eToro is one of the most popular platforms for buying Bitcoin, especially for beginners. It offers a user-friendly interface, low fees, and features like social trading, allowing users to copy the trades of successful investors. Here are some reasons why eToro is a great choice:
- Low Fees: eToro charges a competitive 1% trading fee on Bitcoin purchases, significantly lower than many other exchanges.
- User-Friendly: eToro’s platform is designed to be intuitive, making it easy for new traders to buy Bitcoin quickly.
- Copy Trading: eToro’s unique social trading feature allows beginners to mimic the trades of experienced users, providing a seamless way to learn and grow their crypto portfolio.
How to Buy Bitcoin on eToro in 5 Simple Steps
Below is a detailed step-by-step guide on how to buy Bitcoin using the eToro app.
1. Create an eToro Account
The first step is to download the eToro app from your smartphone’s app store (available on both iOS and Android) and create an account. Follow these simple steps:
- Open the app and click on “Join eToro”.
- Enter your email address, choose a password, and fill in the necessary personal details.
- Alternatively, you can sign up using Google or Facebook accounts.
2. Complete KYC Verification
To comply with regulations, eToro requires you to complete the Know Your Customer (KYC) process before trading. Here’s what you need to do:
- Provide a valid government-issued ID (such as a passport or driver’s license).
- Submit proof of your residential address (a recent utility bill or bank statement will work).
- The verification process typically takes a few hours to a day, depending on the volume of new users.
3. Deposit Funds
Once your account is verified, it’s time to deposit funds to purchase Bitcoin. Here’s how:
- Tap on “Deposit Funds” at the bottom of your eToro app screen.
- Choose your preferred payment method (credit card, bank transfer, PayPal, or Skrill).
- Enter the amount you want to deposit and confirm the transaction.
eToro offers several funding options, with a minimum deposit of $10 for US-based users.
Now that you know how to buy Bitcoin on eToro, you may also want to explore other methods, like purchasing Bitcoin with a credit card. Read our guide on How to Buy Bitcoin with a Credit Card in 2024 for more information.
4. Search for Bitcoin
Now that your account is funded, you’re ready to buy Bitcoin. To do this:
- Use the search bar at the top of the app and type “Bitcoin” or “BTC”.
- Select Bitcoin from the search results.
- You’ll see options to either place a market order (buy at the current price) or a limit order (set a target price at which you’d like to buy).
5. Place Your Bitcoin Trade
Once you’ve selected Bitcoin, it’s time to execute your trade:
- Click “Trade” to begin the purchase.
- Enter the amount of Bitcoin you wish to buy.
- Review the fees and total cost before confirming the transaction.
- After confirming, your Bitcoin will appear in your eToro portfolio.
When purchasing Bitcoin with a credit card, choosing the right platform can make a big difference. Wondering which is best? Read our in-depth comparison of eToro vs Coinbase to find out which exchange suits your needs in 2024.
Fees for Buying Bitcoin on eToro
One of eToro’s standout features is its competitive fee structure. Here’s what you need to know about the costs involved in buying Bitcoin on eToro:
- Trading Fee: eToro charges a 1% fee for opening and closing any Bitcoin trade.
- Deposit Fee: There are no fees for depositing funds via credit card, bank transfer, or PayPal.
- Spread: On top of the 1% trading fee, eToro applies a spread (the difference between the buy and sell price) which varies depending on market conditions.
- Withdrawal Fee: A flat $5 fee is applied to withdrawals from your eToro account.
- Inactivity Fee: eToro charges a $10/month fee after 12 months of inactivity, but this can be easily avoided by logging in regularly.
| Fee Type | Description |
|---|---|
| Trading Fee | 1% fee on Bitcoin trades |
| Deposit Fee | No fee for deposits |
| Spread | Variable (depends on market conditions) |
| Withdrawal Fee | $5 per withdrawal |
| Inactivity Fee | $10 after 12 months of inactivity |
Is eToro Safe for Buying Bitcoin?
eToro is a globally recognized platform, regulated by top-tier authorities like the Financial Conduct Authority (FCA) in the UK and FinCEN in the US. These regulations provide a layer of security, ensuring that your funds are protected. In addition:
- Two-Factor Authentication (2FA): eToro uses 2FA to protect your account from unauthorized access.
- Insurance: In the unlikely event of a security breach, eToro provides insurance coverage for client funds held in trading accounts.
- Cold Storage: eToro uses a mix of cold (offline) and hot (online) storage to safeguard its crypto holdings.
However, as with any platform, it’s always a good idea to transfer large amounts of Bitcoin to an external hardware wallet for maximum security.
Advantages of Buying Bitcoin on eToro
- User-Friendly Interface: eToro’s app is designed for both beginners and seasoned traders, offering easy navigation and intuitive design.
- Low Fees: With a flat 1% trading fee, eToro’s fees are highly competitive compared to other platforms.
- Copy Trading: Unique to eToro, this feature allows you to copy the trades of top-performing investors, ideal for users who are new to crypto trading.
- Social Trading Features: You can interact with other traders, share strategies, and learn from the community.
Things to Consider Before Buying Bitcoin on eToro
Before making your first Bitcoin purchase on eToro, consider these important factors:
- Regulation: eToro is a regulated exchange, but ensure that your country’s regulations align with the platform’s rules.
- Fees: While eToro’s fees are low, be mindful of the spread and withdrawal costs.
- Long-Term Holding: For long-term Bitcoin holders, consider transferring your Bitcoin to a non-custodial wallet like Ledger or Trezor for enhanced security.
How to Sell Bitcoin on eToro
Once you’ve bought Bitcoin on eToro, you might eventually want to sell it. Here’s how to do it:
- Log into Your eToro Account: Open the app and navigate to your portfolio.
- Select Bitcoin (BTC): Find Bitcoin in your portfolio and select it.
- Sell Bitcoin: Click on “Sell”, enter the amount of Bitcoin you wish to sell, and confirm the details.
- Withdraw Funds: After selling, you can withdraw the proceeds back to your original payment method, subject to a $5 withdrawal fee.
Conclusion
eToro is one of the best platforms to buy Bitcoin in 2024, especially for beginners. Its low fees, user-friendly interface, and social trading features make it an attractive choice for those entering the cryptocurrency market. Whether you’re looking to buy, sell, or simply copy successful traders, eToro offers a comprehensive solution for all your crypto needs.
Ensure to follow secure practices, such as enabling 2FA and considering external wallets for long-term storage, to keep your investments safe.
