eToro: Trading with Bitcoin

Trading with eToro Bitcoin works in a number of ways: at the broker itself and at the company’s own exchange. Yes, eToro not only provides interesting financial instruments to the crypto market with the CFDs but recently also has its own exchange with associated crypto wallets.

eToro bitcoin trading
eToro bitcoin trading

Both trading options have their advantages and disadvantages. Trading CFDs is especially suitable for investors who prefer flexibility and want to act quickly in the market. To test the opportunities without risk, there is even the Bitcoin eToro demo account with a virtual balance of 100,000 USD.

Facts about trading Bitcoins with eToro:

  • eToro offers Bitcoin CFDs with attractive spreads
  • Low minimum capital required for CFD trading
  • Traders can use with or without eToro Bitcoin Wallet chances at the crypto, market
  • Free demo account 100,000 USD starting balance is available for practicing

Bitcoin eToro: CFD trading with the community

As a broker, eToro is certainly known to many as a leader in the field of social trading. But that’s not all, because there are also countless financial instruments and markets to be discovered in order to realize your trading goals. Bitcoin eToro – yes, even this combination is possible, because the broker provides Bitcoin and other crypto systems. This includes Ripple, Bitcoin Cash, Cardano and Ethereum.

eToro cryptocurrencies
eToro cryptocurrencies

But if you take a closer look, you’ll see that the traders can not only buy Bitcoin from eToro but find a total of over 90 offers in the Crypto CFDs. This gives them the biggest possible option to take advantage of the crypto market and trade NEO, MIOTA, and many other currencies.

Trade at eToro Bitcoin against fiat money

Traders can trade against EUR, JPY, or other Fiat currencies at eToro Bitcoin. This allows the optimal combination between the crypto market and classic currencies. If you want the greatest possible diversification, you should take a closer look at the crypto offers after successfully registering. The list includes not only Bitcoin Börse EUR or USD, but also for example Ripple, EOS, or Ethereum, which can be traded against a Fiat currency.

Bitcoin eToro: How traders open the account

If the traders want to buy Bitcoin from eToro or trade CFDs on the price history, a trading account is required. The registration can easily be done via the online form which is available directly on the website. Traders only need to provide some information for the first step of the registration process:

  • First name
  • Name
  • e-mail address
  • Phone number

In addition, the user name and password must be assigned in the user name and password. You will also need to agree to the Privacy Policy and Terms of Use and then proceed with account setup. In the further process, the traders also need their address data, which will be requested for the complete registration in the next step.

eToro registration
eToro registration

Verification of information required

The verification of all information is an essential part of the registration process. The broker thus complies with the regulatory requirements and, of course, also offers traders optimum protection through verification.

The fact that they confirm the authenticity of their personal data means that no abusive actions can be carried out with it. Only when the verification is fully completed do they have access to the trading account and can, for example, carry out the account capitalization. Proof of identity is an identity card or passport. It is important that the address, as well as the name and date of birth and in the photo, are recognizable.

Proof of address required

Proof of address is also required. For this purpose, merchants can provide a credit card statement, bank statement, or a current telephone bill, for example. The documents are uploaded to the broker’s team and then checked by the employees. Only when they have given their okay, the traders can start trading.

Bitcoin eToro: Capitalize account and start trading

There are several ways for traders to capitalize on their accounts. They are subject to different conditions and limits, so there are significant differences in execution. For example, traders can deposit with:

  • Debit and credit cards
  • PayPal
  • Neteller
  • Skrill
  • Bank transfer
  • Instant bank transfer
eToro payment options
eToro payment options

Note: The processing time may vary. Transfer by credit card or electronic purse is particularly fast. Longer, on the other hand, is the time required for a deposit using the classic bank transfer. Experience shows that merchants can expect transfer times of between four and seven working days.

eToro offers a special service to some customers: for a quick start of trading, it may also be possible to use the account without verification, although only to a limited extent. Nevertheless, the broker grants the option that the traders can start trading even while waiting for the confirmation of identity.

It is also advantageous that the deposit can be made with different currencies, including USD, Euro, or GBP. However, there are significant differences in the maximum limits even for the verified account. For example, credit card payments can only be made up to a maximum of 40,000 USD and payments with PayPal up to a maximum of 10,000 USD. If you use the instant bank transfer, you can only deposit a maximum of 30,000 USD.

There are other special features at eToro which merchants should know about for deposits. Depending on the region and country the minimum amount can be between 50 USD and 10,000 USD for a first deposit. If you use bank transfer as your payment option you need to deposit at least 500 USD.

If the traders do not register as private investors but with a corporate account, a minimum initial deposit of 10,000 USD must be made. Then, however, completely different conditions apply than for private traders.

No deposits under a different name possible

In practice, it turns out that for account capitalization, only deposits from accounts that have a vote with the holder of the trading account are allowed. It is not possible, for example, that friends or acquaintances make a deposit in their name to the investor’s trading account. This information is once again stated in the Terms and Conditions and is explained there in a transparent manner.

The exception is payments from spouses or first-degree family members. However, in this case, the condition must be met that both spouses have access to the joint account. It is possible that the broker requires proof of the joint use of the account, which can be done, for example, by a current account statement on which both names of the account holders are noted.

Trading with eToro Bitcoin: How to trade CFDs

Anyone who wants to trade on eToro Bitcoin can speculate on the price trend. The broker offers the crypto CFDs for this which can be traded on falling, rising or sideways prices. Traders have the ability to analyze the chart and make short to medium-term forecasts and take advantage of the trend developments.

eToro CFD trading
eToro CFD trading

This is exactly one of the main advantages of CFDs and the volatility of the Bitcoin price: Traders can close their positions even after a very short time and thus take advantage of a good trading opportunity. Such speculative diversity is hardly ever found in trading activities on the Crypto Exchange so that traders can act much more flexibly with the contracts for difference.

Statistics for evaluation at eToro

eToro offers its investors extensive statistics, for example to take a close look at the closing prices in a given time frame. Daily volatility or returns are also available as an overview in the statistics. In addition, traders can also use Bitcoin’s own feed to read messages from other users or their assessment of the price trend.

Exactly this is also one of the broker’s main strengths because social trading is the focus here. In addition, with their registration for the trading account, the traders can access research data, for example, to perform fundamental analysis.

Trade Bitcoin CFDs or not? The price analysis decides

Tip: Traders can use individual notifications at the broker if, for example, interesting trading opportunities arise at Bitcoin or generally in the crypto-market. The notification works quite simply on the smartphone, tablet, or even on the PC and is, like many other services from eToro, free of charge.

With the help of the price analysis the traders decide whether trading is worthwhile or not. For this purpose traders can use technical analysis and/or fundamental analysis. Both have their merits, although technical analysis is easier to do, especially for trading beginners. eToro offers a lot of support in analysis, such as real-time quote data and many indicators and tools.

eToro mobile trading
eToro mobile trading

This allows traders to analyze the Bitcoin price, for example, on the basis of historical data and recognize trends early on to take advantage of them. With the help of the research data, registered users also have the option of obtaining additional market data, for example, to perform fundamental analysis.

Test CFD trading with the demo account

If you are still uncertain about chart analysis as a trading beginner or need support, you can also use the free virtual portfolio with 100,000 USD virtual credit. This gives traders the opportunity to practice technical and fundamental analysis and make trading decisions without affecting their equity in case of loss. In this way, traders learn to analyze prices more confidently and are less afraid to make trading decisions when they later engage in real trading activities with their own credit.

eToro demo account
eToro demo account

What moves the Bitcoin price?

The Bitcoin price is influenced by various factors that traders should at best be aware of. Whoever knows why price movements occur, for example, due to reports, can already search for such possible factors in advance in a very targeted manner and act much more confidently in the price picture. Influencing factors for the course can be among other things:

  • Reports from governments and central banks
  • News from Krypto exchanges
  • News about hack attacks

What do the reports from governments or crypto stock exchanges actually have to do with prices? To give traders a knowledge advantage, we show examples of how certain messages can affect Bitcoin prices.

News from governments and central banks

Bitcoin and other cryptocurrencies are still considered extremely critical by governments and central banks. They are not even considered as officially recognized means of payment and it is highly controversial whether this will ever change. Although Bitcoin has consolidated its status as a well-known and trusted cryptocurrency, there is still a great deal of skepticism, especially among economists and governments. The cryptocurrency is also not undisputed due to the high energy resources required in Bitcoin mining.

Some governments/countries have even completely banned or restricted mining; also the trade of cryptocurrencies is affected by some countries. If there are new reports on the market that, for example, a government is banning or restricting Bitcoin, this often has a direct effect on price development. Frequently the uncertainty of the investors is the consequence, which usually also accompanies a price decline.

eToro crypto news
eToro crypto news

News from crypto stock exchanges

Messages from crypto exchanges also have a major impact on the price movement of Bitcoin or other Internet currencies. If, for example, a crypto exchange lists an important Internet currency anew or even underlines from the trading offer, this usually has direct consequences for the trading volume and the demand of the corresponding cryptocurrency; frequently, however, it also affects the mood on the crypto market.

If an exchange for example takes up a currency, then suddenly a larger Trading potential results from it, since on the exchange naturally, the dealers are available. Therefore, in such a case the price usually develops positively and shows an upward trend.

Cryptocurrency is deleted with the stock exchange: Consequences for the trade

However, the situation is different if an exchange reduces the trading volume for a currency or even suspends trading completely. Then all of a sudden the trader lacks the demand, which is usually reflected in the downward trend and price decline. Crypto exchanges announce such steps in press releases so that traders are informed in advance. Those who manage to get exactly such information in time, get a trading advantage, and can use the resulting price developments optimally for themselves.

Note: Especially when there are changes to Bitcoin at exchanges, this often has a radiant power for other crypto currencies. Bitcoin is still number one and has produced many other coins based on the block chain. Therefore it can be seen mostly also that for example the course of Bitcoin with that of Bitcoin Cash or other Bitcoin related crypto currencies reacts similarly to news.

News about hacking attacks

Hacking attacks have been a major problem, especially in recent years, because many wallets were insufficiently secured. Admittedly, perhaps the danger posed by cyber-attacks was also underestimated by the one or other wallet owner or the crypto stock exchanges.

The view of the message situation and the stolen Coins shows however that so far several million Bitcoin and other cryptocurrencies could be stolen due to insufficient Wallet security. In the meantime the attacks were even so devastating that large stock exchanges had to suspend trading due to the attacks and stolen coins.

The stolen coins were rarely transferred back to their original owners, which of course was an enormous loss for the wallet owners. But also for the crypto market or for the stolen cryptocurrency itself, such hacking attacks were fatal.

eToro safety
eToro safety

Investors unsettled by hack attacks, price collapse threatens

Whenever there were new reports of hacker attacks, traders were unsettled by anything new, which I showed immediately when I saw the price development on the crypto-market. Often it was even the case that not only the price movement of the stolen coins itself had a negative development, but a negative trend could be seen on the entire crypto-market. This in turn reflected the insecure traders who were afraid to buy new coins because they did not know whether we wanted to be attacked next or not.

eToro Bitcoin Wallet: safe or not?

Many crypto exchanges provide their own wallet, which is usually based on online access. Experience shows that not every broker offers his own wallet, which is different from eToro. Traders can not only trade CFDs with eToro Bitcoin but also use a wallet and send coins. But there is an eToro Bitcoin wallet, which is even available as a mobile application for the smartphone or tablet in the Apple or Google Play Store.

eToro mobile app
eToro mobile app

Functionality of the eToro wallet

Users can easily use the wallet and download the app to their mobile device. The next step is to register and verify the account. The traders receive their personal blockchain address for on-chain transactions and have their private key with full protection.

In this way, they do not need to worry that hackers, for example, will get hold of the private key and gain unhindered access to the wallet. Another advantage is that with the eToro Bitcoin Wallet, users don’t need to store keys or write down phrases because everything is electronically secured using encryption at eToro.

Storage of different crypto currencies

The wallet is not only available for Bitcoin management but can also be used for other cryptocurrencies: Litecoin, Ripple, Ethereum. The service is offered however not by eToro itself, but by eToro X Limited, which belongs however to the group.

Send eToro Bitcoin: This is how it works

If you want to send Bitcoin on eToro, you can use your own wallet. But the Wallet owners announce themselves simply over their mobile equipment on the Wallet and can select then the cryptocurrency, which they would like to send or receive. All the wallet owners need is the public address of the other person/wallet. Those who have a QR code can also use it and scan it in to make it even easier to use the address. Afterward, the selected number of coins is entered and then transferred.

eToro fees Bitcoin if traders use the wallet

Unlike the fees for Bitcoin CFDs, the costs for transfers are staggered with the wallet. They are charged independently from the fees of the financial instruments at eToro and are visible in the current price/performance list for the wallet. There are different calculation bases:

  • Fiat currency to cryptocurrency
  • Cryptocurrency to cryptocurrency

Of particular interest are the additional costs, which for example include the block chain fees. The fees apply to each crypto transaction and are deducted from the purchased coins and the other fees. How high the blockchain fees are, depends on the respective crypto currency.

eToro cryptos
eToro cryptos

Other fees for the eToro Bitcoin Wallet

It is also important to note that eToro X itself does not charge any fees for sending or receiving transactions. Only the blockchain fees are charged, but these are determined by the crypto networks themselves and the miners. The conversion fees on the other hand are charged by eToro X and amount to 0.10 percent. The conversion rates are set according to the eToro market rates. Whoever wants to create the XRP wallet pays a one-time 45 ripple.

Users can use eToro Wallet multiple times

The advantage of the eToro Wallet is that it is not only designed for Bitcoin, but also specifically for Ripple or other crypto currencies:

  • XLM
  • Ethereum

Accordingly, there are also individual limits and regulations for each currency.

Tip: Use further top crypto possibilities from one source

What many wallet owners may not know is that with eToro you can also be active on the company’s own exchange. Nearly 100 digital asset pairs are available for trading, including XRP/DASH or numerous cryptocurrencies traded against fiat currencies.

eToro assets
eToro assets

Traders have the opportunity not only to register for the wallet with the new company, but also to take advantage of all the benefits of the crypto exchange’s attractive trading conditions with a single registration. What speaks for this is the affiliation to the eToro Group. In this way the traders can not only keep the possibilities of CFDs open with the broker himself, but also use the trading possibilities with the internet currencies directly.

Cost of trading Bitcoin CFDs compared to direct transactions

We’ve already looked at the costs of buying directly from the eToro Exchange and using the wallet. Now it’s time for a direct comparison of whether the contracts for difference are actually cheaper or why traders should choose them.

The fee structure for CFDs is quite different if you also take into account fees which are not only calculated by the trade itself but also for example for the account capitalization or payout of profits. The broker charges a fee of 5 USD for the payout of winnings, with a minimum of 50 USD. However, there is one exception: “Long (buy), unleveraged crypto, stock and ETF positions are not executed as CFDs and are not subject to fees.

Trading costs for crypto trading

The spreads for trading activities at the broker vary depending on the cryptocurrency chosen. For example, if you want to trade GOLDBTC, you have spreads of 0.75 percent. The fees for the other trading options vary significantly. Bitcoin also has a spread of 0.75 percent. For trading Ethereum, it is 1.90 percent and for Ripple even 2.45 percent.

Trading with IOTA is particularly expensive, as the spreads here are 4.5 percent. Since there are so many trading opportunities to the crypto market on eToro, we recommend that you use the calculator to calculate the costs before you start trading. This way traders have a clear view of the opportunities and risks they have with their trading activity on eToro.

Learning to trade at the crypto market: eToro’s training program

eToro not only distinguishes itself as a broker by offering countless investment opportunities with a flexible fee model but has also made a name for itself as a broker for social trading and with an enormous amount of training.

eToro video tutorials
eToro video tutorials

For example, eToro offers its own academy where traders can learn step by step how the markets work and how to analyze prices. There are countless interactive possibilities in the academy:

  • Live webinars
  • eCourses
  • Trading Videos

Traders can learn everything they need to know about the crypto-market among other trading opportunities: Basic knowledge, develop and execute trading strategies, analyze prices, and much more. Depending on the level of knowledge, traders receive exactly the support they need for their further development. Inexperienced traders at the beginning of their trading career have come as much as professional traders who may need some fine-tuning in their trading activities.

Use social trading for profits and learning

If you not only want to trade yourself but also want to use the knowledge of the professionals to generate your own profits, you can also use the countless possibilities of social trading. For example, traders can copy complete portfolios of successful investors or seek individual impulses through the trading ideas of other successful traders. Selecting potential investors for traders to follow is very easy as eToro provides a custom filter program which makes the selection even faster.

eToro social Trading
eToro social Trading

Conclusion: Bitcoin eToro – countless possibilities with CFDs and direct trading

As a broker, eToro offers countless opportunities for traders to benefit from the crypto market in a cost-effective and flexible way. For example, traders can trade Bitcoin with contracts for the difference at eToro and thus make optimal use of the volatility of the cryptocurrency. Those who want to ensure diversification will find countless other CFDs around the crypto-market that can be traded with attractive spreads and a free trading account.

The demo account, which is offered with a virtual balance of 100,000 USD for test purposes, provides an easier entry without risk. Traders can try out many opportunities on the crypto-market themselves and get to know the innovative broker better. Yes, eToro keeps up with the times and offers its investors new trading ideas all the time.

Recently traders can also use their own crypto wallet and exchange to invest directly in the coins, manage them securely. On the other hand, for those who want to remain flexible and use Bitcoin’s price trend even with short impulses, contracts for difference are the better choice due to the volatility.

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