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eToro is an excellent broking platform for purchasing Tron from Bangladesh
Why do we recommend it?
- It is possible to make investments in thousands of different products
- You can leverage
- It is uncomplicated and easy to use
- You are able to replicate investment tactics
- Accepts “shorting” or short-selling
Homepage: www.etoro.com/tron
In case you are considering it, eToro is the best option to obtain Tron from Bangladesh.
eToro is popular for making “social trading” fashionable, an innovative form of investing in which traders can repeat the moves of other investors who have been generating profits over time.
eToro has solutions for you, especially if you are still a beginner in trading. You can rest assured that you will be doing a smart investment move when replicating those from subjects with a great deal of expertise. Also, in case you are an investor, the platform pays for your knowledge.
Another advantage is how intuitive the platform is, which turns out perfect for new users that are just learning all about the trading world.
About ETFs
What do you know 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 exchanged regularly at market price, but include a much wider diversity of assets and considerably lower fees.
About ETFs
What do you know about Exchange-traded funds? They are similar to index funds and are known for combining the advantages of stocks and mutual funds, because they can be traded regularly at market price, but have much more variety and considerably lower fees.
About Index Funds
Are most adequate for those interested in long-term trading, 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 are a secure option.
You may think differently, but beating the benchmark is far from being a piece of cake and very few fund managers achieve that, apart from some specific cases.
In practice, all that glitters is not gold: if a fund manager achieves to beat the benchmark, it is only for a short time or on a specific occasion. Or perhaps they would charge very high fees and indexing would be a better decision anyway (with minimal commissions).
Index funds offer solutions to both concerns: their rates are insignificant and in the long term they almost always beat active managers.
Currency market
Forex or currency trading allows obtaining profits by exchanging one currency for another.
In case you decide to trade the EUR/USD pair, you speculate how many dollars it will take to buy a euro, with the expectation that the first currency (the euro) 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 exit when it is worth 1.15: that difference is yours once you make the operation.
You may be thinking that operating with currencies requires investing considerable amounts, and you're right, because fluctuations are usually minimal, and if you use a lot of leverage to counter that, you will take a considerable risk. If you are just starting to trade, it is not a good idea to begin with this market, because it's not the safest option.
Most currencies are available on eToro. Still, remember that in Forex sales are made through contract for differences, thus you will not own the real asset.
Stocks
Stocks or shares are the most popular financial assets. Some publicly traded corporations decide to split into fractions: you can be one of those shareowners, but first, you have to know where and how to make your investment.
We can categorize stocks into two main types: those that pay dividends and those that do not. Those that pay, at the end of the fiscal year, distribute earnings among the stockholders; the latter, on the contrary, do not. But 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.
In the case of eToro, if you choose a company that distributes dividends, you will receive them in your account, and you can withdraw your money or reinvest it. Our suggestion is, if you don't have financial urgencies, that you don't renounce the magic of compound interest and reinvest it in the company.
If you invest in stocks on eToro, you will be able to use leverage. However, it is not advisable, since it would be a CFD and you would not get dividends. Besides, shares are usually long-term investments, and you have to pay fees as long as your position is open.
Raw materials
The main advantage of investing in commodities is that prices are more stable than those of other financial assets. In fact, their intrinsic security is what makes people often invest in raw materials, to take refuge from possible inflation or market volatility. Despite that, the cost of commodities depends on supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Note that the only intended income from the investment in raw materials will come from their further sale because these kinds of assets do not pay dividends.
Commodities can be classified into two main types: hard raw materials and soft raw materials. The former are precious metals (such as gold, silver, copper, and platinum), industrial metals, and oil; while the latter are agricultural resources, such as sugar, coffee, corn, soy.
In case you haven't heard about the term “leverage”, we'll put it short: it is, simply, the ability to use a higher amount than you actually have. That way, if you start with $ 100 and you use x2 leverage, you will be investing $ 200.
Why using leverage and how to do it
Suppose now that you are sure that the price of Tron is going to raise its price, therefore you are thinking about “going long”.
You are positive that Tron will rise, and you just have $ 1,000 at that moment, but the fact is, you have the chance of investing more.
Possibly, you could ask your bank for a credit, put something as collateral, wait for it to be accepted and receiving the money, and then obtain Tron… However, when you finish doing all that, probably Tron would be already much higher (if your prediction got confirmed), and it wouldn't be a good idea to invest.
Leverage is like a loan, but it is only a few clicks away! eToro allows you to invest (and earn) much higher amounts than what you actually have on the platform's wallet. As in the image below, you will see the different options you have:
Within other markets, the ability to leverage is greater. The reason is that cryptocurrencies are usually medium-long term investments, and leverage is used mainly for day trading or short-selling. But let's see how leverage works:
- If you want 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 Tron 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.
- The $ 1k of leverage will be deducted, and you will have $ 1,400 left; which means the net profit is $ 400, since the other $1,000 was yours from the beginning.
In conclusion, by investing $ 1000 and obtaining $ 400, your net profit would be 40%. That is quite good.
Does it sound too good? The trick is that the risk of losing out also increases. If everything goes according to plan and the price goes up, you will earn profits in little time; but if the opposite occurs, you will also lose more really quickly.
Let's suppose that the price didn't increase by 20%, but it decreased also by 20%, you won't lose $ 20 but $ 40, because of the leverage. Because of that, the terms “Take Profit” and “Stop Loss” are crucial when operating with leverage.
Take Profit is used as a form of reducing risks when trading. When you enter, you can set a profit limit and ask that your position is automatically closed when the asset reaches a price.
If you purchased Tron at $ 100, you request eToro to close once it reaches $ 120. That way, you make sure you won't be blinded by greed and decide to keep waiting in case it keeps rising, which could be a mistake.
On the other hand, when using leverage you also have to use Stop Loss, because a small fall in the price of an asset can have a big impact on your wallet. That is why it is essential to mark a Stop Loss lower than that suggested by the broker.
What's the difference between CFDs and futures?
How are Futures and CFDs different?
- Who is the counterparty? In the case of Futures, the counterparty is another investor. In CDFs, it’s the brokerage, in this case eToro
- Expiry date Futures have a determined expiration, while CFDs don’t have expiry date
- Markets available for trading Futures include fewer options to trade. CFDs include a wide range of possibilities.
- Minimum deposit amount or “trade size” Costs for Futures are higher than costs for CFDs.
- Use of leverage With Futures, it isn’t possible; while with CFDs it is.
How do Contracts for Difference Function?
If you browsed eToro before, you probably realized that the acronym CFD appears over and over. Before we explain what this is, we must say that CFDs on eToro are only possible if you go short.
In case you want to try at some point day trading cryptocurrency or other trading practices, below we will also refer to concepts like short-selling and leverage.
eToro lets you bet both “in the black” and “in negative”. In a hypothetical case: you believe that the Tron will fall, so probably you think that the best thing to do is refrain from getting in until it actually falls. However, if you really think that it's going down, why not take advantage of that?
You can do that by “going short”. More or less, it functions like this:
- They lend you, let's say, 100 units of Tron, valued at a total of $ 5,000 (these numbers are completely made up)
- You make $ 5,000 by selling the 100 units
- As you guessed, it depreciates, and the unit of Tron now costs $ 30 instead of $ 50
- You purchase the 100 units again, but at $ 3,000
- Now you pay back the 100 units
- The $ 2000 difference is yours
It is far more simple than it may seem. Just take into account that by trading in Tron on eToro, with CFDs you can make a profit when you anticipate the price will fall.
How to use eToro
As we have referred 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 explanatory texts.
You won't have any problems with the interface if you have used any of the most common social networks.
We will explain the registration steps and the different tabs that you will find.
You will have to fill in some requested data when registering.
They will also ask you about your previous investment activities.
But don't worry: it is not 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.
Let's see what the different sections of the site are.
With the “Set Price Alerts” tool, you'll be able to program an alarm when an asset is at a certain price. This is helpful in case you want to buy a security that is falling but you believe it will decrease even more.
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 before, the different financial assets available on are:
- Cryptocurrencies
- ETFs
- Shares
- Commodities
- Forex trading
- Index funds
In the section “People”, you will find the public profiles of eToro users and their past performance. This is where you can replicate the movements of the traders that you prefer.
You can search for those investors that best suit your interests: by average profits, market or risk level, for instance. Just indicate the amount of your investment and eToro itself will be in charge of replicating the movements of the selected investor, in proportion. “In proportion” means that if you have $ 1000 and the investor puts 10% in an asset, eToro will invest also 10% of your funds (that is, $ 100) in that same asset.
Finally, there are three main kinds of CopyPortfolios: Top Trader, Market, and Partner.
The benefit of using CopyPortfolios instead of copying people is that this way the risk will be more diversified. There are all kinds of portfolios that you can recognize easily and are divided by sectors. Thus, if you suspect a specific sector, like e-commerce or pharmacy, will have good incomes in the future, you can look for that specific portfolio and invest in it.
Trading strategies
There are different methods or ways for crypto trading, such as buying and holding or day trading (and using market fluctuation to your advantage), for naming just a few.
In case you are new in the world of trading, my suggestion is something in the middle: when you open your Tron position, set a stop-loss order 15-20% under the top price, and forget about the operation.
For instance, if you buy a cryptocurrency when its price is $ 15, then it rises up to $ 25 and falls again to $17, the stop-loss will close your position at $ 21 or $ 22. Therefore, you will get a pretty good income.
It may sound way better to sell when the cost is at its maximum, but unless you're a fortuneteller, that is not possible. The mentioned strategy is much more down-to-earth and, well applied, it can work very well for you.
And when you have gained more experience, you will be ready for more advanced investment strategies, like short-selling or using leverage.