Do you want to buy Bitcoin and don’t know where to start? Well, don’t worry because I’ll tell you how to buy Bitcoin on eToro through this simple guide.
eToro allows users to buy and sell Bitcoin and other cryptocurrencies through its platform. eToro is an established broker with over 30 million clients. It was founded in 2007 and has gained popularity for its user-friendly interface and social trading features.
Firstly, let’s understand what Bitcoin is.
What is Bitcoin?
Bitcoin is a decentralized digital currency created in 2009 by an unknown person or group of people named Satoshi Nakamoto. It operates on a peer-to-peer network and allows users to send and receive payments without an intermediary such as a bank. Bitcoin provides you with greater control over finances. Users have ownership and control of their private keys without relying on third-party institutions.
Key Features of Bitcoin
Here are some key characteristics and features of Bitcoin:
- Decentralization: Bitcoin operates on a decentralized network of computers called nodes. This means no central authority or government is controlling the currency.
- Blockchain Technology: Bitcoin records its transactions on a public ledger known as the blockchain. The blockchain is a distributed and immutable ledger that guarantees transparency and security.
- Limited Supply: Bitcoin supply is capped at 21 million coins. This deficiency is built into the system to mimic the shortage of precious metals like gold.
- Mining: New bitcoins are created through a process called mining. Mining involves solving complex mathematical problems and miners are rewarded with newly created bitcoins for their efforts. It also leads to the validation and security of transactions on the network.
- Wallets: Users store their bitcoins in digital wallets which can be software or hardware-based. Each wallet is associated with a pair of cryptographic keys which means a public key (known as an address) and a private key.
- Volatility: The value of Bitcoin is often volatile. Its price is influenced by factors such as market demand, investor sentiment, regulatory developments, macroeconomic trends, and technological advancements.
- Pseudonymity: Pseudonymity refers to the fact that users can engage in transactions without directly revealing their real-world identities. The identities of the individuals involved in these transactions are not necessarily tied to their Bitcoin addresses in an easily traceable manner. This feature provides a degree of privacy but also raises concerns about potential illicit use.
Now, let’s see the performance of Bitcoin over the last few years before we get to our main objective of how to buy Bitcoin on eToro.
Bitcoin’s Performance
In December 2020, the price of one Bitcoin was around $23,000. It rose significantly throughout 2021, reaching an all-time high of over $68,000 in November 2021. This represented an increase of around 195% over the previous year.
However, in 2022 the price fell sharply. It dropped below $20,000 in June 2022 representing a decline of over 70% from its November 2021 peak. This decline was due to higher inflation and rising interest rates which made Bitcoin a less attractive investment. The price stabilized somewhat in the second half of 2022, trading between $16,000-20,000.
In 2023, the price of Bitcoin has continued to stabilize after the volatility of 2021-2022. It started the year at around $47,000 in January. The price rose steadily in the first half of the year. It reached almost $25,000 in June.
However, since mid-year, the price has declined due to the broader economic uncertainties. As of December 2023, one Bitcoin is worth around $17,000 which is similar to its price at the end of 2022.
How to Buy Bitcoin on eToro
Buying Bitcoin on eToro involves several steps and it’s important to note that the specific process varies based on the platform’s features and updates. Here’s a general guide on how to buy Bitcoin on eToro:
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Create an Account
Visit the eToro website and sign up for an account. You’ll need to provide the required information on eToro including your email address, username, and password.
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Verify Your Identity:
Complete the identity verification process which often involves providing proof of identity and residence. This step is necessary to comply with regulatory requirements.
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Deposit Funds:
Deposit funds into your eToro account. You can typically fund your account using various methods such as credit/debit cards, bank transfers, or other supported payment options.
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Search for Bitcoin:
Once you fund your account, use the search function on the eToro platform to find Bitcoin (BTC) or navigate to the cryptocurrency section.
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Open Bitcoin Trading Page:
Click on Bitcoin (BTC) to open its trading page. Here, you’ll find information about the cryptocurrency, including its current price chart and trading statistics.
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Place an Order:
On the Bitcoin trading page, you can choose to either “Buy” or “Trade” Bitcoin. Specify the amount you want to buy or the amount of fiat currency you want to invest.
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Review and Confirm:
Review your order details, including the investment amount, current market price, and any applicable fees. Ensure that the information is accurate.
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Place the Order:
If everything looks correct, confirm your order. Your order will execute making you the owner of the specified amount of Bitcoin.
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Monitor Your Investment:
After buying Bitcoin, you can monitor your Bitcoin investment in your eToro portfolio. The platform also provides tools to set stop-loss or take-profit levels to manage your risk.
It’s important to keep in mind that cryptocurrency investments are subject to market risks and prices can be volatile. So, this is how you can buy Bitcoin on eToro. Also, follow our guide if you want to buy Ethereum.
Final Words
It is a simple process of buying Bitcoin on eToro. eToro is a user-friendly platform with over 30 million clients. Bitcoin is a decentralized digital currency that offers control over finances. It has a limited supply and uses blockchain technology. To buy Bitcoin on eToro, create an account, verify, deposit funds, find Bitcoin, place an order, and confirm. Monitor your investment in the eToro portfolio. Keep in mind, that cryptocurrency investments involve risks.
