How to buy IOTA from India

Why we reccomend eToro for investing in IOTA in India?

Advantages:

1. It takes other successful investment strategies so you can emulate them
2. Accepts “shorting” or short-selling
3. It is very user-friendly
4. Leverage is allowed
5. Lets you invest in countless of other goods

Go to the official website: www.etoro.com/iota

If you are interested in obtaining IOTA from India, eToro may be the best way to do it.

“Social trading”, an innovative form of investing by replicating techniques and moves from other experienced investors, has become popular thanks to eToro.

eToro has solutions for you, even if you are still a novice user in trading. You can rest assured that you will be doing a smart investment move when replicating those from subjects with a long profit record. Oppositely, if you are an investor and want to share your knowledge with others, eToro pays up for it.

Another advantage is how intuitive the interface is, which turns out perfect for new users that are learning all about the trading world.

Differences between futures and CFDs

Here are the major differences between Futures and CFDs, in case you want to know more:

• Counterparty
  • Futures: operations are made with someone else, another investor.
  • CFDs: you don't operate with another individual, the counterparty is the broker, in this case, eToro.
• Expiry:
  • Futures: there is an expiration date. Once the contract expires, it is closed even if you have losses.
  • CFDs: they don't expire. Therefore, you can wait for your position to rise before exiting.
• Variety:
  • Futures: there are limited options for investment
  • CFDs: you have plenty of options to choose from, there is a wide diversity of CFDs
• Minimum investment amount:
  • Futures: very high minimum investment
  • CFDs: it is possible to start with a low amount
• Trading costs:
  • Futures: being higher figures, the costs are, commonly, proportionally lower
  • CFDs: higher (although they are not excessively high either)
• Use of leverage:
  • Futures: there is no leverage leverage
  • CFDs: it is always possible to leverage

If you haven't heard about the term “leverage”, we'll put it short: it is, simply, the possibility to invest a higher amount than you actually have. For example, you can enter with $ 100, but if you leverage x2, your initial investment will be $ 200.

Leverage, Take Profit and Stop Loss

Suppose now that you know that IOTA is going to appreciate, and you decide to take a long position.

You are absolutely certain that IOTA will rise, and you have $ 1,000 at that moment, but the fact is, you have the chance of investing more.

You could consider asking for a loan, but it is a process that takes time, and when you receive the money, IOTA might be already so expensive (if your guess was right) that trading wouldn't be convenient anymore.

Leverage is just like a loan, and you will only have to click a few times to get it! You will be able to invest (and earn) much higher amounts than what you actually have on the platform. It is simple, before investing you will see the different options as in the screenshot:

Trading with other assets allows you to use higher leverage. This is because leverage is regularly for short-term operations, and cryptocurrencies tend to be a medium or long-term investment. But let's explain how this works in the practice:

• If you decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 are a “loan” from eToro). 
• Then, turns out that IOTA does rises, as you assumed, and now the price of your investment is $ 2,400 (20% more), so you decide to sell back because you want to play it safe. 
• Once the $1,000 from leverage is returned, you will have $ 1,400 left; which means you've earned $ 400, since the other $1,000 was yours from the beginning.

In conclusion, by investing $ 1000 you can make a profit of 40% (in the case you earn $ 400). That is pretty decent.

It may sound too good to be true. The thing is, it can also play against you. If everything goes as you planned, you will earn more money in less time; but if the value of the asset goes in the opposite direction, you will also lose more in less time.

Let's suppose that the price didn't increase by 20%, but it went down also by 20%, you won't lose $ 20 but $ 40, because of the leverage. Because of that, the concepts of Take Profit and Stop Loss are crucial when trading with leverage.

Take Profit is a limit you can set when trading: you set the platform to sell your assets once they get to a point above the entry price. For instance, you can buy IOTA at $ 100 and ask eToro to close your position automatically when it goes up to $ 120. It is very helpful to avoid being blinded by enthusiasm: we would all accept a 20% profit when making the investment, but when you reach that 20% it is easy to ask yourself “what if this keeps increasing and it is a mistake to exit?”. It's like you made sure now of not acting recklessly in the near future.

Stop Loss is even more important, especially if you trade with leverage, because a reduced loss with leverage can have a significant impact on your wallet. You always need to set a Stop Loss lower than that suggested by eToro.

About ETFs

Exchange-Traded Funds or ETFs are a type of passively managed fund, similar to index funds. They can be described as a combination of stocks and mutual funds, including the best of both. They are publicly traded, that means they can be commercialized at any time at market price. However, their advantage is that they offer more alternatives compared to stocks, and have lower fees.

Shares

The most popular financial instruments are stocks: these are the parts in which an enterprise can be divided. You can own a proportion of a company and obtain a profit, but first, you should know where and how to invest your money.

There are two types of shares: those that pay dividends and those that do not. Those that pay, at the end of the fiscal year, distribute earnings among their shareholders; the latter, on the contrary, do not. However, this is not to say that those of the second type have less to offer. If a company does not pay every year but has a lot of potential, it is also worth investing in it, since the capital gain you will get from the sale of the shares can be much greater than what you would earn through dividends.

When trading on eToro, if you invest in equities that distribute dividends, you will receive them in your account, and you can collect them in cash or reinvest them. Our suggestion is, if you don't need the money immediately, that you take advantage of compound interest and reinvest it in the company.

Remember that when investing in shares on eToro you can use leverage to “dope” your trades, but in that case, you will not receive returns as it would be a CFD. For that reason, for long-term investments, it is better not to use leverage: you can end up losing money, because you will not receive dividends and, on top of that, you will have to pay commissions while your operation is open.

About ETFs

Have you heard about Exchange-traded funds or ETFs? They are similar to index funds and are known for combining the benefits of stocks and mutual funds, because they can be traded regularly at market price, but offer much more diversity and considerably lower fees.

Investment strategies

When trading cryptocurrencies, there are different possible methods or strategies, like buying and holding or day trading (and using market volatility in your favor), for naming just a couple.

My suggestion for those who are beginning to trade is going for a middle point: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work on its own.

For instance, if you purchase a cryptocurrency when it is worth $ 15, then it increases to $ 25 and falls again to $17, the stop-loss will allow your operation to be closed, perhaps at $ 21 or $ 22. Thus, you will obtain a fine profit.

You may be wondering: why not selling back when the price is at its maximum? But unless you are a psychic, that is just impossible. The mentioned strategy can work perfectly and give good results.

At some point, you can take your first steps with advanced trading techniques, like short-selling or using leverage.

How to deposit funds on eToro

Within the payment methods available on eToro are: bank transfer, PayPal, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Neteller, and Skrill. Depositing funds on eToro is so simple: go to “Deposit funds”, set an amount and pick the payment method you prefer.

Of course, keep in mind that for security reasons, you need to be the owner of the account or the credit card.

You can start with a $ 200 deposit, and if you are not verified you will have a maximum amount allowed. So, if your intention is to deposit higher amounts, you should contact Support to verify your account first.

eToro accepts transfers in any currency, but you will have to pay a fee for the conversion to USD. So it is better to use USD directly.

How does a demo account work?

Are you taking your first steps as an investor? Using a demo account can be useful. Just make sure the virtual mode is set in the top left corner of the page and you can start trading with fictional funds.

A virtual account can be a good way of practicing before starting to operate with real funds. When you open your demo account, you will begin with a virtual balance of $ 100.000, to trade with a variety of financial instruments available on the platform (not only with IOTA).

If your performance is not that good and you go back to zero, there is always a possibility to replenish your virtual funds. You'll probably do better on the second attempt.

Keep in mind that you should always be prudent when trading, and using a virtual account might have the opposite effect. It is not the same to operate with your own money than with fake funds, which you can lose without any consequences.

As you may suppose, if you are interested in trading in the long or medium-term, there is no point in using the virtual mode and having to wait for years. But it can be ideal if you want to practice short and medium-term investment.

eToro Interface

We said previously that eToro is very friendly and intuitive. Anyone can start investing without previous knowledge or long explanations.

You won't have any issues with the interface if you are familiar with any other social network.

Now we will detail the registration process and the sections of the eToro interface that you should familiarize yourself with.

You will have to provide some personal data (like full name or address, for instance) when registering.

They will also ask you about your previous investment activities.

However, it is not like you are answering a test. They only intend to know how much knowledge you have and what type of assets they can recommend. For instance, if it is your first experience in the investment world, they will not suggest that you invest in futures.

Let's see what the different sections of the platform are.

With the “Set Price Alerts” tool, you'll be able to program an alarm when a security is at a certain price. Just click the tab and you will be able to set it. This is perfect in case you want to purchase a security that is falling but you believe it will decrease more to a certain point.

In “News Feed”, traders interact and share valuable information.

“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. As we discussed in this guide, the six types of instruments on eToro are:

• Cryptocurrencies
• ETFs
• Shares
• Raw materials
• Forex
• Index funds

The concept “social trading” comes to life within “People”: there, you can copy the movements of the users you find most inspiring.

You can search for those users that best suit your interests: by average earnings, market or risk level, for example. You just have to type the amount you want to invest and eToro will replicate the movements of the investor you chose, in proportion. This means that if you have $ 1000 and the trader puts 10% of his or her balance in an asset, eToro will invest also 10% of your funds (that is, $ 100) in that same asset.

Also, here you will see CopyPortfolios classified into three categories, Top Trader, Market, and Partner.

Remember that in some cases, you might prefer copying to CopyPortfolios than to particular traders, because the former offer more diversity. There are all kinds of portfolios that you can find easily and are divided by sectors. Therefore, in case you think a specific industry, such as e-commerce or drones, has a good chance of prospering, you should probably look for that specific portfolio.