eToro Bitcoin Trading Guide

This is Your Ultimate Guide to Trading Bitcoin with eToro

eToro offers Bitcoin trading solutions with 3 different products for dealing with this cryptocurrency. It has a social trading platform, a digital exchange and a wallet.

If you are interested about this cryptoasset and would like to know more about your options then this article has got it all covered so continue reading below.

Table of Contents

  1. How to Trade Bitcoin?
    Step-by-step guide (33sec)
  2. Copy BTC Traders
    How does it work? (28sec)
  3. Is It a Scam?
    Is trading Bitcoin legal? (12sec)
  4. Can I Lose More Than I Invest?
    Is it possible to have a negative balance? (34sec)
  5. Trading Hours for Cryptoassets
    What are the hours I can trade BTC? (11sec)
  6. Fees: What You Need to Know
    What are the possible charges? (39sec)
  1. Spreads
    What is the rate? (15sec)
  2. BTC Price
    Does it show real-time market prices? (8sec)
  3. Live BTC Charts
    How can I use this charting tool? (39sec)
  4. Do I Own the Bitcoins?
    Am I really the owner of the BTC tokens? (33sec)
  5. BTC Crosses
    What are these cross instruments? (24sec)
  6. Bitcoin Wallet
    Secured storage for the BTC tokens (16sec)
etoro bitcoin banner

How to Trade Bitcoin?

In order to start trading Bitcoin with eToro, you need to open an account first and fund your account. Once this is done, the next steps are as follows:

  1. Open the eToro trading platform.
    eToro trading platform
    eToro trading platform
  2. Click on “Trade Markets” and then click “Crypto”. This will show you a list of all the tradable cryptoassets.
    Cryptocurrency trading on eToro's platform
    Cryptocurrency trading on eToro's platform
  3. Look for BTC or Bitcoin and click on it. This will open the Bitcoin trading page.
    Bitcoin page on eToro's platform
    Bitcoin page on eToro's platform
  4. Click on the “Trade” button. A pop-up will open.
    Buying Bitcoin (BTC) on eToro's platform.jpg
    Buying Bitcoin (BTC) on eToro's platform
  5. Enter the amount that you would like to invest and click on the “Open Trade” button.
    Executing BTC buy order on eToro
    Executing BTC buy order on eToro

Copy BTC Traders

Another way to trade BTC which is unique on the eToro’s platform is the CopyTrader feature. Via this method, you are allocating a specific amount that will be used to copy other professional and experienced Bitcoin traders.

Bitcoin crypto traders on eToro's social trading platform
Bitcoin crypto traders on eToro's social trading platform
*Past performance is not an indication of future results

When you execute a copy position, this will open the same trade that will be opened by the specific trader that you copied. This will be proportionate to the amount you set for copying their positions.

In short: When they trade, you trade.

Is It a Scam?

No. Any Bitcoin trading-related activities done on eToro is not a scam as it is a legit and legal broker. eToro currently operates with a license from various financial regulators which means it has passed their regulatory requirements.

Can I Lose More Than I Invest?

Yes. You may lose more than the amount you invested if the available balance on your eToro account becomes negative. This could happen if you have invested all of your capital in open positions and you get charged with overnight fees. This may also happen when you incur losses with your trades.

But since eToro has a Negative Balance Protection, these losses are absorbed and it automatically resets the value of the equity to 0.

What does this mean?
Yes, you may lose more than the amount that you invested but you will not be losing more than the amount that you deposited in your account due to their Negative Balance Protection policy.

Trading Hours for Cryptoassets

Unlike other assets like stocks, indices, currencies and commodities which have different opening and closing times, the cryptocurrency asset class is open 24/7. That means the market is always open and it doesn’t close.

Fees: What You Need to Know

There are some fees that you might need to pay with eToro depending on the transaction or activity.

For transferring Bitcoin, eToro charges a fee of 0.0005 BTC for a minimum withdrawal amount of 0.008 BTC.

Aside from this, they also charge fees for trading this cryptoasset and this is in the form of spreads. If you’re going to place a short sell BTC order, this will be executed as contracts for difference (CFD) and will be covered with an overnight fee of -$11.813292 for selling (short) and $0 for buying (long).

Remember:
The fees stated above may change and this would greatly depend on the condition of the market so it would be best to visit their official trading fees page to know the actual rates and charges.

Spreads

For Bitcoin CFDs, the spread is currently at 0.75% and this is applied after the position has been closed.

Keep in mind that the spreads stated here are the lowest possible rates and since these are classified as variable spreads, it may fluctuate and go wider depending on the market conditions.

BTC Price

On the platform, you will be able to view the real-time price of Bitcoin and stay up to date regarding its value.

Live BTC price on eToro's platform
Live BTC price on eToro's platform

Live BTC Charts

The platform is integrated with live price charts for all of its instruments including Bitcoin. The BTC chart can used for following and analyzing the cryptoasset’s price history and market performance with the option to configure the timeframes, use it for technical analysis studies and other purposes.

Live BTC chart on the eToro platform
Live BTC chart on the eToro platform

By default, the chart is shown using candles with the color green indicating that the value has increased and the red indicating that it has declined.  These charts can be configured to use Japanese candles, Bollinger bands and Fibonacci.

Note that:
The chart will only display the price for the Sell in accordance with the industry standards. You need to add the spread to the value on the chart if you want to see the rates for the Buy.

Do I Own the Bitcoins?

Yes. You own the Bitcoins and other cryptocurrencies that you bought via eToro. However, since you won’t be able to physically own these tokens due to its nature of being a digital currency, you will need to store it in a digital wallet or give a specific institution the authority to keep your BTC’s in custody.

You own the BTC cryptoasset that you will buy on eToro
You own the BTC cryptoasset that you will buy on eToro

Important to remember:
If you’re a client of eToro under the Australian Securities and Investments Commission or ASIC, all Bitcoins bought via their platforms are executed as contracts for difference (CFDs) and not as actual ownership of the assets in accordance with their regulatory guidelines.


etoro bitcoin banner

BTC Crosses

Aside from the BTC coin, eToro’s platform also supports trading on other cross instruments that are related to BTC. This includes crypto crosses, currency crosses and commodity crosses.

The number of available crosses may increase depending on their popularity and demand.

 

Currency Crosses Crypto crosses Commodity Crosses
Australian Dollar (BTCAUD) EOS (BTCEOS) Gold (GOLDBTC)
Canadian Dollar (BTCCAD) Gram Coin (BTCGRAM)  
Swiss Franc (BTCCHF) Stellar Lumens (BTCXLM)  
Euro (BTCEUR) Ethereum (ETHBTC)  
British Pound (BTCGBP)    
Japanese Yen (BTCJPY)    
New Zealand Dollar (BTCNZD)    
Tradable Bitcoin (BTC) crosses on eToro's platform

Bitcoin Wallet

The eToro Wallet is a crypto wallet where registered users can store their Bitcoins securely. This wallet is also capable of sending and receiving BTC and other supported cryptocurrencies from other wallets.

Take note that this is an online wallet and not the same as a hardware wallet, which is offline by nature.

eToro Wallet app
eToro Wallet app


Thinking of investing in BTC?

You might be considering of trading Bitcoin at this point but in case you do, just click the button below and this will redirect you to eToro's platform for BTC trading. This will give you a preview on how it looks like and should you decide to go on a trade, all you have to do is click the "Sign up" button on that page to quickly register.


I WANT TO TRADE BTC!


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. 67% 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.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

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.

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*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.