Contents
eToro, a great brokerage for those in Egypt who want to obtain Tezos
Some of its advantages are:
- User-friendly and straightforward
- Allows to imitate investment tactics
- Allows you to go short
- eToro allows leverage
- You can make investments in thousands of other goods
Homepage: www.etoro.com/tezos
You should consider eToro if you are thinking about buying Tezos from Egypt.
eToro is famous for making “social trading” fashionable. Social trading is a revolutionary way of investing in which users can replicate the movements of other traders who have been generating profits over time.
eToro is very useful if you are still a novice user in trading, since it puts your investment on autopilot by replicating moves from experienced traders with a long profit history. On the other hand, if you are an expert in the field willing to share your techniques with others, eToro pays you for it.
It is also worth mentioning how accessible is this platform, ideal for new traders who are taking their first steps with Tezos.
Can you rely on eToro?
eToro is very rigorous with the information about past performances from traders, and its integrity has been tested once and again by independent organizations.
The main office of eToro is in Cyprus, and therefore the broker is approved by the Cyprus Securities Market Commission (or CySEC), which covers debts up to € 20,000 from its clients. On the other hand, eToro meets all the strict requirements of the European Union.
eToro is backed by the European Financial Instruments Market (MiFID) in Europe, and by the Financial Conduct Authority (FCA) in the USA. Apart from the above, it has a trajectory of fifteen years, with more than 20 million users all over the world. So, you can be sure that your money is safe.
Their excellent customer service is also worth mentioning. 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
When it comes to payment on eToro, there isn't really much to say, since it is really straightforward. You only need to select “Deposit funds”, type an amount, and choose the payment option you prefer. You can pay with PayPal, bank transfer, credit card, Skrill, or Neteller.
Evidently, for security policies, you need to be the holder of the account or the credit card.
The minimum amount allowed is $ 200, and there is a maximum limit for unverified accounts. So, if your intention is to deposit higher amounts, you will need to verify your account previously.
The platform accepts deposits in any currency, but you will have to pay a fee for the conversion to USD. That is why we suggest, if possible, using USD from the beginning.
What's the difference between CFDs and futures?
How are CFDs and Futures different?
- Which are the counterparties? With Futures, the counterparty is another investor. In CDFs, it’s the brokerage, in this case eToro
- When do they expire? Futures expire in a variable given date, while CFDs don’t expire
- 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” Costs for Futures are higher than costs for CFDs.
- Use of leverage With Futures, you can’t leverage; while with CFDs leverage is always available.
About Contracts for Difference
If you have entered eToro previously, you must have noticed that the acronym CFD appears repeatedly. Before we come back to it, we must say that CFDs on eToro are only possible when you are short-selling.
FYI, and if you want to know about day trading cryptocurrency or other practices, later on you will also find information about concepts like short-selling and leverage.
The good thing about eToro is that it allows you to bet both “in the black” and “in red”. In a hypothetical case: you are sure that the Tezos will fall, so you clearly 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”. However, if you are convinced that it is going down, why not take advantage of that?
You can do that by “going short”. More or less, it functions like this:
- You ask someone to lend you, for instance, 100 units of Tezos, which total price at that moment is $ 5,000 (these numbers aren't real)
- You make $ 5,000 by offering them at their price in the market
- The price falls, as you thought, and the unit of Tezos now costs $ 30 instead of $ 50
- You obtain the 100 units again, but at their current price, $ 3,000
- You return the 100 units
- The difference is yours, so, you will have made $ 2000
Consider that it is much easier than it sounds: we can just say that by trading in Tezos you can also earn money if you foretell the downs.
How does eToro work?
We said before that eToro is very friendly and intuitive. Anyone can start using it without previous experience or long explanations.
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 process and the different tabs that you will see.
You will have to fill in some information requested when registering.
During the sign-up process, you will also find some questions about your previous experience as an investor.
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 example, if you have never invested before, they will not suggest that you invest in futures.
When you finish filling in all the requested information, the “incomplete profile” bar will disappear.
Let's review the different tabs of the page.
“Set Price Alerts” allows you to put alarms on the price of certain securities. 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. It is a very useful tool for when you want to buy an asset which price is decreasing, but it seems to you that it will decrease even more.
The section “News Feed” allows users to interact and share their experiences and knowledge.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. As we mentioned previously, the different financial instruments available on are:
- Cryptocurrencies
- ETFs
- Shares
- Commodities
- Forex
- Index funds
The concept “social trading” comes to life in the section “People”: that is where you can copy the movements of any user you choose.
You will be able to search for those traders that you find more interesting. You can apply filters like risk level, average profits, or financial market. When you select an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, proportionally. If you have $ 1000 and the trader puts 20% of their funds in an asset, eToro will also invest 20% of your money in the same company or instrument, in this case, $ 200.
Finally, you will also see the CopyPortfolios divided into three main kinds: “Top Trader”, “Market” and “Partner”.
The advantage of using CopyPortfolios instead of copying particular investors is that this way the risk will be more diversified. There are all kinds of portfolios that you can find easily and are divided by sectors. Therefore, in case you think a specific sector, like biotechnology or healthcare, has good chances to succeed, you can find that specific portfolio and invest.
Trading strategies
There are different methods or ways for crypto trading, like day trading or buying and holding, for naming just a few.
If you are a beginner in the world of investment, our recommendation is something in between: when you open your Tezos position, set a stop-loss order 15-20% below the maximum price, and let the rest happen on its own.
For example, if you buy a cryptocurrency when its price is $ 15, it rises up 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.
You may be wondering: why not selling back when the cost is at its maximum? But that would only work for a psychic or a fortune-teller. The mentioned method is more down-to-earth and can work out perfectly.
At some point, you can take your first steps with advanced investment techniques, such as going short to profit from bear markets or using leverage.
Virtual portfolio
In case you do not have much experience as an investor, the possibility to operate in “demo” mode will be helpful. Setting a virtual account and trading with fictional funds is very simple.
A virtual portfolio can help you to practice and gain experience 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 (not just with Tezos).
If your trials don't go well and you lose your funds, there is always a possibility to replenish your virtual funds. The second time will always be better.
But keep in mind that investing is mostly about being prudent, and demo account trading can have the opposite effect. It is completely different to risk your own money than to do operations with virtual funds 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.
Evidently, the demo mode is kind of pointless if you want to trade in the medium or long-term, since you would be wasting years to see the outcome. Virtual accounts may be useful for trying out short or medium-term investments.