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eToro, recommended online broking platform for those who are in Nigeria and want to obtain Tron
Why do we recommend it?
- It takes techniques and moves from experienced traders so you can emulate them
- Accepts short-selling
- User-friendly and straightforward
- Leverage is allowed
- There are tons of possibilities for investments
Go to the official site in English: www.etoro.com/tron
If you are thinking about purchasing Tron from Nigeria, eToro may be the best option today.
“Social trading”, a relatively new form of investing by replicating techniques and strategies from other experienced investors, has become trendy because of eToro.
If you are still a rookie or do not have much investment experience, eToro is very helpful, since it puts your investment on automatic by imitating moves from those who have been doing it for years and making profits. On the contrary, if you are an expert in the field willing to share your techniques with other traders, eToro pays you for it.
Besides, the platform is so uncomplicated, great for a user who wants to begin in the Tron world, without ending up overwhelmed with tons of diagrams and numbers.
How does eToro work?
We mentioned previously that eToro is very easy to manage. Anyone can start investing without having to read endless explanations.
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 sections that you will find on the page.
You will have to fill in some information requested when registering.
To complete your registration, you will have to answer some questions about your experience at investing.
But don't feel intimidated, there is no right or wrong answer. They only intend to find out about your previous experience and knowledge to determine which financial instruments to recommend for you.
Let's get to know the fundamental sections of the site.
With the “Set Price Alerts” tool, you'll be able to program an alert when an asset is at a certain price. This is perfect if you want to purchase a security that is falling but you believe it will decrease even more.
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 mentioned before, the six types of instruments on eToro are:
- Cryptocurrencies
- ETFs
- Shares
- Commodities
- Currencies
- Index funds
The concept “social trading” makes sense within “People”: that is where you can replicate the strategies of any investor you choose with just one click.
In this section, you can search and find users according to your interests. You can search by risk level, financial instruments, profits or country, among other filters. When you select 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 put $ 200 of your funds in the same asset or company as well.
Lastly, you will also find the CopyPortfolios divided into three main kinds: “Top Trader”, “Market” and “Partner”.
Sometimes you might prefer copying to CopyPortfolios than to other users, since you avoid putting all your eggs in one basket, or in other words, risk is more diversified. The portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … You think that a certain sector is going to have success in the future? Then you will surely find a CopyPortfolio about it.
If you still don't know what “leverage” is, we'll describe it briefly: it is the possibility to use a higher amount than you actually have. For example, you can enter with $ 100, but if you use x2 leverage, you will be investing $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Assuming that, for example, you are positive that Tron is going up, and that you have $ 1,000 for “going long”, you must know that you have the option of investing more and making more money.
There's the possibility of asking for a loan at your bank or other financial company, but it is a process that takes time, and when you receive the money, Tron 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, and you will only have to click a few times to get it! eToro allows you to operate with much higher amounts than what you actually have on the platform. Before trading, you will be able to choose between the different leverage options as in the screenshot below:
Trading with other assets allows you to use higher leverage. Why? Because cryptocurrencies are usually medium-long term investments. However, leverage is used primarily for short-term operations or day trading. But let's see how leverage works.
If for your investment of $ 1,000, you 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 few days later, as you thought, Tron raises its price by 20% and your money has appreciated reaching $ 2,400. Ok, don't be greedy, it's time to sell.
You will have to give back the $ 1,000 of leverage and you will have made $ 400 (since the other $ 1,000 was your initial investment).
In conclusion, by investing $ 1000 and obtaining $ 400, your net profit would be 40%. That is quite good.
But there's always a downside. If all goes as you planned and the price rises, you will make money. On the opposite scenario, if the price falls, you will also lose more money really fast.
For instance: if the price falls by 10%, you do not lose $ 10, but $ 20. Therefore, when trading with leverage it is very important to know about Take Profit and Stop Loss.
Take Profit is the automatic sell order that is above the entry price: you buy Tron at $ 100 and you ask eToro to close your position as soon as the price reaches $ 120. It is very helpful to avoid being blinded by greed: we would all accept a 20% profit when making the investment, but when you reach that 20% it is easy to want some more and put yourself at risk of losing money. It's like you made sure now of not acting recklessly in the future.
On the other hand, when using leverage you should always use Stop Loss, because a small fall in the price of an asset can lead to a substantial loss. Take into account that eToro will recommend a limit for Stop Loss, but you should set it lower than that.
eToro payment methods
When it comes to depositing funds on eToro, there is not much to say, since it is really straightforward. Just click “Deposit funds”, type an amount, and choose your payment method. You can use PayPal (available for some countries), bank transfer, credit card, Skrill, or Neteller.
Evidently, for security policies, you need to be the owner of the account or the credit card.
The lowest amount is $ 200, and there is a maximum allowed if you are not verified, so if you want to trade with larger sums, you should verify your account previously.
Finally, remember that you can make the deposit in any currency since eToro will make the conversion to USD, but charges a commission for it, so it is better to make the transfer directly in USD.
What is an ETF?
What do you know about Exchange-traded funds or ETFs? They are similar to index funds and are known for combining the advantages of stocks and mutual funds, because they can be exchanged regularly at market price, but have much more investment possibilities and the fees are significantly lower.
Stocks
The most well-known financial instruments are stocks or shares: these are fractions of publicly traded corporations. It is possible to obtain a profit with the performance of third-party companies just by investing money in them. But, obviously, you have to know where to put it.
There are, essentially two kinds of stocks: the ones that payout at the end of every fiscal year to the investors, and those that don't. The former ones are great, obviously, but investing in the latter can be a good idea too since sometimes you can make even more money by selling the shares later.
If you invest in equities that pay out dividends, you will receive them into your account on eToro. Then, you can withdraw that money or you can choose to reinvest it. However, you can benefit a lot from compound interest, so we would suggest reinvesting in the company.
If you invest in stocks on eToro, you can use leverage to “dope” your trades. However, it is not advisable, since it would be a CFD and you would not receive dividends. On top of that, equities are usually long-term investments, and you have to pay commissions.
About ETFs
Exchange-Traded Funds or ETFs are a kind of passively managed fund, similar to index funds. They can be described as a merge between stocks and mutual funds, including the best features of both. They can be traded like regular stocks, but include a wide diversity of assets and have lower fees.
Commodity market
Most people invest in raw materials because of their stability. While other assets tend to fluctuate more, raw materials prices vary less and offer security against inflation or market volatility. However, 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.
Note that the only intended profit from the investment in raw materials will come from their further sale because these kinds of assets don't distribute dividends or pay interest.
Commodities can be classified into two main categories: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals, and oil; while the latter are agricultural goods, like sugar, coffee, corn, soy, among many others.
Investment strategies
There are lots of cryptotrading trategies: for example, you can buy and hold, or you can day trade using price fluctuations in your favor.
My suggestion for those who are beginning to invest is something in the middle: when you open your Tron position, set a dynamic stop loss 15-20% under the top price, and let the rest happen on its own.
Therefore, if for example you acquire a cryptocurrency at $ 10, it rises to $ 20 and then decreases to $ 12, your operation will be closed at $ 16-17 and you will have made a considerable profit.
I know it might sound more appealing to sell when the price is at its highest, but that is simply not possible. The above strategy is much more realistic and, well applied, it can work very well for you.
Eventually, you will be ready for using advanced trading techniques, such as using leverage or going short.
How does a virtual account work?
If you do not have much experience as an investor, the option to operate in “demo” mode may be useful. Setting a virtual account and trading with fictional funds is very simple.
This can be a great way of gaining experience and confidence before starting to trade with real funds. You will have an amount of $ 100.000 (“fake” or virtual, of course) to begin with, and you can trade with all the different instruments available on eToro, not only with Tron.
Don't worry, since if you lose all your virtual balance, you can contact support so they can add them back to your demo account and you can make a second attempt.
But remember that trading is mainly about being cautious, and using a demo account can have an adverse effect. It is completely different to risk your real savings than to do operations with virtual funds that you don't mind losing. Also, using fake money can prevent you from learning to control your emotions, as a true investor should.
And of course, if you are interested in trading in the long or medium-term, it makes no sense that you try the virtual mode and wait for years. But it can be ideal if you want to practice short and medium-term investment.