How to buy Tron from New Zealand

Why we reccomend eToro for buying Tron from New Zealand?

Why do we recommend it?

1. It offers other successful investment strategies so you can copy them
2. Admits short-selling
3. It is straightforward and intuitive
4. eToro allows leverage
5. There are tons of products you can invest in

Homepage: www.etoro.com/tron

In case you are considering it, eToro is probably the best option nowadays to buy Tron from New Zealand.

“Social trading”, a relatively new investment method that consists in replicating techniques and strategies from other experienced investors, has become popular because of eToro.

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 replicates those from subjects with a great deal of expertise. Additionally, in case you are an investor, the platform pays for your knowledge.

Another thing to mention is how manageable the platform is, which turns out perfect for new users that are just learning all about the trading world.

Can you trust eToro?

eToro is very careful with the information about past performances from investors, and its integrity has been independently tested several times.

In the legal aspect, eToro fulfills all the strict regulations of the European Union. Specifically, its head office is in Cyprus, where it is certified by the Cyprus Securities Market Commission or CySEC, which protects up to € 20,000 of the debts from its clients, including those from New Zealand.

It is also backed by the European Financial Instruments Market or MiFID, and in the USA it responds to the Financial Conduct Authority (FCA). Besides all these regulations, eToro has worked for fifteen years, with more than 20 million users around the world, so we can rest assured that our funds are safe.

It is also worth mentioning the good functioning of its customer service. You can use the ticketing system, an online chat, and they also have a phone number available for assistance.

Payment methods on eToro

When it comes to depositing money on eToro, there isn't really much to say, since it is pretty simple. You only need to select “Deposit funds”, set an amount, and choose the payment option you prefer. You can use PayPal, bank transfer, credit card, Skrill, or Neteller.

Consider that for security policies, you need to be the holder of the credit card or the account.

The lowest amount you can deposit is $ 200, and there is a maximum authorized if you are not verified. Therefore, if you want to trade with higher amounts, contact Support beforehand to verify your account.

The platform accepts deposits in any currency, but you will have to pay a fee for the conversion to USD. That is why we suggest, if it is in your hands, depositing in USD from the beginning.

By the way, do you know what leverage is? Just in case, we'll define it simply:
another advantage of trading is that it allows you to invest more money than what you really have. That is, if you get in with $ 100 and you choose to leverage x2, the amount of your investment will be $ 200.

Leverage and the importance of “Take Profit” and “Stop Loss”

Let's say now that you know that Tron is going to rise, thus you want to take a long position.

You are certain that Tron will rise, but you only have $ 1,000 available. Despite that, why miss the opportunity to make more money?

You could consider requesting a credit, but you must know that all the process takes time, and when you receive the money, Tron might be already so expensive that trading wouldn't be convenient anymore.

Using leverage, you can obtain that amount of money with two clicks. It's exactly like borrowing money, but much better: you will get it from eToro, which allows you to invest much more than you have on the platform. As in the image below, you will see the different options you have:

Trading with other assets allows you to use more leverage. The reason is that leverage is most common in short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. Let's talk a bit more about how leverage works:

• If you decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 (remember that$ 1,000 are a “loan” from eToro). 
• Then, turns out that Tron does rises, as you thought, and now the cost of your investment is $ 2,400 (20% more), so you decide to sell back because you want to play it safe. 
• Once the $1,000 from leverage is deducted, you will have $ 1,400 left; which means the net profit is $ 400, since the other $1,000 was yours from the beginning.

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 intended and the asset increases, you will make money. On the contrary, if the price falls, you will also lose more money than you invested.

For example: if the price falls by 10%, you won't lose $ 10, but $ 20. For that reason, the terms “Take Profit” and “Stop Loss” are so important when using leverage.

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 bought Tron at $ 100, you can ask eToro to close once it reaches $ 120. That way, you make sure you won't change your mind and decide to keep waiting in case it keeps going up, which could make you lose it all.

Stop Loss is even more important, mostly when trading with leverage, since a small loss could be fatal for your wallet. For that reason, it is vital to establish a Stop Loss lower than that suggested by the broker.

Exchange-Traded Funds

ETFs or Exchange-Traded Funds are a kind of passively managed fund, similar to index funds. They can be described as a combination of stocks and mutual funds. They are traded in the market like stocks, during the day. However, their main benefit is that they offer more alternatives compared to stocks, and the rates are much lower than those of an actively managed fund.

Currency market

What is known as Forex trading consists in the trading of currencies. It is the conversion of one currency to another, and the aim is, evidently, to make a profit out of this.

For instance, in case you want to trade the EUR/USD pair, you speculate how many dollars it will take to buy a euro, expecting that after buying the first currency (the euro) it will revalue compared to the second (the dollar), to make a profit by selling it. Let's say you entered when a euro is worth 1.10 USD and you close when the price has gone up to 1.15: that margin is yours once you sell again.

You may be thinking by now that trading with currencies requires investing considerable amounts, and you are not wrong, because variations are usually minimal, and often you will need to use high leverage (which is an important 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 known currency pairs are available on eToro. Still, take into account that Forex works through CFDs, thus the underlying asset won't be yours.

Shares

The most popular financial instruments are stocks: these are fractions of publicly traded companies. It is possible to be a shareholder of a company and have returns, but you must know where and how to invest your money.

We could say that there are two basic types of stocks: those that pay dividends and those that do not. Those that pay, at the end of the fiscal year, distribute their profits among the stockholders; the latter, on the other hand, do not. But that doesn't mean that those of the second type have less to offer. If a company does not pay every year but has a lot of potential, it is also worth investing in it, since selling the shares in the future could pay a lot more.

When trading on eToro, if you invest in shares that give dividends, these will be deposited into your account, and you can withdraw your money or reinvest it. We recommend, if you don't need the money immediately, that you don't renounce the magic of compound interest and reinvest it in the company.

If you invest in stocks on eToro, you can use leverage to “dope” your trades. But 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.

Commodities or raw materials

Most investors trade with raw materials due to their stability. While other assets tend to fluctuate more, commodity prices vary less and offer security against inflation or market volatility. However, prices do depend on supply and demand, so if the fear of possible inflation provokes greater demand for a certain good, its cost will also go up.

Note that raw materials don't pay dividends. Therefore, the only potential further earnings would come from a sale of the asset.

Commodities are commonly categorized 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.

How do Contracts for Difference Function?

If you already browsed eToro, you must have noticed that the acronym CFD appears frequently. Before we explain what this is, we must say that CFDs on eToro are only possible when you short sell.

In case you are thinking about day trading cryptocurrency or other advanced practices, you will also find out about terms such as going short and leverage.

The advantage of eToro is that it allows you not only to bet when you are “in the black”, but with CFDs you can also bet “in red”. Let's say that you believe that the Tron will go down, so you clearly think “if it is going to depreciate, I'll simply wait until it does and then I'll go in”. Nevertheless, if you are convinced that it is going down, why not take advantage of that and earn money?

The operation known as “going short” will allow you to do that. It works, pretty much, this way:

• You obtain from a loan 100 units of Tron, valued at a total of $ 5,000 (these numbers are imaginary)
• You make $ 5,000 by selling the 100 units
• As you thought, it depreciates, and the unit of Tron now costs $ 30 instead of $ 50
• You purchase all 100 units once again, but at the current value, $ 3,000
• You pay back the 100 units
• The difference is yours, so, you will have made $ 2000

Take into account that it is much easier than it sounds: we can summarize this whole operation by saying that by trading in Tron you can also make money if you foretell the downs.

How to use eToro

We said before that eToro is very friendly and intuitive. Anyone can start using it without having to read endless explanations.

You won't have any problems with the interface if you are familiar with any other social network, like Linkedin or Twitter.

We will explain the registration process and the different sections that you will see.

You will have to provide some personal information (like full name or address, for instance) when registering.

During the sign-up process, you will also have to answer some questions about your previous investment activities.

But don't feel like you are taking an exam. They only intend to find out about your previous experience and knowledge to know which assets to recommend for you.

You will see a bar that says “incomplete profile” until you complete all the requested information.

Let's review the different functions of the page.

With the “Set Price Alerts” tool, you'll be able to program an alarm when an asset is at a certain price. This is perfect if you want to purchase an asset that is falling but you believe it will decrease more to a certain point.

The section “News Feed” allows users to interact and share their experiences and knowledge.

“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed in this guide, the financial instruments available on are:

• Cryptocurrencies
• Exchange-Traded Funds
• Shares
• Commodities
• Currencies
• Index funds

In “People”, you can find eToro users and their past performance. This is where the term “social trading” makes sense since you can replicate with just one click the movements of the traders that inspire you the most.

In this section, you will be able to search for those traders that you find more interesting. When you choose an investor and indicate how much money you want to invest, eToro will automatically replicate their movements, proportionally. For instance, 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 as well.

You will also see the three main types of CopyPortfolios, which are classified into “Top Trader”, “Market” and “Partner”.

Sometimes it might be better to copy from CopyPortfolios than to individuals, because the former offer more diversity. 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 sector is going to succeed anytime soon? Then you will surely find a CopyPortfolio about it.

Virtual portfolio

Are you taking your first steps as an investor? Using a demo account can be useful. You just need to set the virtual mode and you can start operating with fictional funds.

A virtual account can be a good way of practicing before starting to operate with real funds. When you open your demo account, you will begin with a virtual balance of $ 100.000, to trade with a variety of assets available on eToro, besides Tron.

If your performance is not that good and you lose your funds, there is always a possibility to replenish your virtual funds. Probably on the second try you will improve a lot.

Keep in mind that trading is mostly about being cautious, and perhaps a practice account can make you a bit impulsive. It will never be the same as risking your own money.

Finally, if you are interested in investing in the long or medium-term, there is no point in using the virtual mode and having to wait for years. On the other hand, it can be very useful if you want to practice short and medium-term investment.