Contents
eToro is an excellent broker for those who want to purchase Binance Coin from Nigeria
Why do we recommend it?
- There are uncountable possibilities for investments
- Leverage is allowed
- It is very user-friendly
- You are able to replicate investment moves
- Admits “shorting” or short-selling
Official page in English: www.etoro.com/binance-coin
In case you are interested in buying Binance Coin from Nigeria, eToro may be the best way to do it.
“Social trading”, an innovative investment method that consists in replicating techniques and strategies from other experienced investors, has become popular thanks to eToro.
If you are still a newbie or haven't gained much experience in investments, eToro is great for you, since it puts your investment on automatic by replicating moves from experienced traders with a long profit history. Also, in case you do have experience in investment, eToro pays you for sharing it with others.
Another advantage is how intuitive the platform is, which turns out perfect for new users that are just learning all about Binance Coin.
About ETFs
Have you heard about Exchange-traded funds? They are passively managed funds, known for merging the advantages of stocks and mutual funds: they can be exchanged at any moment in the market, but include a much wider diversity of assets and the rates are significantly lower.
Forex trading
What is known as Forex trading consists in the trading of currencies. It's the conversion between two currencies to make a profit through the operation.
In case you decide to exchange EUR and USD, you purchase euros at their price in dollars, with the expectation that after buying the first currency (the euro) it will raise its price compared to the second (the dollar), to make a profit by selling it. Suppose you entered when the price of one euro is 1.10 USD and you close when it reaches 1.15: that difference is yours once you sell again.
You may be thinking that this form of trading requires investing considerable amounts, and you are not wrong, since increases in prices are never that dramatic, and often you will need to use a lot of leverage (which is an important risk). If you are a novice in trading, it is not a good idea to begin with this market, because it's not the safest option.
You can operate with almost all well-known currency pairs on eToro but consider that this market works through CFDs, so the underlying asset won't be yours.
Commodity market
Most investors trade with raw materials because of their stability. While other assets present higher fluctuation, raw materials prices vary less and offer security against inflation or market volatility. Nevertheless, prices are subject to supply and demand, so if an economic situation provokes higher demand for a certain good, the price will also go up.
Take into account that raw materials don't pay dividends. Thus, the only potential further income would come from a future sale of the asset.
Commodities are generally classified into hard raw materials, which include precious metals as gold, silver, or copper, as well as industrial metals, and oil; and soft raw materials, which are agricultural goods, like soy, cocoa, corn, or rice, for instance.
By the way, do you know what leverage is? We'll put it simply:
trading allows you to invest higher figures than you can have in a given time. Let's say that you enter with $ 100 and you choose to leverage x2, you will be actually investing $ 200.
Leverage, Take Profit and Stop Loss
Let's pretend that you have complete certainty that Binance Coin will rise, and you want to “go long”, but you only have $ 1,000 available. However, you have the option of investing more money and get higher profits.
There's the possibility of requesting a credit at your bank or other financial company, but you must know that all the process takes time, and when you receive the money, Binance Coin might be already so expensive that trading wouldn't be convenient anymore.
With leverage, you can obtain that amount of money just by moving a finger. It's exactly like a loan, but much easier and quicker, and with the benefit that you will be getting it directly from eToro. It is simple, before investing you will see the different options as in the image below:
Within other markets, the ability to leverage is greater. 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. But let's see 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 would be “loaning” you the extra $ 1,000.
A couple of days later, as you predicted, Binance Coin increases by 20% and your money has appreciated reaching $ 2,400. But you don't want to take too much risk, so it's time to sell.
You will have to give back the $ 1,000 of leverage and the net profit would be $ 400 (since the other $ 1,000 was your initial investment).
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment.
Does it sound too good? The trick is that the risk of losing out also increases. If everything goes according to plan and the price goes up, you will make more money in less time; but if the value of the asset goes down, you will also lose more in less time.
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. Therefore, when using leverage it is very important 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 Binance Coin at $ 100, you can ask eToro to close once it reaches $ 120. That way, you make sure you won't be blinded by greed and decide to wait a bit longer in case it keeps rising, which could make you lose it all.
Stop Loss is even more necessary, mostly if you use leverage, since a reduced loss with leverage can have a significant impact. You always need to mark a Stop Loss lower than that suggested by the platform.
Can you trust eToro?
Many tests from independent consultants have been applied to the platform to certify its reliability in the treatment of data from previous users and past performances. Every time, it has been confirmed that eToro is rigorous with the information.
Legally, eToro fulfills all the strict regulations requested by the European Union. Specifically, its main offices are in Cyprus, where it is validated by the CySEC or Cyprus Securities Market Commission, which can cover up to € 20,000 of the debts that its clients may have with creditors, including those from Nigeria.
In Europe, it is backed by the European Financial Instruments Market or MiFID, and in the USA it responds to the Financial Conduct Authority (FCA). In addition to all these regulations, it should be mentioned that eToro has been active for fifteen years, with more than 20 million users, so we can be sure that our funds are safe.
Their customer service functions perfectly. They have a phone number for assistance, a ticket system to track any claim, and a live chat.
Payment methods on eToro
Within the payment options accepted on eToro you will find: bank transfer, PayPal, credit card, Neteller, and Skrill. There is not much to explain here: making a deposit with eToro is really simple. You just need to go to “Deposit funds”, set an amount and choose the payment method you prefer.
Consider that for security policies, you must be the owner of the credit card or the account.
The lowest amount you can deposit is $ 200, and there is a maximum authorized for unverified accounts. Therefore, in case you want to trade with higher amounts, contact Support previously to verify your account.
The platform accepts deposits or transfers in any currency, but you will have to pay a fee for the conversion to USD. So it is better to use USD from the beginning.
How does eToro work?
We said previously that eToro is very friendly and intuitive. Anyone can start using it without previous knowledge or long explanations.
Everyone who has used Twitter, Facebook or any of the most common social networks, has enough knowledge to use eToro.
Now we are going to detail the registration process and the different sections of the page that you should familiarize yourself with.
When you register, you will have to enter your personal data.
During the sign-up process, you will also find some questions about your previous trade experience.
But don't feel intimidated. The only intention is to know more about you and be clear about which financial instruments they should recommend 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. It is a very useful tool for when you are after a security that is falling, but it seems to you that it has not finished falling yet.
The section “News Feed” allows users to interact and share their experiences and knowledge.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed before, the financial instruments that eToro offers are:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Raw materials
- Forex trading
- Index funds
The concept “social trading” comes to life within “People”: there, you can duplicate the trading strategies of the users you find most inspiring with just one click. You'll be able to see all their profiles and performances.
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 have $ 1000 and the trader puts 20% of their funds in an asset, eToro will also invest 20% of your money in the same company or instrument, in this case, $ 200.
Finally, you will also find the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
Sometimes you might prefer copying to CopyPortfolios than to individuals, since you avoid putting all your eggs in one basket, or in other words, 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 will prosper in the future? Then you will surely find a CopyPortfolio about it.
Virtual account: How does it work?
In case you are beginning as an investor, you can start by practicing with a “demo” option. You just have to set the “virtual” option” in the upper left corner and your operations will be carried out with an imaginary balance.
This is a great tool for those who are new to this world and want to put their talents to the test before playing for real money. With your virtual account, you will begin with a $ 100,000 balance (which of course, is fake) to do all the operations that you can think of: not just with Binance Coin, you can also create a diverse portfolio with all the different assets that are available on eToro.
If your first attempts don't go well and you lose your funds, there is always a possibility to replenish your virtual balance. You'll probably do better on the second try.
But keep in mind that investing is mostly about being cautious, and demo account trading can have an adverse effect. It is not the same to risk your real savings than to operate with virtual funds that you don't mind losing.
Finally, if you are going to invest in the medium or long-term, with earnings almost assured only by duplicating an index, it is absurd that you invest in the virtual mode and wait for years. On the other hand, the virtual mode can be helpful to practice with short and medium-term investments.