In today’s economy, Bitcoin has grown to be one of the most rapidly growing assets in the world; however, you won’t find it in many traditional brokerage firms. Good news: you can purchase Bitcoin through eToro, one of the largest online brokers and cryptocurrency exchanges.
eToro has some of the lowest fees among major crypto exchanges for Bitcoin purchases. With eToro, you will have to pay 1% of the total transaction when buying Bitcoin or any other digital currency. You will also be charged a 1% fee if you sell Bitcoin.
There are no fees associated with using a credit card or debit card on eToro, as there are on most other cryptocurrency exchanges. You don't have to pay any deposit fees on this platform. However, eToro charges a $5 withdrawal fee, and you will be charged a 0.5% transaction fee when sending Bitcoin through your eToro account to the eToro Bitcoin wallet (the maximum fee is $50).
How Secure Is It?
eToro claims to follow the highest standards for safeguarding customer assets, but the website is lacking in details. A number of top exchanges provide detailed information about their security measures -- for example, what security audits they have performed or whether they conduct background checks on their employees.
eToro, on the other hand, says it cannot share more information due to security concerns. A large majority of crypto assets are kept offline in cold storage, thus making them hard to hack. In addition, the company says that clients' funds are kept in a segregated account, providing some protection in case the company goes bankrupt. Customers in the United States who store dollars with eToro are covered by an additional FDIC insurance policy in case of platform failure, although crypto assets are not covered.
The disappointing thing about eToro is that it does not offer any additional third-party insurance for crypto assets. Due to the fact that several cryptocurrency exchanges have been compromised, security platforms have begun to invest in insurance specifically designed to protect against hacking-related crime.
Would you like to know how often blocks get added to the Bitcoin Blockchain? Read our blog to learn.