The cryptocurrency market has experienced significant growth, led by Bitcoin (BTC). As of December 2023, the total market value of all cryptocurrencies reached $1.59 trillion, with Bitcoin dominating at 51.99% and a market share of $827.84 billion.
Bitcoin’s value and popularity make it an attractive investment for many. To invest in and buy Bitcoin, investors need a safe and reputable platform, which is where eToro comes in. eToro not only provides a secure platform but also offers educational resources and a community experience.
eToro is a social trading platform that allows users to trade various financial instruments, including stocks, ETFs, and cryptocurrencies. Its crypto platform is user-friendly and offers extensive functionality. Users can buy Bitcoin on eToro without setting up personal wallets or needing technical skills. They can also copy the investment strategies of successful investors through the platform’s “copytrading” feature.
The eToro dashboard provides users with real-time price charts, market trends, and social trading feeds to stay informed about the latest market developments. eToro also facilitates peer-to-peer trading, enabling direct user interactions.
While Bitcoin is the most popular cryptocurrency on eToro, the platform also supports other digital assets like Ether (ETH), Cardano (ADA), XRP (XRP), Litecoin (LTC), and more. This allows users to diversify their cryptocurrency portfolios and explore different investment options.
To purchase Bitcoin on eToro, follow these steps:
1. Open an eToro account: Visit the eToro website and sign up by providing the necessary information. Verify the account through the verification email received.
2. Complete profile information and KYC verification: Users need to verify their identity by providing additional information like date of birth, phone number, and proof of address and photo ID.
3. Deposit funds: After creating and verifying the eToro account, deposit funds using various payment methods like credit cards, debit cards, bank transfers, or e-wallets.
4. Search for Bitcoin: Find the Bitcoin page on the eToro platform either through the trading menu or the search function. Access detailed information and charts about Bitcoin.
5. Place a buy order: Choose between a market order or a limit order. Market orders allow instant purchase at the current market price, while limit orders let users set a specific price for purchase.
6. Set up an eToro crypto wallet (optional): Users can connect their eToro Money crypto wallet to view their trades. Transferring funds to a personal wallet is recommended for additional security.
To send Bitcoin on eToro, ensure the crypto wallet is set up and linked to the account. Go to the eToro dashboard, click “Portfolio,” select “Bitcoin,” and follow the withdrawal guidelines for a smooth transfer.
Selling Bitcoin on eToro is similar to the buying process. Click on the “Portfolio” button, select “Bitcoin,” and click “Sell.” Enter the amount to sell and review the order before executing it.
eToro charges a 1% transaction fee for buying Bitcoin. There are withdrawal fees for non-U.S. clients, and a fee of 0.5% (capped at $50) for Bitcoin transfers to external wallets. The fee structure may change, so it’s essential to review the current fees before trading.
While eToro implements strong security measures, storing cryptocurrency on any exchange carries risks. Users can enhance security by enabling two-factor authentication, creating secure passwords, and following best security practices. Some investors choose to move their cryptocurrency to private wallets for increased control and security.
Deciding whether to keep cryptocurrency on eToro or personal wallets involves evaluating risk tolerance and considering the trade-offs between convenience and security.