How To Buy Bitcoin on eToro? Crypto Trading For Beginners

eToro is a social trading platform enabling you to invest in the global stock market. The app also provides crypto exchange functionality with beginner-friendly features. Read on to find out how to buy Bitcoin on eToro.

How to buy Bitcoin on eToro
Source: eToro

eToro is a leading multi-asset investment and social trading platform. It was founded in 2007 in Tel Aviv and boosted by over $162 million in several funding rounds to become one of the top brands in the online investing space.

Currently, eToro operates in over 140 countries and boasts over 30 million users. In 2017, the platform moved into blockchain-based social trading, making cryptocurrencies readily available to newbie traders.

Besides coins, eToro enables investments in stocks, fiat currencies, ETFs, commodities, NFTs, and more. The platform’s cryptocurrency selection is limited but good enough to get the taste of the market if you’re a newcomer.

In the US, eToro offers 21 coins, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, IOTA, ZCASH, Dogecoin, Dash, Polygon, and more.

Starting out on your crypto journey with eToro is as easy as can be. The app allows you to effortlessly buy, sell, and hold your favorite coins effortlessly and with maximum security.

Your funds and personal details are locked down tight with encryption and two-factor authentication. In a nutshell, eToro makes trading fun and accessible.

So, getting down to the nitty-gritty: how to buy Bitcoin on eToro?

Signing up: how to open an eToro account?

First things first, before you start trading Bitcoin on eToro, you need to sign up to the platform. It may take a bit of patience and paperwork – plus, being 18 or older.

Another caveat is that if you’re a US citizen, you need to reside in the US to register with eToro. If you’re not a US citizen, check if eToro names your country in its blocked countries list.

Does it? Sorry… Got the green light? Let’s move on!

You can join the platform through your Google or Facebook account or by providing your email, username, and password. Then, you need to go through a verification process, which involves confirming your email address, phone number, identity, and residential address to comply with regulations. No skipping this part. eToro is a financial institution subject to all the AML/KYC hassle.

eToro requires a copy of a valid passport or a government-issued ID. The document must contain key personal details, including your full name, date of birth, expiry date, and your photograph.

There are more options regarding the proof of address. You may provide it with your driving license, residence permit, national ID, credit card statement, utility bill (electricity, water, gas, etc.), government tax letter, government-issued house rental official agreement, etc.

The document has to contain your name, current residential address, the date of issuance, and the issuing authority confirmed by their logo, website, contact information, etc.

How to deposit funds into an eToro account?

The last step involves making a deposit. To transfer funds to your eToro account, you can choose any method of payment available in your country and supported by eToro and proceed as follows:

- log in to the trading platform,

- click on the button reading ’Deposit Funds,’

- provide the amount and preferred currency,

- select the payment method from the drop-down menu.

eToro accepts:

- credit and debit cards (Visa, Mastercard, Diners Club, or Maestro),

- bank transfers (you can make an online transfer or go to your local bank),

- e-wallets (the eToro website supports popular services like PayPal, Neteller, and Skrill.)

Particular methods have conditions and limitations regarding supported currencies, maximum single deposits, withdrawals, and other factors.

For example, the maximum single deposit for a credit or debit card stands at $40,000. On the other hand, for Paypal or Skrill, the limit is $10,000. With IDEAL (a service available for the Netherlands), you can transfer as much as $50,000 (in euro) – the list goes on.

The only option free of limits is bank transfers. For more up-to-date information, check the details and instructions provided in eToro’s FAQ.

Aside from the upper limit for a single deposit, eToro also applies a minimum amount for the first deposit. It can vary significantly depending on your area of residence.

US users can start out with only $10. The most common limit is $50. It applies to most EU and some other countries. The bar is set highest for investors from Israel – they have to transfer $10,000 at least.

eToro minimum deposit crypto trading
Source: eToro

Are you through? Good! You can sigh with relief and proceed to trading Bitcoin.

How to purchase Bitcoin on eToro?

Before you get down to business, it’s worth remembering that Bitcoin is a volatile asset. If you’re new to the topic, consider taking your time and acquiring more in-depth knowledge about the crypto world.

If you feel ready to purchase Bitcoin (or a piece of it), the eToro platform – as mentioned previously – is good for starters. Before buying Bitcoin, think carefully about how much you really want to invest. Don’t rush with trading decisions.

Obviously, you don’t need to purchase a full Bitcoin on eToro. You can buy it in smaller denominations, paying the current price in fiat without incurring additional costs. The prices don’t vary based on the amount, so it all comes down to your preference.

The most straightforward way to buy Bitcoin on eToro is via a credit or debit card. After you’ve linked your debit card to the account, the system remembers it, so you can conveniently top-up your account whenever you like.

There are several advantages of buying Bitcoin with a debit card eToro points to:

- the transaction is extremely easy and takes a few moments to proceed, allowing you to make quick trading decisions,

- you can perform it on any device: smartphone, tablet, notebook, PC,

- the process is as secure as can be,

- the platform doesn’t charge any clearance fees for this payment method.

Let’s move on to buying Bitcoin! Here’s a step-by-step guide.

The process is easy as one, two, three (well, maybe, count in four, too).

1. Log in to the platform.

2. Choose the “Discover” option on the left-hand sidebar, then choose “Crypto” and “Bitcoin,” or type “Bitcoin” or “BTC” into the search bar.

3. Bitcoin will show as the first item on the scroll-down menu with the “Trade” button on the right:

a) if you click on the latter, eToro will take you to the order panel where you can buy Bitcoin,

b) if you click on the entire item from the menu, you’ll land on eToro’s Bitcoin page with Bitcoin-related details and an “Invest” button in the top right-hand corner – click the button to get to the same order panel where you can purchase Bitcoin. (In other words, clicking the “Trade” button is a shortcut).

4. The order panel shows two options under the “Trade” scroll-down menu: “Order” or “Trade”. Choose “Trade” to buy Bitcoin at the current price displayed on the left (next to the Bitcoin symbol).

5. Now, type the amount you want to transfer in USD or set the specified amount using the “plus” and “minus” buttons. You can invest no less than $10 and need to have sufficient resources in your eToro account (if you don’t have cash, you’ll be prompted to deposit money).

6. The alternative way to buy Bitcoin is by choosing BTC units to purchase a fraction of the cryptocurrency. The same rule applies in this case: you need to have a sufficient amount of cash. Otherwise, the platform will require that you deposit funds.

7. Everything’s smooth? Good, now hit the blue “Open Trade” button below to finalize your investment and enjoy your way to the moon!

Where do I store Bitcoin on eToro?

After you buy Bitcoin on eToro, you can either keep it or sell it for gain. Normally, though, you won’t liquidate it straight away, so you need to stash it away in a secure place.

The eToro ecosystem gives users two possibilities. Either you can keep your Bitcoin on the eToro platform itself, or you can put it in the eToro Money crypto wallet.

The first option is the simplest as it requires no action. If you keep your cryptocurrency on the platform, you can trade it anytime you want straight from the platform. Mind, though, that once you transfer your crypto off the investment platform, you cannot send it back. To trade it on the platform, you need to buy Bitcoin again.

However, if you decide to go for the Bitcoin wallet, eToro provides you with a secure tool to manage your digital currency. With the eToro crypto wallet, you can conveniently manage over 120 other cryptocurrencies, including buying, selling, transferring, and holding (or hodling). You can download the eToro Money app from the platform’s website and log in to it with your eToro credentials.

eToro Money digital wallet`
Source: eToro

With the Money crypto wallet, you’re getting an eToro wallet address enabling you to transfer Bitcoin to other wallets. To send Bitcoin or other cryptocurrency to an external wallet, you simply need to select it from the list, tap the “Send” button, specify the amount, and provide the recipient’s public address (the easier option is to scan the recipient’s QR code). Then tap “Send” again, wait for the verification code eToro will text you, and tap “Verify.” Done!

Overall, the eToro Money app is a high-quality crypto tool, allowing you to securely store, access, and transfer money through a user-friendly interface.

Does eToro charge any fees for buying or selling Bitcoin?

eToro charges a simple 1% fee for trading crypto assets. For example, if you buy or sell Bitcoin for $100, the platform will charge you $1 for each transaction. The platform adds the buying or selling fee to the market price of the asset, which is based on the bid-ask spread – the difference between the highest price accepted by a buyer and the minimum price acceptable by the seller.

Currently, there is only one exception to this rule. Since September last year, eToro charges an additional 0,1% fee on top of the 1% fee for buying or selling LUNC. In no way does it affect BTC transactions, though.

eToro cryptocurrency trading fees
Source: eToro

Now, let’s talk about withdrawal options. You can withdraw Bitcoin or other crypto assets from the platform through the eToro Money app. The so-called Crypto Transfer Service is available only in specified countries – you can check the list HERE. The procedure is smooth, but it can take several business days to process your request. Next, you can transfer the money from the app to your bank account.

Before that happens, eToro has to get its share and will charge you for moving the funds out of the platform. The transfer fee is 2% of the transaction size – minimum $1 and maximum $100. Keep in mind that you’ll also need to pay an external blockchain fee. It’s volatile, so eToro will provide you only with an estimated value before you confirm the transfer. The minimum amount you can withdraw is $30.

Wrapping it up: eToro is a user-friendly platform for crypto newbies

eToro, with its user-friendly characteristics and social trading features, is a good way to combine trading stocks with investing in BTC. It allows you to copy other traders who are more experienced in the game and hone your skills along the way. You can combine your eToro profile with a presence on other platforms or deposit funds in off-the-exchange digital wallets as well.

If you want to make sure you’ll get things right, check out eToro’s demo account. It’s a trading simulator that allows you to buy Bitcoin on eToro without really buying it: you can make mistakes, copy top traders, and try different investment strategies without any bank transfer and putting your own money at stake.

Take your time, learn, and always prioritize security!