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eToro, an advisable broker for those who are in USA and want to buy Tezos
Why do we recommend it?
- It takes techniques and moves from skilled investors so you can replicate them
- Allows you to short sell
- User-friendly and simple
- eToro offers leverage
- There are lots of goods you can invest in
Main site: www.etoro.com/tezos
In case you are thinking about buying Tezos from USA, eToro may be the best option.
“Social trading”, an innovative way of investing by replicating techniques and strategies from other experienced investors, has become popular thanks to eToro.
If you are still a rookie or haven't gained much investment experience, eToro is great for you. You can rest assured that you are doing a smart investment move when replicating those from subjects with a long profit record. Additionally, in case you are an investor, the platform pays for your knowledge.
Besides, the interface of this site is amazingly manageable, great for those who want to start learning about Tezos and trading, without stressing over tons of diagrams and numbers.
Is eToro trustworthy for purchasing Tezos?
eToro has been independently tested once and again to verify its reliability in the handling of data from previous users and past performances. Every time, it has been confirmed that eToro is rigorous with the information.
eToro complies with all the demanding regulations requested by the European Union, legislation in which it is found. Its main headquarters is in Cyprus, where it is certified by the Cyprus Securities Market Commission or CySEC, which can cover up to € 20,000 of the debts that its clients may have with creditors (those from USA included).
It is also supported by the European Financial Instruments Market (MiFID), and in the USA it responds to the Financial Conduct Authority (FCA). In addition to all these regulations, you should know that eToro has more than 20 million users all over the world, and it has been operating for fifteen years. To sum up, we can be confident that our money is in good hands.
No less important is their excellent customer service. You can use the ticketing system, an online chat, and they also have a phone number available for assistance.
Payment methods on eToro
When it comes to depositing funds on eToro, there is not much to say, since it is pretty simple. You only need to select “Deposit funds”, put an amount, and choose the payment option you prefer. You can pay with PayPal, bank transfer, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.
(Keep into consideration that you should be the account or credit card owner, for security policies).
The minimum first time deposit is $ 200, and there is a maximum limit for unverified accounts. Thus, if you intend to operate with large amounts, you will need to verify your account previously.
The platform allows deposits in any currency, but charges a commission for making the conversion to USD. That is why we suggest, if possible, depositing in USD from the beginning.
Futures Vs CFD
In case you are interested, here are the major differences between Futures and CFDs:
- Which are the counterparties? With Futures, the counterparty is another investor. In CDFs, it’s the brokerage, in this case eToro
- Expiration date Futures expire in a variable given date. CFDs don’t have expiration date
- Markets available for trading The market for Futures is narrower. With CFDs you can trade in several different markets.
- Minimum deposit amount or “trade size” Being higher numbers, Futures require, proportionally, lower fees. Costs for CFDs are a bit higher.
- Leverage With Futures, it isn’t possible; while with CFDs it is.
How do Contracts for Difference Work?
You probably have seen the initials CFD more than once if you already registered on eToro. Before we explain what this is, you must know that CFDs on eToro are only possible when you go short.
We will also refer to terms such as leverage and “going short”, in case you are thinking about day trading cryptocurrency or more advanced operations.
eToro lets you bet both “in the black” and “in negative”. Let's say that you are sure that the Tezos will fall, so perhaps it is obvious to think “if it is going to depreciate (go down in price), I simply refrain from getting in and I'll go in when it has gone down”. But if it really falls, it might mean extra money for you.
You can do by “going short”. Its operation, roughly, works like this:
- Someone lends you, let's say, 100 units of Tezos, which cost $ 5,000 (these are completely fictional figures)
- You make $ 5,000 by selling the 100 units
- As you thought, the price falls, and the unit of Tezos goes from $ 50 to $ 30
- You buy the 100 units again, but at $ 3,000
- Then you give back the 100 units
- You will have made $ 2000, since you keep the difference
Consider that it is much simpler than it sounds: we can summarize this whole operation by saying that by trading in Tezos you can also earn money if you anticipate the downs.
How does eToro work?
We said before that eToro is very friendly and intuitive. Anyone can start investing without having to read endless explanations.
You won't have any problems with the interface if you are familiar with any other social network.
We will explain the registration process and the different tabs that you will find on the page.
You will have to provide some personal data when registering.
Also, you will see that they ask you some questions about your experience at investing.
But don't feel intimidated. They only intend to find out about your previous experience and knowledge to determine which assets to recommend for you.
You will see a bar that says “incomplete profile” until you complete all the requested information.
Let's review the different tabs of the page.
In the “Set Price Alerts” tab, you have, as its name indicates, the possibility to set alerts 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 purchase 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 learn from each other by sharing their opinion and experiences.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed in this guide, the six types of instruments on eToro are:
- Cryptocurrencies
- ETFs
- Shares
- Raw materials
- Forex
- Index funds
In the tab “People”, you will find the public profiles of eToro users and their performances. This is where the term “social trading” makes sense since you can duplicate with just one click the strategies of the users that you find most inspiring.
You can search for those investors that best suit your interests: by average profits, types of instruments or risk level, for instance. Just indicate the amount of your investment and eToro will be in charge of replicating the movements made by the selected investor, in proportion. “In proportion” means that if you have $ 1000 and the trader puts 10% of his or her balance in an asset, the platform will invest also 10% of your funds (in this case $ 100) in that same asset.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
The advantage of using CopyPortfolios instead of copying people is that this way the risk will be more diversified. Besides, the portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain industry is going to have success anytime soon? Then look, because surely there is a CopyPortfolio about it.
Virtual portfolio: How does it work?
If you are beginning as an investor, the option to operate in “demo” mode may be useful. Setting a virtual account and trading with fictional money is very easy.
A virtual portfolio can be a good way of gaining confidence before starting to operate with real money. When you open your demo account, you will begin with a virtual amount of $ 100.000, to trade with a variety of financial instruments available on the platform, besides Tezos.
The first attempt is not usually that good. But don't worry, since you can ask eToro to replenish the virtual $ 100k to your account, and the second try you should do better.
But remember that trading is mainly about being cautious, and demo account trading can have an adverse effect. It is completely different to risk your real savings than to trade with a false balance which loss does not suppose any drama. Also, using fake money can prevent you from learning to control your emotions, as a true investor should.
Finally, the virtual mode is kind of pointless if you want to trade 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. Virtual accounts may be useful for trying out short or medium-term investments.