With Bitcoin reaching all-time highs in 2024, many new investors are hurrying to enter this complex world. Popular platforms like eToro can make this process simple
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To get started, you’ll need to create an account, verify your identity, and deposit funds with your preferred payment method. Although it seems like a simple process, some doubts may arise if this is your first time using this platform
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This step-by-step guide will guide you through the entire process of buying Bitcoin with eToro.
Steps to Buy Bitcoin on eToro
Step 1: Create an eToro Account
To buy Bitcoin on eToro, you need to create an account. The first step is to provide basic personal information, including your name, home address, and email address.
eToro also requires new customers to demonstrate their level of financial knowledge by completing a short questionnaire.
Make sure you use a private internet connection before sending personal information online.
Step 2: Verify your eToro Account
The most critical step in the registration process on eToro is account verification. In accordance with anti-money laundering regulations and knowledge of the customer (KYC) policies, brokers are required to request a valid form
of identification.
New eToro users will need to provide photographs of two documents and upload them to the platform: a proof of address (such as a bill) and proof of identity (such as a passport or driver’s license). Once you submit these documents, it may take up to 48 hours for your account to be verified.
Step 3: Funding your eToro Account
Once your investment account has been created and verified on eToro, you will need to connect an approved payment method. eToro accepts debit cards, bank transfers, and e-wallets such as PayPal.
In the United States, eToro users are required to deposit at least $100. To complete this process, select ‘Deposit Funds’ from the eToro dashboard, choose the payment method and amount, and finally select ‘Deposit Now’. eToro does not charge deposit fees.
Deposits made via debit card, online banking, and e-wallets will be available immediately. Bank transfers can take four to seven business days to complete
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Step 4: Look for the Bitcoin Symbol
Once your investment account is created, verified, and funded, you’ll be ready to buy Bitcoin on eToro. Use the search bar at the top of the dashboard to find the Bitcoin ($BTC) symbol. The symbol should appear as the first result with a ‘trade’ button next to it.
Step 5: Place a Purchase Order
It remains only to place a buy order and open a position on the Bitcoin market. Investors can select the ‘trade’ option, which allows the purchase of Bitcoin at the current price.
Alternatively, eToro offers an ‘order’ option, which allows you to select a predetermined price. This means that, once the specified price is reached, the position will be opened automatically.
Bitcoin Payment Options and Fees on eToro
- Purchase/sale commission: 1%
- Custody: Free
- Cryptoasset transfer: 2%
- Deposit: Free
- Withdrawal: $5
- Inactivity: $10/month after 12 months
- Payment options: Debit/Credit Card, Bank Transfer, E-Wallet
Buying Bitcoin on eToro with Copy Trading
eToro is a pioneer of social trading. The platform includes a social media-style news feed that allows you to interact with other traders and see their investments and operations.
Copy Trading allows you to follow another trader’s portfolio and mimic their operations with your money. You can adopt a more active investment strategy without having to spend time and energy developing and executing a strategy.
However, even though eToro allows you to copy only traders who have been verified and approved, the risk of losses remains high.
After Buying Bitcoin on eToro
After buying Bitcoin on eToro, you have several options:
- Monitor your trade: You can decide to keep your position open, monitoring the price of Bitcoin.
- Selling: You could decide to sell your Bitcoins at any time, withdrawing profits from eToro (with a fixed commission of $5) or reinvesting them.
- Transfer to a wallet: You can transfer your Bitcoin to a cryptocurrency wallet to have complete control and reduce the risks associated with platforms like eToro.
Advantages of Buying Bitcoin on eToro
- Proprietary crypto wallet: The eToro Money Crypto wallet supports thousands of different tokens and offers greater security through strict controls.
- Low fees: eToro charges a flat 1% fee for buying and selling cryptocurrency.
- Social trading: eToro offers various social trading features, such as the ability to copy the trades of high-profile investors.
Risks of Buying Bitcoin on eToro
- Inactivity fee: eToro charges a $10 monthly inactivity fee after 12 months of inactivity.
- No crypto trading pairs: eToro doesn’t offer cryptocurrency trading pairs like some competitors.
- Volatility: Cryptocurrencies are associated with high volatility and represent a risky investment compared to other asset classes.
- Lack of protection: Cryptocurrency transactions don’t offer the same legal and regulatory protections as other assets.
Buying Bitcoin on eToro in 2024 can be a simple and secure way to enter the world of cryptocurrencies. However, it’s crucial to be aware of the risks and follow security best practices. With the right preparation and careful management, investing in Bitcoin can be a valuable part of your financial strategy
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