How to Buy Bitcoin with eToro – Beginner’s Guide

eToro is a popular online broker that enables investors to buy Bitcoin and other cryptos in a regulated environment.

In this guide, we explain how to buy Bitcoin with eToro in 2024. We also evaluate whether eToro is the best place to buy Bitcoin, in terms of fees, safety, and user-friendlies.

Scroll down to find a more detailed tutorial on how to purchase Bitcoin on eToro.

How to Buy Bitcoin on eToro – Tutorial 2024

In this section, we guide beginners through the simple process of buying Bitcoin with eToro. We explain each step in great detail alongside screenshots.

Step 1: Open an eToro Account

eToro is a regulated broker, so all customers must register an account. This usually only takes a couple of minutes, including the KYC (Know Your Customer) process.

First, visit the eToro website. Then, click on the ‘Sign Up’ button and choose a username and password. Enter an email address and click on ‘Create Account’.

eToro will then send an email. Open the email and click on the verification link. Next, eToro will collect some more personal information. This includes a full name, nationality, home address, cell phone number, and date of birth.

Next, eToro will send an SMS to the registered cell phone number. Type in the code to complete the registration process. Before proceeding, eToro will ask some basic questions regarding prior trading experience.

This enables eToro to offer suitable investment products.

Crypto assets are a highly volatile unregulated investment product. No UK or EU investor protection.

Step 2: Complete the KYC Process 

Another stipulation from eToro’s regulators is that new customers must be verified. This is known as the KYC process and requires a government-issued ID. eToro accepts passports and driver’s licenses. In some countries, national and state ID cards are also accepted.

Additionally, proof of address is also required. Examples of acceptable documents include bank and credit card statements and utility bills. The document must have been issued within the prior three months.

Unlike other Bitcoin brokers, the KYC process at eToro is automated. This means that documents should be verified in 1-2 minutes.

Step 3: Deposit Funds 

Full account functionality is given once the KYC process is complete. This includes being able to deposit funds with fiat money.

Here’s an overview of what payment methods eToro supports:

• Debit/credit cards
• Neteller
• Paypal
• Skrill

eToro also supports local payments too. The available options will appear depending on the customer’s country of residence.

UK and US customers can get started with just $10. Most other nationalities are required to deposit at least $50.

A major benefit of using eToro is that deposit fees are super-low. Non-USD payments cost just 0.5% across all supported payment methods. This fee is waivered if the payment is made in USD.

Step 4: Search for Bitcoin 

eToro is a multi-asset broker with thousands of markets, from stocks and ETFs to forex and cryptocurrencies. As such, the fastest way to buy Bitcoin with eToro is to use the search box.

Type in ‘Bitcoin’ and click on the ‘Trade’ button next to the search result.

Step 5: Set up an Order and Buy Bitcoin

The final part requires the investor to set up an order. First-time Bitcoin investors will be pleased to know that this is a simple process at eToro.

When the order box appears,  there is just one field to fill out – the investment amount. This needs to be stated in US dollars, irrespective of the account currency. The minimum investment is $10, but in our example above, we are investing $50.

Click on ‘Open Trade’ to place the order. And that’s it – eToro will execute the order instantly, meaning Bitcoin has been purchased successfully.

eToro Wallet Options 

After buying Bitcoin, the tokens are stored in the eToro web wallet.

This is a custodial wallet, meaning eToro safeguards the investment. The wallet is secure and convenient, enabling users to view their Bitcoin investment at any time. Plus, the eToro web wallet makes it simple to sell Bitcoin at the click of a button.

That said, eToro also offers a second wallet option, downloadable as an app for iOS and Android. This is called the eToro Money crypto wallet.

This is still a custodial wallet, but users have more options. For instance, users can transfer Bitcoin tokens to another location, such as an exchange or wallet. Moreover, the eToro Money crypto wallet enables users to swap tokens instantly without leaving the app.

Ultimately, beginners simply looking to gain exposure to Bitcoin will find the eToro web wallet more than suitable.

How to Sell Bitcoin on eToro

As noted above, the Bitcoin tokens will be stored in the eToro web wallet by default. This makes it a breeze to sell Bitcoin when the time arises.

First, click on the ‘Portfolio’ button, situated on the left-hand side of the account dashboard. This will display all investments currently in the eToro portfolio, with real-time prices. Click on ‘Bitcoin’ followed by the ‘Close All’ button. To confirm, click on ‘Close All’ again.

The other option is to only sell a percentage of the Bitcoin investment. In this instance, click on ‘Close’ and choose how much to sell.

Either way, once the sell order is placed, eToro will instantly execute the order. The funds will then be added to the user’s account balance. At any time, a withdrawal can be made back to the registered payment method.

How Much Does it Cost to Buy Bitcoin on eToro?

It is important to understand what fees are applicable when electing to buy Bitcoin with eToro. Below, we break down each fee type so that investors can make an informed decision before proceeding.

Deposit Fees

To buy Bitcoin with eToro, a deposit needs to be made. eToro offers a simple fee structure in this regard.

• Payments made in US dollars do not incur any fees
• Payments made in any other currency incur a 0.5% fee. This is an FX fee charged to convert the currency to US dollars.

The above fees are applicable to all supported payment types, whether that be debit/credit cards, e-wallets, or bank wires.

In comparison, many crypto exchanges charge in excess of 3-5% to deposit funds with fiat money. For example, Coinbase charges 3.99% on debit/credit purchases. While Bitstamp charges 5%. As such, eToro is very competitive in this regard.

Trading Commissions

eToro doesn’t charge trading commissions per se. It does, however, charge a markup on the market spread. This is a simple and transparent charge of 1% on both buy and sell orders.

This is deducted from the investment amount. As such, after placing an order to buy Bitcoin with eToro, the trade will be at an immediate loss.

For example:

• Let’s say an investor wants to buy $1,000 worth of Bitcoin with eToro
• This will attract a fee of 1%, so the investor pays $10
• The investor now has $990 worth of Bitcoin
• The portfolio will show that the investment is down $10, or 1%

The above also applies when cashing out. This means that investors need to factor in the 1% charge when calculating gains or losses.

Storage Fees

eToro does not charge any fees for storing Bitcoin in its web wallet. This means investors can hold onto their Bitcoin tokens safely for as long as they wish. This is also the case with eToro Money crypto wallet.

Withdrawal Fees

Withdrawals made in US dollars are fee-free.

Those withdrawing in any other currency will pay a fee of $5. Additionally, eToro will once again charge a 0.5% FX fee on non-USD payments. This is because the broker will need to convert US dollars back to the respective currency.

Do note that Diamond-tier customers will not need to pay any withdrawal or conversion fees. Those on a Platinum or Platinum+ tier will receive a 50% discount on these fees.

Crypto assets are a highly volatile unregulated investment product. No UK or EU investor protection.

What Makes eToro a Good Place to Buy Bitcoin?

Still not sure if choosing the buy Bitcoin with eToro is the right option? In this section, we explore how eToro compares with other crypto brokers and exchanges.

eToro Review

eToro was founded in 2007 and is now used by over 30 million customers. The broker is regulated by multiple bodies, ensuring that investors can buy Bitcoin safely. This includes licenses with FINRA (US), ASIC (Australia), FCA (UK), and CySEC (Cyprus). eToro customers are covered by one of these financial bodies, depending on their country of residence.

In addition to Bitcoin, eToro supports more than 90 other cryptocurrencies. This makes it simple to create a diversified portfolio in one safe place. This includes other large-cap cryptocurrencies, such as Ethereum, BNB, XRP, and Cardano. eToro also supports emerging cryptocurrencies, including Enjin, Maker, Axie Infinity, Curve, and many others.

All of the cryptocurrencies available on eToro can be bought from just $10 or more. This is because investments are fractionized. Once again, this makes eToro an ideal choice for buying lots of different cryptocurrencies with a small account balance. As noted above, eToro charges a 1% fee on cryptocurrency purchases. This fee is also charged when selling cryptocurrencies.

A major advantage of choosing eToro is that debit/credit cards and e-wallets can be used fee-free if the payment is made in US dollars. If the payment is used in another currency, a small FX fee will apply. Compare this to other cryptocurrency platforms like Coinbase (3.99% and Bitstamp (5%) – and eToro is significantly cheaper.

The minimum deposit at eToro is just $50, reduced to $10 for US and UK customers. eToro is considered a great option for first-time Bitcoin investors. Not only in terms of the small account minimums but the platform is super user-friendly. Plus, eToro removes the need to learn how to use crypto wallets.

This is because after buying Bitcoin, the tokens are safeguarded by eToro. Customers simply need to log into their eToro account to view or sell their tokens. That said, this broker also offers an eToro Bitcoin wallet app. This is separate from the main web wallet and comes with additional features. This includes in-wallet token swaps and the ability to transfer Bitcoin externally.

Another popular feature at eToro is copy trading. This promotes a passive trading experience, as customers can copy the positions of another eToro investor. All future buy and sell orders will be mirrored at a proportionate investment amount. Customers can stop copying at any time, and no additional fees apply.

For long-term crypto investors, smart portfolios are also worth considering. These are professionally managed crypto portfolios that are well-diversified. eToro rebalances smart portfolios on behalf of investors. One smart portfolio on eToro offers access to 20 different cryptocurrencies. This is weighted by market capitalization.

For instance, Bitcoin, Ethereum, and BNB have a weighting of 44%, 17%, and 11% respectively. While ApeCoin, Stellar, and Uniswap contribute just 1% each. There are other crypto smart portfolios to choose from across various goals. On top of cryptocurrencies, eToro is also a regulated stock broker.

This covers thousands of stocks from the US, UK, and European markets. This is in addition to markets in Asia and the Middle East. ETFs, indices, forex, and commodities are also supported. Stocks and ETFs can be traded commission-free while other assets attract a spread-only pricing mode.

On the flip side, eToro does come with some drawbacks that should be considered. First, we found that eToro is more suited for beginners. While it does come with charting tools and technical indicators, these likely won’t be suitable for seasoned traders. Moreover, some products – including forex, commodities, and indices – are not available to US clients.

This is because these products are traded as contracts-for-differences (CFDs). Another drawback to consider is that eToro does not offer a non-custodial wallet. This means that investors do not control their private keys. That said, beginners are likely more suitable for custodial wallets anyway, as no prior experience is needed.

Crypto assets are a highly volatile unregulated investment product. No UK or EU investor protection.

What to Know About Buying Bitcoin as a Beginner

Now that we have explained how to purchase Bitcoin on eToro, we can explore some key considerations to make as a beginner. First and foremost, Bitcoin is a digital currency that was created in 2009. It was designed to challenge the global financial system as a decentralized alternative to fiat money.

However, Bitcoin is now largely bought as an investment vehicle. Its value fluctuates based on demand and supply, similar to stocks. But Bitcoin is a lot more speculative and volatile than stocks and other conventional assets. The process of buying Bitcoin is also similar to stocks.

For example, an account will be need to opened with a broker like eToro. After choosing how much to invest and completing the order, the investment value will rise and fall. Bitcoin investors can easily sell their tokens back to fiat money, as the markets operate 24/7. Moreover, Bitcoin attracts plenty of liquidity, ensuring that investments can be cashed out seamlessly.

Just remember that the risks of Bitcoin are much higher than other assets. After all, Bitcoin has a track record of just 14 years. This is why risk-averse investors will only allocate a small percentage of their portfolio to Bitcoin. Nevertheless, Bitcoin has generated huge returns over the prior decade – which we cover in more detail shortly.

What is Bitcoin?

A core feature of Bitcoin is that it is decentralized. This means that nobody owns Bitcoin or the blockchain network. In turn, Bitcoin tokens held in a private wallet remain in full control of the investor. Unlike bank accounts, private wallets cannot be frozen, and transactions cannot be reversed.

Bitcoin also operates free of any government, nation, state, or central bank. This means that the supply of Bitcoin cannot be manipulated. This is beneficial for investors, as Bitcoin does not suffer from inflationary practices. On the contrary, the supply of Bitcoin is dictated by the blockchain.

Every 10 minutes, new Bitcoin enters the circulating supply. Currently, this stands at 6.25 BTC. However, this is halved approximately every four years. This will continue to be the case until around 2140 when all 21 million Bitcoin tokens are in circulation.

What is Bitcoin Used for?

The Bitcoin whitepaper, released in 2008, argued that Bitcoin would be an ideal “peer-to-peer version of electronic cash“. In other words, Bitcoin was created as a medium of exchange. This is because Bitcoin can be transferred on a wallet-to-wallet basis without a third party, like a bank.

What’s more, Bitcoin fees are low, and it takes just 10 minutes for transactions to confirm on the blockchain. However, Bitcoin now serves a new purpose – it is a bonafide investment vehicle. Just like stocks, people buy Bitcoin to make financial gains. This can be achieved if the value of Bitcoin increases.

Consider that Bitcoin was worthless when it first launched in 2009. Since then, Bitcoin has hit highs of almost $69,000 – translating into gains of millions of percent. That said, Bitcoin also has other use cases. For example, an increasing number of merchants accept Bitcoin payments.

Notable examples include Microsoft, Overstock, and Twitch – but there are thousands more. Moreover, Bitcoin can also be used to earn passive income. There are many options in this regard, including Bitcoin savings accounts. The Bitcoin tokens are then used to fund loans, with borrowers paying the investor interest.

Why Invest in Bitcoin?

It is important to understand the investment thesis of Bitcoin before proceeding. Below, we cover the main reasons why Bitcoin is increasingly becoming popular with investors.

High-Growth Asset

The main reason people buy Bitcoin with eToro and other brokers is to target large investment gains. As previously discussed, Bitcoin has outperformed most other assets since it was launched in 2009.

Let’s take a look at an example.

• According to CoinMarketCap, the first recorded price of Bitcoin was $0.062 in 2011.
• At its peak in late 2021, Bitcoin was trading at nearly $69,000.
• This means Bitcoin has since returned over 111 million percent

In more recent times, let’s suppose an investor bought Bitcoin in early 2020 when it was trading at just over $5,000. Compare this to 2023 highs of over $30,000, and Bitcoin has growth by 500% in just three years.

Although Bitcoin has witnessed vast gains since its creation, past performance does not influence future returns. This means investors should tread with caution and consider the risks before proceeding.

50% Discount From Previous Highs 

Bitcoin, like stocks and other assets, operates in a cyclical market. This means Bitcoin prices go through bullish and bearish trends. Currently, Bitcoin is trading at a 50% discount from its prior highs.

This will attract discount investors that like to buy quality assets at a more favorable entry price. While there is no guarantee Bitcoin will return to its former peak of $69,000 – if it does, this offers a notable upside based on current prices.

This is similar to buying stocks when the broader markets are down, in anticipation of a sentiment reversal.

Liquid Investment Makes Cashing Out Seamless  

Many investors prefer liquid assets, which enable investors to cash out with ease. This is certainly the case with Bitcoin, considering that it is a multi-billion dollar asset that trades 24/7.

In other words, investors can sell their Bitcoin tokens back to fiat money at any time. This makes Bitcoin a great alternative to illiquid assets, such as real estate and bonds.

Easily Transferrable and Stored  

Bitcoin is a digital currency, making it easy to transfer and store. For instance, transactions are conducted on a wallet-to-wallet basis. There is no need to go through a third party when transferring Bitcoin, so investors have full control over their funds.

As noted earlier, storing Bitcoin in a private wallet offers even greater control. This is because the wallet can only be accessed by those in possession of its private keys.

In terms of Bitcoin fees, this varies depending on network demand. But oftentimes, this is in the $1-3 region. This is the case regardless of the size of the transaction, making Bitcoin ideal for large transfers.

How Much Money do You Need to Buy Bitcoin?

Bitcoin is an investment product available to all budgets. Sure, Bitcoin trades for tens of thousands of dollars. However, Bitcoin is a digital currency, so it can be fractionalized into small units. This is especially ideal for those concerned about the risks of Bitcoin.

Some investors will buy a small amount of Bitcoin at the end of each month, building their position in the long run. While others will invest much larger amounts. That said, remember that most crypto brokers and exchanges have minimum investment requirements in place. Fortunately, the minimum at eToro is just $10 – ensuring that all budgets are catered for.

Bitcoin ETF Token – This New Deflationary Cryptocurrency Can Be a Potential Alternative to Bitcoin 

Despite being the largest cryptocurrency asset in the world, Bitcoin does have certain drawbacks. Firstly, the platform uses a large amount of non-renewable resources of energy to operate. Secondly, it may not be beneficial to investors looking to generate high growth potential. 

On the other hand, Bitcoin ETF Token ($BTCETF), is a new ERC-20 token that uses a more sustainable ecosystem, and could be a handy long-term investment option. Based on the Ethereum blockchain, $BTCETF can be staked to earn passive income. 

The token has a total supply of 2.1 billion – 25% of which will be distributed as staking rewards. Notably, Bitcoin ETF Token has been created in anticipation of the first Bitcoin ETF – which is yet to be approved by the SEC. As the ETF starts rolling out, Bitcoin ETF Token will offer staking rewards and token-burning events. 

For instance, 5% of the token supply will be burned when the SEC approves the first Bitcoin ETF. Similarly, another 5% will be burned when the ETF is launched. In total, Bitcoin ETF Token will burn 25% of its token supply. 

Through an Ethereum-based smart contract, $BTCETF token holders can also stake their holdings and generate high APYs (Annual Percentage Yields). Since Bitcoin ETF Token has recently just launched $BTCETF on presale – it provides high growth potential. 

Combined with the deflationary tokenomics of the project, Bitcoin ETF Token could be one of the top cryptos to hold in the long term. The ongoing presale is allocating 840 million tokens – representing 40% of the token supply. 

In only a week, the presale has raised more than 550K. Stay tuned for more project updates by reading the Bitcoin ETF Token whitepaper and joining the Telegram channel. 

Conclusion 

In summary, eToro is a great place to buy Bitcoin safely. The broker is regulated on multiple fronts, including FINRA, ASIC, FCA, and CySEC.

Its user-friendly dashboard will appeal to first-time investors, and the minimum deposit starts from $10. Bitcoin can be bought with a debit/credit card, e-wallet, or bank wire.

We also found that eToro offers competitive fees. USD payments are fee-free, while other currencies are charged just 0.5%. Plus, eToro also supports other cryptocurrencies, making diversification simple.

Crypto assets are a highly volatile unregulated investment product. No UK or EU investor protection.

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