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eToro is an excellent brokerage for acquiring Binance Coin from Ireland
Some of its advantages are:
- User-friendly and simple
- You are able to replicate investment moves
- You can short sell
- Leverage is allowed
- Allows you to make investments in tons of other products
Homepage: www.etoro.com/binance-coin
In case you are considering investing in Binance Coin from Ireland, eToro may be the best way to do it.
eToro is famous for making “social trading” a trend, a revolutionary form of investing in which traders can emulate the moves of other investors who have been generating income for years.
eToro is very useful if you are still a novice user in trading, since it automatizes your investment by emulating moves from those who have been doing it for years. And for those skilled investors willing to share their techniques, eToro pays for it.
Besides, this platform is completely manageable, ideal for those who want to begin in the Binance Coin world, without ending up overwhelmed with tons of diagrams and numbers.
About Contracts for Difference
It is possible that you have seen the term CFD all the time if you entered eToro before. We will explain exactly what this means, but you should know first that cryptocurrency operations on eToro are only CFDs when you are short-selling.
We will also explain terms like going short and leverage, in case you are thinking about day trading cryptocurrency or other more advanced operations.
Even if you don't have a positive balance, you can still bet on eToro with CFDs. For example: you are sure that the Binance Coin will fall, so you obviously think “if it is going to depreciate or go down, I simply refrain from getting in and I'll go in when it has gone down”. But if it actually goes down, you can earn some money out of that.
The practice known as “going short” will allow you to do that. It works, pretty much, as it follows:
- You get from a loan 100 units of Binance Coin, with a total price of $ 5,000 (these numbers are fictional)
- Next, you sell them at their price on the market, $ 5,000
- The price falls, as you calculated, and the unit of Binance Coin goes from $ 50 to $ 30
- You purchase the 100 units again, but at $ 3,000
- You pay back the 100 units to whom made the loan
- The rest is yours, so, you will have made $ 2000
Consider that it is much easier than it sounds: we can summarize this whole operation by saying that by trading in Binance Coin you can also earn money if you predict the downs.
Differences between futures and CFDs
What are the differences between CFDs and Futures?
- Who is the counterparty? In the case of Futures, the counterparty is another trader. In CDFs, it’s the brokerage, in this case eToro
- Date of expiry Futures have a determined expirationdate. CFDs don’t expire
- Markets available for trading The market for Futures is narrower. CFDs include a wide range of possibilities.
- Minimum investment amount Being higher numbers, Futures require, proportionally, lower fees. Costs for CFDs are a bit higher, although not excessively.
- Use of leverage With Futures, it isn’t possible; while with CFDs it is.
Exchange-Traded Funds
ETFs or Exchange-Traded Funds are similar to index funds. They can be described as a merge between stocks and mutual funds. They are publicly traded and therefore can be bought and sold at any time at market price. However, their main benefit is that they offer more alternatives compared to stocks, and have lower fees.
Currency market
Currency trading or Forex consists, as the name says, in the trading of currencies. It is the conversion between 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, anticipating 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 a euro is worth 1.10 USD and you leave when the price has gone up to 1.15: that margin is yours once you sell again.
You may be thinking by now that trading with currencies requires high investments, and you're right, since variations are usually minimal, and if you use a lot of leverage to counter that, you will take a considerable 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.
The most common currency pairs are available on eToro. However, remember that in Forex sales are always made through CFDs, so you will not own the real asset.
Stocks
The most well-known financial assets are stocks or shares: these are portions in which an enterprise that chooses to go public is divided. You can own a proportion of a company and have returns, but first, you should know where to invest your money.
We could say that there are two main kinds of shares: those that pay dividends and those that do not. Those that pay, at the end of the fiscal year, distribute profits among their shareholders; the latter, on the other hand, do not. Does that mean that you should only consider the former? No, of course not: if a company does not pay every year but has a lot of potential, you should not give it up just because it does not pay you every year, since selling the shares eventually could pay much more.
When trading on eToro, if you invest in shares that distribute dividends, you will receive them in your account, and you can collect them in cash or reinvest them. We suggest, if you don't need the money right away, that you take advantage of compound interest and reinvest it in the company.
Consider that on eToro you can “dope” your trades with leverage, but in that case, you will not receive dividends as it would be a CFD. For long-term investments, it is not advisable to use leverage: you can end up losing money, since you will not receive interest and also you will have to pay fees while your position is open.
Exchange-Traded Funds
ETFs or Exchange-Traded Funds are a kind of passively managed fund, 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. However, their main benefit is that they offer more alternatives compared to stocks, and have lower fees.
Commodity market
Most investors trade with raw materials due to their stability. While other assets present higher fluctuation, commodity prices vary less and offer security against inflation or market volatility. However, prices are subject to supply and demand in the market, so if an economic situation provokes greater demand for a certain good, the price will also rise.
Remember that the only intended profit from the investment in raw materials will come from their further sale because these kinds of assets do not distribute dividends or pay interest.
Commodities are generally classified into two types: first, we have hard raw materials, which are precious metals (gold, silver, copper, and platinum), industrial metals, and oil; in second place are soft raw materials, which are agricultural products like sugar, cocoa, soybeans, among others.
eToro payment methods
When it comes to depositing money on eToro, there is not much to say, since it is really straightforward. You only need to select “Deposit funds”, put an amount, and choose the payment option you prefer. You can use PayPal, bank transfer, credit card, Skrill, or Neteller.
Remember that for security reasons, you need to be the owner of the account or the credit card.
The lowest amount is $ 200, and there is a maximum allowed if you are not verified. Therefore, in case you want to trade with higher amounts, you should verify your account first.
eToro accepts transfers in any currency, but charges a fee for making the conversion to USD. That is why we suggest, if it is in your hands, depositing in USD from the beginning.
Can you trust eToro?
eToro has been tested by independent organizations once and again to prove its reliability in the handling of data from previous users and past performances. Every time, results have shown that eToro is very meticulous with the information.
eToro fulfills all the demanding policies required by the European Union. Its main headquarters is in Cyprus, and it is certified by the Cyprus Securities Market Commission or CySEC, which protects up to € 20,000 of the debts from its clients, including those from Ireland.
eToro responds to the European Financial Instruments Market or 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.
No less important is their excellent customer service. You can use the online chat, and they also have a phone number available for assistance.
How does eToro work?
As we have mentioned among the positive aspects of eToro, the best thing about this online broker is its extraordinary simplicity: anyone can trade without having to read endless explanations.
You won't have any problems with the interface if you have used any of the most common social networks, like Whatsapp or Facebook.
Now we are going to walk you through the sign-up process and the different sections of the page that you should know.
First, you will have to fill in your personal data.
They will also ask you about your previous trading activities.
But don't feel intimidated. They only intend to find out how much you know and which financial instruments to recommend for you.
You will see a bar that says “incomplete profile” until you complete all the requested information.
Let's get to know the different sections of the interface.
“Set Price Alerts” allows you to set alarms on the price of certain assets. 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 helpful when you want to buy a security that is falling, but it seems to you that it has not finished falling yet.
In the “News Feed” tab is the most social part of eToro: where users are interacting all the time and sharing valuable information.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we already talked about the kinds of assets on eToro:
- Cryptocurrencies
- ETFs
- Shares
- Commodities
- Currencies
- Index funds
The term “social trading” makes sense within “People”: that is where you can replicate the strategies of the users you find most inspiring.
You will be able to search and find users according to your interests. When you select an investor and indicate how much you want to invest, eToro will automatically replicate their movements, proportionally. For instance, if you have $ 1000 and the user puts 20% of their funds in an asset, the platform will also invest 20% of your money in the same company or instrument, in this case, $ 200.
You will also see the three main types of CopyPortfolios, which are “Top Trader”, “Market” and “Partner”.
Sometimes it might be better to copy from CopyPortfolios than to particular users, since you avoid putting all your eggs in one basket. The portfolios are identified so you can recognize them easily: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain industry will prosper in the future? Then look, because surely there is a CopyPortfolio about it.