Contents
Why we reccomend eToro for investing in Monero from India?
Advantages:
- There are lots of investment opportunities
- eToro allows leverage
- Very intuitive and simple
- It uses techniques and moves from skilled traders so you can emulate them
- You can go short
Main site: www.etoro.com/monero
You should definitely consider eToro if you are thinking about buying Monero from India.
“Social trading”, a relatively new investment method that consists in replicating techniques and strategies from other experienced investors, has become popular thanks to eToro.
eToro has solutions for you, especially if you don't have much experience in trading, since it puts your investment on automatic by repeating strategies from other experienced people with a very long profit history. And for those skilled investors willing to share their techniques, eToro pays for it.
Another advantage is how intuitive the platform is, which turns out perfect for new users that are learning all about Monero.
How does eToro work?
As we have mentioned previously, one of the best things about eToro is its extraordinary simplicity: anyone can trade without having to read endless guides.
Everyone who has used Twitter, Facebook or any of the most common social networks, has enough skills to operate with the eToro interface.
Now we will detail the sign-up process and the sections of the eToro interface that you should familiarize yourself with.
When you register, you will have to fill in all the information that eToro asks for: first and last name, address…
To complete your profile, you will have to answer some questions about your experience at investing.
But don't feel like you are taking an exam. The only intention is to know more about you and be clear about which financial instruments they should suggest according to your knowledge and experience.
When you fill in all your information in your profile, the annoying “incomplete profile” bar will disappear.
Next, we will talk about the different sections of the page.
In the “Set Price Alerts” tab you can put alerts on the price of certain securities. This is very helpful when you are after an asset that is falling, but it seems to you that it will decrease even more.
In the “News Feed” tab is the most social part of eToro: where users are interacting all day and sharing valuable information.
In “Discover” you will find the investment tabs: “Instruments”, “People” and “CopyPortfolios”. And we already talked about the different financial instruments that are available on eToro:
- Cryptocurrencies
- ETFs
- Stocks
- Raw materials
- Forex
- Index funds
The term “social trading” makes sense in the section “People”: there, you can replicate the movements of the investors you find most inspiring.
You can find those users that you find more interesting. When you select an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, in proportion. If you invest $ 1000 and the user puts 20% of their funds in an asset, the platform will invest $ 200 of your balance in the same asset as well.
You will also see the three main types of CopyPortfolios, which are “Top Trader”, “Market” and “Partner”.
Remember that in some cases, you might prefer copying to CopyPortfolios than to particular traders, since 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. Therefore, if you suspect a specific industry, like biotechnology or oil, will have good incomes in the future, you should look for that specific portfolio.
Is eToro trustworthy for purchasing Monero?
Many independent tests have been applied to the platform to verify its integrity in the handling of data from previous users. Every time, it has been confirmed that eToro is rigorous with the information.
eToro complies with all the demanding policies of the European Union, legislation in which it is found. Its main headquarters is in Cyprus, where it is validated by the Cyprus Securities Market Commission (known as CySEC), which can cover up to € 20,000 of the debts from its clients (those from India included).
eToro responds to the European Financial Instruments Market (MiFID), and to the Financial Conduct Authority or FCA in the United States of America. You should also know that it has a trajectory of fifteen years, with more than 20 million users around the world. So, you can be sure that your finances are safe.
Their excellent customer service is also worth mentioning. They have a phone number for assistance, a ticket system, and a live chat.
How to deposit funds on eToro
When it comes to depositing funds on eToro, there is not much to say, since it is really straightforward. You just have to click “Deposit funds”, set an amount, and choose your payment method. You can pay with PayPal, bank transfer, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.
Remember that for security policies, you need to be the owner of the account or the credit card.
The minimum first time deposit is $ 200, and there is a maximum limit for unverified accounts. So, if you aim to operate with large amounts, you should contact Support to verify your account first.
You can make the payment in any currency you want and eToro will automatically convert it to USD. Nevertheless, it is advisable to use USD anyway since the platform charges a fee for the conversion.
What's the difference between CFDs and futures?
What are the differences between Futures and CFDs?
- Which are the counterparties? In the case of Futures, the counterparty is another trader. In CDFs, it’s the broker (eToro)
- When do they expire? Futures have a determined expirationdate. CFDs don’t expire
- Markets available for trading Futures include fewer options to trade. With CFDs you can trade in several different markets.
- Minimum deposit Being higher numbers, Futures require, proportionally, lower costs. Costs for CFDs are a bit higher, although not too much.
- Leverage With Futures, you can’t leverage; while with CFDs it is always possible.
How do Contracts for Difference Function?
You probably have seen the acronym CFD repeatedly if you already registered on eToro. Before we come back to this, you should know that cryptocurrency operations on eToro are only CFDs if you go short.
For your information, and if you want to try at some point day trading cryptocurrency and other advanced operations, next we will also explain concepts like leverage and “going short”.
The advantage of eToro is that it lets you bet both “in the black” and “in negative”. Let's say that you have the certitude that the Monero will go down, so probably you think that the best thing to do is wait until it does and then go in. However, if you are convinced that it is going down, why not take advantage of that and earn money?
You can accomplish that by “going short”. Here's how it works:
- You ask someone for a loan of, let's say, 100 units of Monero, which total price at the moment is $ 5,000 (obviously, these numbers are made imaginary)
- Next, you sell them at their market price, $ 5,000
- The Monero devaluates from $ 50 to $ 30
- You buy all 100 units once again, but at the current price, $ 3,000
- You return the 100 units to the person that loaned them to you
- The $ 2000 difference is yours
It is really simple. Just consider that by trading in Monero on eToro, you can make a profit if you foretell downs in the price.
Trading strategies
When trading cryptocurrencies, there are different possible methods or strategies, like day trading or buying and holding, for naming just a couple.
My recommendation for those who are starting to trade is something in the middle: when you open your position, place a dynamic stop loss 15-20% under the highest price, and let the magic happen.
For instance, if you buy a cryptocurrency when its price is $ 15, it increases to $ 25 and falls back to $17, the stop-loss will allow your operation to be closed, perhaps at $ 21 or $ 22. Thus, you will obtain a fine profit.
Perhaps you are wondering: why not selling back when the price is at its highest? But unless you are a psychic, that is just not possible. The mentioned strategy can work perfectly and is much more realistic.
Eventually, you will be ready for using advanced investment techniques, such as using leverage or going short to profit from bear markets.
How does a demo account work?
For those who still don't have much experience in investing, a demo account can be very helpful. You just need to set the virtual mode and you can start practicing with a “fictional” portfolio.
This is a great tool for those who are new to this world and want to put their talents to the test before playing for real money. With your virtual account, you will begin with a $ 100,000 balance (which of course, is fake) to do your operations, not only with Monero, but you can also create a diverse portfolio with a variety of assets.
The first attempt is not usually that good. But don't worry, since you can ask eToro to replenish the virtual funds to your portfolio.
Keep in mind that trading is mostly about being cold-minded, and perhaps using a demo account can prevent you from controlling your impulses. It will never be the same as risking your own money.
Finally, if you want to invest in the medium or long-term, with profits almost assured only by duplicating an index, it is absurd that you waste years investing in virtual mode. On the contrary, short and medium-term trading is perfect to try out with the virtual mode.