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eToro, our reccomended broker for purchasing EOS from Australia
Why do we recommend it?
- There are lots of goods you can invest in
- Leverage is allowed
- User-friendly and simple
- You can copy investment tactics
- Allows short-selling
Homepage: www.etoro.com/eos
In case you are thinking about obtaining EOS from Australia, eToro is certainly the best way to do it.
eToro is known for making “social trading” a trend, a revolutionary form of investing in which users can imitate the movements of other traders who have been generating income for years.
If you are still a newbie or do not have much experience in investments, eToro is very helpful. You can rest assured that you are doing a smart investment move when replicating those from subjects with a long profit record. Oppositely, if you are an expert in the subject and want to share your knowledge with the community, eToro pays you for it.
Another advantage is how easy the platform is, which turns out perfect for new users that are just learning all about EOS.
eToro Interface
We mentioned before that one of the best things about eToro is that the platform is very friendly and easy to use. It isn't necessary to read a lot or have previous knowledge to start trading.
If you have used before any of the most popular social networks today, such as Whatsapp or Pinterest, you can perfectly manage this platform.
We will explain, roughly, the registration process and the different tabs that you will find on the platform.
You will have to fill in some information requested when registering.
Before you end up with the sign-up process, you will also have to answer some questions about your previous investment activities.
But don't worry: it is not an exam. 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 suggest that you invest in futures.
When you fill in all your information in your profile, the annoying “incomplete profile” bar will disappear.
Let's get to know the fundamental sections of the page.
In “Set Price Alerts”, you have, as its name says, the possibility to put alarms on the price of certain assets. It is a very useful tool for when you want to buy a security which price is decreasing, but it seems to you that it will decrease even more.
In the “News Feed” tab is the most social part of eToro: where users are interacting all the time and sharing opinions, tips, and other valuable information.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we mentioned in this guide, the types of financial instruments that eToro offers are:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Commodities
- Forex
- Index funds
The concept “social trading” makes sense in the section “People”: there, you can copy the trading strategies of any investor you choose with just one click.
Using the search bar, you can find the investors that you find more interesting: by average profits, market or risk level, for example. Just indicate the amount you want to invest and eToro will replicate the movements of the selected investor, in proportion. This means that if you have $ 1000 and the trader puts 10% in an asset, eToro will invest also 10% of your money (in this case $ 100) in that same asset.
Finally, there are three main types of CopyPortfolios: Top Trader, Market, and Partner.
The advantage of using CopyPortfolios instead of copying individual traders is that this way you will diversify the risk. The portfolios are identified so you can recognize them easily: 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 you will surely find a CopyPortfolio about it.
Can you rely on eToro?
eToro has been independently tested once and again to validate its integrity in the treatment of data from previous users and past performances. Every time, results have shown that eToro is very meticulous with the information.
The main headquarters of eToro is in Cyprus, and therefore the broker is approved by the Cyprus Securities Market Commission (or CySEC), which can cover up to € 20,000 from its client's debts, including those from Australia. Furthermore, eToro follows all the strict policies of the European Union.
It is also backed by the European Financial Instruments Market (MiFID), and in the USA it is under the control of the Financial Conduct Authority (FCA). In addition to all these regulations, eToro has more than 20 million users around the world, and it has been operating for the last fifteen years. To sum up, we can be certain that our money is in safe hands.
No less important is their excellent customer service. They have a phone number for assistance, a ticketing system, and a live chat.
In case you are not familiar with the term “leverage”, we'll put it short: it is, simply, the possibility to invest a higher amount than you actually have. For example, you can enter with $ 100, but if you leverage x2, your initial investment will be $ 200.
About leverage, Take Profit and Stop Loss
Suppose now that you know that the price of EOS is about to raise its price, thus you choose to take a long position.
You are completely sure that EOS will rise, but you can only invest $ 1,000. Despite that, why miss the opportunity to make more money?
Possibly, you could ask your bank for a loan, put something as a guarantee, wait for it to be accepted and receiving the money, send the money to eToro, confirm that it arrived, and then purchase EOS… Nevertheless, once you've managed doing all that, probably EOS would be already much higher (if your prediction got confirmed), and it wouldn't be a good idea to invest.
Thanks to leverage, you can obtain that amount of money with two clicks. It's like borrowing money, but much easier and quicker, and with the advantage that you will be getting it directly from eToro which will let you invest much more than you have on the wallet. It is simple, before investing you will see the different options as in the screenshot:
When trading with other kinds of assets you can use higher leverage. The reason is that cryptocurrencies are a value that is invested in the medium-long term. However, leverage is used primarily for short-term operations or day trading. Let's talk a bit more about how leverage works.
If you have the $ 1,000 and choose leverage x2, your investment is 2 * $ 1,000, that is to say, $ 2,000. eToro gives you the remaining amount to reach that figure.
A week after that, turns out that EOS goes up and now the value of your investment is 20% higher, which means, you have $ 2,400 in EOS. So, a wise decision is to sell them back now.
Obviously, the 1k $ from leverage will be deducted, and you'll have $ 1,400 left, of which $ 1000 was yours initially, so the net profit is $ 400.
As you can see, with $ 1000 you get $ 400 more, no less than a profit of 40%. That's not bad at all.
It may sound too good to be true. The trick is that the risk of losing out is also there. If everything goes as planned, you will earn more money in less time; but if the value of the asset goes down, you will also lose more in less time.
For example: if the price falls by 10%, you do not lose $ 10, but twice that figure, which means $ 20, because of the leverage. That is why to operate with leverage it is essential to know about Take Profit and Stop Loss.
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 EOS at $ 100, you can ask eToro to close once it reaches $ 120. That way, you make sure you won't change your mind and decide to keep waiting in case it keeps rising, which could be a mistake since the price could go down again really fast.
Stop Loss is even more important, particularly when trading with leverage, since a small loss could be tragic for your wallet. Take into account that eToro will recommend a limit for Stop Loss, but it is better to place it lower than that.
How to deposit funds on eToro
Within the payment options that eToro accepts you will find: bank transfer, PayPal, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Neteller, and Skrill. There is not much to explain here: making a deposit with eToro is really simple. You just have to go to “Deposit funds”, set an amount and choose the payment method you prefer.
Remember that for security policies, you need to be the owner of the credit card or the account.
The lowest amount is $ 200, and there is a maximum allowed if you are not verified. Therefore, in case you want to trade with larger sums, contact Support previously to verify your account.
Finally, remember that you can make the transfer in any currency because eToro converts it to USD, but charges a commission for it, so it is preferable to make the transfer directly in USD.
What's the difference between CFDs and futures?
How are CFDs and Futures different?
- Which are the counterparties? In the case of Futures, the counterparty is another investor. In CDFs, it’s the brokerage, in this case eToro
- Expiry date Futures expire in a variable given date. CFDs don’t expire
- Markets available for trading Futures include fewer options to trade. CFDs include a wide range of possibilities.
- Minimum investment 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 it is always possible.
Investment strategies
There are several cryptotrading methods: for instance, you can buy and hold, or you can day trade using volatility of the market to your advantage.
My recommendation for those who are starting to trade is something in the middle: when you open your position, place a stop-loss order 15-20% under the maximum price, and let the magic happen.
Therefore, if for example you acquire a cryptocurrency at $ 10, it reaches $ 20 and then falls to $ 12, your stop loss will take you out of the trade at $ 16-17 and you will have made a considerable profit.
Perhaps you are wondering: why not selling when the cost is at its highest? But unless you are a psychic, that is just not possible. The mentioned strategy can work perfectly and give good results.
Later on, you will be able to apply more sophisticated techniques, such as using leverage or going short.