How to Buy Bitcoin on eToro 2023 Step-by-Step Guide

Bitcoin is a digital currency that was created in 2009. It is the most popular cryptocurrency in the world and has a market capitalization of over $900 billion. If you are interested in buying Bitcoin, eToro is a good option. eToro is a social trading platform that allows you to buy and sell Bitcoin at a low fee.

In this blog post, we will discuss the benefits of buying Bitcoin on eToro, and how to do it. We will also provide some tips for beginners.

In this blog post, we’ll walk you through the steps on how to buy Bitcoin on eToro. We’ll also discuss some of the things you need to keep in mind before you buy Bitcoin.

What is eToro?

eToro is a multi-asset trading platform that allows you to buy, sell, and trade stocks, commodities, currencies, and cryptocurrencies. The platform is available in over 140 countries and has over 20 million registered users.

eToro is a popular platform for buying Bitcoin because it offers a user-friendly interface, low fees, and a variety of payment methods

Why Buy Bitcoin on eToro?

There are several reasons why you might want to buy Bitcoin on eToro. Here are a few of the most important ones:

• Ease of use: eToro is a user-friendly platform that makes it easy to buy and sell Bitcoin. You can create an account in minutes and start trading with just a few clicks.
• Low fees: eToro’s fees are relatively low, making it a cost-effective way to buy Bitcoin.
• Variety of payment methods: eToro accepts a variety of payment methods, including credit cards, debit cards, and bank transfers. This makes it easy to fund your account and start trading.
• Social trading: eToro offers a social trading platform that allows you to follow and copy the trades of other traders. This can be a great way to learn from more experienced traders and improve your own trading skills.
• Security: eToro is a regulated broker, which means that your funds are held in segregated accounts and protected by insurance.

Of course, there are also some potential drawbacks to buying Bitcoin on eToro. One is that the platform is not available in all countries. Additionally, eToro does not offer a Bitcoin wallet, so you will need to store your Bitcoin in a third-party wallet.

Do I Own my Bitcoin on eToro?

Whether you own your Bitcoin on eToro depends on the type of trade you make.

If you make a CFD trade, you do not own the underlying asset, which in this case is Bitcoin. Instead, you are essentially betting on the future price of Bitcoin. If the price goes up, you make a profit, and if the price goes down, you make a loss.

If you make a spot trade, you do own the underlying asset, which means that you will receive the actual Bitcoin if you close the trade in profit. However, eToro does not allow you to withdraw your Bitcoin to an external wallet. You can only trade Bitcoin on the eToro platform.

To find out what type of trade you are making, you can check the terms and conditions of the trade. If the trade is a CFD, it will say so explicitly. If the trade is a spot trade, it will not say anything about CFDs.

It is important to understand the difference between CFD trades and spot trades before you invest in Bitcoin on eToro. If you want to own the underlying asset, you need to make a spot trade. If you are only interested in speculating on the future price of Bitcoin, you can make a CFD trade.

How Do I Buy Bitcoins on eToro and Send Them to Another Wallet?

To buy Bitcoins on eToro and send them to another wallet, you can follow these steps:

1. Open an eToro account and deposit funds.
2. Search for “Bitcoin” and click on the “Trade” button.
3. Enter the amount of Bitcoin you want to buy and click on the “Open Trade” button.
4. Once your trade is open, you can withdraw your Bitcoin to another wallet by following these steps:
   • Click on the “Wallet” tab.
   • Click on the “Crypto” tab.
   • Select Bitcoin and click on the “Withdraw” button.
   • Enter the address of the wallet you want to send the Bitcoin to and the amount you want to send.
   • Click on the “Withdraw” button.

How to Buy Bitcoin on eToro

Here are the steps on how to buy Bitcoin on eToro:

Step 1: Create an Account

The first thing to do is to create an account on eToro. if you are already an active eToro account user, you should skip this and move to the next part.

How to Create an eToro Account

1. Go to the eToro website and click on the “Join eToro” button.
2. Enter your name, email address, and password.
3. Select your country of residence and your preferred currency.
4. Check the boxes to agree to the eToro Terms and Conditions, Privacy Policy, and Cookie Policy.
5. Click on the “Create Account” button.

Step 2: Verify Your Account

Once you have created an account, you will need to verify your identity. This is a standard procedure for regulated brokers and it helps to protect your account from fraud.

Step 3: Fund Your Account

After signing up and using KYC to verify your eToro account, the next thing to do is to fund your account in other to be able to buy bitcoin. the minimum deposit is $10.

How to Fund Your eToro Account

• Log in to your eToro account.
• Click on the “Deposit Funds” button at the bottom left of the page.

• Select the payment method you want to use.
• Enter the amount you want to deposit.

• Follow the instructions on the screen to complete the deposit.

The following are the payment methods available for funding your eToro account:

• Credit card
• Debit card
• Bank transfer
• e-wallet (PayPal, Skrill, Neteller)
• eToro Money
• Trustly Online banking

The fees for funding your eToro account will vary depending on the payment method you use. For example, there is no fee for funding your account using eToro Money, but there is a 3.9% fee for funding your account using a credit card.

Step 4: Place a Buy Order on Bitcoin

• In the search bar, type “Bitcoin” and click on the “Trade” button.

• In the order window, enter the amount of Bitcoin you want to buy.
• Select the type of order you want to place. You can choose from a market order, a limit order, or a stop-loss order.
• Click on the “Open Trade” button to place your order.

How to Store Your Bitcoin

There are two main ways to store your Bitcoin:

• Hot wallets: Hot wallets are online wallets that are connected to the internet. They are convenient to use, but they are also more vulnerable to hacking.
• Cold wallets: Cold wallets are offline wallets that are not connected to the internet. They are much more secure than hot wallets, but they are also less convenient to use.

Here are some of the most popular hot wallets:

• Coinbase: Coinbase is a popular cryptocurrency exchange that also offers a hot wallet service.
• BlockFi: BlockFi is a cryptocurrency lending platform that also offers a hot wallet service.
• Binance: Binance is a popular cryptocurrency exchange that also offers a hot wallet service.

Here are some of the most popular cold wallets:

• Trezor: Trezor is a hardware wallet that is considered to be one of the most secure options available.
• Ledger: Ledger is another popular hardware wallet that is considered to be very secure.
• Paper wallet: A paper wallet is a physical copy of your Bitcoin private keys. It is the most secure option available, but it is also the least convenient.

Why Do So Many People Lose Money on eToro?

There are a few reasons why so many people lose money on eToro. Here are some of the most common reasons:

• Leverage: eToro allows traders to use leverage, which means that they can borrow money from the platform to trade with. This can magnify profits, but it can also magnify losses. If the market moves against the trader, they could lose more money than they deposited.
• CFDs: eToro also offers CFDs (contracts for difference), which are a type of derivative. CFDs allow traders to bet on the price of an asset going up or down, without actually owning the asset. This can be a risky way to trade, as traders can lose money even if the asset’s price goes up.
• Gambling mentality: Some people treat trading as gambling, rather than investing. They are willing to take on a lot of risk in the hope of making a quick profit. This can lead to losses, especially if they are not familiar with the market or the risks involved.
• Overtrading: Some people trade too often, without taking the time to do their research or understand the market. This can lead to losses, as they are more likely to make mistakes.
• Not setting stop losses: Stop losses are a way to limit your losses. They automatically close your trade if the market moves against you by a certain amount. Not setting stop losses can lead to large losses, if the market moves against you significantly.

It is important to remember that trading is a risky activity, and there is always the possibility of losing money. If you are considering trading on eToro, it is important to understand the risks involved and to take steps to mitigate those risks.

Conclusion

Do your research before you buy Bitcoin. Understand the risks involved and make sure that you are comfortable with them.

Only invest money that you can afford to lose. Bitcoin is a volatile asset and its price can fluctuate wildly.

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