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eToro, recommended online brokerage platform for acquiring Tether from USA
Why do we recommend it?
- You are able to learn from other investment tactics
- Accepts “shorting” or short-selling
- It's straightforward and user-friendly
- Leverage is allowed
- Lets you invest in countless of other products
Homepage: www.etoro.com/tether
You should absolutely consider eToro in case you are thinking about buying Tether from USA.
eToro is famous for making “social trading” fashionable. Social trading is a revolutionary way of investing in which traders can emulate the strategies of other investors who have been generating earnings over time.
If you are still a newbie or haven't gained much experience in investments, eToro is very useful, since it automatizes your investment by repeating strategies from experienced traders with a long profit history. Also, in case you are an investor, the platform pays for your knowledge.
It is also worth mentioning how easy is to manage this platform, ideal for beginners who are starting in the investment world.
What are Contracts for Difference?
It is possible that you have seen the acronym CFD now and then if you already accessed eToro. We will explain exactly what this means, but you should know first that CFDs on eToro are only possible if you short sell or leverage over x2 (and this is not even an option on eToro).
For the record, and if you want to try at some point day trading cryptocurrency or other practices, later on you will also meet terms like short-selling and leverage.
The good thing about eToro is that it allows you not only to bet “in the black”, but through CFDs you can also bet “in negative”. In a hypothetical case: you believe that the Tether will fall, so you obviously think “if it is going to depreciate (go down in price), I'll just wait and go when it has gone down”. However, if it really falls, it might mean extra money for you.
You can do this through a practice known as “going short”. Its operation, roughly, consists in the following:
- They lend you, let's say, 100 units of Tether, with a total price of $ 5,000 (these are completely imaginary figures)
- You get $ 5,000 by offering them at their price in the market
- The Tether devaluates from $ 50 to $ 30
- You obtain the 100 units again, but at $ 3,000
- You give back the 100 units
- The rest is yours, so, you will have made $ 2000
Consider that it seems much more complex than how eToro CFDs actually work: we can just say that by trading in Tether you can also make money if you foretell it will go down.
Trading strategies
When trading cryptocurrencies, there are different possible methods or strategies, such as day trading or buying and holding, for naming just a few.
If you don't have much experience trading, I recommend a middle point: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work.
For example, if you buy a cryptocurrency at $ 15, it rises up to $ 25 and decreases again to $17, the stop-loss will close your position at $ 21 or $ 22. Thus, you will obtain a fine profit.
I know it might sound more appealing to sell when the price is at its peak, but that is simply not possible. The above strategy is much more realistic and, well applied, it can work very well.
Sooner or later, you will be ready for applying advanced investment techniques, like using leverage or going short to make money from bear markets.
Payment methods on eToro
Among the payment options available on eToro are: credit card, PayPal, bank transfer, Neteller, and Skrill. There is not much to say here: making a deposit with eToro is a very easy process. You just have to go to “Deposit funds”, type the amount and choose your preferred method.
Remember that for security reasons, you must be the owner of the credit card or the account.
The minimum you can deposit is $ 200 and there is a maximum limit of how much you can deposit if you are not verified. Therefore, if you want to trade with larger sums, contact Support beforehand to verify your account.
The platform allows deposits or transfers in any currency, but charges a fee for making the conversion to USD. So it is better to use USD from the beginning.
How to use eToro
As we have mentioned among the positive aspects of eToro, the best thing about this platform is its simplicity: anyone can use it without having to read endless explanatory texts.
You won't have any issues with the interface if you have used any other social network.
Now we will walk you through the registration process and the different sections of the eToro interface that you should know.
You will have to fill in some requested data when registering.
Also, you will have to answer some questions about your 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 financial instruments they can suggest. For example, if it is your first experience in the investment world, they will not suggest that you invest in futures.
Let's review the different functions of the interface.
With the “Set Price Alerts” tool, you'll be able to program an alert when a security is at a certain price. Just click the tab and you will be able to set it. This is ideal in case you want to buy a security and you are waiting for its price to fall.
The section “News Feed” allows users to interact and share their experiences and knowledge.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. And we already talked about the kinds of assets on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- Stocks
- Raw materials
- Currencies
- Index funds
The term “social trading” makes sense within “People”: there, you can replicate the trading strategies of any user you choose with just one click.
You can search for those users that best suit your interests: by average profits, types of instruments or risk level, for instance. You just have to choose the amount of your investment and eToro itself will replicate the movements of the investor you chose, in proportion. “In proportion” means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will invest $ 100 of your money in that asset.
In this section you will also find the three most popular types of CopyPortfolios, which are 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 easily identifiable: one about gaming, another about large drone companies, another about pharmacy … You think that a certain sector is going to succeed anytime soon? Then you will surely find a CopyPortfolio about it.