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eToro is an outstanding trading platform for those who are in Philippines and want to acquire Tron
Advantages:
- Allows to replicate investment tactics
- Allows you to short sell
- It's uncomplicated and easy to use
- Leverage is allowed
- There are tons of products you can invest in
Homepage: www.etoro.com/tron
You should consider eToro in case you are interested in investing in Tron from Philippines.
eToro is famous for making “social trading” fashionable. Social trading is a revolutionary form of investing in which traders can repeat the moves of other investors who have been making profits over time.
eToro is very helpful if you don't have much experience in trading. You can rest assured that you are making a smart investment since the site emulates those from subjects with a long profit record. Additionally, in case you are an investor, the platform pays for your knowledge.
Besides, this platform is completely intuitive, great for those who want to start in the Tron world, without stressing over tons of graphs and numbers.
How does eToro work?
We mentioned previously that eToro is very friendly and intuitive. Anyone can start investing without having to read endless explanations.
Everyone who has used social networks like Whatsapp or Facebook, knows enough to use eToro.
Let's talk about how to register and the different tabs you will find on the page.
First of all, you will have to fill in all the information that eToro asks for: first and last name, address…
During the sign-up process, you will also find some questions about your previous trade experience.
However, it is not like you are answering an exam. It is only a way of finding out how much knowledge you have and what type of assets they can suggest. For instance, if you have never invested before, they will not suggest that you invest in futures.
You will see a bar that says “incomplete profile” until you complete all the requested information.
Let's get to know the different sections of the interface.
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 buy a security that is falling but you believe it will decrease more to a certain point.
“News Feed” is for social purposes and interaction. This is the section where users can share opinions and information.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we discussed previously in this guide the kinds of assets on eToro:
- Cryptocurrencies
- Exchange-Traded Funds
- Stocks
- Raw materials
- Currencies
- Index funds
In the section “People” are all the profiles and historical performances of other investors, and you can replicate their strategies with just one click. This is where the “social trading” concept is best applied.
Through the search engine, you can find the users that you find more interesting: by average earnings, types of assets or risk level, for instance. You just have to type the amount of your investment and eToro itself will replicate the movements made by the investor you selected, in proportion. This means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will invest $ 100 of your balance in that asset.
Also, here you will see CopyPortfolios classified into three categories, Top Trader, Market, and Partner.
The benefit of using CopyPortfolios instead of copying individuals is that this way the risk will be 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 succeed in the future? Then look, because surely there is a CopyPortfolio about it.
Is eToro safe for purchasing Tron?
eToro is very meticulous with the data about past performances from users, and its integrity has been independently tested several times.
The main headquarters of eToro is in Cyprus, and the platform is approved by the CySEC or Cyprus Securities Market Commission, which covers debts up to € 20,000 from its clients, including those from Philippines. Furthermore, eToro follows all the strict policies of the European Union.
It is also supported by the European Financial Instruments Market or MiFID, and in the USA it is under the control of the Financial Conduct Authority (FCA). In addition to all these regulations, eToro has been active for fifteen years, with more than 20 million users, so we can rest assured that our money is in good hands.
Their customer service functions perfectly. You can use the ticketing system, an online chat, and they also have a phone number available for assistance.
If you haven't heard about the term “leverage”, we'll put it short: it is, simply, the possibility to use a higher amount than you actually have. That way, if you start with $ 100 and you use x2 leverage, you will be investing $ 200.
Why using leverage and how to do it
Let's pretend that you have complete certainty that Tron will raise its price, and you want to “go long”, but you only have $ 1,000 available. However, it is possible to put more and get higher profits.
Possibly, you could ask a financial company for a loan, put something as a guarantee, wait for it to be accepted and receiving the money, send the money to eToro, confirm that it arrived, and then purchase Tron… But by that moment it is likely that your prediction was confirmed already and Tron is at such a high value that it is not worth trading.
Leverage is like a loan, but it is only a few clicks away! eToro allows you to invest (and earn) much higher amounts than what you actually have on the platform's wallet. You will simply see the different options as in the screenshot:
With other assets, you can use more leverage. This is because cryptocurrencies are a value that is invested in the medium-long term, and leverage is used mainly for day trading or short-term operations. But let's see how leverage works:
- If you want to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 was “borrowed” from eToro).
- Then, turns out that Tron does increases, 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.
- The $ 1k of leverage will be deducted, and you will have $ 1,400 left; which means you've earned $ 400, since the other $1,000 was yours from the beginning.
In conclusion, by investing $ 1000 you can make a profit of 40% (in the case you earn $ 400). That is pretty decent.
Does it sound too good? The thing is, you can also lose. If everything goes as planned, you will earn profits in little time; but if the opposite occurs, you will also lose more really quickly.
Let's suppose that the price didn't increase by 20%, but it went down also by 20%, you won't lose $ 20 but double, $ 40. Because of that, the terms “Take Profit” and “Stop Loss” are fundamental 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 purchased Tron at $ 100, you program 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.
Also, if you use leverage you absolutely need to place a Stop Loss order (take into account that any small loss is greater with leverage). For that reason, it is essential to mark a Stop Loss lower than that suggested by eToro.
Payment methods on eToro
Among the payment methods available on eToro are: credit card, PayPal, bank transfer, Neteller, and Skrill. Depositing money on eToro is so simple: click “Deposit funds”, type the amount and choose your preferred method.
(Keep in mind that you must be the account or credit card owner, for security reasons).
The lowest amount you can deposit is $ 200, and there is a maximum authorized if you are not verified. Therefore, if you plan to operate with larger sums, you should verify your account first.
Finally, know 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's the difference between CFDs and futures?
Here are the most important differences between CFDs and Futures, in case you want to know more:
- Who is the counterparty? In the case of Futures, the counterparty is another investor. In CDFs, it’s the broker (eToro)
- Expiry date Futures expire in a variable given date. CFDs don’t expire
- Markets available for trading The market for Futures is narrower. CFDs include a wide range of possibilities.
- Minimum investment Being higher numbers, Futures require, proportionally, lower costs. Costs for CFDs are a bit higher.
- Is it possible to leverage? With Futures, it isn’t possible; while with CFDs it is.
About Contracts for Difference
You probably have found the acronym CFD now and then if you entered eToro before. We will come back to it, but first, you should know that cryptocurrency operations on eToro are only CFDs if you go short or use leverage above x2 (but this is not even available on eToro).
For the record, and if you are thinking about day trading cryptocurrency or other advanced practices, below you will also find out about concepts such as leverage and “going short”.
Even if you aren't “in the black”, you can still bet on eToro with CFDs. In a hypothetical case: you believe that the Tron will go down, so perhaps you consider that it is better to wait until it does and then go in. But if it actually falls, you can earn some money out of that.
You can accomplish that by “going short”. Basically, it works like this:
- You ask for a loan of, let's say, 100 units of Tron, which total price at the moment is $ 5,000 (these figures are made up)
- You sell the 100 units and earn $ 5,000
- The Tron devaluates from $ 50 to $ 30
- You purchase the 100 units again, but their total current value is now $ 3,000
- You return the 100 units to the person that loaned them to you
- You will have made $ 2000, since you keep the difference
It is really simple. Just consider that by trading in Tron on eToro, you can earn money when you anticipate downs.
Practice account
If you do not have much experience investing, you can start by practicing with a “demo” option. Setting a virtual account and operating with fictional funds is very easy.
This can be a great way of practicing before trading with real money. 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.
The first attempt is not usually that good. But you can ask eToro to deposit back the virtual $ 100k to your portfolio.
However, remember that you need to be prudent for trading, and demo account trading can have the opposite effect. It is not the same to risk your own money than to do operations with virtual funds which loss does not suppose any drama.
As you may suppose, if you are interested in trading in the long or medium-term, it makes no sense that you try the virtual mode and waste years waiting to see the results. On the other hand, it can be very useful if you want to practice short and medium-term investment.