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eToro, an advisable broker for purchasing EOS from Ireland
Some of its benefits are:
- There are uncountable goods you can invest in
- eToro offers leverage
- Really intuitive and simple
- Allows to learn from other investment moves
- Accepts short-trading
Official homepage: www.etoro.com/eos
eToro is probably the best way to purchase EOS from Ireland.
“Social trading”, a relatively new investment method that consists in replicating techniques and moves from other experienced investors, has become popular because of eToro.
eToro is very useful if you are still a beginner in trading. You can rest assured that you are doing a smart investment move when replicating those from subjects with a long profit record. And for those skilled investors willing to share their techniques with others, eToro pays for it.
It is also worth mentioning how easy is the interface of the platform, excellent for beginners who are taking their first steps with EOS.
About ETFs
Have you heard about Exchange-traded funds or ETFs? They are passively managed funds, known for combining the benefits of stocks and mutual funds: they can be exchanged at any moment in the market, but have much more investment possibilities and considerably lower rates.
Commodity market
Most investors trade with raw materials because of their stability. While other assets tend to fluctuate more, commodity prices vary less and offer safety against inflation or market volatility. Nevertheless, prices do depend on supply and demand in the market, so if the fear of possible inflation provokes greater demand for a certain good, the price will also rise.
Remember that the only intended income from the investment in raw materials will be the hypothetical capital gain after the sale since, unlike stocks, these don't pay dividends.
There are two basic types of commodities: hard raw materials and soft raw materials. The former are precious metals (such as gold, silver, copper, and platinum), industrial metals (like aluminum, iron, or zinc), and oil; while the latter are agricultural goods as cocoa, soybeans, rice, or sugar, among many others.
Is eToro reliable for purchasing EOS?
eToro is very rigorous with the information about past performances from traders, and its integrity has been tested once and again by independent organizations.
In the legal aspect, eToro follows all the demanding regulations of the European Union, legislation in which it is found. Its head office is in Cyprus, and it is approved by the Cyprus Securities Market Commission (known as CySEC), which protects up to € 20,000 of the debts that its clients may have with creditors (those from Ireland included).
eToro is backed by the European Financial Instruments Market (MiFID), 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.
Their excellent customer service is also worth mentioning. You can contact them by phone or use their online chat.
How to deposit funds on eToro
Within the payment methods available on eToro are: credit card, PayPal, bank transfer, Neteller, and Skrill. Making a deposit on eToro is so simple: go to “Deposit funds”, choose an amount and the payment method you prefer.
Consider that for security reasons, you must be the holder of the account or the credit card.
The lowest amount is $ 200, and there is a maximum authorized for unverified accounts, so if you plan to operate with higher amounts, contact Support previously to verify your account.
eToro allows transfers in any currency, but charges a commission for making the conversion to USD. So it is better to use USD from the beginning.
Differences between futures and CFDs
How are Futures and CFDs different?
- Counterparty
- Futures: the counterparty is someone else, another trader.
- CFDs: you don't “play” with someone else, but the counterparty is the brokerage.
- Expiration date:
- Futures: they have an expiration date. When that moment arrives, the contract is closed even if you are in red.
- CFDs: they don't expire. It is possible to get back to a good position before closing.
- Trading options:
- Futures: very little variety
- CFDs: they include lots of different assets, commodities and currencies
- Minimum deposit:
- Futures: you need to enter with a higher amount
- CFDs: you can start with a lower minimum trade size
- Cost of trading and fees:
- Futures: as you have to invest more, costs are lower
- CFDs: higher (although they are not excessively high either)
- Leverage:
- Futures: it isn't possible to leverage
- CFDs: it is always possible to leverage
What are Contracts for Difference?
You probably have seen the acronym CFD all the time if you already registered on eToro. Before we explain this further, you must know that cryptocurrency trading on eToro is only CFD when you are short-selling.
If you are thinking about day trading cryptocurrency and other more advanced practices, you will also find concepts such as short-selling and leverage.
With CFDs you can operate on eToro even if you are “in red” or don't have a positive balance. In a hypothetical case: you believe that the EOS will go down, so you obviously think “if it is going to depreciate or go down in price, I'll just wait until it does and then I'll bet”. However, if you really consider that it's going down, why not making some profits?
The operation known as “going short” will allow you to do that. It functions, pretty much, like this:
- You ask for a loan of, let's say, 100 units of EOS, which cost $ 5,000 at the moment (these numbers aren't real)
- You make $ 5,000 by selling the 100 units
- The EOS devaluates from $ 50 to $ 30
- You purchase all 100 units one more time, but at the current value, $ 3,000
- You return the 100 units
- There: the $ 2000 difference is yours
Consider that it seems much more tricky than it really is: we can summarize this whole operation by saying that by trading in EOS you can also earn money if you predict the downs.
How to use eToro
We said previously that eToro is very friendly and intuitive. Anyone can start using it without having to read endless explanations.
If you are familiar with any of the most popular social networks today, you can perfectly manage eToro's interface.
Now we will detail the sign-up process and the different sections of the eToro interface that you should familiarize yourself with.
You will have to fill in some requested data when registering.
During the sign-up process, you will also have to answer some questions about your previous trade experience.
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 assets they can recommend. For instance, if it is your first experience in the investment world, they will not recommend that you invest in futures.
Let's review the different functions of the platform.
In “Set Price Alerts”, you have, as its name indicates, the option to set 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 alert. This is very helpful when you are after an asset that is falling, but perhaps you think that it will decrease even more.
In “News Feed”, traders interact and share opinions, tips, and other valuable information.
In “Discover” you will find the tabs: “Instruments”, “People” and “CopyPortfolios”. As we discussed in this guide, the different financial instruments available on are:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Commodities
- Forex trading
- Index funds
In “People” are all the profiles and historical performances of other users, and you can replicate their strategies with just one click. This is where the “social trading” term is best applied.
In this section, you will be able to find those traders that you find more interesting. You can search by risk level, trading market, profits or country, among other filters. When you select an investor and indicate how much you want to invest, eToro will automatically replicate their movements, proportionally. For example, if you invest $ 1000 and the trader puts 20% of their funds in an asset, eToro will put $ 200 of your balance in the same asset or company as well.
Lastly, you will also find the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
The benefit of using CopyPortfolios instead of copying people is that this way the risk is more diversified. There are all kinds of portfolios that you can find easily and are divided by sectors. Therefore, if you think a specific industry, such as biotechnology or oil, will have good incomes in the future, you can look for that specific portfolio and invest.
Trading strategies
When trading cryptocurrencies, there are different possible methods or strategies, such as day trading or buying and holding, for naming just a few.
In case you are new in the world of investment, our suggestion is a middle point: when you open your EOS 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 obtain a fine profit.
Perhaps you are 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 strategy is more down-to-earth and can work out perfectly.
Eventually, you will be prepared for using more advanced investment techniques, like using leverage or going short to profit from bear markets.
How does a demo account work?
In case you are taking your first steps as an investor, the option to operate in “demo” mode may be helpful. You just have to set the “virtual” option” in the upper left corner and you will be able to operate with “imaginary” funds.
A virtual portfolio can be a good way of gaining confidence before starting to trade with real funds. When you create your demo account, you will begin with a virtual amount of $ 100.000, to trade with a variety of assets available on eToro (not only with EOS).
Don't worry, since if you lose all your virtual funds, you can contact support so they can add them back to your portfolio and you can make a second attempt.
But remember that you need to be prudent for trading, and demo account trading can have the reverse effect. It is completely different to risk your real savings than to operate with a false balance that you don't mind losing. Besides, using fake money can prevent you from learning to control your emotions, as a true investor should.
Evidently, if you want to invest in the medium or long-term, with profits almost assured only by duplicating an index, it is absurd that you waste years investing in virtual mode. On the other hand, short and medium-term investments are ideal to try out with the virtual mode.