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eToro is an excellent broker for those who are in Bangladesh and want to buy Binance Coin
Why do we recommend it?
- It uses techniques and moves from experienced investors so you can replicate them
- You can short sell
- It is uncomplicated and manageable
- Leverage is allowed
- Lets you invest in plenty of other products
Official main site: www.etoro.com/binance-coin
In case you are considering it, eToro is the best option to purchase Binance Coin from Bangladesh.
“Social trading”, an innovative form of investing by replicating techniques and moves from other experienced investors, has become popular because of eToro.
If you are a novice user or do not have much experience in investments, eToro is very helpful. You can rest assured that you will be making a smart investment since the site replicates those from subjects with a long profit record. Additionally, in case you do have experience in investment, eToro pays you for sharing it.
Another advantage is how easy the platform is, which turns out perfect for new users that are learning all about the trading world.
How to use eToro
We already mentioned that one of the best features of eToro is that the platform is very friendly and easy to use. You don't need to read a lot or have previous knowledge to start trading.
You won't have any issues with the interface if you have used any of the most common social networks, like Twitter or Linkedin.
We will explain, roughly, the registration process and the different sections that you will see.
First, you will have to fill in your personal data.
Before you end up with the sign-up process, you will also have to answer some questions about your previous trade experience.
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 recommend that you invest in futures.
You will see a bar that says “incomplete profile” until you fill in all the information.
Let's review the different functions of the platform.
In “Set Price Alerts”, you have, as its name says, the option to put alarms on the price of certain assets. It is a very useful tool for when you want to buy an asset which price is decreasing, but perhaps you think that it has not finished falling yet.
The section “News Feed” allows users to interact and share their experiences and knowledge.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we discussed previously in this guide the different financial instruments on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- Stocks
- Raw materials
- Forex
- Index funds
In “People”, you can find eToro users and their performances. This is where “social trading” makes sense since you can replicate with just one click the movements of your preferred traders.
You can search for those users that you find more interesting: by average earnings, market or risk level, for example. Just indicate the amount you want to invest and eToro will replicate the movements of the investor you selected, in proportion. “In proportion” means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will also invest $ 100 of your balance in the same asset.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
In some cases, you might prefer copying to CopyPortfolios than to individuals, because you avoid putting all your eggs in one basket, or in other words, risk is more diversified. There are all kinds of portfolios that you can recognize easily and are classified by sectors. So, in case you suspect a specific industry, such as e-commerce or oil, will have good incomes in the future, you can look for that specific portfolio and invest.
Can you trust eToro?
eToro is very rigorous with the information about past performances from investors, and its reliability has been independently tested several times.
In the legal aspect, eToro fulfills all the demanding policies requested by the European Union, legislation in which it is found. Specifically, its main offices are in Cyprus, and it is certified by the CySEC or Cyprus Securities Market Commission, which can cover up to € 20,000 of the debts from its clients (those from Bangladesh included).
In Europe, it is backed by the European Financial Instruments Market or MiFID, and in the USA it responds to the Financial Conduct Authority (FCA). In addition to all these regulations, eToro has been active for fifteen years and that it has more than 20 million users, so we can be sure that our funds are in good hands.
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.
About ETFs
Have you heard about Exchange-traded funds? They are similar to index funds and are known for merging the benefits of stocks and mutual funds: they can be exchanged regularly at market price, but offer much more diversity and the rates are significantly lower.
Index Funds
Index funds are suitable for those who want to invest for the long term, especially for beginners. If you don't need to use the amount of money you'll invest in less than five or ten years, index funds offer you variety and lower risks.
Contrary to what it may seem, very few fund managers can beat their benchmark return (although you have probably heard of managers who achieve huge returns).
But except for Warren Buffett and a couple more, not everything is as good as it sounds: if you hear of someone who has beaten the benchmark, it was probably for a short time, or their fees are really high. In the end, indexing is better because commissions are minimal. Also, take into account that if something happened once or twice, it doesn't necessarily represent a regular behavior.
With index funds, you don't have to worry about that: although in the long term, they regularly beat active managers, and the rates are lower than you imagine.
Commodities (raw materials)
Most investors trade with raw materials because of their stability. While other assets tend to fluctuate more, raw materials prices vary less and offer safety against inflation or market volatility. However, prices do depend on supply and demand in the market, so if an economic situation provokes higher demand for a certain good, its cost will also go up.
Note that the only intended profit from the investment in raw materials will come from their further sale because, unlike stocks, commodities do not distribute dividends or pay interest.
Commodities can be classified into two main categories: hard raw materials and soft raw materials. The former are precious metals (such as gold, silver, copper, and platinum), industrial metals (for instance, aluminum, iron, or zinc), and oil; and the latter are agricultural resources, like wheat, soybeans, vegetables, or even dairy, among many others.
Foreign exchange market
Forex or currency trading allows obtaining profits by converting one currency for another.
In case you want to exchange the EUR/USD pair, you speculate how many dollars it will take to buy a euro, with the expectation that after buying the first currency (the euro) it will revalue compared to the second (the dollar), to make a profit by selling it. Suppose you entered when the price of one euro is 1.10 USD and you close when it is worth 1.15: thus, that margin will be yours once you sell back.
You may be thinking by now that this form of trading requires high investments, and you're right, because variations are usually minimal, and if you use a lot of leverage to counter that, you will take a considerable risk. Our advice for those starting in the world of trading is to choose another market to begin with, since Forex is not the safest.
Most currencies are available on eToro but consider that in this market sales are always made through CFDs, so the underlying asset won't be yours.
Futures Vs CFD
How are Futures and CFDs different?
- Who is the counterparty? With Futures, the counterparty is another investor. In CDFs, it’s the brokerage, in this case eToro
- Expiration date Futures have a determined expiration. CFDs don’t have expiration date
- Variety of options for trading Futures include fewer options to trade. With CFDs you can trade in several different markets.
- Minimum deposit Costs for Futures are higher than costs for CFDs.
- Use of leverage With Futures, it isn’t possible; while with CFDs it is.
Virtual portfolio
If you are taking your first steps as an investor, the possibility to operate in “demo” mode may be useful. Setting a virtual account and operating with fictional money is very simple.
A virtual account can be a good way of gaining confidence before starting to trade with real funds. When you open your demo account, you will begin with a virtual amount of $ 100.000, to operate with a variety of financial instruments available on eToro, besides Binance Coin.
Don't worry, since if you lose all your virtual balance, you can contact support so they can add back the $ 100k to your demo account and you can make a second attempt.
However, remember that you need to be prudent for trading, and demo account trading can have the reverse effect. It is completely different to risk your own money than to trade with a fake balance which loss does not suppose any drama. Besides, using fake money can prevent you from learning to control your emotions, something you should be able to do when trading.
Finally, the virtual mode is kind of pointless if you want to invest in the medium or long-term (with almost guaranteed returns only by replicating an index), since you would be wasting years to see the outcome. Demo accounts may be ideal for trying out before investing in the short or medium-term.