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eToro, recommended broker for obtaining Tether from New Zealand
Why do we recommend it?
- You are able to copy investment strategies
- Allows you to short sell
- Really user-friendly and simple
- Leverage is allowed
- There are lots of investment opportunities
Official homepage: www.etoro.com/tether
You should certainly consider eToro if you are thinking about acquiring Tether from New Zealand.
“Social trading”, an innovative investment method that consists in replicating techniques and moves from other experienced investors, has become trendy thanks to eToro.
eToro has solutions for you, especially if you don't have much experience in trading. You can rest assured that you will be making a smart investment since the site duplicates those from subjects with a long profit record. Also, in case you are an investor, the platform pays for your knowledge.
Besides, the interface of this platform is amazingly manageable, ideal for users who want to start in the Tether universe, without stressing over tons of diagrams and figures.
About ETFs
What do you know about Exchange-traded funds? They are passively managed funds, known for merging the advantages of stocks and mutual funds: they can be traded regularly at market price, but have much more variety and considerably lower fees.
Forex trading
Forex or currency trading allows obtaining profits by exchanging one currency for another.
If you decide to trade the EUR/USD pair, you purchase euros at their price in dollars, expecting that the euro will increase compared to the dollar. Therefore, if you purchased each euro at 1.15 USD and you sell them back when they are worth 1.20 USD, that margin will be yours.
You may be thinking by now that trading with currencies requires high investments, and you are not wrong, since fluctuations are usually minimal, and often you will need to use high leverage (which sometimes can be too much of a risk). Our advice for those starting in the world of trading is to choose another market to begin with, since Forex is not the safest.
The most common currency pairs are available on eToro but bear in mind that in Forex trading sales are made through contract for differences, therefore you will not be the owner of the real asset.
What are ETFs?
ETFs or Exchange-Traded Funds are similar to index funds. We can say that ETFs are halfway between stocks and funds: they can be traded like regular stocks, but include a wide diversity of assets and have lower fees.
Is eToro safe for purchasing Tether?
eToro has been tested by independent organizations once and again to prove its integrity in the handling of data from previous users. Every time, it has been confirmed that eToro is very meticulous with the information.
In the legal aspect, eToro complies with all the strict regulations requested by the European Union. Its head office is in Cyprus, and it is validated by the Cyprus Securities Market Commission (known as CySEC), which can cover up to € 20,000 of the debts that its clients may have with creditors (those from New Zealand included).
It is also supported by the European Financial Instruments Market (MiFID), and in the USA it responds to the Financial Conduct Authority (FCA). Besides all these regulations, eToro has more than 20 million users all over the world, and it has been operating for the last fifteen years. In short, we can be confident that our money is in safe hands.
No less important is their excellent customer service. You can use the online chat, and they also have a phone number available for assistance.
eToro deposit methods
Within the payment options that eToro accepts you will find: bank transfer, PayPal, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Neteller, and Skrill. Depositing money with eToro is so simple: go to “Deposit funds”, type a number and choose your preferred method.
Consider that for security reasons, you must be the holder of the credit card or the account.
You can start from $ 200, and if you are not verified you will have a maximum amount allowed. Thus, if you intend to operate with much more, you will need to verify your account previously.
You can pay in any currency and eToro will do the conversion to USD. But we suggest depositing directly in USD since the platform charges a commission.
How are CFDs and futures different?
How are CFDs and Futures different?
- Counterparties
- Futures: operations are made with another trader.
- CFDs: the counterparty is the broker (eToro). In other words: you don't “play” with someone else but with the bank.
- Date of expiry:
- Futures: they have an expiry date. Once the contract expires, it is closed and can't be reopened.
- CFDs: on the contrary, there is no expiration date. It is possible to wait until you rise up and then close.
- Variety:
- Futures: there are limited options for investment
- CFDs: there is an enormous amount of options for trading
- Minimum investment amount:
- Futures: very high minimum investment
- CFDs: you can start with a lower trade size
- Costs and rates:
- Futures: costs are usually lower
- CFDs: fees are higher
- Use of leverage:
- Futures: you can't leverage
- CFDs: totally available
About Contracts for Difference
It is possible that you have found the acronym CFD all the time if you already accessed eToro. Before we come back to this, we must say that cryptocurrency trading on the platform is only CFD when you short sell.
We will also refer to concepts like going short and leverage, in case you are interested in day trading cryptocurrency or other more advanced operations.
Even if you don't have a positive balance, you can still operate on eToro with CFDs. For example: you have the conviction that the Tether will go down, so you obviously think “if it is going to depreciate, I simply wait and I'll go in when it has gone down”. However, if it really falls, it might mean extra money for you.
You can do that by “going short”. Basically, it functions like this:
- You get from a loan 100 units of Tether, which cost $ 5,000 (these numbers are fictional)
- You sell the 100 units and earn $ 5,000
- The price falls, as you thought, and the unit of Tether goes from $ 50 to $ 30
- Again, you buy the 100 units, but at the current price, $ 3,000
- You give back the 100 units
- You will have made $ 2000, since you keep the difference
It is far more simple than it may seem. Just take into account that by trading in Tether on eToro, with CFDs you can make a profit if you anticipate downs in the price.
How to use eToro
We already said that one of the best features of eToro is that the platform is very intuitive and easy to use. It isn't necessary to read a lot or have previous knowledge to start trading.
You won't have any problems with the interface if you have used any of the most common social networks.
We will explain the registration steps and the different tabs that you will find.
When you register, you will have to fill in all the information that eToro asks for: first and last name, address…
To complete your profile, you will see that they ask you some questions about your experience at investing.
But don't feel like you are taking an exam. They only intend to find out how much you know and which financial instruments to recommend for you.
You will see a bar that says “incomplete profile” until you fill in all the information.
Let's see what the different sections of the page are.
In the “Set Price Alerts” tab you can set alerts 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 alert. This is very useful when you are after an asset that is falling, but it seems to you that it will decrease even more.
“News Feed” is for social purposes. This is the section where users can share opinions and information.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we already talked about the different financial instruments that are available on eToro:
- Cryptocurrencies
- ETFs
- Stocks
- Commodities
- Forex
- Index funds
The concept “social trading” makes sense within “People”: there, you can copy the movements of any investor you choose with just one click.
You will be able to find those users that you find more interesting. When you choose an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, proportionally. For instance, if you have $ 1000 and the user 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 see the three main types of CopyPortfolios, which are classified into “Top Trader”, “Market” and “Partner”.
The benefit of using CopyPortfolios instead of copying individuals is that this way you will diversify the risk. 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 anytime soon? Then look, because surely there is a CopyPortfolio about it.
Investment strategies
You can operate cryptocurrencies using several methods: for example, you can buy and hold, or you can day trade using price volatility in your favor.
If you don't have much experience trading, our recommendation is a middle point: when you open your Tether position, place a stop-loss 15-20% below the maximum price, and forget about the operation.
Therefore, if for example you purchase a cryptocurrency at $ 10, it reaches $ 20 and then falls to $ 12, your stop loss will take you out of the trade at $ 16-17 and you will have made a considerable profit.
It might sound more appealing to sell when the cost is at its maximum, right before corrections, but unless you're psychic, that's impossible. The above method is much more down-to-earth and, well applied, it can work very well for you.
Later on, you will be able to apply more sophisticated strategies, such as using leverage or going short.