Introduction
Cryptocurrency is fast becoming an investment vehicle for people worldwide. Bitcoin, as the first and most famous cryptocurrency, still attracts a lot of attention from both advanced and novice investors. If you are looking to buy Bitcoin, one of these web-based platforms that clearly lays out the interface to get you started is eToro. As such, we will take you through how you can buy Bitcoin using the eToro platform right from registration all the way through to putting up your first buy order in this article.
Why Choose eToro?
eToro is a global trading platform with a large list of assets to its credit, which starts from stocks and commodities and then to cryptocurrencies like Bitcoin. Here are some of the reasons for which eToro is one of the more prominent options to buy Bitcoin:
- User-Friendly Interface: eToro is designed for newbies, so it’s pretty easy to navigate and use.
- CopyTrading Feature: A user can just copy trades from seasoned investors, making it very easy to follow through on successful strategies.
- Social Trading: Interaction with other traders in a social manner while learning from a community.
- Regulated and secure, eToro is regulated in several places hence providing an impermeably safe trading environment.
Step-by-Step Guide to Buying Bitcoin on eToro
Sign Up for an eToro Account
The first step to buying Bitcoin on eToro is to create an account.
- Visit eToro’s Website: Go to www.etoro.com.
- Click on “Join Now” at the top right corner of the homepage.
- Enter Your Details: Enter your name, your email address, and set up a password. You can also register with your Google or Facebook account.
- Verify Your Account: You will need to upload some identification documents like a passport or driver’s license to verify your account. This is for compliance purposes with regulatory laws.
Deposit Funds into Your Account
Before you can buy Bitcoin, you need to deposit funds into your eToro account.
- Go to the “Deposit Funds” Section: You will find this on the bottom left of the dashboard.
- Payment Methods: eToro offers many methods of payment, such as credit/debit cards, bank transfers, PayPal, etc.
- Specify Amount: In this box, you key in the amount you would like to deposit. Remember, though, that eToro will typically have a minimum deposit—in many cases about $200 but this can change with your region’s regulations.
- Confirm Deposit: Follow the prompts on the screen to confirm your deposit.
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Search for Bitcoin on eToro
Once your account is funded, you can start searching for Bitcoin.
- Type “Bitcoin” in the Search Bar: The search bar is at the top of the dashboard.
- Click on Bitcoin (BTC): This will take you to the Bitcoin trading page.
Analyze the Market
Before making any purchase, it’s wise to analyze the Bitcoin market.
- Utilise eToro Tools: eToro gives you a wealth of tools that range from charts and stats to the opinions of analysts to form your decision.
- Check the Social Feed: It will be vital for you to look at what other traders will be saying on eToro’s social feed in relation to Bitcoin.
Buy Bitcoin
Now that you’ve done your research, it’s time to buy Bitcoin.
- Click on “Trade”: You will also do it using the Bitcoin trading page.
- Select “Buy”: Make sure the Buy button is selected.
- Quantity: You can enter in either the quantity of Bitcoin you would like to buy or in dollars, the amount you would like to spend.
- Stop Loss and Take Profit (Optional): They both are risk management tools and are more like closing the position automatically for you when specific levels of profit and loss are reached.
- Open Trade: Click the “Open Trade” button and complete your purchase.
What Happens After You Buy Bitcoin?
Once you’ve bought Bitcoin on eToro, you have several options:
- Hold: You could just hold on to your Bitcoin and wait for its value to increase.
- Sell: If the market turns in your favor, you can sell off your Bitcoin and thus make a profit.
- Send to eToro wallet: eToro has a wallet that allows you to store your Bitcoin securely.
Fees and Costs Involved on Bitcoin Transactions
Purchasing Bitcoin on eToro does come with a couple of fees that you should know about:
- Spreads: eToro charges a spread on the price of Bitcoin. This is the price between buy and sell.
- Withdrawal fee: A small fee is charged for withdrawing money from your account with eToro.
- Inactivity Fee: There may be an inactivity fee charged to your account by eToro following a prolonged period of inactivity.
eToro Bitcoin Fees
| Fee Type | Details |
| Spread | Varies, typically around 0.75% |
| Withdrawal Fee | $5 per withdrawal |
| Inactivity Fee | $10 per month (after 12 months inactive) |
Tips for Buying Bitcoin on eToro
- Start Small: If you have never invested in cryptocurrencies, you should try investing with a small amount to become accustomed to the process.
- Remain Informed: Stay informed and know all the news and trends that appear in the cryptocurrency market on a daily basis.
- CopyTrading: The CopyTrading feature from eToro allows you to follow the moves of better investors when in doubt about your strategy.
- Diversify: Spread investments out. Do not put all your money into Bitcoin. Diversify your portfolio into different digital assets or cryptocurrencies.
Conclusion
It’s easy to buy Bitcoin on eToro, especially if you follow the steps in this guide. As a beginner or professional trader, the eToro platform has tools and resources that help a great deal in making an informed decision. Always remember to do your research and be informed, and start with what you’re comfortable with.
FAQs
What is eToro, and why should I use it to buy Bitcoin?
eToro is an easy-to-use trading platform that gives you a safe and convenient way to buy Bitcoin with advanced features to include CopyTrading and social trading.
Do I need to verify my account in order to buy bitcoin on eToro?
Yes. You need to do account verification due to the set of regulations specified for enhanced security in the transactions
What is the minimum amount deposited to purchase Bitcoin on eToro?
Usually, it starts from $200, depending on the location.
How much is it to purchase Bitcoin on eToro?
EToro charges a spread on Bitcoin buys, a $5 withdrawal fee, and an inactivity fee when your account has been inactive for more than 12 months.
Can I send Bitcoin from eToro to another wallet?
Yes, you can transfer the Bitcoin to the eToro Wallet, an eToro digital wallet that is safe.
How can I reduce my risk when buying Bitcoin via eToro?
You could use such things as eToro’s Stop Loss and Take Profit to manage the risk, making other diversifications.
Can I buy less than 1 Bitcoin in eToro?
You actually purchase a fraction of Bitcoin by inputting the amount you would like to invest.
Can I use PayPal to deposit money into my eToro account?
Yes. eToro does support a number of payment methods to deposit money into your eToro account, including PayPal.
What is CopyTrading on eToro, and how can it benefit me?
CopyTrading enables you to replicate the trades of successful investors at eToro, making it easier to follow proven strategies.
Can I access eToro in my country?
eToro may be accessed from a wide selection of countries except where such operation would be against the law. However, it is good to check on their website whether that availability extends to your country.
