identity verification for all accounts. To verify your identity, you must submit proof of identity and a proof of address. Acceptable identity documents include a valid passport or both sides of your government-issued ID. For proof of address, you can submit utility bills, bank statements, or government tax letters, among other options.
Uploading the required documents is a fairly straightforward and seamless process. Log in to your eToro account and navigate to the “Verify Identity” page. Select the type of document you wish to upload and follow the provided instructions. The identity verification process typically takes up to 24 hours; from most reviews online, customers seem generally satisfied with the ease and speed of account verification.
If you happen to encounter any issues, eToro's customer support team is also highly rated and available to provide 24/7 support. You can reach the support team via email, submitting a support ticket through the website, or live chat, with the latter being the preferred method.
Setting Up Security Features + eToro Security
Protecting your crypto assets and login information is always an important consideration, which is why here at the Coin Bureau, we praise the use of hardware wallets and practising self-custody. If you are new to crypto, I highly recommend checking out our comprehensive Crypto Safety article.
We also do our very best to perform in-depth due diligence and only cover projects and platforms that take security seriously and are happy to report that eToro employs robust security measures to ensure the safety of your digital investments. eToro utilizes a combination of offline and online storage for coins, two-factor authentication, and state-of-the-art monitoring tools to safeguard your crypto assets. Additionally, user-level protections such as two-factor authentication (2FA) and account encryption are offered by eToro.
Here is a breakdown of the lengths eToro goes to in order to ensure the security of your assets:
- Advanced encryption technologies: eToro deploys advanced encryption and masking technologies to secure users' personal information
- Safeguarding accounts: The funds in users' eToro Money accounts are held in a designated safeguarding account at an authorized credit institution
- Offline and online storage of coins: eToro uses both offline and online storage of cryptocurrencies coins and state-of-the-art monitoring tools
- SIPC + FDIC insurance: Any US stocks or options held in users' eToro accounts are covered by Securities Investor Protection Corporation (SIPC) insurance. Moreover, eToro accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000, providing an extra layer of protection for your funds.
- Top-tier banks: Customer funds are kept secure in top-tier banks, and all personal information is SSL encrypted
- Multi-factor authentication: Users can activate multi-factor authentication to further protect their accounts using a 2FA app like Google Authenticator or Authy
- Bug bounty programs: eToro participates in bug bounty programs to identify and fix vulnerabilities in its systems and software
- Regulatory oversight: eToro is regulated by financial authorities in numerous countries
- Insolvency Protection: eToro has private insurance that covers investors up to 1 million euro/dollars/pound in the unlikely event of the company becoming insolvent
Overall, eToro has strict and well-managed regulations and laws set to prevent any fraudulent activity and robust protocols in place to protect funds and data. It is also good to note that eToro has a fantastic security track record in terms of never having any hacks or breaches that resulted in a wide loss of user funds, but it is worthwhile to highlight that there have been issues with a large scale data breach in 2020 that resulted in 62,000 account email addresses, names, addresses and passwords being stolen by hackers.
Security Hygiene Tip: It's important to note that no security measure is foolproof, and users should take additional steps to protect their accounts and funds, such as using strong passwords, not sharing login information, and keeping their devices and software up to date. Consider using a password manager and always enable 2FA when possible.
Understanding eToro's Trading Platform
Navigating eToro's crypto trading platform is very user-friendly thanks to its intuitive design and well-laid-out interface. The platform offers a quick registration process, the largest social + copy trading arena in the industry, and a transparent fee structure, making it a top choice for those just starting out or already well-versed in the world of stock, index, commodity, and cryptocurrency trading.
My personal favourite thing about eToro, besides how easy it is to use, is the power of being able to trade multiple assets all from one place. When it comes to investing, I need a spreadsheet just to keep track of my multiple crypto exchanges, stock trading platforms, then I even have a separate place where I invest in commodities and another one solely for ETFs and Index Funds, making my life more complicated than it needs to be.
eToro has impressed me enough that I'm considering whittling down my 15+ trading and investing platforms down to five or so, making tracking trades, managing risk, and tracking profit/loss much easier, especially when it comes to tax time.
While the variety of trading instruments may be my personal favourite thing, there is no denying that one of the primary attractions to eToro's trading platform is its focus on copy trading. This innovative feature allows users to replicate the trades of experienced investors or share their own trading strategies with the eToro community.
I won't go into too much detail about eToro copy trading in this article, as we are focusing on buying Bitcoin, if you want to learn more about this popular feature, be sure to check out eToro's article: What is Copy Trading?
In this guide, we will delve deeper into the ins and outs of eToro's platform, including navigating the interface, search and filter options, and the process of buying Bitcoin on eToro.
Navigating the Interface
eToro's platform is well-suited for both novice and experienced traders. With its straightforward navigation and unique features, eToro makes it easy for users to find and invest in their desired assets.
Here you can see how simple it is to construct a watchlist of assets you are interested in, which highlights general sentiment, 1-day change and an easy Buy or Sell option.
There is the option to use the simple trading interface, suitable for longer-term investing, swing trading and holding, which looks like this:
With that, users can set market or limit trades for buys and sells, choosing to execute the trade at the current market price or wait for price to hit a certain point. This is useful for value investors and traders that want to "buy the dip" without needing to chart watch all day. On this interface, traders can also set a stop-loss and take-profit and choose up to 5x leverage.
Obviously, if you are more of a technical trader, eToro has you covered with a state-of-the-art charting platform as well. As if eToro didn't have enough going for it, I was really pleased to see that the charting platform is provided by the industry-leading TradingView, which is the gold standard and most advanced charting platform in the world. With the TradingView integration, eToro is capable of supporting even the most hardcore of technical analysis traders. Here is a look at the charting feature on eToro, noting some of the tools and functions that are available:
To open a trade, simply locate the instrument you wish to invest in on eToro's home page, search bar, watchlist, or an existing position in your portfolio. Click on the instrument and then the 'Trade' button to initiate the process. Trading on eToro can be as easy or sophisticated as needed, catering to the needs of "one-click" investors, to advanced analysis traders.
If you are interested in learning how to trade, or upping your game, I highly recommend checking out our Coin Bureau Trading channel, where Dan, our professional and funded trader teaches the craft of trading.
You can also keep an eye on all your investments and track things like profit and loss, price, and more in the Portfolio tab:
This is a great way to get a birds-eye view of your portfolio performance and tracking your positions.
eToro Research and Analysis
Another thing I really appreciate about eToro is the ability to do your own in-depth research on the instrument you are looking at. By being able to dive into a news feed, stats, chart, and research, traders are well-equipped to make informed and intelligent investing decisions.
Here is how that would look if you were looking into Tesla stock:
Search and Filter Options
eToro offers a variety of search and filter options to help users refine their search for specific assets. By utilizing the search bar and filters, users can easily locate their desired assets and filter their search by exchange, industry, and profile.
In addition to the search bar and filters, eToro also offers the Discover People tool, a feature that enables users to find other traders either to follow or copy. This powerful tool allows users to find like-minded investors with similar trading strategies, providing a valuable resource for learning and growing within the eToro community.
Pro Tip: Use the “Discover People” tab to follow traders very different to yourself to diversify your investments. If you eat sleep and breath Bitcoin, but know nothing about commodities or stocks, simply copy a trader that is investing in or trading a non-correlated asset to broaden your exposure and reduce your risk.
How to Buy Bitcoin on eToro
Now that you've familiarized yourself with eToro's platform, it's time to dive into the process of buying Bitcoin. In this section, we will provide a step-by-step guide on how to buy Bitcoin on eToro, from funding your account to placing a trade and monitoring your investment.
To begin, you will need to fund your eToro account. As mentioned earlier, eToro accepts a variety of payment methods, including credit cards, debit cards, bank transfers, PayPal, and Rapid Transfer. Once your account is funded, you can proceed to locate the Bitcoin asset on eToro's platform and initiate the buying process.
Funding Your eToro Account
To fund your eToro account, you can choose from several convenient payment methods. eToro accepts deposits via:
- credit cards
- debit cards
- Bank deposit
- Linking your bank account through plaid (US only)
- Wire Transfer
- Rapid Transfer
With these flexible funding options, you'll be ready to start trading Bitcoin on eToro in no time.
Placing a Bitcoin Trade
Placing a Bitcoin trade on eToro is a straightforward process. First, locate the Bitcoin asset on the platform by using the search bar or navigating through the available cryptocurrencies.
Once you've found Bitcoin, click on it and then select the "Buy" button to initiate the purchase process.
To specify the amount of Bitcoin you wish to acquire, you can either input the desired amount in fiat or BTC. After entering the desired amount, simply confirm the transaction and your Bitcoin purchase will be executed. From here you can actively trade, withdraw into a self-custodial mobile or hardware wallet and hold until your heart's content.
Other than Bitcoin, eToro also supports dozens of cryptocurrencies, including but not limited to:
- Bitcoin Cash
- Ethereum Classic
- Stellar Lumens
- Binance Coin
Monitoring and Managing Your Bitcoin Investment
Once you've purchased Bitcoin on eToro, it's a good idea to monitor and manage your investment. eToro offers a wide range of advanced trading features and tools, such as charting tools, news feeds, and market analysis, to help you keep track of your Bitcoin investment and make informed decisions.
Be sure to keep a finger on the pulse of news, technological advancements, regulations, and macroeconomic events that may impact your Bitcoin investment. Here are some top resources to help ensure you retain a competitive edge:
eToro Wallet: Storing and Transferring Your Bitcoin
An important aspect of trading Bitcoin on eToro is understanding how to store and transfer your digital assets securely. eToro offers a dedicated wallet feature, known as the eToro wallet, to help users manage their Bitcoin investments.
The eToro wallet boasts the following features:
- Unlosable Private Key- The eToro Money crypto wallet private key (security key) service can help recover access to your crypto wallet, if necessary.
- On-chain address- Store, receive and transfer your cryptocurrency anywhere on the blockchain, with an on-chain address.
- Simple- Free to download, you can easily access the eToro Money crypto wallet using your eToro credentials.
However, I wouldn't be a very good crypto educator if I did not point out the major drawbacks of the eToro wallet, I think anyone who has been in the space for a while has already guessed the eToro wallet's limitations.
It is important to understand that the eToro wallet is a custodial wallet, meaning eToro handles the private keys for your wallet on your behalf. This leads to risks of censorship, asset seizure, account closure, and single point of failure risk. While the eToro wallet is convenient, secure, and good for beginners or those who do not want the responsibility of managing their own funds, using any wallet that is custodial goes against a core ethos of crypto, which is using self-custodial wallets that give users full control and ownership over their funds.
Here is a great image from 101 Blockchains highlighting the difference between a custodial and non-custodial (AKA Self-Custodial) wallet:
In this section, we will discuss how to set up your eToro wallet, transfer Bitcoin to it, and send and receive Bitcoin with the wallet. Setting up your eToro wallet is a simple process that involves downloading the eToro Money app and logging in with your eToro account credentials.
Once you've accessed the app, you can view your crypto wallets and manage your Bitcoin investment with ease.
Setting Up Your eToro Wallet
To set up your eToro wallet, first download the eToro Money app from either the App Store or Google Play Store. Once downloaded, sign in with your eToro account credentials to access your wallets.
To add a wallet, tap the + icon located at the top right of the screen. This will open a list of available wallets. Select the wallet you wish to add and follow the instructions to complete the setup process.
At the time of writing, the cryptocurrencies supported for transferring, sending, and receiving from the wallet are:
- Bitcoin Cash
With your eToro wallet in place, you can securely store and manage your Bitcoin investment.
Transferring Bitcoin to Your Wallet
Transferring Bitcoin to your eToro wallet is a simple process. First, navigate to the Portfolio section of the eToro platform and select the Bitcoin you wish to transfer. Next, click the "Send" button to initiate the transfer process. Please note that this process is one-way only, meaning that any crypto transferred from the eToro platform to your wallet cannot be transferred back.
Before transferring your Bitcoin to your eToro wallet, it's important to be aware of any fees associated with the transaction. The fees depend on the type of crypto being moved and can be found on eToro's website. Here are the fees and limitations to note:
- Coin transfer fee 2% of the transaction size
- Fee minimum $1 (in units)
- Fee maximum $100 (in units)
Sending and Receiving Bitcoin with eToro Wallet
To send Bitcoin, first, access the eToro Money app on your mobile device and log in. Next, tap the "Crypto" icon at the bottom of the screen and select Bitcoin. Finally, tap "Send" and enter the recipient's wallet address and the desired amount. Confirm the transaction to complete the process. This is a very similar process to nearly every crypto wallet.
Receiving Bitcoin with your eToro wallet is just as simple. Provide the sender with your wallet address, and once the transaction is confirmed on the blockchain, your Bitcoin will appear in your eToro wallet.
Tips for Successful Bitcoin Trading on eToro
To ensure success in your Bitcoin trading journey on eToro, it's essential to employ effective strategies and stay informed about market developments. In this section, we will offer tips for successful Bitcoin trading on eToro, such as incorporating copy trading, staying informed, analyzing the market, and managing risks.
By following these tips and utilizing eToro's unique features, you can maximize your potential for success and grow your Bitcoin investment in a sustainable manner. We cover more trading tips and tricks in our Trading on Binance Beginner's Guide that are relevant to any trading platform.
Incorporating Copy Trading
Incorporating copy trading into your Bitcoin trading strategy on eToro can be beneficial. This feature allows you to replicate the trades of experienced investors or share your own trading strategies with the eToro community.
By engaging in copy trading, you can learn from the expertise of seasoned traders, potentially improve your own trading strategies, or put your trading on autopilot.
Staying Informed and Analyzing the Market
Staying informed about market developments and analyzing the market is crucial when trading Bitcoin on eToro. Utilizing eToro's charting tools, technical indicators, and market news can help you make more informed trading decisions and better understand market trends.
In addition to staying informed, it's important to have a solid understanding of the market and develop your own trading strategies. By keeping a close eye on the Bitcoin market and continuously refining your trading approach, you can increase your chances of success in the world of cryptocurrency trading.
Managing Risks and Diversifying Your Portfolio
Managing risks and diversifying your portfolio is essential when trading Bitcoin on eToro or investing in general. By investing in different assets, you can mitigate the risk of incurring a total loss should one asset perform inadequately.
Utilizing eToro's built-in tools, such as stop-loss orders, take-profit orders, and trailing stops, these can help you manage risk effectively when trading Bitcoin.
In conclusion, eToro's innovative, robust, comprehensive and multi-functional trading platform offers a user-friendly and secure environment for trading Bitcoin and other assets. By following this comprehensive guide and incorporating the tips for successful Bitcoin trading, you can confidently navigate the world of cryptocurrency trading on eToro. Take advantage of social trading, stay informed, manage risk, and diversify your portfolio to maximize your potential for success, all from one platform.
The only downsides I have encountered are the non-custodial wallet and that there are higher than average fees (2%) for withdrawing crypto, and a higher than average fee of 1% for trading crypto. When compared to trading fees that are often fractions of a percentage on dedicated crypto exchanges like Binance, KuCoin or OKX, eToro is pricier.
Though many users feel that the trading fees are worth paying to be able to trade multiple assets, copy trade, and perform in-depth analysis and research all in one place with one of the world's most trusted and regulated trading platforms. eToro certainly offers more functionality than your standard crypto exchange so it is up to you if the extra features and peace of mind are worth the extra fees.
👉 Sign Up to eToro and Benefit From an Industry-Leading Trading Platform!
Frequently Asked Questions
It can take up to five business days from sign up to being able to buy Bitcoin on eToro, as requests are processed manually and not on weekends or holidays.
After your request is approved by eToro, the transfer will be made from the platform to your eToro Money crypto wallet.
Buying Bitcoin on eToro costs a fee of 1% of the quoted purchase price, which is included in the price when you open a Bitcoin position, then a 2% fee if you want to withdrawal the Bitcoin to your eToro wallet.
Yes, you can buy cryptocurrency on eToro with a debit card. There is no fee for making a deposit.
However, there is a 1% plus spread charge on each BTC purchase.
Yes, from our research and overwhelmingly positive review, along with their stellar track record, based on the safety measures, regulation, insurance, and encryption protocols used by eToro, it can be trusted. Their funds are held in secured tier 1 banks and personal information is protected under SSL encryption.
Given its commitment to regulation and transparency, eToro is an excellent investment platform for those looking to trade stocks, forex, CFDs and cryptocurrencies in a secure environment. Though it is not the lowest-fee option, millions of users feel it is worth paying higher-than-average fees to use a better-than-average trading and investing platform.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.