How to Buy Ethereum on eToro

How to Buy Ethereum on eToro: 5 Proven Steps for Success

Ethereum is one of the most popular cryptocurrencies in the world, second only to Bitcoin in terms of market capitalization. It is also a platform for decentralized applications (dapps) that run on smart contracts, which are self-executing agreements that operate on the blockchain.

Ethereum has many use cases, such as facilitating peer-to-peer payments, lending and borrowing, gaming, art, and more.

If you are interested in investing in Ethereum, you might be wondering how to buy it on eToro, a leading online brokerage that offers cryptocurrency trading and stock trading.

eToro was among the first online trading companies to support digital currency trading when it added support for Bitcoin in 2013. In 2017, it added support for Litecoin, Ripple, and other major digital assets.

In this article, we will guide you through the steps of buying Ethereum on eToro, as well as some tips and tricks to make the most of your investment. We will cover the following topics:

  • How to create an account on eToro
  • How to deposit funds on eToro
  • How to buy Ethereum on eToro
  • How to sell Ethereum on eToro
  • How to use eToro’s social trading features
  • How to withdraw funds from eToro

How to create an account on eToro

Before you can buy Ethereum on eToro, you need to create an account on the platform. This is a simple and quick process that requires some basic information and verification. Here are the steps to follow:

  1. Go to eToro’s website and click on the “Join Now” button.
  2. Fill out the registration form with your name, email address, username, password, and phone number.
  3. Accept the terms and conditions and click on the “Create Account” button.
  4. You will receive a confirmation email with a link to verify your email address. Click on the link to complete the verification.
  5. You will also need to verify your identity and address by uploading a copy of your passport or driver’s license and a utility bill or bank statement. This is required by law to prevent fraud and money laundering.
  6. Once your documents are approved, you will be able to access your eToro account and start trading.

How to deposit funds on eToro

To buy Ethereum on eToro, you need to have some funds in your account. You can deposit funds using various methods, such as credit or debit card, bank transfer, PayPal, Skrill, Neteller, and more. The minimum deposit amount is $200 for most methods, except for bank transfer which has a minimum of $500.

Here are the steps to deposit funds on eToro:

  1. Log in to your eToro account and click on the “Deposit Funds” button at the bottom left corner of the screen.
  2. Choose your preferred payment method and enter the amount you want to deposit.
  3. Follow the instructions on the screen to complete the payment process.
  4. You will receive a confirmation message when your funds are credited to your account.

How to buy Ethereum on eToro

Now that you have some funds in your account, you are ready to buy Ethereum on eToro. There are two ways to do this: by trading CFDs (contracts for difference) or by buying the actual coins.

Trading CFDs

CFDs are derivatives that allow you to speculate on the price movements of an underlying asset without owning it. When you trade CFDs, you are essentially betting on whether the price of Ethereum will go up or down in relation to another currency, such as USD or EUR.

The advantage of trading CFDs is that you can use leverage, which means that you can multiply your exposure to the market with a smaller amount of capital. For example, if you use 2x leverage, you can open a position worth $2,000 with only $1,000 in your account. However, leverage also increases your risk, as you can lose more than your initial investment if the market moves against you.

The disadvantage of trading CFDs is that you do not own the actual coins, which means that you cannot transfer them to another wallet or platform. You also have to pay fees for opening and closing positions, as well as overnight fees for holding them longer than one day.

Here are the steps to trade CFDs on eToro:

  1. Log in to your eToro account and click on the “Trade Markets” button at the top left corner of the screen.
  2. Choose “Crypto” from the menu and select “Ethereum”.
  3. Click on the “Trade” button at the top right corner of the screen.
  4. Choose whether you want to buy (go long) or sell (go short) Ethereum.
  5. Enter the amount you want to invest or the number of units you want to trade.
  6. Adjust the leverage, stop loss, and take profit settings according to your risk appetite and trading strategy.
  7. Click on the “Open Trade” button to execute your order.

Buying the actual coins

If you want to buy the actual Ethereum coins and own them, you can do so on eToro as well. This way, you can benefit from the potential long-term growth of Ethereum, as well as use it for other purposes, such as sending, receiving, or staking.

The advantage of buying the actual coins is that you have full control over your assets, as you can transfer them to another wallet or platform at any time. You also do not have to pay any fees for holding them, except for the network fees when you send or receive them.

The disadvantage of buying the actual coins is that you cannot use leverage, which means that you need more capital to open a larger position. You also have to pay a spread, which is the difference between the buy and sell price, when you buy or sell them.

Here are the steps to buy the actual coins on eToro:

  1. Log in to your eToro account and click on the “Trade Markets” button at the top left corner of the screen.
  2. Choose “Crypto” from the menu and select “Ethereum”.
  3. Click on the “Trade” button at the top right corner of the screen.
  4. Choose whether you want to buy or sell Ethereum.
  5. Enter the amount you want to invest or the number of units you want to trade.
  6. Make sure that the leverage is set to 1x, which means that you are buying the actual coins.
  7. Click on the “Open Trade” button to execute your order.

How to sell Ethereum on eToro

If you want to sell your Ethereum on eToro, you can do so by closing your position, whether it is a CFD or a coin. This will allow you to lock in your profits or cut your losses, depending on how the market has moved since you opened your position.

Here are the steps to sell Ethereum on eToro:

  1. Log in to your eToro account and click on the “Portfolio” button at the bottom left corner of the screen.
  2. Find your Ethereum position and click on the “X” button next to it.
  3. Confirm that you want to close your position and click on the “Close Trade” button.
  4. You will receive a confirmation message when your position is closed and your funds are credited to your account.

How to use eToro’s social trading features

One of the unique features of eToro is its social trading platform, which allows you to interact with other traders, learn from their strategies, and copy their trades automatically. This can help you improve your trading skills, diversify your portfolio, and reduce your risk.

There are three main ways to use eToro’s social trading features:

  • Follow: You can follow other traders who trade Ethereum or other assets and see their portfolio, performance, and activity feed. You can also comment, like, and share their posts, as well as ask questions and get feedback.
  • Copy: You can copy other traders who trade Ethereum or other assets and allocate a portion of your funds to mirror their trades automatically. You can choose from thousands of traders based on various criteria, such as risk score, return, popularity, and more. You can also stop copying them at any time and manage your own trades independently.
  • Invest: You can invest in pre-made portfolios that are curated by eToro’s experts or by other traders who trade Ethereum or other assets. These portfolios are designed to suit different investment goals, risk profiles, and themes, such as crypto, tech, green, etc. You can also create your own portfolio and share it with others.

To access these features, you need to go to the “Copy People” or “Invest in CopyPortfolios” buttons at the bottom of the screen.

How to withdraw funds from eToro

If you want to withdraw funds from eToro, you need to have a verified account and a minimum balance of $30 in your account. You can withdraw funds using various methods, such as credit or debit card, bank transfer, PayPal, Skrill, Neteller, and more.

Here are the steps to withdraw funds from eToro:

  1. Log in to your eToro account and click on the “Withdraw Funds” button at the bottom left corner of the screen.
  2. Enter the amount you want to withdraw and choose your preferred payment method.
  3. Follow the instructions on the screen to complete the withdrawal process.
  4. You will receive a confirmation email when your withdrawal request is processed.

Note that eToro charges a $5 withdrawal fee for each transaction, regardless of the amount or method. You may also incur additional fees from your payment provider or bank.

What are the risks of investing in Ethereum?

Ethereum is a cryptocurrency and a platform for decentralized applications that run on smart contracts. It is one of the most popular and innovative digital assets in the world, but it also comes with some risks that investors should be aware of. Some of the main risks of investing in Ethereum are:

  • Volatility: Ethereum’s price can fluctuate significantly in a short period of time, due to various factors such as supply and demand, market sentiment, regulatory developments, network upgrades, and technical issues. According to one report, Ethereum’s 60-day volatility has averaged around 86% in 2021, which is roughly seven times more than the S&P 500. This means that investors should be prepared for large price swings and potential losses, as well as gains.
  • Competition: Ethereum faces increasing competition from other blockchain platforms that offer similar or better features, such as faster transactions, lower fees, higher scalability, and more security. Some of the main competitors of Ethereum are Solana, Cardano, Binance Smart Chain, Polkadot, and Avalanche. These platforms may attract more users, developers, and investors away from Ethereum, which could reduce its market share and dominance.
  • Regulation: Ethereum operates in a largely unregulated and uncertain legal environment, which poses various challenges and risks for investors. Different countries have different rules and regulations regarding cryptocurrencies, which may affect their legality, taxation, and accessibility. Some countries may ban or restrict the use of cryptocurrencies altogether, while others may impose strict reporting and compliance requirements. Moreover, the regulatory landscape is constantly evolving and may change unpredictably in the future.
  • Security: Ethereum relies on cryptography and consensus mechanisms to secure its network and transactions. However, there is always a possibility of hacking, phishing, malware, or human error that could compromise the security of the network or the users’ funds. For example, in 2016, a hacker exploited a vulnerability in a smart contract and stole about $50 million worth of Ether from a project called The DAO. Additionally, users are responsible for keeping their private keys and passwords safe and secure, as losing or forgetting them could result in irreversible loss of funds.

These are some of the main risks of investing in Ethereum that investors should be aware of before making any decisions. Investing in Ethereum can be rewarding, but also risky. Therefore, investors should do their own research, diversify their portfolio, and only invest what they can afford to lose.

Ethereum’s market share and dominance
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5 Proven Steps for Success on How to Buy Ethereum on eToro

Buying Ethereum on eToro can be a rewarding and enjoyable experience, but it also requires some planning and preparation. Here are five proven steps that can help you succeed in your Ethereum investment journey on eToro:

  1. Set your goals and budget: Before you buy Ethereum on eToro, you should have a clear idea of why you want to invest in it, what are your expectations, and how much you can afford to risk. Having a goal and a budget can help you stay focused and disciplined, as well as avoid emotional trading decisions.
  2. Do your research: Ethereum is a complex and dynamic cryptocurrency that has many aspects and factors that affect its price and performance. You should do your own research and learn as much as you can about Ethereum, its history, its technology, its use cases, its advantages and disadvantages, its competitors, its risks, and its future prospects. You should also keep yourself updated with the latest news and developments in the crypto space, as they can have a significant impact on Ethereum’s market sentiment and direction.
  3. Choose your strategy: Depending on your goals, budget, and risk appetite, you should choose a suitable strategy for buying Ethereum on eToro. You can either trade CFDs or buy the actual coins, as we explained earlier in this article. You can also use eToro’s social trading features to follow, copy, or invest in other traders who trade Ethereum or other assets. You should also decide whether you want to buy Ethereum at once or gradually over time, as well as whether you want to hold it for the long term or sell it for the short term.
  4. Buy Ethereum at the right time: Timing is crucial when it comes to buying Ethereum on eToro, as it can make a big difference in your profits or losses. You should try to buy Ethereum when it is undervalued or oversold, which means that its price is lower than its intrinsic value or its historical average. You should also look for favorable market conditions, such as high demand, low supply, positive news, bullish trends, and strong support levels. You can use various tools and indicators, such as charts, graphs, patterns, signals, trends, moving averages, volume, etc., to analyze the market and identify the best entry points.
  5. Manage your risk and reward: Buying Ethereum on eToro involves risk and reward, which means that you can either make money or lose money depending on how the market moves. You should always manage your risk and reward by using proper tools and techniques, such as leverage, stop loss, take profit, diversification, etc., to protect your capital and maximize your returns. You should also monitor your performance and review your results regularly to evaluate your progress and improve your skills.

These are some of the proven steps that can help you succeed in buying Ethereum on eToro. However, they are not guaranteed to work for everyone or every situation. You should always do your own due diligence and exercise caution before making any investment decisions. Remember that investing in Ethereum is not a get-rich-quick scheme, but rather a long-term journey that requires patience, discipline, and learning.

Conclusion

Ethereum is a versatile and innovative cryptocurrency that offers many opportunities for investors, traders, and developers. Whether you want to trade CFDs or buy the actual coins, eToro is a reliable and user-friendly platform that allows you to buy Ethereum with ease and convenience.

You can also use eToro’s social trading features to learn from other traders, copy their trades, or invest in pre-made portfolios. With eToro, you can join the Ethereum community and benefit from its potential growth and innovation.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The content and information provided in this article are based on the author’s own words and knowledge, as well as on the data from the search results. The author is not affiliated with eToro or any other platform or entity mentioned in this article. The author does not guarantee the accuracy, completeness, or reliability of the information and data presented in this article. The author is not responsible for any losses or damages that may arise from the use of or reliance on the information and data in this article. The reader should always do their own research and due diligence before making any investment decisions involving Ethereum or any other cryptocurrency. The reader should also be aware of the risks and challenges associated with investing in cryptocurrencies, such as volatility, competition, regulation, security, etc. Investing in cryptocurrencies is not a get-rich-quick scheme, but rather a long-term journey that requires patience, discipline, and learning.

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