The cryptocurrency market has shown signs of robust growth, with Bitcoin (BTC) at the forefront of the surge. As of early December 2023, the combined market value of all cryptocurrencies reached $1.59 trillion. Bitcoin’s dominance currently stands at 51.99%, reflecting its colossal market share of about $827.84 billion, roughly half of the overall market worth.
Bitcoin is one of the most valuable cryptocurrencies, which explains why many investors are keen to invest and buy Bitcoin. Investing in and buying Bitcoin requires a safe, reliable and reputable platform, which is where eToro comes in. EToro also offers wide-ranging educational materials and an engaging communal experience.
This article explains comprehensive guidelines for investing in Bitcoin on eToro and covers key requirements for using Bitcoin on the eToro platform.
What is eToro?
EToro is a social trading platform that allows users to trade various financial instruments. Users receive investing solutions for stocks, exchange-traded funds (ETFs) and cryptocurrency assets.
The eToro crypto platform sports an intuitive interface and extensive functionality. This enables buying Bitcoin with eToro without needing to set up personal wallets or possess extensive technical skills. Users may copy the investment techniques and portfolios of accomplished investors worldwide using an exclusive social trading platform called “copytrading.”
The dashboard provides access to essential information that keeps users informed on the most recent developments in the market, including real-time price charts, market trends and social trading feeds. EToro also offers peer-to-peer trading, facilitating direct user interactions.
Although BTC is eToro’s most sought-after crypto, it also supports other digital assets like Ether (ETH), Cardano (ADA), XRP (XRP), Litecoin (LTC) and more. This enables the diversification of cryptocurrency portfolios and the exploration of varied investment options.
How to purchase Bitcoin on eToro
Here’s a step-by-step Bitcoin trading guide on the eToro platform:
Step 1: Open an eToro account
Go to the eToro website and select the “Sign Up” or “Get Started” option. Enter the required information, such as name, email address and password.
Users should read through the terms and conditions carefully and click the “Create Account” button if in agreement. The email address provided will receive a verification email from eToro, which the user should open and click the link to confirm account opening.
Step 2: Complete the profile information and the KYC verification
Users need to complete the identity verification process before they can begin buying BTC with eToro. It requires additional information, such as date of birth, phone number and country of residence.
Enter the eToro account and click the “Complete Profile” option to confirm identity. The Know Your Customer (KYC) process at eToro requires users to upload proof of their address and photo ID for enhanced security and compliance with regulatory requirements.
The most common forms of identification accepted are a passport or driver’s license, while users may provide proof of address with documents, such as utility bills or bank statements. Please wait for eToro’s confirmation via email before proceeding.
In the eToro dashboard, click the “Verify Account” tab to verify the account. EToro may take some time to review and approve verification documents. Upon verification, users can purchase Bitcoin and other cryptocurrencies on the platform.
Step 3: Deposit funds
Deposit funds after creating and verifying eToro account to commence buying BTC. The platform supports a variety of payment methods, such as credit cards, debit cards, bank transfers, and popular e-wallets like PayPal, Neteller and Skrill. Moreover, users have a wide choice of fiat currency to deposit funds.
On the eToro platform, click the “Deposit Funds” button on the left-hand side of the navigation bar to initiate an eToro Bitcoin deposit. Choose a preferred payment method, enter the amount, and then follow the instructions to complete the transaction.
Remember that minimum deposit requirements can apply based on the user’s region and selected payment method. As part of their commitment to security and legal compliance, eToro may request extra information or proof for some 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. Firstly, hover over the “Trading” tab on 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 the BTC/Bitcoin tab. Alternatively, use eToro’s search function to find the Bitcoin page. Type “Bitcoin” or its ticker symbol “BTC” into the search box, choose it from the list of assets and then click the “Trade” button to go to the Bitcoin page.
Users can access detailed information, charts and other vital data on Bitcoin on the same page. The platform provides:
Tools for analyzing the market.
Tracking Bitcoin’s performance.
Making informed eToro Bitcoin trading decisions.
Step 5: Placing a buy order
On the Bitcoin page, click on the “Invest” tab. Users can then choose between “Trade” and “Order.” Traders who select the “Trade” option can buy Bitcoin at the current market price. The “Order” option allows traders to place predefined purchase orders that are automatically executed once Bitcoin reaches the specified target value.
Traders can place two types of orders on eToro: market orders and limit orders. The market order enables traders to purchase Bitcoin at the current market price instantly. To place a market order, select the amount of Bitcoin to buy and confirm the trade.
Limit orders, however, allow traders to specify a price at which to buy Bitcoin. Orders are executed if the market reaches the set price. Enter the desired Bitcoin amount and limit price when placing a limit order. Ensure that the order details are accurate, then confirm the trade.
Users can enter their eToro Bitcoin purchase amount in United States dollars or Bitcoin value depending on preference and options.
EToro will execute the order, and the user’s accounts will reflect the purchased Bitcoin, which they can view on their eToro portfolio.
Step 6: Set up an eToro crypto wallet (optional)
With eToro, users can connect their eToro Money crypto wallet and the eToro app and view all their trades once they purchase Bitcoin. EToro provides a built-in custodial wallet for Bitcoin storage. However, transferring funds to a personal, offline, noncustodial wallet is generally recommended for additional protection on the Bitcoin investment.
Remember, there is no eToro Bitcoin purchase limit, but you can set a dollar or unit value limit for each trade.
How to send Bitcoin on eToro platform
Before sending the Bitcoin, ensure you have set up and linked your crypto wallet to your eToro account. Next, go to the eToro dashboard and click “Portfolio.” Select “Bitcoin,” then click “Edit Trade.” Follow the withdrawal guidelines carefully to ensure a smooth Bitcoin transfer to the wallet app, as all transfers are irreversible.
Click on “Transfer to Wallet” to complete the transaction. Users can view their Bitcoin tokens in their wallet app after completing the transfer.
How to sell BTC on eToro
By default, eToro web wallets store BTC tokens, making it easy to sell Bitcoin anytime. The process of Bitcoin buy/sell on eToro is almost identical. However, unlike other order forms, users need to click “Sell” at the top of the order form once it appears.
In the account dashboard, click on the “Portfolio’’ button, and a real-time price display of all investments in eToro will appear. Select “Bitcoin” from the list of cryptocurrencies and click the “Sell” button. Enter the amount of Bitcoin to sell. Review the order and click on the “Open Trade.”
EToro fees
Users must pay a 1% transaction fee when buying BTC on eToro. 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 payment method chosen. For Bitcoin transfers from eToro to Bitcoin wallets, the fee is 0.5% (capped at $50).
The eToro platform also offers the option to transfer crypto assets to the eToro Money crypto wallet at a fee of 0.1%. However, the eToro fee structure may change over time, so reviewing it before making trades is essential.
Is it safe to keep crypto on eToro?
Maintaining cryptocurrency on eToro requires striking a balance between security and ease of use. Reputable for its security protocols, eToro protects user funds with strong security measures. In addition to using encryption techniques and adhering to strict regulatory standards, the company stores the majority of user funds in cold storage, which is offline and less vulnerable to cyber threats.
Even though eToro has security measures in place, there are always risks associated with storing cryptocurrency on any exchange. Events such as cyberattacks or malfunctions could jeopardize valuables. In addition, users need to take extra precautions, such as turning on two-factor authentication, creating secure passwords and keeping up with security best practices.
Many investors choose to move their cryptocurrency holdings to private or self-custodial wallets, where they have complete control over their private keys, for increased security. Determining whether to keep cryptocurrency on eToro or move it to personal wallets requires evaluating one’s risk tolerance and comprehending the trade-offs between convenience and increased security.
