Bitcoin

Written by Mike Druttman

Fact checked by Nick Zelver

Updated Mar, 2024

Starting Point

Bitcoin, consistently making headlines, has seen its popularity soar as global interest in cryptocurrency grows. Once met with skepticism, it's now widely regarded as a harbinger of the future of finance, marking the dawn of the cryptocurrency era. These new asset classes are readily accessible for investment through platforms like eToro.

For detailed insights on investing in Bitcoin via this broker, check out this guide. I'll share personal experiences and tips that could be invaluable for investing in this fascinating asset. So, stay tuned.

Why I Prefer Trading Bitcoin on eToro

Having traded BTC on the platform several times, I've identified numerous benefits. Here are some key advantages:

• User-friendly and straightforward interface
• Minimum investment of only $10
• Ability to transfer cryptocurrency to my eToro wallet
• Option to emulate the strategies of successful Bitcoin traders
• Leverage trading, which enables opening larger positions with a smaller capital commitment. Note that leverage limits vary based on your country of residence. Using leverage means you'll trade in crypto CFDs, not the actual cryptocurrency.

The Bitcoin Asset Page on eToro

When you visit the Bitcoin asset page on the web platform or app, you'll land on the Overview section by default. This section presents several key elements:

• Graph: Displays the asset's performance, including useful data such as market cap, day's range, and 52-week range. Note that this is a basic graph, and a more detailed version is available in a different tab.
• About: Provides brief information about the Bitcoin asset.
• Latest News: Offers the latest Bitcoin-related news, sourced from CityFALCON.
• People Also Bought: Shows other popular assets that traders are investing in.
• Copy Bitcoin Investors: This feature highlights top traders investing in Bitcoin. You can easily copy their strategies by clicking the "Copy" button next to a trader's profile, which directs you to the copy trading window.
• Discussions: Here, you'll find posts and conversations from other traders discussing Bitcoin. The feed allows you to filter for top discussions or view all discussions. Similar to social media platforms like Facebook and Twitter, you can like, comment, or share posts to your own feed.

Useful Crypto Trading Tools on eToro

During my experience trading BTC and other assets with this broker, I appreciated the integrated trading tools within the platform's interface, eliminating the need to switch between other apps or screens. Here are some of the tools I found particularly useful:

• Chart: This advanced Bitcoin live chart allows for customizable views, ranging from 1 minute to 1 week intervals, providing a comprehensive look at market movements.
• Analysis: This section offers technical analysis based on the consensus of Bitcoin market analysts. It features a graph that aggregates buy, sell, and hold signals from key technical indicators, providing a quick overview of market sentiment.
• Market Sentiment Graph: This one offers a quick glimpse of market sentiment, aggregating buy, sell, and hold signals from popular technical indicators. It helps in gauging the general market direction.
• Technical Indicators: This area provides live updates of various technical indicators, essential for analyzing market trends based on price and volume.
• Latest Research: Exclusive to registered and verified eToro users with a funded account, this section offers in-depth research and analysis, providing valuable insights that are not readily available to non-registered users.

The Process of Buying Bitcoin on eToro

To purchase Bitcoin on eToro, follow these steps:

1. Search for Bitcoin as the underlying asset.
2. Click on "Trade".
3. Enter the amount you wish to invest.
4. Execute the trade.

By using this method, you are purchasing actual BTC, not a derivative or representation. Out of curiousity, I've explored how to buy Bitcoin on eToro using a credit card and discovered that direct purchases via this payment method is not possible but there was a simple and straightforward alternative.

Trading Bitcoin via CFD on eToro

CFD (Contract for Difference) trading appeals to those interested in speculating on crypto market movements without owning the actual asset. Here's how it works:

• It allows you to find trading opportunities from price fluctuations. Your gain or loss is determined by the price change from when you enter to when you exit the trade.
• This method can yield a Return on Investment (ROI) regardless of market direction, provided the trade is executed correctly. However, it's important to note that CFD trading may not be available in some countries like the USA.

To trade Bitcoin as a CFD:

1. Search for Bitcoin as the underlying asset.
2. Click on "Trade".
3. Input your investment amount.
4. Set your trading parameters, including leverage, stop loss, and take profit.
5. Finally, execute the trade.

Copying Bitcoin Traders on eToro

A standout feature of this platform is the CopyTrader system, which lets you mimic the trades of experienced eToro crypto investors. Here's how it works:

1. Use the filter to refine your search for a suitable Bitcoin trader.
2. Decide on the amount you want to allocate for copying their Bitcoin trades.
3. Hit the "Copy" button to automatically replicate their trading positions.

Transparent BTC Fees

But what are the fees associated with buying Bitcoin on eToro, you might ask? It's a transparent 1% fee for buying or selling the crypto and these are clearly indicated on the platform.

Withdrawing Your BTC

So, you've successfully purchased Bitcoins on eToro. Now, you might be considering how to withdraw them. The question arises:  How do I cash out Bitcoins on eToro?

This one involves moving the BTC from the trading account to the eToro Money account, and then transferring it to an external wallet.

Closing Remarks

To wrap up, this guide has covered essential aspects of investing in Bitcoin through eToro. Whether you're using the web platform or the mobile app, these insights should help you navigate the process. Remember these strategies, apply them thoughtfully in your crypto trading endeavors, and enjoy the journey!

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.