Contents
eToro is an outstanding broker for buying Gram from Kenya
Advantages:
- Allows you to invest in tons of other products
- eToro allows leverage
- It is really simple and user-friendly
- You can learn from other investment strategies
- You can short sell
Main site: www.etoro.com/gram
If you are considering obtaining Gram from Kenya, eToro may be the best option.
“Social trading”, a relatively new investment method that consists in replicating techniques and moves from other experienced investors, has become trendy thanks to eToro.
If you are a beginner or haven't gained much investment experience, eToro is very helpful, because it puts your investment on autopilot by repeating strategies from other experienced people with a long profit history. Also, in case you are an investor, the platform pays for your knowledge.
Another thing to mention is how manageable the interface is, which turns out perfect for new users that are learning all about the trading world.
About Contracts for Difference
It is possible that you have seen the acronym CFD all the time if you entered eToro before. We will explain exactly what this means, but first, you should know that cryptocurrency trading on eToro is only CFD if you go short.
If you want to know about day trading cryptocurrency or other operations, we will also explain concepts like short-selling and leverage.
eToro allows you not only to bet if you are “in the black”, but with CFDs you can also bet “in red”. Let's say that you have the conviction that the Gram will fall, so probably you think that it is better to wait until it does and then go in. However, if it really goes down, it is possible to make some profits out of that.
The operation known as “going short” will allow you to do that. It works, roughly, as it follows:
- You ask for a loan of, let's say, 100 units of Gram, which cost $ 5,000 at the moment (obviously, these figures are made imaginary)
- Then, you get $ 5,000 by offering them at their price at that moment
- As you thought, the price falls, and the unit of Gram now costs $ 30 instead of $ 50
- You purchase all 100 units once again, but at the current price, $ 3,000
- Then you return the 100 units to whoever made the loan
- The $ 2000 difference is yours
It all sounds more complex than it really is. Just keep in mind that by trading in Gram on eToro, you can earn money when you anticipate downs.
How are CFDs and futures different?
What are the differences between Futures and CFDs?
- Counterparties
- Futures: operations are made with another investor or trader.
- CFDs: the operations are not made with another individual, the counterparty is the brokerage, in this case, eToro.
- Date of expiration:
- Futures: they expire on a given date. As soon as that moment arrives, your position is closed even if you are in red.
- CFDs: there is no expiration date. It is possible to wait until you are in a good position to close.
- Variety:
- Futures: there are limited options for investment
- CFDs: they include lots of different assets, commodities and currencies
- Minimum investment amount or “trade size”:
- Futures: you need a larger initial investment
- CFDs: it is very low
- Trading costs and charges:
- Futures: as you have to invest more, rates are lower
- CFDs: costs are higher
- Possibility of leverage:
- Futures: it isn't possible to trade with leverage
- CFDs: existing and attainable
Trading strategies
There are different methods or ways for crypto trading, like day trading or buying and holding, for naming just a few.
My recommendation for those who are starting to invest is going for a middle point: placing a dynamic stop-loss (15-20% under the highest price) when you open your Gram operation and wait for it to work its magic.
Therefore, if for example you acquire a cryptocurrency at $ 10, it rises to $ 20, and after that it falls to $ 12, your operation will be closed at $ 16-17 and you will make a pretty good profit.
You may be wondering: why not selling back when the cost is at its peak? 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.
Eventually, you will be prepared for using advanced trading strategies, such as using leverage or going short.
Is eToro safe for purchasing Gram?
eToro has been tested by independent organizations once and again to prove its integrity in the treatment of data from previous users. Every time, it has been confirmed that eToro is rigorous with the information.
eToro complies with all the demanding regulations of the European Union. Its head office is in Cyprus, and 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, including those from Kenya.
eToro is backed by the European Financial Instruments Market (MiFID), and by the Financial Conduct Authority (FCA) in the USA. You should also know that it has a trajectory of fifteen years, with more than 20 million users around the world. So, you can be sure that your money is safe.
No less important is their excellent customer service. They have a phone number for assistance, a ticketing system, and a live chat.
Virtual portfolio: How does it work?
If you do not have much experience as an investor, you can start by practicing with a “demo” option. Setting a virtual account and operating with fictional funds is very simple.
A virtual portfolio can help you to practice and gain experience before starting to trade with real funds. When you create your demo account, you will begin with a virtual balance of $ 100.000, to operate with a variety of assets available on the platform (not only with Gram).
The first attempt is not usually that good. But you can ask support to deposit back the virtual funds to your portfolio, and the second time you should do better.
But keep in mind that investing is mainly about being cautious, and using a practice account can have an adverse effect. It is completely different to risk your own money than to trade with a fake balance that you don't mind losing. Also, using fake money can prevent you from learning to control your emotions, something you should be able to do when trading.
As you may suppose, if you are going to invest in the medium or long-term, with earnings almost assured just by duplicating a strategy, it is absurd that you waste years investing with a virtual account. On the contrary, you may be interested in the virtual mode if you want to practice with short and medium-term operations.
eToro Interface
As we have referred among the positive aspects of eToro, the best thing about this platform is its simplicity: anyone can trade without having to read endless explanatory texts.
You won't have any issues with the interface if you have used any other social network.
We will explain the registration steps and the different sections that you will see.
You will have to fill in some information requested when registering.
They will also ask you about your previous investment activities.
However, it is not like you are answering an exam. It is only a way of finding out 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.
You will see a bar that says “incomplete profile” until you complete all the requested information.
Let's get to know the fundamental sections of the site.
In “Set Price Alerts”, you have, as its name indicates, the possibility to put alerts on the price of certain securities. You only need 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 are after an asset that is falling, but perhaps you think that it has not finished falling yet.
The section “News Feed” allows users to interact and share their experiences and knowledge.
In “Discover” you will find: “Instruments”, “People” and “CopyPortfolios”. As we mentioned before, the six types of instruments on eToro are:
- Cryptocurrencies
- ETFs
- Shares
- Commodities
- Forex trading
- Index funds
The concept “social trading” comes to life in the section “People”: there, you can replicate the strategies of the best investors with just one click. You'll be able to see all their profiles and performances.
You can search for those users that best suit your interests: by risk level, types of financial instruments, average earnings… You just have to type the amount of your investment and eToro itself 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 investor puts 10% in an asset, the platform will invest also 10% of your money (in this case $ 100) in that same asset.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
In some cases, you might prefer copying to CopyPortfolios than to particular users, because you avoid putting all your eggs in one basket, or in other words, risk is more diversified. The portfolios are identified so you can recognize them easily: one about gaming, another about large drone companies, another about pharmacy … You think that a certain industry will prosper anytime soon? Then look, because surely there is a CopyPortfolio about it.