Contents
eToro, a reliable online brokerage for those who are in Bangladesh and want to purchase IOTA
Some of its advantages are:
- It offers other successful investment strategies so you can replicate them
- You can short sell
- Very intuitive and simple
- eToro offers leverage
- There are uncountable possibilities for investments
Homepage: www.etoro.com/iota
In case you are considering obtaining IOTA from Bangladesh, eToro may be the best option currently.
“Social trading”, a relatively new form 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, since it automatizes your investment by emulating moves from experienced traders with a very long profit history. Additionally, in case you do have experience in investment, eToro pays you for sharing it with the community.
Besides, the interface of the website is so uncomplicated, great for those who want to begin in the IOTA world, without stressing over tons of diagrams and figures.
How to use eToro
As we have referred among the positive aspects of eToro, the best thing about this platform is its extraordinary simplicity: anyone can use it without having to read endless explanatory texts.
If you are familiar with any of the most popular social networks today, such as Twitter or Linkedin, you can perfectly manage eToro's interface.
We will explain, roughly, the registration steps and the different sections that you will see on eToro.
You will have to fill in some requested data when registering.
They will also ask you about your previous investment activities.
However, it is not like you are answering a test. It is only a way of finding out how much knowledge you have and what type of financial instruments they can recommend. For example, if it is your first experience in the investment world, they will not recommend that you invest in futures.
Let's get to know the different sections of the page.
With the “Set Price Alerts” tool, you'll be able to program an alert when a security is at a certain price. Just click the tab and you will be able to set it. This is perfect if you want to buy a security and you are waiting for its price to fall.
“News Feed” is the more “social” section. There, traders can interact and share experiences.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we already mentioned the different financial instruments that are available on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- Stocks
- Commodities
- Forex
- Index funds
In “People”, you will find eToro users and their historical performance. This is where you can copy the strategies of the traders that you prefer.
You can search for those investors that best suit your interests: by risk level, types of financial assets, average earnings… Just indicate the amount of your investment and eToro itself will be in charge of replicating the movements made by the selected investor, in proportion. This means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will also invest $ 100 of your money in the same company.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
Sometimes it might be preferable to copy from CopyPortfolios than to individuals, because the former offer more diversity. The portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … You think that a certain industry will prosper anytime soon? Then you will surely find a CopyPortfolio about it.
Is eToro trustworthy for purchasing IOTA?
eToro is very meticulous with the data about past performances from traders, and its reliability has been independently tested several times.
The main headquarters of eToro is located in Cyprus, and the platform is certified by the Cyprus Securities Market Commission (known as CySEC), which can cover up to € 20,000 from its client's debts. The platform complies, on the other hand, with all the strict requirements of the European Union.
eToro is backed by the European Financial Instruments Market or MiFID in Europe, and by the Financial Conduct Authority (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 globe. So, you can be sure that your money is safe.
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.
How to deposit funds on eToro
Among the payment methods that you will find on eToro are: bank transfer, PayPal, credit card, Neteller, and Skrill. There is not much to explain here: making a deposit with eToro is very easy. Just go to “Deposit funds”, type the amount and select your preferred method.
Remember that for security reasons, you need to be the holder of the account or the credit card.
The minimum first time deposit is $ 200, and there is a maximum limit for unverified accounts. Thus, if your intention is to deposit larger sums, you should contact Support to verify your account.
You can pay in any currency and eToro will automatically convert it to USD. But we suggest depositing directly in USD since the platform charges a fee for the conversion.
About ETFs
ETFs or Exchange-Traded Funds are similar to index funds. We can say that ETFs are somewhere between stocks and funds: they can be traded like regular stocks, but include a wide diversity of assets and have lower fees.
Forex trading
Foreign exchange trading or Forex consists, as the name says, in the trading of currencies. It is the conversion of one currency to another, and the aim is, evidently, to make a profit out of this.
If you decide to trade euros and dollars, for instance, you speculate how many dollars it will take to buy a euro, expecting that the euro will increase compared to the dollar. Then, if you bought each euro for 1.15 USD and you sell them back when their price is 1.20 USD, you'll be keeping that difference.
You may be thinking that trading with currencies requires investing considerable amounts, and you're right, since fluctuations are usually minimal, and often you will need to use high leverage (which is an important risk). Our advice for those who are new in the world of trading is not to start with Forex, but with a safer and more secure market.
You can operate with almost every popular currency on eToro but take into account that in Forex sales are made through contract for differences, thus the underlying asset won't be yours.
Equities
The most well-known financial assets are stocks: these are fractions in which an enterprise can be divided, and you can get dividends through third-party companies just by investing money in them. But, obviously, you have to know how to invest.
We can group stocks into two different kinds: the ones that divide their earnings regularly among the stockholders, and those that don't. The former ones are great, of course, but investing in the latter can also be a good idea since sometimes you can make even more money by selling the shares.
If you invest in shares that pay out dividends, you will receive them into your account on eToro. Therefore, you can withdraw that money or you can choose to reinvest it. However, you can take advantage of compound interest, so our suggestion is that you reinvest in the company if you don't need the money immediately.
If you trade with stocks on eToro, you can use leverage. But it is not advisable, since it would be a CFD and you would not receive dividends. On top of that, shares are usually long-term investments, and you have to pay fees as long as your operation is open.
About Index Funds
Are the best option for those interested in long-term trading, particularly 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.
Unlike a lot of people think, beating the benchmark is far from being a piece of cake and very few fund managers have done it, apart from some specific cases.
If someone brags about having beaten the benchmark, they probably did it for a short time or on a specific occasion, or sometimes the rates are so high that indexing would be a better decision anyway (with minimal commissions).
Index funds offer these two great benefits: they usually beat active managers in the long term, and the fees are lower than you imagine.
How do Contracts for Difference Work?
It is possible that you have found the term CFD now and then if you already registered on eToro. Before we explain what this is, we must say that CFDs on eToro are only possible if you are short-selling.
For your information, and in case you are considering day trading cryptocurrency and other advanced practices, below you will also find terms such as short-selling and leverage.
With CFDs you can operate on eToro even if you are not “in the black” or having a negative balance. In a hypothetical case: you believe that the IOTA will fall, so perhaps it is obvious to think “if it is going to depreciate or go down, I'll simply wait until it does”. But if you really consider that it's going down, why not making some profits?
You can do that by “going short”. More or less, this is how it works:
- You obtain from a loan 100 units of IOTA, with a total value of $ 5,000 (these numbers are imaginary)
- You make $ 5,000 by selling the 100 units
- The IOTA goes from $ 50 to $ 30 (as you presumed, the price decreases)
- You buy all 100 units one more time, but at the current price, $ 3,000
- Now you give back the 100 units
- There: the $ 2000 difference is yours
It is far more simple than it may seem. Just consider that by trading in IOTA on eToro, with CFDs you can make money if you foretell downs in the price.
Trading strategies
When trading cryptocurrencies, there are different possible methods or strategies, like buying and holding or day trading (and using market fluctuation in your favor), for naming just a few.
If you are just beginning in the world of investment, I recommend a middle point: when you open your IOTA position, set a dynamic stop loss 15-20% below the maximum price, and forget about the operation.
For instance, if you buy a cryptocurrency at $ 15, then it increases to $ 25 and falls again to $17, the stop-loss will allow your operation to be closed, maybe at $ 21 or $ 22. Thus, you will obtain a fine profit.
Perhaps you are wondering: why not selling when the cost is at its peak? But unless you are a psychic, that is just impossible. The mentioned strategy can work perfectly and is much more realistic.
Later on, you will be able to apply more complex strategies, like going short or using leverage.
How does a demo account work?
For those who still don't have much experience in investing, 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 portfolio can be a good way of gaining confidence before starting to operate with real funds. When you open your demo account, you will begin with a virtual amount of $ 100.000, to operate with a variety of assets available on the platform (not just with IOTA).
The first attempt is not usually that good. But you can ask eToro to deposit back the virtual funds to your account, and the second try you should do better.
Nevertheless, remember that you need to be prudent for trading, and demo account trading can have the opposite effect. It is completely different to risk your real savings than to trade with virtual funds that you don't mind losing. Also, using fake money can prevent you from learning to control your emotions, as a true investor should.
And of course, if you want to invest in the medium or long-term, with profits almost assured just by replicating an index, it doesn't make sense that you waste years investing in virtual mode. On the contrary, short or medium-term investments are ideal to try out with the demo mode.