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:
- Can you buy Bitcoin on eToro?
- How to buy Bitcoin (step-by-step)
- Ways to buy Bitcoin
- Fees you should be aware of
- Will you own your Bitcoin?
Can You Buy Bitcoin on eToro?
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:
- Litecoin – read more
- Ethereum – read more
- Ripple and Dash – read more
- Various fiat currencies – read more
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.
How to Buy Bitcoin
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.
On the next screen, click the ‘Trade’ button in the top right corner:
From here, you have a couple of options. You can either set your order or go ahead and execute an immediate trade.
- Order – placed above or below the current market price. Will only be executed when the market price trades to the price parameters you set
- Trade – Executed immediately based on the current market buy & sell prices
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:
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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.
Buying Bitcoin on eToro
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.
Bitcoin Trading Fees on eToro
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:
- Inactivity fees on dormant accounts (if they are inactive for 12 months)
- Conversion fees (change one currency for another using the exchange)
- Withdrawal fees (minimum withdrawal $30, currently set at a flat rate of $5)
- Overnight fees (CFD positions)
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.
Do I Own My Bitcoin?
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.
Do People Lose Money on Bitcoin?
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.
Can You Send Bitcoin From eToro?
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.
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FAQ
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.:
- All SELL (SHORT) cryptocurrency transactions are CFDs.
- Non-leveraged long (BUY) cryptocurrencies transactions are underlying cryptocurrency transactions (actual asset).
- On or around 12th August 2019, BUY cryptocurrency transactions which utilize X2 leverage (excluding CopyTrading and CopyPortfolio transactions) will also be underlying cryptocurrency transactions. Such transactions will be subject to “Margin Trading” rules as described below. This offering does not apply to clients who are residents of China.
- Any cryptocurrency transaction with leverage higher than X2 (if existing) are CFD transactions.
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 .