Contents
eToro is an outstanding broker for those who want to buy Binance Coin from USA
Why do we recommend it?
- User-friendly and straightforward
- It takes strategies from skilled traders so you can emulate them
- Allows you to short sell
- You can trade leveraged
- There are tons of investment opportunities
Official homepage: www.etoro.com/binance-coin
You should definitely consider eToro in case you are thinking about acquiring Binance Coin from USA.
“Social trading”, an innovative investment method that consists in replicating techniques and moves from other experienced investors, has become popular thanks to eToro.
eToro is very helpful if you don't have much experience in trading, since it automatizes your investment by repeating strategies from other experienced people with a long profit history. Also, in case you are an investor, the platform pays for your knowledge.
Besides, the platform is so uncomplicated, great for a user who wants to begin in the Binance Coin world, without stressing over tons of graphs and figures.
eToro Interface
As we have mentioned among the positive aspects of eToro, the best thing about this online broker is its extraordinary simplicity: anyone can use it without having to read endless guides.
Everyone who has previously used Whatsapp, Facebook or any of the most common social networks, has enough skills to use eToro.
Let's talk about the registration process and the different sections of eToro.
First, you will have to enter your personal data, like first name, last name or address.
They will also ask you about your previous experience as an investor.
But don't worry: it's not about passing an exam. They are only measures to know how much knowledge you have and what type of assets they can suggest. For instance, if you have never invested before, they will not recommend that you invest in futures.
Let's see what the different sections of the site are.
In the “Set Price Alerts” tab you can set alarms on the price of certain securities. You just have to click on the three points at the end of the line and you will be able to program a price alarm. This is very useful when you want to buy an asset which price is decreasing, but it seems to you that it will decrease even more.
The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed previously, the six types of instruments on eToro are:
- Cryptocurrencies
- Exchange-Traded Funds
- Stocks
- Commodities
- Forex
- Index funds
In “People”, you will find the profiles of eToro users and their performances. This is where you can duplicate with just one click the movements of the investors that inspire you the most.
In this section, you will be able to search and find users according to your interests. You can search by risk level, financial instruments, or average profits, among other filters. When you choose an investor and indicate how much money 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, the platform will invest $ 200 of your funds in the same asset as well.
Lastly, you will also see the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
The benefit of copying to CopyPortfolios instead of people is that this way you will diversify the risk. The portfolios are identified so you can recognize them easily: one about gaming, another about large drone companies, another about pharmacy … You think that a certain sector will prosper anytime soon? Then look, because surely there is a CopyPortfolio about it.
Is eToro safe for purchasing Binance Coin?
eToro is very rigorous with the information about past performances from investors, and its integrity has been independently tested several times.
eToro follows all the demanding policies of the European Union, legislation in which it is found. Its head office is in Cyprus, and it is validated by the Cyprus Securities Market Commission (known as CySEC), which can cover up to € 20,000 of the debts that its clients may have with creditors, including those from USA.
eToro responds to the European Financial Instruments Market (MiFID) in Europe, and to the Financial Conduct Authority or FCA in the United States of America. Apart from the above, it has a trajectory of fifteen years, with more than 20 million users around the globe. So, yes, it is a safe broker.
It is also worth mentioning the good functioning of its customer service. You can use the online chat, and they also have a phone number available for assistance.
What are ETFs?
ETFs or Exchange-Traded Funds are similar to index funds. They can be described as a combination of stocks and mutual funds. They are publicly traded, that means they can be exchanged at any moment at market price. But their main benefit is that they offer more alternatives compared to stocks, and the rates are much lower than those of an actively managed fund.
About ETFs
Have you heard about Exchange-traded funds? They are similar to index funds and are known for merging the advantages of stocks and mutual funds, because they can be traded at any moment in the market, but have much more investment possibilities and considerably lower rates.
Currency market
Forex or currency trading allows obtaining profits by converting one currency for another.
If you decide to trade euros and dollars, you purchase euros and pay with dollars, thinking that the euro will raise its price compared to the dollar. Therefore, if you bought each euro for 1.15 USD and you sell them back when they are worth 1.20 USD, you'll be keeping that margin.
You may be thinking by now that this form of trading requires high investments, and that is correct, since fluctuation in prices is never that dramatic, and often you will need to use high leverage (which is an important risk). Our recommendation for those who are new in the world of trading is not to start with Forex, but with a safer and more secure market.
eToro allows exchanging the most popular currency pairs but remember that in Forex sales are made through contract for differences, which means you will not be the owner of the real asset.
Stocks
Let's discuss the most popular instruments: stocks. Stocks are fractions in which an enterprise that chooses to go public is divided, and you may get dividends through third-party companies just by investing money in them. But of course, you have to know where to put it.
We can group stocks into two different kinds: the ones that divide their earnings regularly among the shareholders, and those that don't. The former ones are great, of course, but investing in the latter can also be a good idea since sometimes you can make even more money by selling the shares.
If you invest in stocks that pay out dividends, you will receive them into your account on eToro. Therefore, you can withdraw that money or you can choose to reinvest it. However, compound interest is magic, so our suggestion is that you reinvest if you don't need the money immediately.
Consider that when investing in shares on eToro you can use leverage to “dope” your trades, but in that case, you will not receive dividends as it would be a contract for difference. For long-term investments, it is not advisable to use leverage: not just because you lose dividends, but also because you will have to pay fees as long as you keep the position open, and these can end up eating your gains.
About Contracts for Difference
If you already registered on eToro, you must have seen how the acronym CFD appears over and over. We will explain exactly what this means, but first, you should know that CFDs on eToro are only possible if you short sell.
In case you want to try at some point day trading cryptocurrency or other trading practices, you will also find information about terms such as leverage and “going short”.
eToro allows you not only to bet “in the black”, but through CFDs you can also bet “in negative”. Let's say that you are sure 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, it functions like this:
- You obtain from a loan 100 units of Binance Coin, with a total value of $ 5,000 (these are completely made up figures)
- You sell the 100 units and earn $ 5,000
- The Binance Coin devaluates from $ 50 to $ 30
- You buy the 100 units again, but at their current price, $ 3,000
- You return the 100 units to whoever made the loan in the first place
- You keep the $ 2000 difference!
Consider that it seems much more complicated than it is: we can summarize this whole operation by saying that by trading in Binance Coin you can also earn money if you predict the downs.
Virtual account
In case you do not have much experience as an investor, you can start by practicing with a “demo” option. You only need to set a virtual account and you will be able to trade with “imaginary” funds.
This is a great tool for those who want to put their talents to the test before playing for real funds. When you create your account, you will start with $ 100,000 of virtual balance to do all the operations that you can think of: not only with Binance Coin, you can also work with a diverse portfolio with all the different instrument that are available on eToro.
The first attempt is not usually that good. But don't worry, since you can ask support to replenish the virtual funds to your portfolio.
Take into account that investing is mainly about being cold-minded, nevertheless, using a virtual portfolio might have the opposite effect. It is not the same to operate with your own money than with virtual funds, which you can lose without any consequences.
Evidently, if you are interested in investing in the long or medium-term, it makes no sense that you try the demo mode and wait for years. On the other hand, it can be very useful if you want to practice short and medium-term trading.