Ethereum has emerged as one of the most popular cryptocurrencies in recent years. As the second-largest cryptocurrency after Bitcoin, Ethereum provides a decentralized platform for developers to build decentralized applications (dApps) and smart contracts.
With its potential to disrupt multiple industries, many investors are interested in buying Ethereum. One of the easiest ways to buy Ethereum is through the eToro trading platform.
In this comprehensive guide, we will walk you through the entire process of buying Ethereum on eToro step-by-step.
Overview of Ethereum
Before we dive into the steps to buy Ethereum, let’s first take a quick look at what Ethereum is and why it has become so popular:
- Launched in 2015 as an open-source platform for building decentralized apps and smart contracts.
- Uses a blockchain that records transactions on a distributed public ledger.
- Has its own cryptocurrency called Ether (ETH) which is used to pay for transaction fees and computational services on the Ethereum network.
- Provides a Turing-complete programming language that developers can use to build all kinds of dApps.
- Allows developers to raise funds through initial coin offerings (ICOs).
- Enables decentralized finance (DeFi) applications like lending, trading, insurance etc.
- Powers non-fungible tokens (NFTs) that have taken the art and collectibles world by storm.
- Has plans to shift to a more energy-efficient Proof-of-Stake consensus model from the current Proof-of-Work model.
- Ranked as the second-largest cryptocurrency with a market cap of over $200 billion as of January 2023.
With so many use cases across industries like finance, arts, gaming etc., it’s clear why Ethereum adoption is growing exponentially. Now let’s look at how to invest in Ethereum by buying it on eToro.
Step 1: Create an eToro Account
eToro is a leading social trading and multi-asset brokerage company that allows you to buy Ethereum and other cryptocurrencies. To get started, you first need to create an eToro account:
- Go to www.etoro.com and click on “Join eToro”.
- Enter your email address and choose a username and password.
- Read and accept eToro’s Terms and Conditions.
- Verify your account via email confirmation.
Once your account is created, you can proceed to connect your payment method.
Step 2: Connect Your Payment Method
In order to purchase Ethereum on eToro, you need to connect a payment method to fund your trades. eToro offers several options:
- Credit/debit card – Link your Visa or Mastercard debit/credit card to deposit funds instantly.
- Bank transfer – Connect your bank account to transfer funds to and from eToro. Takes 1-2 days.
- e-Wallets – Use PayPal, Neteller, or Skrill to quickly fund your account.
To add a payment method:
- Click on your profile icon and select “Settings”.
- Choose “Payment Methods” from the menu.
- Click on “Add Payment Method”.
- Enter your card details or e-wallet account credentials.
- Confirm the payment method.
Once added, you can select the payment method whenever you need to deposit funds. The minimum deposit amount is $200.
Step 3: Verify Your Identity
As a regulated broker, eToro requires identity verification as per Know Your Customer (KYC) norms before you can start trading. This helps ensure secure trading and money transfers.
To get verified:
- From your account, click on “Verification Center”.
- Enter your personal details like full name, date of birth etc.
- Upload proof of identity and proof of address documents.
- Identity proof examples: Passport, driver’s license, national ID card.
- Address proof: Utility bill, bank statement etc.
- Submit the documents and wait for verification. Can take 1-2 days.
- Your account will show “Verified” once done.
This one-time process completes the KYC verification. Now you are all set to add funds and buy Ethereum.
Step 4: Deposit Funds into Your eToro Account
Once your account is verified, navigate to the “Deposit Funds” section in your eToro account. Here are the steps:
- Enter the amount you wish to deposit. Minimum is $200.
- Select your preferred payment method – card, bank transfer, or e-wallet.
- Enter the required details – card number, bank account credentials etc.
- Complete identity verification if prompted.
- Confirm the deposit.
The funds will be credited to your eToro account. This available balance can be used to buy Ethereum.
Step 5: Search for Ethereum and Navigate to the Trading Page
Now comes the exciting part – buying Ethereum! Here are the steps:
- Type “Ethereum” or “ETH” into the search bar at the top of your eToro dashboard.
- Click on the Ethereum result to go to the Ethereum trading page.
- Review the price charts, market depth, news feed etc. to analyze.
- When ready, click on “Trade” to place your order.
With the trading page open, it’s time to execute your first Ethereum buy order!
Step 6: Place Your Ethereum Buy Order
Follow these steps to place an order on eToro to buy Ethereum:
- Enter the amount of US Dollars you want to spend or the amount of ETH you want to buy.
- Set take-profit and/or stop-loss orders if desired. This is optional.
- Review the order details like order type, trading fees, etc.
- Click “Open Trade” to place the Ethereum buy order.
- Confirm the order when prompted.
Once your order is filled, the purchased ETH will show in your eToro portfolio. You’ve just executed your first Ethereum buy order – congratulations!
Step 7: Store Your Bought Ethereum Securely
Once you have purchased Ethereum on eToro, it is important to store it securely. Here are two options:
A. Keep it on eToro
- ETH remains in your eToro account itself
- Convenient for trading or selling later
- Covered by eToro insurance
B. Transfer to an external cryptocurrency wallet
For maximum security, you can transfer your purchased ETH to a wallet:
- Software hot wallet (Metamask, MyEtherWallet)
- Hardware cold wallet (Ledger, Trezor)
- Paper wallet
This keeps your Ethereum private keys safe. The transfer fee is only 0.006 ETH.
Choose the best storage option based on your requirements for trading ease versus added security.
Pros and Cons of Buying Ethereum on eToro
Here’s a quick look at some of the key advantages and limitations of buying ETH on the eToro platform:
Pros
- Beginner-friendly and easy-to-use interface
- A variety of payment methods are available
- Allows buying fractions of Ethereum
- Low fees compared to most exchanges
- Insured custody for assets left on the platform
- Integrated charting tools and trading view
- Supports copy trading
Cons
- Doesn’t support withdrawals to private wallets by default
- Limited payment options for certain countries and a limited number of cryptocurrencies compared to crypto-only exchanges like Binance
- Cannot participate in staking from the platform directly
Overall, eToro offers a solid experience for buying your first Ethereum with reasonable fees and a smooth on-ramping process. For more advanced traders, the lack of direct wallet access may be a limitation to consider.
Frequently Asked Questions
Is buying Ethereum on eToro safe?
Yes, eToro is regulated, follows KYC norms, and keeps most assets in offline storage making it very safe to buy Ethereum and other cryptocurrencies on their platform. They also insure assets held in your eToro account.
What are eToro’s fees for buying Ethereum?
eToro charges a transparent spread fee of 1% per trade whenever you buy or sell Ethereum. There are no hidden fees or charges. This is lower than fees at many other brokers and traditional cryptocurrency exchanges.
Can I transfer my Ethereum bought on eToro?
Yes, you can easily transfer Ethereum bought on eToro to an external wallet. This costs only 0.006 ETH per transfer. Go to your portfolio, click on Ethereum, select “Withdraw”, enter your wallet address, enter the transfer amount, and submit the request.
Does eToro have a mobile app?
Yes, eToro offers mobile apps for both Android and iOS devices. You can seamlessly buy, sell or transfer Ethereum on the go using the eToro mobile app which provides the same features as the desktop site.
How long does verification take on eToro?
The account and identity verification processes are usually completed within 1-2 days after submitting the required documents. This timeline may vary depending on your country. Some locations may require additional verification which can take up to a week.
Is eToro available worldwide?
eToro services over 100 countries worldwide. However, certain parts of the trading platform may not be accessible in a few countries due to regulations.
And that concludes our step-by-step guide on how to buy Ethereum on the eToro platform! Follow the steps outlined above to seamlessly create an account, add funds, verify your identity, and place buy orders for Ethereum. Remember to practice responsible trading and invest only what you can afford to lose. We hope this guide helps you get started with adding Ethereum to your crypto portfolio in a secure and regulated environment. Happy Ethereum investing!