How to Buy Bitcoin on eToro – Beginners Guide

With over 30 million clients globally, eToro is a regulated stock broker that also supports cryptocurrencies.

In this guide, we explain how to buy Bitcoin on eToro in 2023. We’ll also assess if eToro is the best place to invest in Bitcoin, covering fees, account minimums, security, and user-friendliness.

How to Buy Bitcoin on eToro Walkthrough

This section offers a more detailed tutorial on how to purchase Bitcoin on eToro in 2023.

Step 1: Open an eToro Account

The first step is to open an eToro account. Visit the eToro website and click on ‘Sign Up’. You’ll now see a registration form appear. Type in your email address and choose a username.

A password also needs to be set for your eToro account. You’ll need to read and agree to eToro’s terms and conditions before clicking on ‘Create Account’.

eToro will now collect some additional personal information and contact details. This includes your full name, country of residence, and telephone number. You also need to provide your local tax identification number. If you’re a US client, this will be your social security number.

UK clients can enter their national insurance number. This helps eToro verify your identity and remain compliant with its licensing bodies. Next, eToro will send a code to your registered phone number. Type this in to complete the account opening process.

Step 2: Complete the Know-Your-Customer Process

eToro is regulated by FINRA and other tier-one bodies. This means that you’ll need to complete a know-your-customer (KYC) process before you can buy Bitcoin. If you’re an experienced investor, you’ll know that this is the industry standard.

So, you’ll first need to upload a government-issued ID so that eToro can verify your identity. You can choose from a valid passport, driver’s license, or state ID card (US clients).

There’s also a requirement to upload a proof of address document. This needs to display your full name, residential address, and the issue date. Moreover, the document should have been issued within the prior three months.

There are a variety of document types that eToro accepts. This includes bank and credit card statements, utility bills, and an official housing agreement. Council tax and phone bills are also accepted.

Make sure the quality of the documents is clear and that all four corners are showing. This will ensure that eToro verifies your account quickly.

Note: Although eToro states the KYC process can take a few days, in most cases it’s near-instant. This is on the proviso your verification documents are valid, clear, and match the information you initially provided.

Step 3: Make a Deposit

Unlike Coinbase and Binance, eToro doesn’t have an ‘Instant Buy’ feature. This means that you will need to deposit funds before buying Bitcoin. Fortunately, eToro accepts many payment methods that are processed instantly.

For example, you can deposit funds with a debit/credit card issued by Visa, MasterCard, or Maestro. American Express isn’t accepted. eToro also supports selected e-wallets. This includes Skrill, PayPal, and Neteller. Local banking methods are also supported. For example, ACH (US) and Faster Payments (UK).

So, select your preferred currency and payment type. You’ll then need to type the deposit amount. The minimum deposit at eToro is just $50. But if you’re from the US or the UK, the minimum deposit is reduced to $10. You can click on the ‘Deposit’ button to confirm the payment.

Note: eToro supports multiple currencies, but it operates in US dollars. If you’re making a payment in US dollars, no deposit fees are charged. All other currencies attract a 0.5% deposit fee.

Step 4: Search for Bitcoin

The next step is to locate Bitcoin on the eToro website. It supports thousands of markets so it’s best to use the search bar.

You can type in ‘Bitcoin’ and click on the top result. This will show you a wealth of research data on Bitcoin, such as sell-side analyst ratings, pricing charts, and social indicators. Alternatively, you can click ‘Trade’ to go straight to the eToro Bitcoin trading page.

Step 5: Set Up an Order and Buy Bitcoin

You will now see an order box that allows you to buy Bitcoin with eToro. However, eToro offers a variety of customizable options that you might be interested in. For example, you can choose from a ‘Market’ or a ‘Limit’ order.

Limit orders allow you to set your purchase price. For instance, suppose Bitcoin is currently trading at $26,666. However, you want to enter the market at a more favorable price. In this instance, you can set your limit order to $25,000. You will only buy Bitcoin at $25,000 – meaning the order remains pending until this price is reached.

Market orders allow you to buy Bitcoin with eToro instantly. In other words, you’ll get the current market price. This option is fine if you’re looking to buy and hold Bitcoin in the long run.

Next, you will need to choose your investment size. eToro is suitable for all budgets, as the minimum investment is just $10. In our example above, we’re investing $50. The other option is to specify the number of Bitcoin ‘Units’ you want to buy. For instance, when we type in 0.1 BTC, the order value updates to $2,665.84.

Once you have checked everything – click on:

• ‘Set Order’ if you’re placing a limit order
• ‘Open Trade’ if you’re placing a market order and want to invest instantly

And that’s the end of the investment process.

Step 6: Set Up the eToro Bitcoin Wallet App [Optional]

Once you buy Bitcoin with eToro, there’s nothing more to do until you decide to sell. eToro offers custodial web storage, so you don’t need to worry about getting a wallet. This option is not only secure but very convenient.

That said, the eToro web wallet doesn’t allow you to make Bitcoin transfers. Fortunately, eToro also offers one of the best crypto wallets for iOS and Android. The eToro wallet app supports incoming and outgoing transfers, so you’ll have more flexibility.

Plus, the eToro wallet app supports automatic token swaps. This means you can swap Bitcoin for the best altcoins like Ethereum or XRP.

You can download the eToro wallet app by clicking on the ‘Google Play’ or ‘App Store’ button. Then, open the app and sign in with your eToro username and password.

How to Sell Bitcoin on eToro

One of the best features of eToro is that selling Bitcoin is just as simple as buying it. You can sell Bitcoin on eToro 24 hours per day, 7 days per week.

First, you’ll need to click on the ‘Portfolio’ button. Click on the Bitcoin position that you would like to sell. Next, click on the ‘Close’ button.

Review the order and click on ‘Close Trade’. eToro will sell your Bitcoin instantly. You’ll find that your cash balance has increased. You can withdraw your cash balance or reinvest the funds.

Note: You don’t need to sell all of your Bitcoin in one go. Instead, you might only want to cash some of it out. In this instance, tick the ”Close Only Part of the Trade’ button. Then, type in how much Bitcoin you want to sell before clicking on ‘Close Trade’.

Why Use eToro to Invest in Bitcoin?

While eToro is one of the best crypto exchanges around, there are many other places to buy Bitcoin. Therefore, you should consider the pros and cons of eToro before proceeding.

Below, we discuss the benefits and drawbacks of using eToro to buy Bitcoin online.

eToro Review 2023

eToro is an established trading platform with over 30 million clients. It was launched in 2007 and has secured tier-one licenses from multiple financial bodies. In the US, eToro is regulated by FINRA. eToro is also regulated by the UK’s FCA. Additional regulation comes from ASIC (Australia) and CySEC (EU). What’s more, eToro keeps client-owned funds in segregated bank accounts.

It’s also covered by the UK’s FSCS, which protects brokerage collapses up to £85,000 per client. In terms of supported markets, eToro is a multi-asset trading platform.

For example, you can buy some of the best cryptocurrencies including Bitcoin, Ethereum, XRP, Cardano, and Solana. It also supports up-and-coming cryptocurrencies, such as Compound, Immutable X, ApeCoin, Band Protocol, and many others.

In addition to cryptocurrencies, eToro also supports over 3,000 stocks and ETFs. This includes exchanges in the US, Europe, Asia, and beyond. eToro also supports CFD trading markets, including commodities, indices, and forex. However, CFD products aren’t available to clients in the US. When it comes to fees, this varies depending on the asset class.

For example, eToro charges a 1% commission when you buy and sell cryptocurrencies. This is considered expensive when compared to other providers. For instance, Binance and OKX charge commissions of 0.1%. That said, stocks and ETFs can be purchased at 0% commission. This includes all supported exchanges. CFD markets like forex and gold are traded on a spread-only basis.

Although cryptocurrency trading commissions are high at eToro, we found that this is countered by its payment department. For instance, you can deposit US dollars with a debit/credit card or e-wallet without paying any fees. Even non-USD payments are competitive at just 0.5%. In comparison, Coinbase and Gemini charge 3.99% and 3.49%, respectively. Torn between Coinbase and eToro? Why not read our eToro vs Coinbase comparison review?

Another drawback of eToro is that its technical analysis tools could be considered basic. While it does support indicators and charts, these are aimed at beginners. That said, eToro does offer sell-side analyst ratings, social sentiment bars, fundamental data, and new feeds. eToro also offers automated trading tools that will appeal to newbies and experienced pros alike. This includes ‘copy trading’, which allows you to copy another eToro investor like-for-like.

For instance, you can copy an experienced cryptocurrency trader or a long-term stock investor. eToro also offers ‘smart portfolios’. This gives you access to managed portfolios containing cryptocurrencies and/or stocks. You’ll need to invest at least $500 into smart portfolios, which might be too high for some. Copy trading comes with a lower minimum of $200. And if you’re simply looking to trade Bitcoin on eToro – the minimum requirement is just $10.

74% of retail investor accounts lose money when trading CFDs with this provider.

How Much Does it Cost to Buy Bitcoin on eToro?

In this section, we’ll outline what fees you’ll pay when buying Bitcoin with eToro.

Deposit Fees

Whether or not you’ll pay deposit fees on eToro depends on the payment currency.

• If you’re depositing funds in US dollars – no fees are charged.
• If you’re using another currency – like euros or yen, then you’ll pay an FX conversion fee of 0.5%. This is because eToro operates exclusively in US dollars.

So how does this compare with other crypto exchanges?

We mentioned earlier that Coinbase and Gemini charge 3.99% and 3.49% on debit/credit card payments. That said, this fee does include the trading commission. On average, we found that tier-one exchanges charge between 3-5% on fiat money deposits. In this respect, eToro is very competitive.

Withdrawal Fees

If you’re a US client, eToro does not charge withdrawal fees. All other clients on eToro pay $5 to withdraw funds. This is the case regardless of the withdrawal amount or chosen payment method.

Trading Fees

eToro offers a simple and transparent Bitcoin trading fee of 1%. This is the case with all supported cryptocurrencies. Moreover, it’s charged on buy and sell orders.

The 1% fee is simply built into the spread. This means you’ll instantly be in the red when you open a position.

• For example, suppose you buy $1,500 worth of Bitcoin. At 1%, you’ll pay a fee of $15.
• This means your Bitcoin purchase will be worth $1,475.
• In other words, you’ll need to see a $15 increase to hit the break-even point.
• Suppose that when you sell Bitcoin the portfolio is worth $4,000.
• At 1%, you’ll pay a commission of $40. This means your cash-out value is $3,960.

Overall, eToro’s cryptocurrency pricing structure is considered expensive. Its 1% fee aligns with Webull. This is because although Webull is commission-free, it charges a spread of 1% – so it’s like-for-like.

In contrast, Binance and OKX charge just 0.1% on Bitcoin trades. However, you also need to factor the deposit fee into your overall costs. As mentioned, eToro charges just 0-0.5% depending on the currency.

Bitcoin Storage Fees

After you buy Bitcoin with eToro, you won’t need to pay any more fees until you cash out. This is because eToro’s wallet storage service is free of charge.

Bitcoin Transfer Fees

There is no requirement to transfer Bitcoin to the eToro wallet app. Instead, you can keep your BTC tokens in your eToro web wallet for free.

However, if you want more flexibility and choose to transfer Bitcoin to the eToro wallet app – you’ll pay a 2% fee. This comes with a minimum and maximum fee of $1 and $100, respectively.

Summary of eToro Fees:

Here’s a summary table of what fees to expect when you buy Bitcoin with eToro:

What Makes eToro a Good Place to Buy Bitcoin?

Here are some of the reasons why eToro remains a popular choice with Bitcoin investors.

Beginner-Friendly

eToro was designed with beginners in mind. The cryptocurrency markets can be intimidating for first-time buyers, so eToro is a good option in this regard. For example, eToro accounts are very straightforward to open.

• It takes less than five minutes and simply requires some personal information and a government-issued ID.
• The latter ensures that eToro complies with anti-money laundering laws.
• Depositing funds is also simple. Just like buying goods online, you simply need to type in your payment details.

Most importantly, buying Bitcoin on eToro is user-friendly. You simply need to state how much money you want to invest (in USD) and confirm the purchase. eToro also makes it simple to sell Bitcoin.

It works the same as buying Bitcoin but in reverse. All in all, if you’re looking to invest in Bitcoin and other cryptocurrencies for the first time – eToro is worth considering.

Diversification 

Diversification is very important when building an investment portfolio. eToro supports a wide range of markets, so you can meet your diversification needs under one roof.

In the cryptocurrency department, eToro supports dozens of digital assets. In addition to Bitcoin, this includes Dogecoin, Shiba Inu, Ethereum, Litecoin, Bitcoin Cash, XRP, BNB, Cardano, and much more.

It would be wise to invest your entire portfolio in cryptocurrencies. As such, you might also consider some of the other asset classes available on eToro. This includes more than 3,000 stocks and ETFs. Not only in the US but Europe, Asia, and other global markets.

eToro also supports commodities, forex, and indices. However, these are traded at leveraged CFDs. This means you won’t own the underlying asset.

Automated Trading Tools 

One of the biggest pain points facing retail investors is staying on top of the market. Most retail investors have full-time jobs, so they don’t have the time to research cryptocurrencies. This is where eToro can help – it offers automated trading tools that allow you to invest passively.

First, there are smart portfolios. There are several dedicated to cryptocurrencies and they’re professionally managed. No additional fees apply but you do need to invest at least $500. eToro will automatically rebalance your smart portfolio on your behalf.

A popular smart portfolio is called ‘Decentralised Finance’. This gives you access to 10 different cryptocurrencies in one portfolio. This includes Uniswap, Ethereum, EOS, Basic Attention Token, and AAVE.

Second, eToro also supports copy trading tools. You’ll initially select an experienced investor with a solid track record. After choosing an investment amount, you’ll automatically copy their trades like-for-like.

The automated investments are made on a proportionate amount. Ultimately, this allows you to buy and sell cryptocurrencies without having any prior experience. However, you will need to meet a $200 minimum.

Fractional Investing and Small Account Minimums  

Although eToro requires $200-$500 for its passive investment tools, all other markets come with very low minimums. In fact, eToro supports fractional investments when you trade yourself.

For instance, you can buy any supported cryptocurrency from just $10. This is useful when buying Bitcoin and Ethereum, which are now expensive. Additionally, eToro has a small minimum deposit of $50, or $10 for US and UK clients.

Security and Regulation

In late 2022, one of the world’s largest exchanges – FTX, filed for bankruptcy. This shook the cryptocurrency world and reminded investors that safety should be the number one priority. In other words, you should only buy Bitcoin from an exchange that is adequately regulated.

This is one of eToro’s strongest features. eToro is regulated by four tier-one licensing bodies, including:

• FINRA: US
• ASIC: Australia
• CySEC: EU
• FCA: UK

These licensing bodies keep eToro in check. For example, eToro is mandated to keep client funds in segregated bank accounts. It can’t use investor funds – including digital assets, for its own operating expenses. So, even if the unlikely happened and eToro went bankrupt – your funds would be safe.

Moreover, eToro also has institutional-grade security. It keeps client-owned cryptocurrencies in cold storage. This means they’re kept away from live servers, so the digital assets cannot be hacked. It also secures accounts with two-factor authentication. What’s more, if you opt for the eToro wallet app – it’s licensed by the GFSC (Gibraltar).

All in all, while eToro charges high trading commissions on cryptocurrencies, you can be sure you’re investing with a safe platform.

Conclusion

Buying and selling Bitcoin on eToro is very straightforward, so the platform will appeal to beginners.

You’ll only need to invest $10 and eToro accepts debit/credit cards, e-wallets, and bank wires. eToro is regulated by several tier-one bodies, so you can buy Bitcoin safely.

74% of retail investor accounts lose money when trading CFDs with this provider.

References 

• https://brokercheck.finra.org/firm/summary/298361
• https://www.fscs.org.uk/media/press/2019/apr/higher-protection-limits/
• https://www.trustpilot.com/review/www.etoro.com
• https://www.wellsfargo.com/financial-education/investing/why-diversify-your-portfolio/
• https://www.cnbc.com/quotes/BTC.CB=
• https://www.finra.org/rules-guidance/key-topics/aml
• https://www.nytimes.com/2022/11/11/business/ftx-bankruptcy.html

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Kane Pepi

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Kane Pepi

Kane Pepi is an accomplished financial and cryptocurrency writer who has an extensive portfolio of over 2,000 articles, guides, and market insights. With his expertise in specialized subjects such as asset valuation and analysis, portfolio management, and financial crime prevention, Kane has built a reputation for providing clear explanations of complex financial topics. He holds a Bachelor's Degree in Finance and a Master's Degree in Financial Crime, and is currently pursuing his Doctorate degree, which focuses on investigating the complexities of money laundering in the cryptocurrency and blockchain technology sectors. Kane's wealth of knowledge and experience in the field make…

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