When purchasing Ether (ETH) or any other cryptocurrency, choosing the right platform is crucial as it affects important factors such as the simplicity of the process and issues related to compliance, fees, security, and trust. EToro is a multi-asset investment platform that focuses on social trading and investor education, offering a range of features for seamless trading.
EToro is a regulated platform that provides a diverse portfolio of cryptocurrencies, including Ether. Users can stay informed about the dynamic Ethereum landscape through market insights, educational resources, and research tools available on the platform.
This article explores the process of buying Ethereum on eToro, covering steps such as creating an eToro account, verifying your identity, depositing funds, and using those funds to purchase Ether.
Creating an eToro Account
Whether you’re using the web or a smartphone, the first step on eToro is to create an account. Here’s how you can complete the process:
Step 1: Open the eToro website or download the app.
Step 2: Click the “Sign Up” button on the homepage and start the registration process. Fill in your email, choose a username and password, and accept the terms and conditions, privacy policies, and cookie policies. Alternatively, you can log in using your Google or Facebook accounts.
Logging in and Verifying Your Identity
To log in and verify your identity on eToro, follow these steps:
Step 1: Use the same username and password you created during the account creation process. If you forget these details, you can reset the password using your email.
Step 2: Once logged in, provide details about your investment history, approach/style, and a short bio to give other users a complete understanding of your profile. You also have the option to upload an image of yourself.
Step 3: To start trading, verify your email by clicking on the verification link sent to your inbox. After that, add your phone number and verify it by entering the verification code provided by eToro.
Step 4: Once you complete the basic verification process, you can deposit funds into your account. However, there may be deposit limitations until you complete your profile.
Step 5: You’ll also need to verify your identity by submitting government-issued identification documents and proof of address, such as utility bills. This is a legal requirement in compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines.
Depositing Funds into Your eToro Account
Before you can start trading or buying cryptocurrencies, you need to deposit funds into your etoro account. Here’s how you can do it:
Step 1: Click the “Deposit Funds” button on the screen.
Step 2: A pop-up box will appear where you can enter the amount, select a currency and payment method. eToro offers various payment methods, including debit/credit card payments, wire transfers, and online payments. The availability of payment methods may vary based on your country’s regulations.
Step 3: For wire transfers or card payments, select your bank from the list, provide the necessary information, and confirm the transaction to complete the transfer.
Step 4: eToro facilitates money transfers for other online transaction methods available in different regulatory jurisdictions. You can choose your preferred payment app, such as PayPal, Neteller, or Skrill, and follow the prompts to link your account with eToro.
Buying Ethereum on eToro
Once you’ve deposited funds into your eToro account, you can proceed to buy ETH. Here’s how you can buy Ethereum on eToro:
Step 1: Go to the left panel of the screen and click on “Trade Markets.”
Step 2: At the top, you’ll find various investment types. As Ether is a cryptocurrency, click on the “Crypto” tab. All the available coins on eToro will be displayed, with Ether at the top. The Ether trading page will show charts, current prices, and other relevant details. Click on “Buy” for Ether, and a pop-up window will appear.
Step 3: Enter the desired amount and choose between two buying options: “Trade Order” or “Limit Order.” A trade order allows you to buy or sell a coin at the best available current price in the market, while a limit order sets a maximum price to be paid when buying a cryptocurrency. Keep in mind that eToro has minimum trade size limits that may vary across countries.
Step 4: Before placing the order, review the order details, including the purchase amount, current price, and any applicable fees.
Step 5: Pay using the funds available in your eToro account, and the purchased ETH will be transferred to your wallet.
Risk Factors on eToro
As eToro is a social trading platform, it’s important to be aware of the risks associated with such platforms. eToro provides useful information about traders and their strategies to help users make informed decisions. This information includes past performance, risk scores, statistics, and other relevant facts. However, it’s important to note that past performance does not guarantee future results, as trading is inherently speculative.
When evaluating the historical performance of an investment, traders use risk measurement to assess its potential future performance. Risk is measured by calculating the standard deviation of an investment’s value. A higher deviation indicates higher volatility and greater investment risk.
eToro presents the risk profile of an investor’s portfolio through a “Risk Score” ranging from 1 (low risk) to 10 (high risk). A higher risk score reflects higher portfolio volatility. A score of 0 indicates a portfolio that consists entirely of cash, meaning no volatility.
A portfolio with more diversified assets typically carries less risk, as individual assets may have lower volatility. On the other hand, leveraged exchange-traded funds tend to be more risky, requiring careful consideration and vigilance when trading on the platform.