Contents
eToro is an excellent broker for those who want to purchase Binance Coin from India
Why do we recommend it?
- There are uncountable investment opportunities
- eToro allows leverage
- It is simple and user-friendly
- It takes other successful investment strategies so you can emulate them
- Allows short-trading
Official main site: www.etoro.com/binance-coin
If you are interested in obtaining Binance Coin from India, eToro may be the best way to do it.
“Social trading”, a relatively new form of investing by replicating techniques and moves from other experienced investors, has become popular thanks to eToro.
eToro has solutions for you, even if you are still a beginner in trading, because it automatizes your investment by repeating strategies from those who have been doing it for years and making profits. Oppositely, if you are an investor and decide to share your abilities with others, eToro pays you for it.
It is also worth mentioning how easy is the interface of the platform, excellent for beginners who are taking their first steps with Binance Coin.
eToro Interface
We said before that eToro is very friendly and intuitive. Anyone can start investing without having to read endless explanations.
You won't have any problems with the interface if you have used any other social network.
We will explain, roughly, the registration process and the different tabs that you will see on the platform.
First, you will have to fill in all the information that eToro asks for: first and last name, address…
They will also ask you about your previous trade experience.
But don't feel intimidated. They only intend to find out how much you know and which assets to recommend for you.
Let's see what the different sections of the page are.
“Set Price Alerts” allows you to put alarms on the price of certain assets. It is a very useful tool for when you want to buy an asset that is falling, but perhaps you think that it has not finished falling yet.
In “News Feed”, investors interact and share opinions, tips, and other valuable information.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we mentioned in this guide, the six types of instruments on eToro are:
- Cryptocurrencies
- ETFs
- Shares
- Commodities
- Forex trading
- Index funds
In the section “People”, you can find the profiles of eToro users and their historical performance. This is where “social trading” makes sense since you can duplicate the movements of the traders that inspire you the most.
You will be able to search for those users that you find more interesting. When you choose an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, proportionally. If you invest $ 1000 and the trader puts 20% of their funds in an asset, eToro will invest $ 200 of your balance in the same asset or company as well.
You will also see the three main types of CopyPortfolios, which are classified into “Top Trader”, “Market” and “Partner”.
Sometimes it might be better to copy from CopyPortfolios than to individuals, because the former offer more diversity. The different portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain sector is going to succeed in the future? Then you will surely find a CopyPortfolio about it.
Can you trust eToro?
Many tests from independent consultants have been applied to the platform to certify its reliability in reporting previous performance statistics. The results have always confirmed that eToro is very precise with the figures.
In the legal aspect, eToro fulfills all the strict policies required by the European Union. Its main headquarters is in Cyprus, and it is validated by the CySEC or Cyprus Securities Market Commission, which can cover up to € 20,000 of the debts that its clients may have with creditors, including those from India.
eToro responds to the European Financial Instruments Market (MiFID), and to the Financial Conduct Authority (FCA) in the U.S. You should also know that it has a trajectory of fifteen years, with more than 20 million users around the globe. So, yes, it is a safe broker.
Finally, their excellent customer service is also worth mentioning. You can reach them by phone or use their online chat.
About ETFs
Exchange-Traded Funds or ETFs are similar to index funds. They can be described as a merge between stocks and mutual funds. They are publicly traded, that means they can be commercialized at any moment at market price. But their advantage is that they offer more alternatives compared to stocks, and have lower fees.
Forex trading
What is known as Forex trading consists in the trading of currencies. In other words, is the conversion between a pair of currencies to make a profit through the operation.
If you decide to trade EUR and USD, you speculate how many dollars it will take to buy a euro, with the expectation that the first currency (the euro) will raise its price compared to the second (the dollar), to make a profit by selling it. Assume you entered when a euro is worth 1.10 USD and you leave when it is worth 1.15: that difference is yours once you make the operation.
You may be thinking by now that this form of trading requires investing considerable amounts, and you are not wrong, because variations are usually minimal, and if you use a lot of leverage to counter that, you will take a considerable risk. In case you are new to the world of trading, we don't recommend beginning with Forex, because it is very risky and intricate.
You can exchange with almost every popular currency on eToro. However, consider that in this market sales are always made through CFDs, which means the underlying asset won't be yours.
Shares
Stocks are the most common securities. Some publicly traded corporations decide to split into fractions: you can be one of those shareowners, but first, you should know where and how to make your investment.
There are two kinds of stocks: the ones that divide their earnings regularly among the shareholders, and those that don't payout. The former ones are great, obviously, but investing in the latter can be a good idea too since sometimes you can make even more money by selling the shares later.
On eToro, if you choose a company that pay out dividends, you will receive them in your account, and you can withdraw those funds or invest them back. Our suggestion is, if you don't need the money right away, that you take advantage of compound interest and reinvest it in the company itself.
Remember that when investing in shares on eToro you can “dope” your trades with leverage, but in that case, you will not receive interest as it would be a contract for difference. For that reason, for long-term investments, it is not advisable to use leverage: you can end up not gaining at all, because you will not get dividends and also you will have to pay fees while your operation is open.
Raw materials
Most people invest in raw materials because of their stability. While other assets present higher fluctuation, raw materials prices vary less and offer safety against inflation or market volatility. Nevertheless, prices do depend on supply and demand, so if an economic situation produces higher demand for a certain good, its cost will also increase.
Remember that the only intended income from the investment in raw materials will be the hypothetical capital gain after the sale since, unlike shares, these do not pay dividends.
There are two basic kinds of commodities: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals, and oil; and the latter are agricultural goods, such as cocoa, soybeans, rice, or sugar.
What's the difference between CFDs and futures?
In case you are interested, next you have some major differences between Futures and CFDs:
- Which are the counterparties? With Futures, the counterparty is another investor. In CDFs, it’s the broker (eToro)
- Date of expiry Futures have a determined expiration, while CFDs don’t have expiration date
- Markets available for trading Futures include fewer options to trade. With CFDs you can trade in several different markets.
- Minimum deposit amount or “trade size” Costs for Futures are higher than costs for CFDs.
- Leverage With Futures, it isn’t possible; while with CFDs it is.
What are Contracts for Difference?
If you browsed eToro before, you probably noticed that the acronym CFD appears frequently. Before we explain what this is, you must know that CFDs on eToro are only possible if you are short-selling.
We will also explain concepts such as leverage and “going short”, in case you are thinking about day trading cryptocurrency or other more advanced practices.
With CFDs you can bet on the platform even if you are “in red” or don't have a positive balance. Let's say that you believe that the Binance Coin will go down, so probably you consider that the best thing to do is wait until it does and then go in. But if it really falls, it might mean extra money for you.
You can do that by “going short”. More or less, this is how it works:
- You ask someone to lend you, for instance, 100 units of Binance Coin, which cost $ 5,000 at the moment (obviously, these numbers are made up)
- You sell the 100 units and earn $ 5,000
- As you supposed, the price falls, and the unit of Binance Coin now costs $ 30 instead of $ 50
- You purchase all 100 units once again, but at the current price, $ 3,000
- Now you pay back the 100 units to the loaner
- The difference is yours, so, you will have earned $ 2000
It is really simple. Just consider that by trading in Binance Coin on eToro, with CFDs you can make a profit when you anticipate downs.
Demo account
If you do not have much experience as an investor, you can start by practicing with a “demo” option. Setting a virtual account and operating with fictional money is very simple.
A virtual portfolio can be a good way of gaining confidence before starting to operate with real funds. When you create your demo account, you will begin with a virtual balance of $ 100.000, to trade with a variety of financial instruments available on the platform, besides Binance Coin.
The first attempt is not usually that good. But don't worry, because you can ask support to deposit back the virtual funds to your portfolio.
Take into account that you should always be prudent when investing, and perhaps a virtual account can make you a bit impulsive. It is not the same to trade with your own money than with fake funds, which you can lose without any consequences.
And of course, the demo mode is kind of absurd if you intend to trade in the medium or long-term (which almost assures you a profit only by replicating an index), since you would be wasting years to see the results. Virtual accounts may be helpful for trying out before trading in the short or medium-term.