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eToro, recommended online trading platform for those who are in Kenya and want to obtain Binance Coin
Why do we recommend it?
- It is uncomplicated and accessible
- Allows to imitate investment moves
- Admits “shorting” or short-selling
- You can leverage
- There are tons of possibilities for investments
Go to the official site in English: www.etoro.com/binance-coin
You should certainly consider eToro if you are interested in purchasing Binance Coin from Kenya.
This platform is well-known for making “social trading” a trend, a revolutionary form of investing in which traders can repeat the strategies of other investors who have been generating income for years.
eToro is very useful if you are still a beginner in trading. You can rest assured that you will be making a smart investment since the site duplicates those from subjects with a great deal of expertise. Additionally, in case you do have experience in investment, eToro pays you for sharing it.
It is also very convenient how accessible is the platform, excellent for beginners who are starting in the investment world.
How do Contracts for Difference Function?
It is possible that you have found the initials CFD repeatedly if you already accessed eToro. Before we explain what this is, we must say that CFDs on eToro are only possible if you go short.
FYI, and if you want to know about day trading cryptocurrency and other advanced operations, later on you will also find out about terms such as going short and leverage.
The good thing about eToro is that it allows you not only to bet “in the black”, but with CFDs you can also bet “in negative”. For instance, you believe that the Binance Coin will go down, so perhaps you think that the best thing to do is refrain from getting in until it does. But if it really falls, it might mean extra money for you.
You can do that by “going short”. Here's how it works ,roughly:
- They lend you, for example, 100 units of Binance Coin, which cost $ 5,000 (these are completely fictional numbers)
- You sell them at their market price, $ 5,000
- The price falls, as you calculated, and the unit of Binance Coin goes from $ 50 to $ 30
- You purchase all 100 units one more time, but at the current value, $ 3,000
- Now you give back the 100 units to whoever made the loan
- The rest is yours, so, you will have earned $ 2000
Consider that it sounds much more complex than it really is: we can just say that by trading in Binance Coin you can also make money if you anticipate the downs.
Trading strategies
When trading cryptocurrencies, there are different possible methods or strategies, like buying and holding or day trading (and using price volatility in your favor), for naming just a few.
My recommendation for those who are starting to trade is going halfway between the two options: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work.
For instance, if you purchase a cryptocurrency when it is worth $ 15, then it increases to $ 25 and decreases back to $17, the stop-loss will allow your operation to be closed, maybe at $ 21 or $ 22. Hence, you will get a pretty good income.
You may be wondering: why not selling back when the price is at its maximum? 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 if it is well applied.
Later on, you will be able to apply more sophisticated techniques, such as short-selling or using leverage.
Can you rely on eToro?
eToro is very meticulous with the data about past performances from traders, and its integrity has been tested once and again by independent organizations.
Legally, eToro fulfills all the strict regulations required by the European Union. Its head office is in Cyprus, where it is validated by the CySEC or Cyprus Securities Market Commission, which can cover up to € 20,000 of the debts from its clients, including those from Kenya.
In Europe, it is backed by the European Financial Instruments Market (MiFID), and in the USA it responds to the Financial Conduct Authority (FCA). In addition to all these regulations, you should know that eToro has more than 20 million users worldwide, and it has been operating for fifteen years. In short, we can be certain that our finances are safe.
No less important is their excellent customer service. You can use the online chat, and they also have a phone number available for assistance.
Demo account: How does it work?
For those who still don't have much experience in investing, a demo account can be very helpful. Just assure yourself that the virtual mode is set in the upper left corner of the page and you can start practicing with an “imaginary” amount.
A virtual account can be a good way of practicing before starting to trade with real funds. 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 only with Binance Coin).
The first attempt is not usually that good. But you can ask support to deposit back the virtual $ 100k to your account.
Take into account that investing is mostly about being cautious, and using a virtual account might have the opposite effect. It will never be the same as risking your own money.
As you may suppose, if you intend to invest in the medium or long-term, with profits almost assured only by duplicating a strategy, it doesn't make sense that you waste years investing in virtual mode. On the other hand, short or medium-term trading is ideal to try out with the demo mode.
eToro Interface
We said previously that eToro is very easy to manage. Anyone can start investing without previous experience or long explanations.
You won't have any problems with the interface if you are familiar with any other social network, like Instagram or Facebook.
We will talk about the sign-up process and the different tabs you will find on the platform.
You will have to provide some personal data when registering.
Also, you will have to answer some questions about your experience as an investor.
But don't feel intimidated, there is no right or wrong answer. The objective 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 page are.
In “Set Price Alerts”, you have, as its name indicates, the possibility to put alarms on the price of certain assets. It is a very useful tool for when you are after a security which price is decreasing, but it seems to you that it has not finished falling yet.
The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed before, the six types of instruments on eToro are:
- Cryptocurrencies
- Exchange-Traded Funds
- Stocks
- Commodities
- Currencies
- Index funds
In the tab “People” are all the profiles and historical performances of other investors, and you can replicate their strategies with just one click. This is where the “social trading” concept is best applied.
In this section, you will be able to search for those traders that you find more interesting. When you choose an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, in proportion. If you invest $ 1000 and the trader puts 20% of their funds in an asset, the platform will put $ 200 of your funds in the same asset as well.
You will also see the three main types of CopyPortfolios, which are “Top Trader”, “Market” and “Partner”.
The benefit of using CopyPortfolios instead of copying people is that this way you will diversify the risk. There are all kinds of portfolios that you can identify easily and are divided by sectors. Therefore, if you suspect a specific sector, like fashion or oil, will prosper in the future, you can look for that specific portfolio and invest in it.