How to Buy Bitcoin With eToro

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Contributor, Benzinga
December 28, 2022

Regardless of the up-and-down swing of the crypto market, Bitcoin — the dominant cryptocurrency — remains a possible investment, especially for long-term or growth investors. It was the best-performing asset of the last decade, outperforming the S&P 500 and returning 10 times higher than Nasdaq 100. It is considered by many as the currency of the future. Unlike fiat currencies, its supply is finite. It is less likely to respond to widespread inflationary pressures in the same way as fiat, being a non-functioning currency. 

Historically, a prolonged crypto market decline is often followed by a rapid recovery and an all-time high. And if such previous trends are anything to go by, Bitcoin may potentially run up to over $100,000 in the next couple of years. The implication is that you may reap optimum long-term returns by buying Bitcoin at the prevailing market price. 

Disclosure: eToro supports the following currencies: BTC, ADA, DASH, DOGE, EOS, ETH, LTC, NEO, XLM, XTZ, TRX, ZEC. eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. T&Cs apply. *The bonus is available to Benzinga readers in the US for open states only. Served by eToro USA LLC.

However, to buy Bitcoin, you need an exchange. A Bitcoin exchange enables you to buy Bitcoin in exchange for fiat or other digital assets. Investors are more likely to consider cost-efficient platforms with robust security, fast setup processes and excellent ease of use when looking for a Bitcoin exchange. The eToro platform meets all these criteria and is trusted by millions of investors. Benzinga reviews buying Bitcoin in eToro, explaining how this powerful yet user-friendly platform can help streamline the Bitcoin trading experience for beginners and experts.

How to Buy Bitcoin With eToro

eToro is considered one of the best and most popular online brokerage and crypto exchanges for various reasons. Its simplicity makes it easy for beginners with zero crypto knowledge to invest, trade, buy and sell Bitcoin or other cryptocurrencies without hassle. Benzinga breaks down the process of buying Bitcoin with eToro into five short steps that saves time. Here is a look into these steps.

Sign Up or Create an Account on eToro

Once you've decided to invest in Bitcoin with eToro, head to the "Create an account" page to set up a new trading account. Input your email address, and then choose a username and password. After accepting eToro's T&Cs, privacy policy and cookie policy, click the "Create Account" button and proceed to your inbox to verify your email address. 

Subsequently, you'll need to fill in your basic personal information, including your name, birthdate, zip code or address and phone number, to complete your profile setup. Ensure your information matches with what is in your government-issued identity documents to ensure hassle-free verification. eToro will also send you an SMS to verify your phone number. 

  • eToro
    Best For:
    Social Investing
    securely through eToro's website

    Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk

    Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

Verify Your Identity

eToro will need to verify your identity in keeping with mandatory Know Your Customer regulations. Fortunately, account and identity verification through the eToro crypto app is relatively straightforward. The requisite document for identity verification is your valid passport or any other government-issued document like your driver's license. You'll also need to provide proof of address. 

For this, you need a different document from your proof of identity. Acceptable documents are those issued by banks, utility companies, judicial authorities and government agencies, including bank statements, utility bills, social insurance statements, council tax or municipality bills. These documents must be issued in your name and dated within the last three months. You can take pictures of these documents and upload them on the platform if you have them ready. Subsequently, the verification team will process your documents within 24 hours.

Setup a Bitcoin or Crypto Wallet 

You can store your assets in your eToro account when you buy Bitcoin with eToro. Unlike other crypto exchanges, having a crypto wallet is not mandatory. Nevertheless, a crypto wallet can come in handy. Besides protecting and safeguarding your coins, it streamlines the use of your Bitcoin or other digital assets for a wide range of applications.

eToro offers its own proprietary cryptocurrency wallet, referred to as eToro Money, which you can easily access using your eToro credentials once downloaded and installed. eToro money is a multi-crypto wallet that blends excellent ease of ue with robust high-level security features and standardization protocols. It works on both iOS and Android devices. Once installed, log in with your eToro credentials to connect the wallet to your eToro trading account.

Make a Deposit

To fund your eToro trading account:

  • Log into the platform and click "Deposit Funds" at the bottom sidebar menu.
  • Input the amount and your preferred currency.
  • Select your funding source or method and fill in the required details.

The platform operates in U.S. dollars, so funds from foreign currencies are automatically converted to U.S. dollars. eToro accepts deposits from various sources, including credit or debit cards (Visa or Mastercard), PayPal, Skrill and Neteller. 

The allowable minimum deposit for U.S. investors from these funding methods is $10. Funds are processed instantly, appearing in your account once you initiate the deposit. However, for deposit via wire transfer, the minimum is $500, and processing may take four to seven business days. By default, the payment method you used for depositing funds will also be used for withdrawals. Investors from most other countries, including the U.K., can start investing with a minimum of $50. 

Search for Bitcoin/BTC

On your eToro trading account, find the search bar at the top of the dashboard. Input Bitcoin/BTC, and a drop-down menu will appear automatically; select BTC for Bitcoin and click the "Trade" button in the top right corner to open a new order form.

Buy Bitcoin

Once you click the "Trade" button and open a new order form, you can either set your order or execute an immediate trade. Orders placed below or above the prevailing market price will only execute when the market trades at your set price parameters. Immediate trades are executed at the prevailing market price at the time of initiation. 

Alternatively, you can click on "Units" and input the exact quantity of Bitcoin you want to buy. You can set "Take Profit" and "Stop Loss" levels. However, these parameters are primarily used for eToro Bitcoin trading rather than long-term investing. After entering all requisite parameters, click "Set Order" if you're placing an order. Otherwise, click "Open Trade" for immediate trade execution. 

Aprice change can occur between order placement and execution, even if executed immediately. This circumstance is called slippage and frequently occurs when trading highly volatile assets. Slippage can work for or against you by making the coin cheaper or more expensive. You can find your recent Bitcoin order in the portfolio session of your profile. Subsequently, you can follow the latest stats, monitor performance, set price alerts and follow up with other Bitcoin traders.

Why Buy Bitcoin on eToro?

eToro stands out among other exchanges and is considered one of the best crypto exchanges to buy Bitcoin or other cryptocurrencies for many reasons. These include:

Low Fee Structure 

Compared to other major crypto exchanges, eToro offers some of the lowest fee structures to crypto or Bitcoin investors. When you buy or sell Bitcoin or other cryptocurrencies, you only pay 1% of your transaction. It charges no deposit fees or extra charges when you buy Bitcoin with your credit or debit cards. Furthermore, there are no commissions or management fees.

A $5 charge applies during withdrawal. A transaction fee of 2% may also apply for transferring Bitcoin between eToro investments or trading platforms and the eToro Money crypto wallet. This fee depends on the position size. A conversion fee may also apply for withdrawals or deposits involving foreign currency. 

Availability of Diverse Crypto Assets 

Bitcoin is not the platform's sole crypto offering. In fact, over 50 of the most popular cryptocurrencies, including Bitcoin Cash, Ripple, Litecoin and Ethereum, are available for investors to buy or sell. You can seamlessly swap between Bitcoin and any of these other cryptocurrencies. eToro offers you access to a broader world of cryptocurrencies.

Copy Trading

Thanks to its copy trading tool, eToro has become the hub for traders seeking the best social trading cryptocurrency platform. With the copy trading tool, you can set aside a portion of your crypto portfolio (including Bitcoin) to mimic the moves of other, more experienced traders. Suppose you're dipping your toes into eToro Bitcoin trading for the first time and lack the requisite experience. In that case, copy trading can help simplify the process for you.

Beginner-friendly

eToro has various features that make it beginner friendly. Its user interface is highly simplified and intuitive, facilitating quick and easy Bitcoin trading. The highly customizable technical charts and in-depth crypto market analysis help smooth the learning curve for beginners. In addition, the built-in social network can help them connect with other Bitcoin investors or traders. This benefit facilitates sharing ideas, especially regarding where the market is headed or trading strategies.

Mock or Virtual Portfolio 

eToro provides mock or virtual portfolios for investors to play around with before creating a live trading account. A mock portfolio allows you to trade with fake dollars while mimicking actual market conditions or using accurate market data. Suppose you're just getting started with trading or lack confidence. A mock portfolio can better prepare you for what to expect in the market before committing real dollars.

Security

Besides being regulated by top-tier financial authorities, the eToro trading or investment platform supports additional security measures like 2FA authentication and DDoS protection. The eToro Money crypto wallet also has robust security and standardization protocols. 

Considerations When Buying Bitcoin

Before buying Bitcoin, you must consider the following.

Risk Appetite

Bitcoin, like other cryptocurrencies, is a highly speculative and volatile asset. The market is highly unpredictable and can swing in either direction depending on the forces of demand and supply. The implication is that while you can amass gains within a short time frame, such gains can easily get erased. You’ll want to consider your risk appetite before buying Bitcoin. If you have a low-risk tolerance, it might make sense to go for more conservative investments like exchange-traded funds (ETFs) and mutual funds.

Investment Goals

What are your investment goals? Are you a short-term investor looking for a passive income or a growth investor willing to weather a short-term market downturn for a potential optimum long-term return? If you invest in Bitcoin or other cryptocurrencies to earn quick bucks, you may lose. In essence, Bitcoin and other cryptocurrencies are not ideal for short-term investment goals. You're better off treating these asset classes as long-term investments like most traditional assets, as this offers you the best chance of maximizing returns.

Available Capital

Like most investments, investing in Bitcoin and other cryptocurrencies costs money. Besides the amount you'll potentially spend on buying Bitcoin, you also need to factor in the fees charged by crypto exchanges. These fees range from deposit fees to commissions and differ among crypto exchanges. And when combined with the amount needed to buy Bitcoin, the capital you need to invest can skyrocket. Therefore you must consider your available capital before buying. As a tip, look for crypto exchanges with a low fee structure offering fractional coins. eToro is a good example.

FOMO Factor 

Stories of crypto millionaires and investors buying mansions and fancy cars are prevalent and pervasive in social media. These stories can push you to invest due to fear of missing out (FOMO). FOMO often backfires for the simple reason that the crowd isn't always right. If you believe that because everyone is buying Bitcoin, it's profitable, you've already started losing. You need to understand that similar illusions sway most people in the crowd. The best way to not experience FOMO is to ask yourself, "why do I want to invest?" Answering this question enables you to clarify your goal. When your goals are clear, you're more likely to execute proper research and due diligence before buying Bitcoin or other cryptocurrencies.

Security and Storage

Once you decide to buy Bitcoin, you must conduct constructive research regarding the measures undertaken by your chosen crypto exchanges to secure your assets. Besides regulations by established financial authorities, what additional storage measures are they adopting? What about storage? Does hot or cold storage offer better security? These are some of the questions you need to answer. 

Compare Crypto Exchanges 

Benzinga reviews, compare and provides insights into various crypto exchanges.

  • Coinbase
    Best For:
    Active Crypto Traders
    securely through Coinbase's website

    Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.

  • eToro
    Best For:
    Social Investing
    securely through eToro's website

    Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk

    Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

  • Robinhood Crypto
    Best For:
    Buying & selling Dogecoin
    securely through Robinhood Crypto's website
  • Plus500 Crypto
    Best For:
    Crypto CFD
    securely through Plus500 Crypto's website

    82% of retail CFD accounts lose money.

  • Kraken
    Best For:
    Crypto futures traders
    securely through Kraken's website

Frequently Asked Questions

Q

How long does it take to buy Bitcoin?

A

The eToro platform offers traders simplified or straightforward steps that streamline Bitcoin trading. With eToro, it only takes a few minutes to buy Bitcoin.

Q

What happens when you buy Bitcoin on eToro?

A

What happens after you buy Bitcoin on eToro depends on your investment strategy. If you’re a Bitcoin scalper, you can watch out for small price changes and then sell. However, suppose your strategy is long-term. In that case, you can store your Bitcoin on the eToro Money crypto wallet. When the price rises in the future, you can sell it at a more significant profit. A long-term strategy offers you the best chance of maximizing profit.

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts
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