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eToro, a reliable broker for those who want to buy Tether from India
Why do we recommend it?
- Very user-friendly and simple
- It offers other successful investment strategies so you can emulate them
- You can short sell
- eToro offers leverage
- Lets you make investments in plenty of different goods
Main site: www.etoro.com/tether
In case you are considering buying Tether from India, eToro may be the best way to do it.
This broker is well-known for making “social trading” a trend. Social trading is an ingenious way of investing in which users can imitate the movements of other traders who have been generating income for years.
If you are a beginner or haven't gained much experience in investments, eToro is very useful, since it automatizes your investment by imitating moves from those who have been doing it for years. And for those skilled investors willing to share their techniques, eToro pays for it.
Another thing to mention is how easy the interface is, which turns out perfect for new users that are learning all about the trading world.
If you still don't know what “leverage” is, we'll describe it briefly. When trading, it's the capacity of multiplying your investment by borrowing money from the broker. For example, you can enter with $ 100, but if you leverage x2, your initial investment will be $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Suppose now that you know that Tether is going to rise, therefore you decide “going long”.
You are positive that Tether will go up, and you have $ 1,000 at that moment, but the fact is, you have the chance of investing more.
You could consider asking for a loan at your bank, but you must know that all the process takes time, and by the moment you receive the money, Tether might be already at a much higher price, so you wouldn't be able to invest the way you planned.
Leverage is like a loan, but it is only a few clicks away! You will be able to invest (and earn) much more than what you have on the platform's wallet. Before trading, you will see the leverage options as in the screenshot:
With other assets, you can use more leverage. The reason: leverage is most common in short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. But let's see how this works in the practice:
- If you decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 (remember that$ 1,000 are a “loan” from eToro).
- Then, turns out that Tether does rises, as you assumed, and now the cost of your investment is $ 2,400 (20% higher), so you decide to sell back because you want to play it safe.
- Once the $ 1k from leverage is returned, you will have $ 1,400 left; which means the net profit is $ 400, since the other $1,000 was yours initially.
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment.
But there's always a drawback. If everything goes ok and the asset increases, you will make money. However, if the asset decreases, you will also lose more money than you invested.
For instance: if instead of increasing by 20%, the price falls by 10%, you won't lose $ 10, but twice (the leverage) that figure, that would be $ 20. For that reason, the concepts of Take Profit and Stop Loss are fundamental when trading with leverage.
Take Profit is a limit you can set when trading: you set the platform to sell your assets once they get to a point above the entry price. For instance, you can buy Tether at $ 100 and request that your position is closed automatically when it reaches $ 120. It is very helpful to avoid being blinded by greed: a 20% profit is usually very good, but once you see the price has risen, you might think you can make higher profits, which is not always the case. As a result, you might lose money if you don't close on time. So, Take Profit helps you to trade more safely.
Stop Loss is even more important, especially when trading with leverage, since a small loss could have a significant impact on your wallet. That is why it is essential to mark a Stop Loss lower than that suggested by the platform.
About ETFs
ETFs or Exchange-Traded Funds are similar to index funds. They can be described as a merge between stocks and mutual funds. They can be traded like regular stocks, but include a wide diversity of assets and have lower fees.
Stocks
Stocks or equities are the most common securities. Some corporations divide their capital into portions: you can be one of those shareowners, but first, you should know where and how to make your investment.
We can categorize stocks into two different kinds: the ones that divide their earnings regularly among the investors, and those that don't payout. The former ones are great, of course, but investing in the latter can be a good idea too since sometimes you can make even more money by selling the shares.
If you invest in equities that payout, you will receive the funds into your eToro account, and you can withdraw them or invest back. However, you can take advantage of compound interest, so we would suggest reinvesting in the company if you don't need the money immediately.
Remember that on eToro you can use leverage to “dope” your trades, but in that case, you will not receive returns as the trade is a CFD. For that reason, for long-term investments, it is better not to use leverage: you can end up not gaining at all, because you will not get dividends and also you will have to pay fees while your position is open.
Exchange-Traded Funds
What do you know about Exchange-traded funds? They are passively managed funds, known for merging the benefits of stocks and mutual funds, because they can be traded regularly at market price, but have much more investment possibilities and considerably lower fees.
Forex trading
Foreign exchange trading or Forex consists, as the name says, in the exchange of currencies. It is the conversion between a pair of currencies to make a profit through the operation.
In case you want to trade euros and dollars, you speculate how many dollars it will take to buy a euro, with the expectation that after buying the first currency (the euro) it will revalue compared to the second (the dollar), to make a profit by selling it. Assume you entered when a euro is worth 1.10 USD and you exit when a euro is worth 1.15: that margin is yours once you make the operation.
As you may have already inferred, this kind of trading requires investing a lot, because prices never increase that much, or using a lot of leverage, which is always a risk. Our advice for those starting in the world of trading is to choose another market to begin with, since Forex is risky and complex.
You can exchange with almost every currency on eToro but take into consideration that Forex works through CFDs, which means you will not be the owner of the real asset.
eToro payment methods
When it comes to depositing money on eToro, there is not much to say, since it is pretty simple. Just click “Deposit funds”, type an amount, and choose your payment method. You can pay with PayPal (available for some countries), bank transfer, credit card, Skrill, or Neteller.
Consider 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 authorized if you are not verified. Therefore, if you plan to operate with higher amounts, contact Support beforehand 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.
Can you rely on eToro?
Many independent tests have been applied to the platform to verify its reliability in the treatment of data from previous users and past performances. Every time, results have shown that eToro is rigorous with the information.
In the legal aspect, eToro complies with all the demanding regulations required by the European Union. Specifically, its head office is in Cyprus, and it is validated by the Cyprus Securities Market Commission or CySEC, which protects up to € 20,000 of the debts that its clients may have with creditors (those from India included).
In Europe, it is backed by the European Financial Instruments Market (MiFID), and in the USA it responds to the Financial Conduct Authority (FCA). Besides all these regulations, it should be mentioned that eToro has worked for fifteen years and that it has more than 20 million users, so we can be sure that our money is in good hands.
Finally, their customer service functions perfectly. You can reach them by phone or use their live chat.
Demo account: How does it work?
For those who still don't have much experience in investing, using a demo account can be very helpful. You just need to set the virtual mode and you can start practicing with an “imaginary” amount.
A virtual account can help you to practice and gain experience before starting to trade with real money. When you open your demo account, you will begin with a virtual amount of $ 100.000, to operate with a variety of financial instruments available on eToro (not just with Tether).
If your performance is not that good and you lose your funds, there is always a possibility to replenish your virtual funds. You'll probably do better on the second try.
Keep in mind that you should always be cold-minded when trading, and perhaps a virtual account can make you a bit impulsive. It is not the same to operate with your own money than with fake funds, which you can lose without a problem.
Finally, if you are interested in trading in the long or medium-term, it makes no sense that you try the demo mode and waste years waiting to see the results. On the other hand, it can be ideal if you want to practice short and medium-term investment.
How does eToro work?
We mentioned before that one of the best features of eToro is how simple it is. You don't need to read a lot or have previous knowledge to start investing.
You won't have any problems with the interface if you are familiar with any of the most common social networks.
We will explain the registration steps and the different tabs that you will see on eToro.
When you register, you will have to enter your personal data.
They will also ask you about your previous trade experience.
But don't feel intimidated. The only intention is to know more about you and determine which financial instruments they should suggest according to your knowledge and experience.
Let's see what the different sections of the platform are.
In “Set Price Alerts” you can put alarms 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.
In “News Feed”, investors interact and share valuable information.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. And we discussed previously in this guide the different financial instruments on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- Stocks
- Raw materials
- Forex
- Index funds
The term “social trading” comes to life within “People”: that is where you can replicate the movements of any user you choose with just one click. You'll be able to see all their profiles and historical performances.
You can search for those users that you find more interesting: by average profits, market or risk level, for instance. You just have to choose the amount you want to invest and eToro will replicate the movements made by the selected investor, in proportion. “In proportion” means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will invest $ 100 of your balance in that asset.
In this section you will also see the three main types of CopyPortfolios, which are Top Trader, Market, and Partner.
The advantage of using CopyPortfolios instead of copying people is that this way the 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 … Do you suspect that a certain industry is going to have success in the future? Then you will surely find a CopyPortfolio about it.