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HomeBusinessBuying Bitcoin on eToro: A Guide for Novices

Buying Bitcoin on eToro: A Guide for Novices

Additionally supporting cryptocurrencies, eToro is a regulated stockbroker with over 30 million customers worldwide.

This article describes the process for purchasing Bitcoin on eToro in 2023. Concerning commissions, account minimums, security, and user-friendliness, we will also evaluate whether eToro is the optimal platform for Bitcoin investments.

Explanation of How to Invest in Bitcoin on eToro

To begin, the following is a concise, step-by-step guide on how to purchase Bitcoin using eToro:

  • Create an eToro account: To create an account, visit the eToro website as the initial step. Provide your 
  • Contact information and personal data. Proceed by verifying your mobile phone number.
  • Upload a government-issued ID: To adhere to anti-money laundering regulations, eToro demands a duplicate of your government-issued identification. State identification certificates, passports, and driver’s licenses are accepted. A certificate of address issued within the previous three months is also required.
  • Funds must be deposited as the third step before purchasing Bitcoin through eToro. Elect a bank transfer, electronic wallet, or debit/credit card as your preferred payment method. A $50 minimum deposit is required. From the United States or the United Kingdom, this is reduced to $10.
  • Conduct a Bitcoin search: Since eToro supports thousands of financial markets, searching for ‘Bitcoin’ is simplified. To proceed, select ‘Trade’.
  • Purchase Bitcoin: Input the desired investment amount in Bitcoin. Fractional investments commencing at $10 are encouraged. Click “Open Trade” to instantaneously purchase Bitcoin.

Instructions on Purchasing Bitcoin on eToro

A more comprehensive tutorial on how to acquire Bitcoin on eToro in 2023 is provided in this section.

Create an eToro account

Account creation on eToro is the initial stage. Navigate to the eToro website and select the “Sign Up” link. Currently, a registration form is displayed to you. After entering your email address, select a username.

It would also help to create a password for your eToro account. Please review and consent to the terms and conditions of eToro before proceeding with the ‘Create Account’ button.

At this time, eToro intends to gather further personal information and contact particulars. Your complete name, country of residence, and telephone number are included. Additionally, your local tax identification number is required. If you are a consumer from the United States, this is your social security number.

Customers from the United Kingdom may input their national insurance number. This enables eToro to maintain compliance with its licensing bodies and verify your identity. After that, a code will be sent to your registered phone number by eToro. Enter this to finalize the account creation procedure.

Finalise the Customer Know-Your-Customer Procedure

eToro is subject to regulation by FINRA and additional tier II organizations. Consequently, a know-your-customer (KYC) procedure must be fulfilled before purchasing Bitcoin. Having prior investment experience will inform you that this is the norm in the industry.

Before using eToro, you must submit a government-issued photo ID for identity verification. Valid passports, driver’s licenses, or state identification cards are acceptable (US clients).

Additionally, the submission of a confirmation of address document is mandatory. Your complete name, residential address, and the date of issuance must be included. Furthermore, it is expected that the document was issued three months before the current date.

eToro supports a Diverse assortment of document formats. This consists of utility invoices, bank and credit card statements, and an official housing agreement. Additionally, phone invoices and council tax are accepted.

Ensure that the documents are unmistakable and that all four corners are visible. This will expedite the verification process for your account on eToro.

eToro specifies that the Know Your Customer (KYC) procedure may require a few days; however, it is typically completed instantly. This is contingent upon your verification documents’ validity, clarity, and correspondence with the information you initially furnished.

Fund Your Account

eToro needs the ‘Instant Buy’ functionality, unlike Coinbase and Binance. This means that before purchasing Bitcoin, a retainer will be required. Thankfully, eToro accepts a wide variety of instant-processed payment methods.

To illustrate, funds can be deposited using debit or credit cards that Visa, MasterCard, or Maestro have issued. American Express cannot be utilized. eToro is compatible with a variety of electronic wallets. Neteller, Skrill, and PayPal are all included. Additionally, local banking methods are supported. For instance, ACH (United States) and Faster Payments (United Kingdom).

Thus, choose the currency and method of payment that you prefer. Following that, enter the amount of the deposit. $50 is the bare minimal deposit required at eToro. However, those from the United States or the United Kingdom have a lower minimum deposit requirement of $10. To finalize the payment, please select the ‘Deposit’ icon.

Although multiple currencies are supported, eToro operates in US dollars. There are no associated deposit fees when making a payment in United States dollars. For deposits in all other currencies, a 0.5% fee is applied.

Look for Bitcoin

Bitcoin must then be located on the eToro website. Since it supports thousands of markets, the search bar is the most practical method.

Enter ‘Bitcoin’ followed by a click on the first result that appears. An extensive collection of research data about Bitcoin will be presented, including pricing statistics, social indicators, and sell-side analyst ratings. Clicking ‘Trade’ will take you directly to the eToro Bitcoin trading interface.

Set up an order and purchase Bitcoin

A new order box will appear, allowing you to purchase Bitcoin with eToro. Nevertheless, eToro provides an assortment of customizable features that may interest you. As an illustration, one may select either the ‘Market’ or ‘Limit’ order.

Limit orders permit the purchase price to be specified. Consider Bitcoin, which is presently valued at $26,666. Nevertheless, you desire to penetrate the market at a more advantageous price. You may set your limit order to $25,000 in this instance. The purchase price of Bitcoin is fixed at $25,000; therefore, the order remains pending until this amount is acquired.

Market orders enable instantaneous Bitcoin purchases with eToro. Alternatively, you will receive the prevailing market price. This option is acceptable if your long-term objective is to purchase and hold Bitcoin.

It would help if you subsequently determined the magnitude of your investment. Due to its $10 minimum investment requirement, eToro is affordable for investors of all financial means. In the preceding illustration, we are investing $50. Conversely, you may also “Specify the Quantity of Bitcoin ‘Units’ that you wish to purchase. An example is when the order value is updated to $2,665.84 from 0.1 BTC.

After verifying that everything is in order, click on:
  • Select “Set Order” when placing a limit order.
  • When placing a market order and wishing to invest immediately, select “Open Trade.”

With that, the investment procedure comes to a close.

Optional: Configure the eToro Bitcoin Wallet application

After purchasing Bitcoin through eToro, no further action is required until the time comes to sell. Because eToro provides custodial web storage, there is no need to acquire a wallet. This option is exceptionally convenient and secure.

Nevertheless, the eToro web wallet does not support Bitcoin transfers. Fortunately, eToro also provides one of the top cryptocurrency wallets for Android and iOS. Your flexibility is expanded with the eToro wallet app’s support for incoming and outgoing remittances.

The eToro wallet app also supports automatic token exchanges. This allows you to exchange Bitcoin for superior altcoins like XRP or Ethereum.

An installation of the eToro wallet application is available through the ‘App Store’ or ‘Google Play.’ Subsequently, launch the application and enter your eToro credentials.

Selling Bitcoin via eToro

An advantageous aspect of eToro is that the process of selling Bitcoin is identical to that of purchasing it. Bitcoin transactions are possible 24 hours a day, seven days a week on eToro.

You must initially select the ‘Portfolio’ option. To sell a Bitcoin position, click on that position. Proceed by selecting the ‘Close’ icon.

After reviewing the order, select “Close Trade.” eToro will immediately sell your Bitcoin. Your cash balance will be observed to have increased. Your cash balance is available for withdrawal or reinvestment.

It is optional to trade all of your Bitcoin holdings at once. You could only wish to withdraw a portion of it. Select the “Close Only Part of the Trade” option. Click ‘Close Trade’ after entering the quantity of Bitcoin you wish to sell.

Why Invest in Bitcoin Using eToro?

Although eToro is among the world’s best cryptocurrency exchanges, numerous other locations exist where you can purchase Bitcoin. You should weigh the advantages and disadvantages of eToro before moving forward.

The disadvantages and advantages of using eToro to purchase Bitcoin online are detailed below.

2023 eToro Review

A well-established trading platform, eToro boasts a customer base exceeding 30 million. Since its introduction in 2007, it has obtained tier-one licenses from numerous financial organizations. FINRA oversees eToro in the United States. Additionally, eToro is regulated by the FCA of the United Kingdom. Additional oversight is provided by CySEC (EU) and ASIC (Australia). Additionally, eToro maintains client funds in separate bank accounts.

Additionally, it is protected against brokerage failures by the FSCS of the United Kingdom, up to £85,000 per client. Concerning the markets it facilitates, eToro is a multi-asset trading platform.

Some of the finest cryptocurrencies, such as Bitcoin, Ethereum, XRP, Cardano, and Solana, are available for purchase. It also supports numerous emerging cryptocurrencies, including Compound, Immutable X, ApeCoin, and Band Protocol.

Beyond cryptocurrencies, eToro provides support for more than 3,000 equities and ETFs. This includes interactions in Asia, the United States, Europe, and beyond. Additionally, CFD trading markets such as commodities, indices, and forex are supported by eToro. CFD products are not, however, accessible to clients in the United States. Regarding charges, this differs among asset classes.

eToro’s Commission Structure and Payment Offsets

For instance, a 1% commission is assessed by eToro for the purchase and sale of cryptocurrencies. This is regarded as costly in comparison to alternative providers. For example, OKEx and Binance impose a 0.1% commission fee. Stocks and ETFs, however, are available for purchase with no commission. Included in this are all supported exchanges. CFD markets, such as gold and forex, are exclusively transacted on spreads.

Despite eToro’s costly commissions for cryptocurrency trading, we discovered that the platform’s payment system offsets this. For example, no fees are associated with depositing US dollars using a debit/credit card or electronic wallet. At a mere 0.5%, non-USD payments are also competitive. When comparing Coinbase and Gemini, their respective fees are 3.99% and 3.49%, respectively. Need clarification on eToro and Coinbase? Why not peruse our comparison of eToro and Coinbase?

An additional disadvantage of eToro is its technical analysis tools could be more advanced. Although charts and indicators are supported, they are designed for novices. Nevertheless, eToro provides new feeds, sell-side analyst ratings, social sentiment indicators, and fundamental data. Additionally, eToro provides automated trading tools suitable for novices and seasoned professionals. This includes “copy trading,” which enables one to replicate the investments of another eToro investor.

You may, for instance, emulate a seasoned cryptocurrency trader or a patient stock investor. ‘Smart portfolios’ are another service provided by eToro. This grants you access to managed portfolios comprising equities and cryptocurrencies. At least $500 must be invested in intelligent portfolios, which may be prohibitive for some. Copy trading entails a reduced initial investment of $200. Even if you wish to trade Bitcoin on eToro, a $10 minimum investment is sufficient.

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