Contents
eToro, an advisable online broking platform for those who want to purchase EOS from Kenya
Advantages:
- It is possible to make investments in tons of other products
- eToro allows leverage
- User-friendly and simple
- Allows to copy investment strategies
- Allows “shorting” or short-selling
Main site: www.etoro.com/eos
You should definitely consider eToro in case you are interested in purchasing EOS from Kenya.
eToro is known for making “social trading” fashionable, an ingenious way of investing in which traders can emulate the moves of other investors who have been generating profits over time.
If you are a novice user or do not have much experience in investments, eToro is very useful. You can rest assured that you are making a smart investment since the site emulates those from subjects with a long profit record. Oppositely, if you are an expert in the field willing to share your knowledge with others, eToro pays you for it.
It is also very convenient how accessible is this platform, perfect for new traders who are starting with EOS.
How do Contracts for Difference Function?
You probably have found the term CFD repeatedly if you already registered on eToro. We will explain exactly what this means, but first, you should know that CFDs on eToro are only possible if you short sell.
We will also explain concepts such as short-selling and leverage, in case you are interested in day trading cryptocurrency or more advanced practices.
Even if you don't have a positive balance, you can still operate on eToro with CFDs. Let's say that you are sure that the EOS will go down, so perhaps you consider that it is better to wait until it does and then go in. But if you are convinced that it is going down, why not making some profits?
The practice known as “going short” will allow you to do that. It works, roughly, like this:
- You ask for a loan of, let's say, 100 units of EOS, which total price at that moment is $ 5,000 (obviously, these numbers are made imaginary)
- You sell the 100 units and earn $ 5,000
- The EOS goes from $ 50 to $ 30 (as you predicted, the value decreases)
- You buy the 100 units again, but at their current price, $ 3,000
- You return the 100 units to whoever loaned them to you
- The $ 2000 difference is yours
Take into account that it seems much more complex than it is: we can just say that by trading in EOS you can also make money if you foretell the downs.
What's the difference between CFDs and futures?
How are Futures and CFDs different?
- Who is the counterparty? With Futures, the counterparty is another trader. In CDFs, it’s the brokerage, in this case eToro
- Date of expiry Futures expire in a variable given date, while CFDs don’t expire
- Markets available for trading The market for Futures is narrower. With CFDs you can trade in several different markets.
- Minimum investment amount or “trade size” Being higher figures, Futures require, proportionally, lower costs. Costs for CFDs are a bit higher.
- Is it possible to leverage? With Futures, you can’t leverage; while with CFDs it is always possible.
Trading strategies
When trading cryptocurrencies, there are different possible methods or strategies, like buying and holding or day trading, for naming just a couple.
If you are just starting in the world of investment, I suggest a middle point: when you open your position, place a stop-loss order 15-20% under the maximum price, and let the magic happen.
For instance, if you buy a cryptocurrency when its price is $ 15, then it increases to $ 25 and falls back to $17, the stop-loss will close your position at $ 21 or $ 22. Therefore, you will obtain a good profit.
I know it's tempting to look to sell when the price is at its highest, but that is simply not possible. The mentioned strategy is much more down-to-earth and it can give great results.
Later on, you will be able to apply more complex strategies, like using leverage or going short to make money from bear markets.
eToro deposit methods
Within the payment methods accepted on eToro you will find: credit card, PayPal, bank transfer, Neteller, and Skrill. There is not much to say here: making a deposit with eToro is very easy. Just go to “Deposit funds”, type a number and choose your preferred method.
Remember that for security policies, you must be the owner of the credit card or the account.
The minimum amount required is $ 200, and there is a maximum limit for unverified accounts. Thus, if your intention is to deposit larger sums, you will need to verify your account previously.
Also, know that you can make the deposit in any currency you want because eToro will make the conversion to USD, but charges a commission for it, so it is preferable to make the transfer directly in USD.
How to use eToro
We mentioned previously that eToro is very friendly and intuitive. Anyone can start using it without having to read endless explanations.
If you have used any of the most popular social networks today, such as Instagram or Facebook, you can perfectly use eToro's interface.
We will talk about the sign-up process and the different sections of eToro that you should know.
First of all, you will have to enter all the information that eToro asks for: first and last name, address…
To complete your registration, you will have to answer some questions about your experience as an investor.
But don't feel like you are taking an exam. The only intention is to know more about you and determine which financial instruments they should suggest according to your knowledge and experience.
When you fill in all your information in your profile, the annoying “incomplete profile” bar will disappear.
Let's review the different functions of the platform.
With the “Set Price Alerts” tool, you'll be able to program an alert when a security is at a certain price. This is helpful if you want to purchase an asset and you are waiting for it to decrease.
“News Feed” is for social purposes. This is the section where users can share opinions and learn from each other.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed before, the different financial assets that eToro offers are:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Commodities
- Forex trading
- Index funds
In the section “People”, you can find eToro users and their performances. This is where “social trading” makes sense since you can duplicate the movements of the traders that you find most inspiring.
You will be able to search for those users that you find more interesting. When you choose 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, the platform will also invest 20% of your money in the same asset, in this case, $ 200.
You will also find the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
Remember that in some cases, you might prefer copying to CopyPortfolios than to individuals, because the former offer more diversity. There are all kinds of portfolios that you can recognize easily and are classified by sectors. Thus, in case you suspect a specific sector, like e-commerce or healthcare, will prosper in the future, you can find that specific portfolio and do your investment.