The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.
If you’re new to eToro (and Bitcoin), you no doubt have some questions. Not only do you want to know how to buy Bitcoin on eToro, but you probably also want to know whether it’s safe, how much it will cost you, and whether or not you’ll even own the Bitcoin, to begin with.
In this guide to all things eToro and Bitcoin, we’ll cover:
Yes, you can buy Bitcoin on eToro. There is a wide range of digital currencies available to trade, but Bitcoin is the most popular, valuable and frequently traded. It can also be traded against other popular cryptocurrencies, including:
eToro offers both crypto-to-crypto and fiat-to-crypto trading and has a much wider range of virtual coins than many other brokers. It also offers benefits such as immediate execution of market orders and the ability to diversify and trade in other instruments.
eToro makes it extremely easy to buy Bitcoin:
Log into your eToro account and search for Bitcoin/BTC and a drop-down menu will automatically appear. Select ‘BTC’ for Bitcoin. If you don’t have an eToro account, you’ll need to open an account to start trading.
Decide how much money you want to put into Bitcoin. The smallest amount of Bitcoin you can buy with eToro is $25.00. Alternatively, if you click ‘Units’ you will be able to select the exact quantity of Bitcoin you want to buy, for example, 9.5 units.
Once you’re ready to buy Bitcoin, go ahead and click ‘Set Order’ if you’re placing an order, or ‘Open Trade’ if you want to immediately execute a trade.
Be aware that Bitcoin experiences such frequent price changes that the price can change between placing an order and the order being executed – even if this is done almost immediately. This is known as ‘slippage’ and is common when trading highly volatile instruments.
It can work for or against you by making your coins cheaper or more expensive. Unfortunately, there is little that can be done about slippage. Just be aware that it can happen and that it is the most likely explanation if you find you paid a different price than the one you were expecting.
Back in the portfolio section of your profile, you’ll see your recent Bitcoin order sitting there:
Now that it’s in your portfolio, you can easily follow the latest Bitcoin stats, monitor its performance, set price alerts and see what other traders are doing with their Bitcoin trades.
You can buy Bitcoin directly using a credit card or your PayPal account with no added commissions, or you can deposit funds using a bank transfer in order to buy Bitcoin. Another convenient option for buying Bitcoin is the fully-licensed eToro Wallet, which allows you to buy directly from a secure digital wallet.
It is possible to buy Bitcoin at eToro without a wallet, but many Bitcoin investors prefer to use one, especially if they will be keeping their digital coins for a while and want to ensure that they are securely stored.
eToro does not charge a transaction-specific fee on trading. The only fees you need to be aware of that are not immediately obvious are:
Fees do not apply to non-leveraged buy positions. They are, however, applied to all sell positions, leveraged buy positions and all cryptocurrency pair positions (when you trade one digital currency against another).
It’s important for you to remember that fees are subject to change at any time and without notice. Always look at up-to-date spreads (they are clearly displayed on the website) before making any transactions.
That depends. In the UK, all leveraged and short (selling) transactions are executed as CFDs. This means that you don’t actually own the Bitcoin. Instead, the digital coins are purchased and held for you by eToro on your behalf.
When you sell the coins, you can benefit from any price movement that has resulted in a profit for you. The advantage of CFDs is that you can take a short position even if you do not currently own the asset. By contrast, if you open a non-leveraged, long (buying) position then you are investing in the underlying asset and will own the Bitcoin.
The terms of buying and selling Bitcoin will depend entirely on where you live and who your trade is regulated by. In the US, for example, it is not possible to trade with CFDs. eToro has recently started to offer cryptocurrency trading in many states within the US, but regulations regarding how trades can be executed are tight.
If you’ve never bought Bitcoin before, you should be aware that Bitcoin – like most cryptocurrencies – is highly volatile, and the cryptocurrency market lacks traditional safeguards and regulation measures to protect investors. This lack of protection and high volatility means that you may lose money when trading. Equally, however, it is possible for you to make a large amount of money in a short period of time.
The fully-licensed eToro Wallet allows you to securely store crypto assets and send/receive cryptocurrencies to and from other wallets as long as they are supported by eToro. However, a lot of third-party wallets are vulnerable to hackers and Bitcoin transactions are not regulated. As Cryptocurrency operates outside of normal regulatory practices, there is no guaranteed protection, meaning you stand to potentially lose your money if your account is compromised.
For clients of eToro (UK) Ltd,
all leveraged and short transactions in cryptocurrencies are CFD transactions. Non-leveraged long (BUY) positions are underlying cryptocurrency transactions (where we are buying the actual asset on your behalf).
For clients of eToro (Europe) Ltd.:
For clients of eToro Aus Capital PTY Ltd.:
All cryptocurrency transactions are CFDs.
Yes, you can purchase any cryptocurrencies directly to your eToro wallet with your credit card through Simplex.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .