How to buy bitcoin on eToro

After reading several articles about it and hearing a lot about it from your friends, you too have decided to deepen the bitcoin topic and are considering the idea of ​​investing in this popular cryptocurrency. However, you still have some doubts about buying and investing solutions related to bitcoins. If this is the case, let me give you a hand and explain, with this tutorial of mine, how to buy bitcoin in a simple and safe way by relying on one of the most important (and safest) companies in the sector: eToro .

eToro is the global multi-asset investment platform, specialized in social investing active since 2007 with 20 million users from over 140 countries, which offers several interesting solutions dedicated to bitcoin and, more generally, to the crypto world. It allows you to analyze the crypto market in real time and invest in it in a very simple way, with the possibility of seeing what the best traders are doing and copying them. By trading bitcoin with eToro you have the opportunity to buy and sell real crypto without deposit fees and using a wide range of payment systems, including credit cards and PayPal, eliminating all the “clutches” typical of trading systems. cryptocurrencies.

There is also an app to install on your smartphone to create and manage your own wallets in which to store cryptocurrencies. Opening an account on eToro is free and it only takes a few seconds to do so. Additionally, you have access to a demo trading account with $ 100,000 in virtual funds to use to test the service without actually investing. How do you say? The prospect seems quite interesting to you and would you like to know in more detail how to buy bitcoin on eToro ? Perfect, then read on: everything is explained below.

Index

  • What are bitcoins
  • How to invest in bitcoin with eToro
    • Open the account
    • Deposit funds
    • Trading with bitcoins
  • How to buy bitcoin with eToro
    • EToro Money App
  • For more information

What are bitcoins

Before explaining in detail how to buy bitcoin on eToro , it seems appropriate to take a small “step back” and explain to you what we are talking about.

Well, bitcoins are a cryptocurrency , that is, a digital currency that can be used for the purchase of many products and services, not only online but also in the “real world” (more and more shops accept them all over the world). Their main characteristic is that of being a decentralized currency , that is, of not having a central bank that acts as an intermediary between the people who use it. This is possible thanks to the use of a peer-to-peer network , called Bitcoin (with a capital initial, unlike the name of the coin), created in 2009 by an anonymous character – or, more likely, a collective – known by the pseudonym of Satoshi Nakamotoand a technology called blockchain .

The blockchain is a sort of ledger , shared among all users of the Bitcoin network, in which all the transactions carried out are recorded. As the name suggests, it is composed of a chain of blocks in which each block contains the data of the previous block , a fixed number of coins (which changes over the years) and the public cryptographic keys of the transacting party.

To add new blocks it is necessary to perform the so-called mining : an activity that consists in attacking data protected with cryptography based on the SHA-256 algorithm through the brute force technique , i.e. by making the CPU and / or GPU of a computer execute very complex calculations (hence the definition “cryptocurrency”).

Among all those who manage to make the “right calculations” first and carry out this “attack”, a user is chosen: if the content of his block matches that of the other users’ blocks (therefore it contains the same transactions and, therefore, it has not been tampered with) is added to the blockchain. In return, the user receives new bitcoins as a reward .

Bitcoins are stored in digital wallets , called wallets , necessary to participate in the Bitcoin network and exchange the aforementioned currency. The latter are nothing more than computer programs or apps for smartphones and tablets in which to create your own cryptocurrency wallets, each of which with a unique address useful for identifying it in the peer to peer network used for the exchange of bitcoins.

It is important to know that a number of 21 million bitcoins is expected to be able to be mined and circulated overall (once reached, it will no longer be possible to mine new bitcoins) and that every four years the amount of coins generated is halved based on a rule deflationary. This means that the more time passes, the harder it becomes to mine, as the calculations for computers to add their block to the blockchain – and therefore get the bitcoin reward – become increasingly complex.

This also leads to an ever-increasing expenditure of energy necessary to carry out the mining activity and to the fact that, even today, with common home computers it is practically impossible to “mine” bitcoin profitably. Hence the birth, around the world, of hardware agglomerations destined precisely for this purpose , often located in countries where energy is cheap and where there is the possibility of not polluting too much through the use of energy sources. renewable .

In short, “mining” bitcoin is an activity now limited to a relatively small number of users, who must be equipped with hardware that is up to the task. However, anyone can buy bitcoins that have already been mined or invest in bitcoins, potentially making a profit from their market trend.

In this regard, it must be remembered that cryptocurrencies are very volatile and that cryptoassets are not regulated in some EU countries and the United Kingdom (where they remain perfectly legal but there is no consumer protection in transactions involving them). In short, investing in bitcoin exposes your capital to complete risk : this is good for you to know before trying your hand at an investment of this type.

That said, if you want to invest in bitcoin, eToro is certainly one of the best solutions to do so. This is because it includes everything you need to take your first steps in the world of crypto and become, over time, increasingly aware investors: it is a broker authorized by CySEC for Europe and, since 2017, it allows you to trade on cryptocurrencies in a simple and transparent way (without commissions, only spreads are paid); then offers an exchange for the purchase of bitcoin and other cryptocurrencies with traditional currency. Furthermore, thanks to the eToro Money app for Android and iPhone, it allows you to have a secure wallet with support for over 120 cryptocurrencies.

Yes, you read that right. Bitcoins are not the only existing cryptocurrency: there are many others, all based on a similar functioning; altcoins are defined (i.e. alternative coins , alternative coins) and eToro allows you to invest in many of them, including Ethereum , Ripple , Bitcoin Cash and Dogecoin , also allowing you to monitor their progress in real time and buy pre-packaged wallets, called CopyPortfolios , containing the best performing cryptoassets. Besides that, it allows you to invest in stocks, commodities, stock indices, ETFs and currencies. Today, however, we will focus on bitcoin.

By continuing to read, you will therefore discover how to invest in bitcoin with eToro. If, before starting, you want to deepen the subject further, I invite you to consult this eToro page which talks about how to buy bitcoin for the first time and my article on how bitcoin works .

How to invest in bitcoin with eToro

If your goal is to trade on bitcoins , below you will find out how to do it easily with eToro , which allows you to invest in the purchase of real crypto with a wide range of payment options, including credit cards and PayPal, or to sell them. through CFDs if a decline is expected and you want to take advantage of this trend.

eToro also offers many free market research and analysis tools, offers prepackaged portfolios containing the best performing cryptoassets and allows you to get in touch with other crypto traders to possibly copy their portfolios. It is also possible to practice via a demo trading account with $ 100,000 in virtual funds .

Investing in cryptocurrencies on eToro does not provide for deposit fees : you only pay the spreads (the difference between the purchase and sale price). With regard to taxation , however, Italian citizens are required to declare the eToro account to the tax authorities through the RW framework (as a foreign account) and to attach the eToro account statement (downloadable from the site) to the Single Tax Debt Certificate. . In case of profits it may be necessary to pay a rate of 26% and 2 per thousand for IVAFE (which is equivalent to stamp duty). For more details, contact your accountant and read this eToro page .

Having made the necessary clarifications above, let’s now take action and see how to invest in bitcoin on eToro. I will use the eToro website for the tutorial , but you can also do everything through the eToro mobile app for Android and iPhone / iPad .

Open the account

The first step you need to take is to open an account on eToro . To complete the procedure you will need to have a valid identity document and proof of your residence at hand (e.g. a utility bill or a statement in the name of the person who is opening the account) and you will have to take a few minutes of free time. .

Therefore, connect to the official eToro website (or open the smartphone app) and click on the subscription button . Enter your name , email and password , accept the terms and conditions and privacy policy by ticking the relevant boxes and clicking on the Create account button . Alternatively, you can also quickly log in with a Google account or Facebook account .

Next, validate your identity by visiting the confirmation link you received via email and decide whether to start practicing with the demo trading account with $ 100,000 of virtual funds made available by eToro or whether to verify your account , in order to to be able to deposit and really start investing. To do so, click on the appropriate button on the eToro dashboard and fill out the form that is proposed to you with the personal information requested.

Then, provide your address , your identity document number and indicate your degree of investment experience by answering the questions you are asked on the subject. Also specify which assets you plan to invest in , how long you plan to hold your positions open , your goals (e.g. short-term returns , additional income , plans for the future or home savings ).

Next, indicate how much you plan to deposit into your account over the course of the year and which risk / reward scenario would best describe your annual investment expectations with eToro . Answer the questions about your and your family’s activities that are proposed to you (these are questions that eToro must ask by law and all information entered is confidential) and indicate your sources of income , what work you do , name and address of the employer of work , your net annual income and your total cash (information used by eToro to ensure that its clients invest based on their actual availability).

After these steps, you are ready to deposit and invest in bitcoins, but with a deposit limit of $ 2,000 : if you want to remove it, you must verify your profile by entering your mobile number (you will receive a verification code via SMS to enter in the eToro field), uploading photos of your identity card or passport , providing proof of your address (e.g. a utility bill or bank statement in your name) and entering your tax identification number (i.e. tax code) .

Just follow the instructions on the screen and, in a few seconds, the procedure is completed. If you encounter any difficulties, in my guide on how eToro works you will find everything explained even more in detail.

Deposit funds

The deposit of funds is as simple and does not provide for fees to be paid. Just click on this special button in the eToro menu, indicate the ‘ amount to be loaded (minimum $ 50), choose a payment method from credit / debit card , PayPal , Rapid Transfer , Moneybookers , bank transfer , direct transfer , and Neteller and enter the relevant data.

If you wish, once you have made the first approved deposit by credit or debit card, you can also set up periodic deposits by going to the Settings> Payments menu of eToro.

As for withdrawals , the same goes: after selecting the appropriate item from the eToro menu, just enter the amount to be requested and confirm using the appropriate button. A minimum of $ 30 must be withdrawn and a fixed $ 5 fee applies .

Trading with bitcoins

To start investing in bitcoin with eToro , you can directly search for the name of the asset in question via the bar at the top and select the relevant result ( BTC ).

This will open the page dedicated to bitcoin, divided into tabs: Feed with the latest posts by eToro traders dedicated to the cryptocurrency in question; Statistics with an overview of the asset’s performance over time and data such as 52-week valuation, market capitalization, market position, 1-year return and many other useful information; Graphic ; with graphs useful for technical analysis (customizable with the ProCharts function , in order to view multiple instruments at the same time or view the same instrument using various parameters); finally, the Search tab allows you to have a technical and fundamental analysis with the trend of the asset and analysts’ forecasts (also includes Hedge Fund activities, internal transactions and many other information).

To invest in bitcoins, click on the appropriate button and choose whether to buy or sell the asset, selecting one of the available tabs in the box that opens. Therefore, specify the amount to invest (if you are selling, indicate the threshold after which to close the transaction in case of loss ) and click on the Open position button .

Using the Trade / Order menu (top right) you can also open a  pending order : this will effectively convert the order into an open position when the market reaches the price you indicated. Read more here .

I also point out that eToro allows you to manage risk by setting the Stop Loss and Take Profit parameters : the first allows you to set the maximum amount to lose and automatically close the position if the loss reaches this limit; the second is to set a profit target, so you can close a trade at a specific rate if the price moves in your favor.

Once the order is set, you will find it in your Wallet , accessible from the eToro menu. The latter shows available cash , total invested capital , profit and virtual assets and is divided into various sections: in the History tab you will find the list of all the operations carried out; in the Portfolio you will find all the assets that make up your portfolio with their trend in real time (and the ability to filter the display and set up price alerts); finally, there is the Orders tab which allows you to view and manage the orders placed.

It is possible to close a position or cancel an order by selecting it, clicking on the  red X and then choosing the item relating to closing or cancellation . Read more here .

If you want to expand your crypto investments, I highly recommend taking a look at the Search section of eToro, where you will find various investment opportunities in global markets (including those related to cryptocurrencies ), but above all CopyPortfolios : thematic portfolios without additional commissions packaged by the best eToro traders. The best known crypto copyportfolios are: Crypto-currency which contains BTC and ETH; Napoleon-X which contains tezos (XTZ) and EOS and CryptoPortfolio , based instead on the market capital of the most used crypto.

To invest in CopyPortfolios you just need to select the one you are interested in, click on the Invest button and make your deposit .

Another piece of advice I want to give you is to take a look at the activities of eToro’s top traders , which you can find in the eToro CopyTrader section . Using the menus above you can filter traders based on where they come from , the markets they invest in (including the Crypto one ) and the earnings obtained over time .

For each trader, just like with assets, you will be able to see graphs and performance data and make your investment by copying the portfolio.

To copy a trader’s portfolio, click on the appropriate button and choose whether to copy the open trades or only those he will open and whether to stop copying if the value of the copy falls below a threshold . Read more here .

Both in the case of CopyPortfolios and in the case of Copy Trading , you will find all your investments in the eToro Portfolio , in order to monitor and manage all open positions.

How to buy bitcoin with eToro

If you want to buy bitcoins in exchange for euros or another traditional currency, you can safely rely on eToro . To keep your bitcoins you can instead install the eToro Money app for Android and iPhone , in order to get your wallet and keep bitcoin or other cryptocurrencies.

As for the costs , these are transparent and clearly indicated at the time of the transaction. As for taxation , in Italy the Bitcoins purchased through exchanges by private citizens are considered foreign currency and do not require the payment of taxes. However, if you make profits of at least 51,000 euros and keep them in your wallet for at least 7 days, you must declare them as a capital gain to the tax authorities. Again, I invite you to contact your accountant to find out more. That said, let’s take action.

EToro Money App

Buying bitcoins with the eToro Money app for Android and iPhone is very simple. To get started, install the application from the store of your device using the links I just provided you.

Once this is done, start the app and log in with your eToro account : if you don’t have one yet, you can register by following the instructions I gave you before (the steps to take are the same as for the site). At this point, accept the conditions of use, by checking the appropriate box, press the Continue button and start the creation of your wallet by pressing the appropriate button on the Crypto tab .

On the next screen, choose the cryptocurrency for which to create the wallet – in this case BTC – and that’s it. Now you just have to select the BTC wallet you just created, press the Buy BTC button and buy bitcoin with a credit card by setting EUR as the currency to use and BTC as the crypto to buy.

On the wallet screen you can also press the Receive button and view the wallet address and QR code to receive cryptocurrencies from other users. The Send button , on the other hand, allows you to make cryptocurrency payments to other users.

If you want to trade or trade crypto , go to the Trades tab , where you will find a summary of the cryptocurrencies you have invested in or, alternatively, the Explore Crypto button to explore cryptoassets on eToro and invest in them, just as I explained to you earlier in report to the eToro site.

If any of the steps are not clear to you or you need more information about the app, consult the official eToro website .

For more information

Do you want to know even more about how eToro works ? Then I invite you to read the tutorial I just linked to you, along with my specific guides on how to trade online using eToro and how to buy shares on eToro . Furthermore, I recommend that you consult the official eToro help center , which contains the answers to all the most frequently asked questions about the functioning of the service and dozens of informative articles.

And if you need to get in direct contact with eToro, please note that on this page you can open a support ticket and that the eToro live chat is available from Monday to Friday 24 hours a day.

by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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