You can buy Cryptocurrency at exchanges. Someone looking to buy cryptocurrencies needs to purchase them via exchange. Therefore, selecting the best cryptocurrency exchange is important so you may not fall victim to a scam.
There are three types of crypto exchanges;
A centralized exchange is an exchange owned or controlled by the central organization offering fiat-to-crypto or crypto-to-crypto-based transactions. Centralized exchanges work as a middle man, and depend on the trust in the system [exchange] to handle money, and perform exchanges and trades between parties.
A decentralized exchange is an autonomous crypto exchange that doesn’t depend on the centralized systems of any organization but operates in full capacity on its own. A peer-to-peer exchange will secure transactions through blockchain-based encrypted protocols, i.e. it connects trades through Ethereum based smart contracts technology.
The main difference between centralized and decentralized exchanges is the operational procedures of how both exchanges work. Both exchanges have their benefits and drawbacks.
Hybrid exchanges have the features of both central and decentralized exchanges. They have low latency and instant transactions like centralized exchanges, and they keep transactions integrated by employing smart contracts to ensure the same level of security in decentralized exchanges.
The first thing you may want to know before selecting an exchange is its reputation. Also, you want to know the origin of the exchange, how long it has been working around, and what level of support does it provide to its customers. Reading reviews about it may give an idea about its standing. A cross-check with listings of third-party websites that maintain an updated log of legit and scam exchanges can also help you avoid falling victim of scam exchanges.
Regulation of the exchange offers a great level of surety that the exchange is legitimate. However, this may be useful in the case of a centralized exchange only. Also, the location of the exchange is important; it should be within the place of your residence. This is to avoid the complexities involved with the exchanges located outside your home country when it comes to seeking legal protection.
The exchange should be digitally secure enough. It should have the HTTP protocol followed by SSL encryption, and an option of cold storage in place. Also, the exchange might keep a record of your transactions, which might be considered a privacy violation. You should check privacy terms and conditions thoroughly before you select an exchange to buy cryptocurrency. Additionally, you may wish to know whether the exchange allows deposits with no ID verification.
Various exchanges come with different trading limits, depending upon the type of exchange you select to buy cryptocurrency. However, these limitations should not be the source of your disappointment when you plan to purchase high. It is better to decide as per your expected trading volume strategy.
The fee has always been the point of concern when selecting an exchange to buy cryptocurrency. Therefore, always look for the fee structure the exchange is offering. You may also compare it with other exchanges to know if the fee and charges on your selected exchange are reasonable. On average, fee charges for purchasing with credit cards don’t exceed 4.0% on the transaction amount. For debit card purchases it should not be more than 1.5%.
Knowing the time your exchange would take to transfer cryptocurrencies to your wallet also matters. The available supported methods may help you get an idea of how long could it take to transfer your cryptos. Usually, purchases through credit cards are done instantly. However, buying cryptocurrency through wire transfer can take several days.
Once you know what to look for before you finally select an exchange, you may then start screening the exchanges you come across. eToro has been the most trusted cryptocurrency exchange so far. It offers multiple payment methods to buy cryptocurrencies altogether with a user-friendly secure digital wallet where you can store multiple cryptos.
The eToro wallet offers some incomparable features listed below;
The eToro wallet supports more than 120 cryptocurrencies with a facility for sending, receiving, storing, and changing your cryptos with more than 500 cryptocurrency pairs in one place.
Unlike other traditional exchanges, eToro offers an unlosable key feature that helps to recover the security key of your wallet even if you lose or forget it.
With the advanced on-chain address feature at eToro, your privacy remains uncompromised. You can make a transaction anytime using your private confidential on-chain address.
The user-friendly eToro wallet is available to download for free. It offers a high level of security and it is ISO certified in employing security protocols.
eToro offers a wide range of cryptocurrencies that you can trade with. Some of the leading cryptocurrencies are;
The largest cryptocurrency in terms of market capitalization. Bitcoin is readily available to trade on eToro. It is one of the most accepted cryptocurrencies which can be used as a payment method worldwide. It is also the world’s first blockchain-based cryptocurrency.
eToro also supports ripple – one of the low-cost fastest digital currencies which traders can trade on eToro’s trading platform. Ripple also falls in the category of widely accepted cryptocurrencies all across the globe.
Ethereum is one of the leading cryptocurrencies based on smart contracts. It received accreditation from technology giants like Microsoft and Intel. Traders can trade, buy, and store Ethereum on eToro’s trading platform and digital wallet.
Litecoin is known to be amongst the pioneers in embracing Segwit, which is a mechanism used for speeding up transactions and keeping the blockchain technology intact. It is also available in the catalog of supported cryptocurrencies on eToro.
With its unique features and decentralized nature, Dash is yet another exciting offer to trade on eToro. It is a digital currency that offers high liquidity and speedy transactions.
As huge as eight times in size of Bitcoin, Bitcoin cash serves to be the hard fork solution for the transactional backlog bitcoin was been through. Traders are allowed to trade as many bitcoin cash tokens as they like on eToro. However, non-verified customers will certainly face some restrictions in this regard.
Traders can choose to buy Stellar Lumens, or trade it by pairing it with either fiat or other digital assets. Stellar is based on a distinct consensus algorithm instead of mining.
Without forking ability, NEO can be modified easily as per the requirement of traders on eToro. It is also called as Chinese Ethereum.
EOS is one such digital currency that gained its popularity instantaneously after its release as compared to other well-known digital currencies. Having the ability to support thousands of decentralized apps, it is certainly the topmost priority of investors looking for open-source infrastructure.
eToro also offers Cardano, which is a self-distinguished, crypto-asset, employing double-layer structure with complete independence of each other (unlike Ethereum). However, the rules for trading Cardano on eToro remains the same.
IOTA is also available for trading on eToro. It is based on block-less proprietary which is known as tangle. It is becoming the source of innovation for decentralized networks to enable them to use the Internet of things (IoT).
Zcash uses encrypted transactions. It is supposed to be the most secret cryptocurrency one can ever have. All transactions, either you send, receive, or buy are kept confidential.
eToro supports TRON as well and allows investors to buy or trade TRON through eToro platform. Tron is the sensational crypto asset that aims to introduce a decentralized alternative for the global distribution of digital content.
A famous cryptocurrency resulted after the world’s most successful ICO, in which $232 Million was raised. Traders can trade Tezos for a crypto-to-crypto transaction at eToro.
Binance coin allows traders to avail discounts on fees if transactions are made through the Binance exchange. It is more of a utility token in nature.
eToro Digital Wallet is a blockchain-based digital place powered with the feature of key recovery tools for storing, receiving, or sending your cryptos to other digital wallets. eToro’s digital wallets support more than 120 cryptocurrencies. However, this must not be confused with the number of supported cryptocurrencies on eToro for trading purposes. With eToro digital wallet, you can also convert your cryptocurrencies to other digital assets.
eToro trading account enables you to buy or trade fiat and cryptocurrencies through eToro’s advanced trading platforms. You can also avail of other trading tools and features necessary for day trading, such as take-profits or stop-loss features, economic calendar, market insights, etc.
On the other hand, the eToro digital wallet enables you to store your digital asset with a complete sense of security, which is not the case with eToro’s trading account. Owing to distinct reasons, your digital assets always remain at risk if they are held with the same exchange where they were bought. The option of sending, or receiving cryptos to and from other digital wallets is also unavailable in eToro’s trading account. Should you wish to exchange your cryptocurrencies with other digital assets, you need to have eToro’s digital wallet.
Leveraged trading (also referred to as margin trading), means that traders do not necessarily have to put down the whole amount of underlying asset. Instead, they can open positions by availing margins or leverages offered by their exchanges. eToro offers leverage of (x2) to open positions on BTC.
Yes, eToro allows you to transfer your digital assets from your eToro’s trading account to eToro’s digital wallet. However, leverage positions cannot be transferred to your digital wallet.
To be able to transfer your cryptocurrencies from eToro’s trading account to eToro’s digital wallet, you can use the edit trade module which may be found under the portfolio screen. You need to select your closed position, then a pop-up window will appear showing the number of units in trade, the transaction cost, and the number of crypto assets you want to transfer to your account.
Since eToro provides all types of services under one roof, therefore buying cryptocurrencies at eToro has even been more simplified. You either need an eToro account, or a digital wallet to transfer your cryptos after purchasing them. eToro offers both of them. Let’s go through it step by step:
To buy cryptocurrency using your credit card, you need to go through the following steps;
Note: If for any reason your transaction is refused, you will be notified through your registered email. Also, the maximum deposits for non-verified customers are limited at $2250.
To buy cryptocurrency with a credit card, the process is the same as of credit card with only an exception: you need to select a debit card instead of a credit card as your payment method.
Let’s see how it goes;
Note: Customers with no ID can deposit a maximum of $2250.
Bank transfers are an effective way to buy cryptocurrencies at eToro. However, you must keep in mind that the process may take a few days before your eToro transfers your cryptos to your account.
Note: Customers with no ID can deposit a maximum of $2250.
eToro offers its clients to buy cryptocurrencies using PayPal. That is, of course, in compliance with all rules and regulations in place by the respective regulatory authorities. The process involves a few simple steps outlined below;
Note: Customers with no ID can deposit a maximum of $2250.
Although buying cryptocurrencies with cash may be the easiest method to go for, it still is the most vulnerable method of falling for scams. Also, If you buy cryptocurrency with cash, you will have to pay high transaction charges.
You can find a list of cryptocurrencies that you can transfer from from your trading account in the cryptocurrencies section. eToro allows transferring only those cryptocurrencies backed up by real tokens. eToro does not transfer margin trades.
You can transfer your cryptocurrencies from your trading account to eToro wallet using the “edit trade” tab in the portfolio screen tap on the relevant trade. You can find this option under the “invested amount” tab. After you press the invested amount tab, a pop up will appear showing the amount in trade, the applicable fee to carry out the transaction, and the number of your cryptocurrencies that you can expect to receive in your wallet. Then, eToro will approve the relevant crypto position and close it. Finally, eToro will send the cryptocurrencies to your wallet.
The process of transferring your cryptocurrencies may take up to one business day. After eToro processes your request, it may take some additional time to send cryptocurrencies to your wallet. You should keep in mind that eToro does not process transfer requests on Saturdays and Sundays.
No, unfortunately, you can’t open an eToro wallet if you don’t have a trading account with eToro.